SEPT. MAGS SCORECARD/10 USTR SCHWAB IN SPOTLIGHT/12Women’s Wear Daily • The Retailers’ Daily Newspaper • July 21, 2006 • $2.00

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Duff ’n StuffNEW YORK — Less than a year after signing a fragrance

deal with Elizabeth Arden, teen entrepreneur Hilary Duff

is bringing her fi rst scent to market this fall. With Love

Hilary Duff will enter 1,600 North American department

and specialty stores in late September and could do

upward of $30 million at retail, putting her in the company

of other celebrities-turned-perfumers Britney Spears and

Jennifer Lopez. For more, see page 5.

WWDFRIDAYBeauty

See Lauder, Page 4

Demsey to Be Named Fourth Group President At Estée Lauder Cos.By Julie NaughtonNEW YORK — The Estée Lauder Cos. is expected to announce today that John Demsey, global president for the Estée Lauder and MAC Cosmetics brands, has been named a group president for the worldwide beauty giant, effective immediately.

The promotion also gives Demsey a seat on Lauder’s executive committee, which voted late Wednesday to approve his appointment.

Demsey will continue to report to Dan Brestle, chief operating officer of the Estée Lauder Cos. Demsey joins three other group presidents at Lauder:

WWD.COM2 WWD, FRIDAY, JULY 21, 2006

GENERALJohn Demsey, global president for Estée Lauder and MAC Cosmetics brands, is expected to be named group president at the Estée Lauder Cos.

Boosted by strong results at its core brand, Charlotte Russe Holding posted robust third-quarter earnings on a 32 percent sales gain.

Coty Inc. has yet another new star in its crowded celebrity fi rmament: pop star Kylie Minogue, whose fi rst fragrance is due this fall.

Hilary Duff is hands-on in growing her product array and she’s really sticking her nose in the fall fragrance launch of With Love Hilary Duff.

The Shops at Columbus Circle has been a lightning rod for criticism since it opened here in June 2004, but many tenants are doing well.

Island Company is adding men’s swimwear, women’s accessories and women’s and men’s tops and shoes, looking to be a lifestyle brand.

Italy is reenergizing the “Made in Italy” brand image with a multidimensional approach, including a new $2 million public relations campaign.

Trade chief Susan Schwab is seen as well-suited to her new job, but faces stalled global trade talks and a lame-duck Bush administration.

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WWDFRIDAYBeauty

● DOLCE & GABBANA IN JAPAN: Dolce & Gabbana has snagged a Louis Vuitton executive to become the president of its Japanese subsidiary. Dolce & Gabbana tapped Nobuo Nagai as president and chief executive offi cer of Dolce & Gabbana Japan K.K. He will start his new position July 31, replacing Keizo Okumura, who left the company in the spring. Nagai will be based in Tokyo and will report to Cristiana Ruella, Dolce & Gabbana’s direc-tor of general affairs, and Alfonso Dolce, a board member and Domenico Dolce’s brother. Nagai was vice president of Louis Vuitton Japan, a post he held for two years. Previously, he held other positions at Vuitton and Prada.

SARA LEE’S BIG SPIN-OFF: Sara Lee Corp. said Thursday that it planned on borrowing $2.6 billion to spin off its apparel unit, which will be called Hanesbrands Inc. and will operate as a sepa-rate company. Sara Lee said in connection to the spin-off, it will be paid $2.4 billion from Hanesbrands Inc. For Sara Lee sharehold-ers, they will get all of the outstanding shares of the Hanesbrands common stock. Sara Lee said the shareholder distribution will be on a “pro rata and tax-free basis” and added that the “distribution ratio [is] to be determined shortly before the spin-off occurs.” The spin-off is expected to be done by early September.

In Brief

Classifi ed Advertisements.............................................................15

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“The most important thing — and I would like this to be my legacy — is to really create an incredible network service system.”— Diane von Furstenberg on her election as CFDA president

Quote of the Week

Mispelaere: The Face Behind ChloéPARIS — Don’t expect a new face to come out at the end of the Chloé runway during Paris Fashion Week this fall.

Yvan Mispelaere, a key member of the design team since the Janu ary resignation of designer Phoebe Philo, will take the bows next season, a Chloé spokesman said Thursday.

Mispelaere, in the midst of prepara-tions for the spring-summer 2007 show in October, also is being given credit for Chloé’s pre-spring collection, which the spokesman said was “well received” by the trade.

He declined to comment on whether a successor to Philo has been identifi ed.

Last season, a trio of designers — Mispelaere, Blue Farrier and Adrian Appiolazza — took the bows for a fall collection of loose smocks, silky blou-sons and boxy coats.

Sales at Chloé more than doubled last year, and parent Compagnie Fi-nancière Richemont has said the fi rm’s momentum has been unaffected by the departure of Philo and is growing “be-yond expectations.”

Philo, who helped catapult the brand with her feminine designs and coveted handbags, resigned to spend more time with her family and new baby, Maya.

— Miles Socha

Charlotte Russe Profi ts Soar in Quarter NEW YORK — Bolstered by a strong performance of its core brand, Charlotte Russe Holding Inc. posted robust earnings on a 32 percent increase in net sales for the third quarter.

Results also benefi ted from carving out most of the Rampage stores from the balance sheet and income statement. The company said last month it was selling its Rampage stores to Forever 21 for $14 million.

For the quarter ended June 24, net income swelled 79 percent to $5.9 million from $3.3 million, on sales that climbed to $163 mil-

lion from $123 million in the same quarter last year. Net income from continuing operations jumped to $8.8 million, or 36 cents a diluted share, from $3.5 million, or 15 cents, in the same period last year.

Same-store sales at Charlotte Russe stores showed an 18.2 per-cent gain in the quarter, which compares to a decrease of 2.5 percent for the third quarter of 2005. This marks the fourth con-secutive quarter that comps rose for the Charlotte Russe stores.

The young women’s specialty retailer said last month that it will sell 44 of its 64 Rampage

stores for $14 million, and convert four of the stores into Charlotte Russe locations. Twelve stores will go back to the landlords.

“This transaction, and the associated gain on sale, will be recognized in our fourth quarter ended September 20, 2006, with the 44-store transfer expected to be completed by the end of July 2006,” said Mark Hoffman, chief executive offi cer of the company, in a statement.

Charlotte Russe plans on open-ing 40 new stores for fi scal 2006 and at least 50 stores for 2007.

— Jeanine Poggi

LONDON — Burberry has been awarded $100,000 in damages in U.S. District Court in Manhattan in a trademark infringement case.

A judge ruled that Marco Leather, a New York-based leather goods company, had infringed Burberry’s trademark rights. The company charged that Marco Leather had imported more than 100,000 counterfeit Burberry goods, includ-ing wallets and handbags featuring the Burberry check and a take on the Burberry Prorsum knight. Marco Leather also tried to register a version of the knight and the iconic pattern as trademarks.

“This ruling marks an important milestone

for Burberry and for the luxury goods industry,” said Stuart Lockyear, the company’s director of intellectual property. “Burberry will not tolerate counterfeiting or abuse of its trademarks, and will always push for the maximum penalty.”

A representative of Marco leather declined comment, but Burberry said that the company refused to admit liability. In addition to paying London-based Burberry damages, Marco Leather was ordered to abandon its trademark applica-tion and to halt use of all design details deemed to be “confusingly similar” to Burberry’s.

— Nina Jones

By David Moin

NEW YORK — Federated Depart -ment Stores Inc. said Thursday that it sold four department stores to Target, coming closer to completing its strategy of divest-ing 80 duplicate locations stem-ming from its acquisition of May Depart ment Stores last year.

With this agreement, Feder-ated has announced buyers for 62 locations, leaving 18 more to be jettisoned. In the past two weeks, Federated also an-nounced deals to sell two major properties: the Filene’s fl agship in Boston to Vornado Realty Trust, and the Strawbridge’s store in Phila delphia to Penn-syl vania Real Es tate Investment Trust.

Target will purchase two Macy’s sites, in Coronado Cen ter, Albuquerque, N.M., and West-minster Mall, Westminster, Calif.; as well as a Robinsons-May in Glen dale Galleria, Glen dale, Calif., and a Strawbridge’s in the Springfi eld Mall, Springfi eld, Pa. The deal refl ects Target’s growing efforts to become more of a player at malls.

Details of the agreement were not disclosed be-cause the amount paid was not considered material to either party, though. Federated said proceeds from this transaction are included in the $400 mil-

lion to $500 million after-tax total expected from the sale of duplicate stores nationwide, as previously announced.

Federated is moving rapidly in its assimilation of the bulk of the May doors it purchased. It is still seeking to sell its brid-al group, which includes the David’s Bridal chain, and last month it sold off Lord & Taylor to NRDC Equity Partners. Aside from divestitures, the merger also entails converting about 400 former May doors to Macy’s. On Sept. 9, the 400 doors will all be called Macy’s and the corpo-ration will launch national ad-vertising. Federated’s sales in 2006 are expected to exceed $27

billion. By purchasing May, the company doubled in size, gained buying clout and moved into certain re-gions, such as the Midwest and Texas, where before it had a limited presence.

WWD previously reported that Federated was in negotiations to sell units to Target. Federated has also sold 10 stores to Boscov’s, the regional depart-ment store based in Reading, Pa., but most of the di-vested units have been sold to developers, including Westfi eld Group, which bought 15, The Macerich Co., which took 11, and General Growth Properties and Simon Property Group, which each took nine units.

Burberry Gets 100K in Trademark Dispute

Federated Sells 4 Sites to Target

Yvan Mispelaere

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Martin + Osa: A First LookBy David Moin

NEW YORK — Less than two months from opening its fi rst stores, American Eagle’s new re-tail concept, Martin + Osa, on Wednesday unveiled its fall collection’s “fusion” approach.

Executives said the collection transcends the merchandise sameness that plagues malls, and spotlighted items like “sweat chinos” and “denim metal ballerina skirts” to underscore the collection’s blend of classic styling, denim and active-sport attributes and innovative fabrications for comfort and tactile interest.

“No other brand fuses these sensibilities,” said Michele Donnan Martin, chief de-sign offi cer of women’s merchandise for Martin + Osa, which entertained a total of 500 suppliers, investors and reporters with drinks, fondue and merchandise vignettes on the top two fl oors of Sky Studios here.

“There’s an unusual amount of attention to detail, design, fabrication and fi t, but the price points are respectful of today’s consumer given all those elements,” said Arnold P. Cohen, chief marketing offi cer. Cohen, who formerly held top jobs with J. Crew, London Fog and J. Peterman, joined Martin + Osa, a division of American Eagle Outfi tters, early this year.

The fi rst Martin + Osa store is scheduled to open in Tysons Corner in McLean, Va. on Sept. 6. Four others will open this fall in NorthPark Center in Dallas, Newport Fashion Island in California, the San Francisco Center and the Woodfi eld Mall out-side Chicago. Ten more will be operating by fall 2007.

The sweat chinos, in cotton twill with heather gray drawstrings and waistbands and no outseams, are priced at $98, while the ballerina skirts, offering a rumpled look, are priced at $78.

Also featured were twinset variations including an $88 fl eece hoodie over a $68 silk charmeuse camisole; cotton-cashmere long jersey tanks for $38; stretch denim jeans with gingham pockets, priced at $108; nylon track chinos, $88, and cashmere fl annel pleated tennis skirts, $118.

Outerwear appeared plentiful, including army jackets with a shirt jacket attitude, $128; nylon track jackets and anoraks for $98; hunting-inspired waxed cotton water-repellent blazers, priced at $148, as well as thin nylon vests for $98.

Executives described the color palette as “clean American” citing blues, grays and whites with pops of bright colors, and said accessories are also important to the collection, with $98 mohair shawls and merino reversible beanies priced at $48. Sneakers from other brands will be a big part of the assortment.

Overall, the look is modern and clean. The price points are generally competitive with Banana Republic and J. Crew, and the brand targets men and women aged 30 and older.

Reaction to the collection was positive. “Any time you open up something new it is a risk, but they have certainly spent a lot of time and money studying the customer,” said Dan Schwarzwalder, senior managing director of Buckingham Capital Management. “They have enormous passion and enthusiasm for the brand and that’s important. I believe they will make it hap-pen. The merchandise looked good. I can’t wait to get the total feel of the environment when they open the stores.”

UBS upgraded American Eagle to “buy” from “neutral” on Thursday, citing confi dence in the back-to-school assortment, new initiatives such as Martin + Osa and the intimate apparel subbrand, called aerie, being launched this fall too, AE’s expanding online busi-ness and store remodels. UBS raised its price target on shares to $41 from $34. American Eagle closed at $32.93 Thursday on the NYSE.

A research note from analyst Margaret Mager of Goldman Sachs & Co. read: “While we were impressed with the creativity of the event, we also found the following incre-mental takeaways helpful: Management reiterated its plans to open 10 to 15 stores in fall of 2007, immediately after Labor Day. Stores will range in the 6,500- to 7,500- square-foot in size, and skew toward the low end of the range. Pricing is signifi cantly higher than the American Eagle concept. Where denim is 20 percent of American Eagle’s product mix, the company expects denim to be at or lower than this percentage at Martin + Osa.”

Mager also noted that AE maintained its guidance that Martin + Osa will be a 12 cent drag on earnings in 2006 versus 6 cents in 2005. “The concept will not become a meaningful growth driver for the company until 2008-2009 at the earliest. Until that time, we think fundamentals will continue to depend on the core American Eagle brand whose growth will primarily be a function of market share gains and same-

store sales growth,” Mager wrote.Martin + Osa executives have also said that they are devising quirky marketing

and a distinctive store design to support the merchandise. Ads will be humorous, imbued with the surreal notion of bringing elements of the outdoors indoors. The campaign includes a call for customers to be socially conscious by bringing in their old jeans to the stores to be distributed to charities.

Martin + Osa windows will be covered with wood and a strip of opaque blue glass, but there will be forms with the Martin + Osa look just by the entrances, which will be 18 feet wide and without doors to give a good view inside the store and provide a sense of openness.

The late Martin and Osa Johnson were an adventurous couple from Kansas who explored East and Central Africa, the South Pacifi c Islands and North Borneo and wrote books and cre-ated fi lms chronicling their travels. They studied the wildlife and the people of those regions.

— With contributions from Jeanine Poggi

COSTA GETS CLOSE: After lengthy — and sometimes public — negotiations, Francisco Costa, creative director of Calvin Klein Collection for women, is fi nally close to having a new contract. “It’s being fi nalized at the moment,” said a CKI spokesman.

Costa went public last February, saying he was in the midst of renegotiating his contract and was frustrated with CKI and Phillips-Van Heusen, as well as what some perceived to be a lack of commitment to the women’s collection. But in June, Costa received the Womenswear Designer of the Year award from the Council of Fashion Designers of America and a week later said, “My life has changed. I have a greater responsibility to push the brand even further.”

Meanwhile, the New York Post reported Wednesday that Calvin Klein decided not to renew a consulting agreement with the fi rm, but a CKI spokesman told WWD that Klein’s three-year contract with the house had ended back in February. “Mr. Klein had a three-year consulting contract with PVH in order to ensure a smooth transition,” the spokesman said. “As planned, the contract ended in February 2006. While PVH has a cordial relationship with Mr. Klein, Mr. Klein no longer has any formal relationship with the company.” However, Klein continues to gain fi nancially from the company’s success. As part of his deal, he is guaranteed an annual payment of

1.15 percent of worldwide wholesale sales of all merchandise bearing his label until 2018. Products bearing the Calvin Klein label generate global sales at retail of $4 billion annually.

Aside from those lucrative payments, what’s up next for Klein? The designer isn’t giving any interviews these days, but he’s said to be contemplating two new genres: writing a book on style or opening an art gallery.

AEFFE IN PLAY: Merchant bank San Paolo IMI Private Equity is preparing to sell its 20 percent stake in Aeffe SpA back to the Ferretti family, according to a banking source here. Aeffe’s spokeswoman could not be reached for comment at press time. San Paolo bought the stake in 2000, but it’s been looking for an exit strategy for more than a year. Aeffe’s original plan was to do an IPO, an idea that has since been scrapped. Over the years, Aeffe embarked on an acquisitions binge to buy Moschino in 1999 and Pollini in 2001. The company also has licensing deals with Narciso Rodriguez and Jean Paul Gaultier. Aeffe posts annual sales of about 250 million euros, or $313 million at current exchange.

SMITH TAKES PARIS: Paul Smith is set to make a bigger splash in Paris this November when he opens his second store, a 3,700-square-foot fl agship on the city’s Right Bank shopping thoroughfare, Rue du Faubourg Saint-Honoré. The space will carry the entire Paul Smith line, including women’s and men’s collections, and will boast Smith’s signature eccentric touches, such as a library and select pieces of furniture on

sale. Smith’s existing Paris store, which opened in 1993, is on the Left Bank’s Boulevard Raspail.

DE SOUZA’S NEW BEAT: Victor de Souza is joining the number of designers who moonlight. He’s just been tapped to head the design at Rushkin, the label founded by Godfrey Sowah and Chris Chea last season. While Rushkin’s fi rst season didn’t take off at retail, the co-founders are hoping to make more of a mark with de Souza, whose fi rst collection for the label will be for spring 2007. The line opens to the trade in mid-August, and the company targets upscale department and specialty stores with it. De Souza will continue to produce his namesake label, which he launched in 2002 and shows during New York Fashion Week.

TARGET ON THE RUN: Target turned to Bart Yasso, race and event director of Runner’s World magazine, who has fi nished 150 marathons, to help whip 150 of its employees into shape in time for Wednesday night’s Life Time Fitness Torchlight 5K in Minneapolis. As one of the magazine’s advertisers, the mega-chain wanted to boost staffers’ health, and the mag delivered by shipping out Yasso for an on-site pep talk at Target’s Minneapolis headquarters. In May, Yasso and RW’s lead nutritionist Liz Applegate tag-teamed the Target troops with running tips and a training run.

There are no fi nancial criteria for advertisers to score such personalized treatment, and the pub hopes to offer similar programs soon, an RW spokesman said.

Fashion Scoops

Martin + Osa’s premier collection

takes a fusion approach.

Down jacket with cashmere turtleneck.

Ken Pilot, president of Martin + Osa; Charles Donnan, chief design offi cer, men’s, his wife Michelle Donnan Martin and Arnold P. Cohen.

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WWD.COM3WWD, FRIDAY, JULY 21, 2006

Philip Shearer, Cedric Prouvé and Patrick Bousquet-Chavanne. A fourth slot was for-merly held by Brestle, who was named to his current role in December 2004. Shearer, Prouvé and Bousquet-Chavanne continue to report to William Lauder, president and chief executive officer of the Estée Lauder Cos.

His new title is a recognition of the innovative moves Demsey has made that have begun to transform the image of Lauder, while shaking up the prestige cosmetics sector. “This is an acknowledgment of John’s accomplishments — and recognition of what we expect from him in the future,” said Lauder, calling Demsey “an in-credibly creative manager.”

“John controls a lion’s share of our company’s business with the MAC and Lauder brands,” added Brestle, calling the appointment “a somewhat overdue recognition of a job well done.”

Demsey has been involved in the majority of the most high-profi le projects undertaken by the company recently — in-cluding the signing of Tom Ford to a beauty deal. At the time of that deal’s announcement in April 2005, Ford told WWD that he fi rst became acquainted with Demsey when leading the Gucci Group. “John and I met because I tried desperately to steal him seven years ago when we bought YSL Beauté,” Ford said at the time. “And I wasn’t able to succeed.”

Demsey also helped put together Sean “Diddy” Combs’ fragrance project, signed in May 2004. It has yielded a top-fi ve men’s fragrance this year, with a women’s scent ex-pected in 2007.

He has also recruited a strong roster of star power for his various brands, signing Gwyneth Paltrow to appear in Estée Lauder brand advertising, and also hiring a number of well-known celebrities for the MAC Cosmetics brand, in-cluding Catherine Deneuve, Diana Ross and Liza Minnelli, all of whom have designed limited-edition cosmetics for MAC. Demsey, who is chairman of the MAC AIDS Fund, has involved many celebrities — including Pamela Anderson, Boy George, L’il Kim, Eve and Chloë Sevigny — in that effort over the years, as well.

“John was instrumental in bringing Sean Combs and Tom Ford to the company,” said Brestle. “One of his talents is that he can look at the world landscape and see the opportunities — not all American ex-ecutives can do that. He also has a unique point of view, particularly in structuring. It was his idea to involve both MAC and Aramis in the Sean John brand [most of the creative work was done by MAC Cosmetics and Karyn Khoury of corporate fragrance development, with distribution done by the Aramis and Designer Fragrances division]

and in Tom Ford Beauty [where much of the operational work has been done by the Prescriptives brand]. He has brought, and will continue to bring, this type of thinking to the corporation.”

While Lauder said that he encourages all of the corporation’s executives to look for innovation, he acknowledged that Demsey — particularly with Sean John and Tom Ford Beauty — is particularly skilled at it. Discussing the synergistic opera-

tional structures Demsey helped establish with Tom Ford Beauty and Sean John, Lauder said that additional future deals would follow the integrated structure. “It’s an expe-dient, logical way to do business,” he said.

Demsey began his career on the retail side of the busi-ness, working in various executive roles at Bloomingdale’s, Macy’s and Saks Fifth Avenue, and also held executive posi-tions for the Borghese, Alexandra de Markoff and Lancaster brands. He joined the Estée Lauder Cos. in 1991 as vice president and West Coast fi eld sales manager for the Estée Lauder brand, fi nishing his fi rst stint on that brand in 1998 as senior vice president of sales and education for Estée Lauder USA and Canada. He took over MAC Cosmetics in April 1998, fi rst as general manager and then as president, and later was named global president of MAC. In January 2005, he added global president of the Estée Lauder brand to his responsibilities. In addition to MAC and Lauder brand duties, in February 2006 he was put in charge of Prescriptives Worldwide, Tom Ford Beauty and Sean John Fragrances, with these brands’ presidents and general man-agers also reporting to him.

“My number-one priority is to continue the evolution and the transformation of the Estée Lauder brand,” said Demsey. While he wouldn’t offer specifi cs, he said that there are a full slate of new innovations planned for the Lauder brand in the next year. He added that continuing MAC’s success and nurturing the Prescriptives, Sean John and Tom Ford Beauty brands are also of key importance.

Speaking of his tenure at Lauder, Demsey added, “I’ve been lucky enough to have been involved in doing lots of transformational things — I had seven years [solely] on Estée Lauder, seven years [solely] on MAC, and now work on both. It’s also been extraordinary to work on the Sean

John and Tom Ford brands. I have been given a number of amazing opportunities by the Lauders.” He said that he is particularly excited to be joining the board and giv-ing input on the company’s overall strategy.

Brestle agreed: “He’s very inquisitive and is always looking for the next opportunity. He is a young man with a bright future, and certainly one of our future talents.”

Continued from page one

4 WWD, FRIDAY, JULY 21, 2006

Lauder Appoints John Demsey Group President

NEW YORK — As the number of product launches escalates, so do the chances for fail-ure, prompting longtime industry consultant Suzanne Grayson to come up with a numerical system that she said will score a product’s po-tential for success.

Called Brand Audit, it’s a system designed either to gauge a new product’s chances, or to measure the potential for revitalization of an ex-isting brand by sizing up its strengths and weak-nesses versus the competition.

The system focuses on fi ve areas of the mar-keting mix: product, positioning, consumer ap-peal, competition and marketing potential. In addition, there are 29 subcategories of measure-ment, with numerical scores providing a weight-ed analysis. On a scale of 100, a score of 80 or more “indicates strong potential for success,” Grayson said. “Less than that demonstrates seri-ous need for improvement and [shows] exactly where those improvements should be made.”

Grayson, president of Grayson Associates, based in San Juan Capistrano, Calif., and New York, said that in her consulting experience, companies often rely on “narrowcast think-ing” when it comes to new product launches. Products often are based on technology, are conceived out of competitive pressure or come about simply to mark an anniversary of a pre-vious launch.

“Rarely is a new product concept put through the paces of the marketing mix to determine its true potential,” she stated. “And certainly, there is no disciplined methodology for evaluating a variety of new product ideas to assay which ones will have the best long-range potential. In addition, sagging products or brands may be put through the same system to uncover strategic weaknesses, or sometimes hidden strengths, to provide the basis for stimulating growth.”

— Pete Born

Grayson ProducesBrand Audit SystemNEW YORK — Coty Inc. has yet another new star in its

crowded celebrity firmament: pop star Kylie Minogue. Minogue, 38, has a broad-based following in Europe

and Australia. She began her career at age 11 as an actress on “Skyways,” a drama series in her native Australia, but is now better known as a singer. She released her fi rst single, a remake of the Sixties hit “Locomotion,” in 1987 as her TV series “Neighbours” became the highest-ranked program in the United Kingdom, and re-leased her eponymous fi rst album in July 1988. Her credits include nine albums and several dozen top 20 hits.

Her fi rst women’s fragrance is expected in late fall.

“Kylie has very high awareness and broad appeal — across age groups and genders,” said Bernd Beetz, chief executive offi cer of Coty Inc., in an interview earlier this week. “We’re very proud of our portfolio and have a nice coverage of target users across the spectrum, feel that Kylie will bring in addi-tional users of all ages with her fan base.”

Coty’s portfolio includes more than 35 designer, celebrity and lifestyle scent brands, including the fragrance licenses of David and Victoria Beckham, Sarah Jessica Parker and Jennifer Lopez.

Like the Beckhams’ fragrance collec-tion for Coty, Minogue’s scents are not yet slated for U.S. distribution. At launch, in November, Minogue’s line will be available in a handful of global markets, including Australia, Ireland and the U.K. It will roll out to broad distribution in Europe and Asia in spring 2007 and is slated to be carried in perfumery chains, department stores and drugstores. It will be supervised by Steve Mormoris, senior vice president of global marketing for Coty Beauty, a division of Coty Inc., who said that while the scent doesn’t have a defi nite U.S. launch date, it will likely be introduced here at some point.

He added that very targeted U.S. distribution is also being considered for the Beckham fragrance franchise.

“The Beckhams have a growing appeal and awareness in selective segments of the U.S.,” said Mormoris.

Financial terms of the deal were not disclosed and both executives refused to discuss them. However, it has been speculated that many of Coty’s celebrity deals are three- to fi ve-year contracts worth between $3 million and $5 million, or $1 million a year, and a royalty of 1 to

2 percent of sales.Beetz said Minogue’s collection will ini-

tially consist of a women’s fragrance and select ancillaries. Beetz declined to reveal whether a men’s fragrance, color cosmet-ics lineup or skin care collection might be added eventually. He wouldn’t comment on the perfumer, although sources said Firmenich would be producing the scent.

“We believe that Kylie’s fragrance will be one of the top fi ve over the next sev-eral years,” said Mormoris. “She appeals to three generations of women and men. She is one of the few celebrities who has maintained a positive outlook and escaped scandal. She has also overcome adversity [she is now in remission from breast can-cer, according to sources.]”

When asked about the fragrance’s name and its advertising, Beetz and Mormoris declined to discuss details. However, it’s quite possible that the collection may play on the name aware-ness the singer has built with her Love, Kylie brand name, which is used for Minogue’s lin-gerie (introduced in 2003 at Selfridges in the U.K.) and home decor projects — including

scented drawer liners and candles, which are available at kylieshop.com, Minogue’s e-commerce site.

Coty has leveraged the power of the Internet in pro-moting many of its other fragrances, and the Minogue col-lection is expected to follow that model. The pop star’s own Web site, kylie.com, may also become involved.

As far as her day job, singing, goes, Minogue will resume touring this fall — something she hasn’t done since May 2005.

— Julie Naughton

Coty Signs Kylie Minogue to Scent Deal

The Beauty Report

John Demsey

Kylie Minogue

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By Julie Naughton

NEW YORK — Hilary Duff ’s entrepreneurial style certainly is not hands-off. “I want to be a nose!” she said during an exclusive interview about her new fra-

grance, With Love Hilary Duff, coming this fall from Elizabeth Arden.And, apparently, she meant it. During the development process, the 18-year-old

entertainer-turned-budding-perfumer visited Quest’s New York laboratories, smelling more than 100 single notes before narrowing her choices down to 10, including amber. “I discovered that everything I really loved was [in] a warm Oriental,” she said.

That gave perfumers Rodrigo Flores-Roux and Stephen Nilsen a starting point for the juice. “I was doing a lot of this on tour, and they were sending me samples,” Duff remembered. “I would wear them, ask my sister and people on tour with me to wear them, and evaluate them — some didn’t last long enough, others didn’t have the right concentrations of notes. We ended up going through something like 115 changes before we settled on the fi nal scent, but it was worth it. It’s just what I wanted.”

Top notes are of mangosteen fruit and spices; the scent’s heart is also of mangosteen blossom and cocobolo wood, and its drydown includes amber milk and amber musk.

For Arden, Duff ’s appeal is obvious: She is expected to bring in the highly valued 15- to 24-year-old consumer, and indeed is seen by many in this age group — and their parents — as a role model. For Duff, the fragrance expands a growing portfolio of consumer goods that includes apparel, home decor and now beauty, putting her fi rmly on the road to a consumer products empire — the inception of which was an-nounced on her 18th birthday last September.

But while she’s obviously hoping for a top-ranked scent, Duff purposely avoided extensive competitive fragrance testing during the development process. “Everyone asks me, ‘What do you think of so-and-so’s fragrance?’ I say, honestly, I haven’t smelled most of them. I try not to pay attention, because I don’t want to feel like I have to go into a certain direction. I did look at vintage bottles, though — when I was younger, my grandmother had all of these perfume bottles sitting on her dresser, and they looked so pretty sitting together. I was inspired by that and by an antique citrine ring I have. It doesn’t look like a grandma bottle, but it’s timeless, sort of earthy and modern at the same time.” The faceted glass bottle is topped with a citrine-hued stone, and the juice is tinted the same shade.

The box design was inspired by robin’s egg blue decorative panels, accented with plum, that hang by Duff ’s bed. “My house is very Mediterranean/Mexican in feeling — there’s a lot of color. And I like to wear funky things.” Duff is so fond of the deep plum shade that she recently painted a wall in her sewing room that color, she said. And the box has another surprise: When the top is lifted, the inner box unfolds like a fl ower. “I can’t take credit for that,” said Duff, noting that her mother, Susan Duff, suggested it. “We thought it would be fun — it’s like, ‘Surprise!’ when you open it,” she said with a laugh.

With Love Hilary Duff is slated to enter 1,600 North American department and specialty stores doors in late September, noted Noreen Dodge, global vice president of marketing at Arden. Eaux de parfum in three sizes will be available: 1 oz. for $35, 1.7 oz. for $45 and 3.3 oz. for $55. A 0.13-oz. rollerball eau de parfum, priced $24, and a 5-oz. body lotion for $24 round out the Duff collection.

As with many fragrances targeting women in their teens and early twenties — With Love is designed to appeal chiefl y to 15- to 24-year-old females — the scent’s marketing plan will include a large dose of Internet and cell phone ads. “We want to speak directly to our target consumers where they are, and they are on the Internet and using their cell phones,” said Dodge. Two separate Web ads are planned, a 15-second spot and a 30-second version, she said. Prime time TV ads are also planned for holiday. Duff even plans a handful of personal appearances: “I’m a little nervous — what if no one shows up?” she said.

While neither Duff nor Dodge would discuss sales projections or advertising spending, industry sources estimated that With Love Hilary Duff will do upwards of $30 million at retail in its fi rst year on counter, and the advertising and promotional war chest is expected to top $10 million. That target would put Duff in the same vol-ume territory as Jennifer Lopez and Britney Spears.

Elsewhere in retail, Duff ’s tween apparel line, Stuff by Hilary Duff, is being sold by a variety of retailers, including Wal-Mart, Target, J.C. Penney, Kohl’s and K-Mart. A designer teen line is launching this fall, a junior line is expected for fall 2007, and home decor items are bowing soon. “I think college students will really go for

the decor stuff,” Duff said. “It’s an easy way to deck out a dorm room.” She’s also considering entering other beauty categories, such as color cosmetics and skin care, although not immediately. She said, “I am defi nitely interested. My bathroom is over-fl owing with products!”

For someone her age, it may seem unusual to hear how serious she is about philan-thropy. “All this stuff isn’t real,” she said of her glittering lifestyle. “You see all of these people that struggle so much and work so hard and they still don’t get ahead. I am so lucky to have the experiences that I am having. I think it is important to give back.”

And that means giving of herself rather than just money, as she does with Kids With a Cause for underprivileged children and the Make a Wish foundation for seri-ously ill children. Duff has also been involved with Hurricane Katrina relief efforts, and is planning a repeat visit to New Orleans in August. She also works with USA Harvest. “On my summer tour, we asked people who came to the concerts to bring canned food, and we got more than one million cans,” she said. “Mothers would come with their cars loaded. If you ask people to help, they do. I fi nd that inspiring. A lot of people think you have to give a lot of money or be famous to make a difference. You don’t. Everyone can make a difference if they try.”

Her charity efforts extend to the animal kingdom as well: Duff, a major dog lover, has four dogs, three of them adopted from rescue organizations. “I have two Pomeranians and two Chihuahuas,” she said. “My boyfriend [Good Charlotte frontman Joel Madden] has a pit bull, and my sister [actress and singer Haylie Duff] has a dog, too. I have small dogs, because I want to be able to bring them with me when I travel.”

In support of the cause, Duff recently designed a doggie T-shirt for Target, with all proceeds donated to Los Angeles-based animal organizations. “It’s unreal how many dogs get put down every day,” she said. “I want to adopt all of them.”

And how does she fi nd the energy for all of her assorted projects? “I sleep on airplanes!” And it’s a good thing. Duff is in preproduction on a fi lm called “Outward Blonde,” and the Duff sisters will star together in two additional movies: “Material Girls,” slated for release on Aug. 25, and “Foodfi ght,” which is planned for spring 2007. Older sister Haylie is also currently starring in the Broadway production of “Hairspray.” Hilary will introduce a new single with the launch of “Material Girl,” and her next album is expected later this year.

So, with all this going on, does Hilary want to do more fragrances? “Are you kid-ding? I’m already saying things like, ‘I’m ready to do my white fl oral now!’ ”

“I’m already saying things like, ‘I’m ready to do my white fl oral now! ”

— Hilary Duff

5WWD, FRIDAY, JULY 21, 2006

WWD.COM

Hilary Duff, Arden Ready Scent Launch

PARIS — The European Commission has banned 22 substances used in hair dyes, starting Dec. 1.

Among the substances listed are 4-hydroxyinole and solvent red 1.

Although some in the industry laud the decision, the 22 substances are said to rarely be found in hair dyes manufactured in the European Union.

The scientifi c committee advising the commission recommended the ban of the 22 substances following a study linking long-term use of certain hair dyes to a potential risk of bladder cancer. Hair-dye manufactur-ers had been asked to provide the commission with a fi le containing scientifi c proof that the substance does

not pose a risk to health. By the end of 2005, 115 such safety fi les were submitted.

The 22 hair-dye substances to be banned do not have submitted safety fi les.

European Commission vice president Günter Verheugen said, in a statement, “substances for which there is no proof that they are safe will disappear from the market. Our high safety standards not only protect EU consumers, they also give legal certainty to the European cosmetics industry.”

France’s industry watchdog, the Fédération des Industries de la Parfumerie, said in a statement that it supports the commission’s decision.

“Today, the commission confi rmed that these sub-stances may no longer be used in hair dyes,” said the federation in the statement. “Our industry rejoices in this confi rmation, which clarifi es the situation.”

However, a federation spokeswoman clarifi ed that the 22 substances to be banned are almost never used in hair dyes manufactured in Europe these days.

In 2004, the European Union’s hair dye market gen-erated 2.6 billion euros, or $3.25 billion at current ex-change rates, representing around 8 percent of over-all European cosmetics sales. More than 60 percent of EU women color their hair, six to eight times a year on average, according to the commission.

European Commission Bans 22 Hair Dye Substances

Hilary Duff with Scott Beattie, chairman and chief executive offi cer of Elizabeth Arden, and Ron Rolleston, Arden’s executive vice

president and chief marketing offi cer.

6 WWD, FRIDAY, JULY 21, 2006

The Beauty Report

L’Oréal Buys Stake In Distribution FirmNEW YORK — L’Oréal’s Professional Products Division has claimed a 30 percent stake in one of the nation’s leading distribution companies, Beauty Alliance International, as of July 14. The Tampa-based company services 115,000 salons nationwide.

According to David Craggs, president of the Professional Products Division, a unit of L’Oréal USA, the collaboration will allow both L’Oréal and BAI “to develop a very innovative partnership model for the future, dedicated to providing hairdressers with new, different and better experi-ences in areas such as education, merchandising and promotions and other salon services.”

One analyst sees the deal as insurance for L’Oréal, which may lose some of its muscle in Beauty Systems Group, the nation’s largest distributor, which re-cently sold 47.5 percent of its stake to a private investment fi rm. BSG is owned by Alberto-Culver Co.

The analyst added it was hard to speculate without knowing the terms of the BAI deal, but he added that L’Oréal may not be precluded from buying a stake in another distributor, or even a greater stake in BAI if the deal proves fruitful.

“They obviously think there is some synergy to grow in this industry, and the trends have been pretty darn weak from a scale perspective,” the analyst said.

In an industry where consolidation has cut the nationwide distributor count from 800 to 70, discovering new ways to go to business have been emerging in the past year.

Procter & Gamble has taken its Wella and Sebastian brands direct to salons, an approach the analyst said “they have had some struggles with.” L’Oréal, in turn, could follow in P&G’s footsteps or “try this approach,” he added.

According to Rick Goldberg, a salon industry veteran, L’Oréal’s move “puts out a warning shot” to the industry.

“L’Oréal’s [30 percent stake] isn’t great enough to be dominant, but it’s big enough to see how other manufacturers will respond. It’s a brilliant move, es-pecially if BSG starts de-emphasizing L’Oréal.”

— A.N.

NEW YORK — The Lucky Tiger brand, a 71-year-old men’s line sold in about 1,000 barbershops nationwide, is being adapted for the specialty store channel.

While the existing barbershop line will remain largely unchanged, six new Lucky Tiger products have been creat-ed, and will launch fi rst at nordstrom.com Aug. 7, followed by 39 Nordstrom doors in September.

Bruce Last, co-president of Lucky Tiger Mfg. Co., along with his sister, Stacey Last Rosen, refers to the two dif-ferent Lucky Tiger brands as “cousins.” He added that the “old-school” barber-shop version of Lucky Tiger has a “cult, rockabilly following” — consumers who are fans of products such as “butch wax and hair grease.” Meanwhile, the “new-school” line is designed to appeal to guys who use products “to look good for themselves and be well-groomed.”

The brother-sister team formed the Goldens Bridge, N.Y.-based company to market the new line of Lucky Tiger products. Industry sources estimate the fi rm could generate $1 million in fi rst-year retail sales.

The siblings also own a fi rm called At Last Naturals, which markets the Lucky Tiger bar-bershop line, a 30-item face and hair care col-lection, as well as a brand called Born Again, which is carried in about 3,000 natural prod-ucts stores such as Whole Foods, Wild Oats and GNC. At Last Naturals is based in Valhalla, N.Y., and has annual sales of about $3 million.

Last and Last Rosen fi rst started thinking about a new take on Lucky Tiger four years ago. “Men’s grooming has come around again,” said Last. “We felt Lucky Tiger was a strong brand and could capitalize” on growth trends in the men’s market.

The new Lucky Tiger line includes Face Wash, 8 oz. for $18; Face Scrub, 5 oz. for $19; Liquid Cream Shave, 5 oz. for $17; After Shave and Face Tonic, 8 oz. for $19; Face Moisturizer, 3.5 oz. for $28.50, and Eye Serum, 0.5 oz. for $28.50.

Each of the new products contains a minimum of three certifi ed organic ingredients, noted Last, and several of the items employ a blend of orange, tangerine and grapefruit essential oils. Extracts of aloe, green tea, calen-dula and chamomile are infused into formulations.

The products will be promoted through Nordstrom’s catalogue and at nordstrom.com. There also will be in-store visuals and sampling.

Future plans for the “new-school” version of Lucky Tiger include a trio of bath and body products called Head to Tail, which are slated to be launched next spring. Also, hair care products are planned for next year.

— Matthew W. Evans

Lucky Tiger Headed to Nordstrom

By Andrea Nagel

NEW YORK — In April, Jurlique, the Australia-based skin care brand, named former Bumble and bumble general man-ager, Eli Halliwell, to the post of chief ex-ecutive officer. At the same time, the es-timated $100 million company partnered with private equity firm JH Partners. The two moves for the niche skin care line, known for its regimen of gentle, natural products — particularly its Rosewater Freshener — are both aimed at growing Jurlique into a bigger brand, one loyal consumer at a time.

WWD: What’s your fi rst goal as ceo?Eli Halliwell: Our strategy is to bring the story of the brand to life in a way it hasn’t been brought to life in the past. We are going back to the roots of the brand from the origins of how we were founded and the values we were founded on. That’s the real strategy driving the whole busi-ness. Any venues and distribution chan-nels that we can leverage to help bring that message to life so people can un-derstand why they would want to buy Jurlique products or experience Jurlique products will be part of that.

WWD: What is Jurlique’s positioning?E.H.: We are a brand that was founded on the principles of living in harmony with our Earth and bringing the magic of na-ture into people’s lives on a daily basis through growing our own ingredients, planting our own seeds, bringing them to harvest and handpicking them. Having a handmade product that has a whole lot of love and care and effort going into it adds to the magic. We also leverage science in a way to really bring as much of the ef-fi cacy and potency of these ingredients to life to deliver specifi c benefi ts.

WWD: Are the products organic?E.H.: Our farms are certifi ed organic and certifi ed biodynamic. That’s how we grow all of our herbs.

WWD: Where is the organic market now, and where do you see it in fi ve years?E.H.: You are going to see massive growth in organic farming to meet consumer de-mand for food in the coming years. There already is a really broad, powerful net-work of organic producers for food and cosmetics.

WWD: What is Jurlique doing to keep up with this growth?E.H.:We are currently expanding our farm. We have an old farm that we have had for years that is 15 acres. And we now have a 150-acre farm that is in the process of receiving irrigation systems.

WWD: Is organic getting any respect in the U.S.?E.H.: America has fi nally caught up with the rest of the world. I think that is sig-nifi ed by Wal-Mart, which is the number-one retailer of organic milk in America, and possibly the world. The changes they are making at that company are indica-tive of a true populist trend where peo-ple are embracing values in a way they didn’t in the past. So [organic] has gone from being a niche concept to being much more mainstream.

WWD: How will the recent cash infusion brought on by the partnership with JH Partners be utilized?E.H.: We are always investing in our-selves and building a strong brand plat-form, so we will be spending on new branding and new training.

WWD: Is there anything you want to change about the company?E.H.: Every company goes through a

growth cycle and an evolution. Jurlique has gone from a founder-driven company to one that has an outside perspective and a professional management organi-zation. The transition always is diffi cult, in any company. As part of that, I am re-ally excited to help go back to the roots of the company and reconnect the current company with where we’ve been over the past 15 years.

WWD: What are your untapped markets?E.H.: There is a huge piece of the planet that we’re not in very strongly, and that’s Europe. We have amazing opportunity in the U.S., and an incredible following in Asia through our stores. Right now, Jurlique is sold in the spa channel [375 doors in the U.S.] and in [Jurlique] stores [14 in the U.S.]. We have one small test [in a department store] that we have been run-ning in the U.S., but it’s not going so well.

WWD: Where do you see the biggest op-portunity for growth?E.H.: We have such incredible customer loyalty that, for me, it’s just about ex-plaining the story. It isn’t a specifi c chan-nel or country; we have an amazing op-portunity here in the U.S., but we have just as much opportunity in Australia, where we are currently the number-two skin care brand [behind Clarins]. We are on the verge of becoming number one. [In terms of growth,] I think we will look at a bunch of different channel strategies, [Jurlique retail] stores included. But re-ally it’s about bringing the message to our people. I don’t feel like enough people understand our products, and as they become more informed, they’ll try it, and because our products are so effective, they’ll stay loyal customers.

WWD: Do you think growth will hurt the niche nature of the brand?E.H.: I don’t think it will. My personal philosophy on brands is that they are tied to the people of a company, and the cul-ture of a company is what really drives and creates a brand message. What we are working on right now is having our whole corporate culture go back to its roots. There’s a lot of training coming up. The better our people understand the roots of the organization, the better they are going to understand the story — and they’ll be able to tell it one person at a time. That’s how we are going to grow. It’s not going to be some massive “turn on the lights” and suddenly we’re huge.

Jurlique CEO to Grow Biz Slowly

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Eli Halliwell

Lucky Tiger Face Scrub and Face Wash

7WWD, FRIDAY, JULY 21, 2006

WWD.COM

Massage Envy Courts Busy WomenWEST WINDSOR, N.J. — A sign from a window in a power strip shopping center here announces the arrival of Massage Envy. The fast-growing fran-chise company of massages for the masses joins a Starbucks, a Verizon store, Five Below and ShopRite as some of the major traffic draws in the center.

What more could a busy woman want than a quick massage, followed by Starbucks and grocery shopping for the family?

Massage Envy might be a relatively new name in shopping centers, but according to the International Council of Shopping Centers, Massage Envy has been named one of the hottest retailers in America.

There are now 114 Massage Envy locations pump-ing out sales exceeding $9 million, primarily in open-air shopping centers near supermarkets. The chain is opening one to four locations per week, according to the company. The idea is to attract busy women who want a spa experience, but desire it at an affordable price and in a convenient locale. That’s just what founder and chief executive offi cer John Leonesio had in mind when he started the company in 2001.

“Massage is a 3,000-year-old business that has never been organized,” said Leonesio. “I know starting the Massage Envy concept now is the right program at the right time.”

Massage has truly hit the mass world, with estimates that it is almost an $11 billion industry, according to the American Massage Therapy Association. In the last year, 47 million American adults received a massage.

Headquartered in Scottsdale, Ariz., Massage Envy is making it easier for those stressed-out massage enthusiasts to get their fi x, while also attracting new visitors. Customers join Massage Envy much like they join health clubs. There are currently

more than 60,000 active members. Two-thousand reg-istered therapists perform more than 100,000 massag-es per month. What’s inviting about Massage Envy is that walk-ins are welcome, meaning patrons can pop in on impulse or to soothe aching muscles. Hours of operation make it easy for busy customers, with most units being open until 10 p.m.

Massage options include everything from Swedish, Trigger Point, Sports, Deep Tissue, Orthopedic, Neuromuscular, Lymphatic, Drainage, Myofascial Release, Prenatal, Pregnancy and Petrissage mas-sages. An introductory one-hour therapeutic massage session costs less than $40.

Despite the value pricing, the ambience is up-scale at Massage Envy, with well-appointed waiting areas and massage rooms. There is a retail aspect to Massage Envy, too. Some of the clinics offer candles, massage oils and robes.

Retailers that want to build sales of at-home spa products might want to consider locating next to ser-

vices such as Massage Envy. Customers who frequent these value massage spots may want to supplement with home products, too.

● ● ●Antonio Banderas was in New York City on June 28 with

wife Melanie Griffi th to offi cially launch his newest scent, Antonio, Antonio Banderas. Banderas was wearing another

fragrance popular in Spain that could be on Puig’s list to import to America. Puig is on a roll with Banderas, with the fi rst two scents winning FiFi’s. Antonio, Antonio Banderas is said to refl ect the “natural seduction” of its namesake. The new fra-grance launch follows on the success of Spirit Antonio Banderas and Spirit for Women. It is the fi rst of the line sold in America to feature Banderas’ image.

By Molly Prior

FORT LAUDERDALE, Fla. — The debate on how to fix the beleaguered mass market cosmetics category in-tensified this week, as retail buyers and beauty manu-facturers gathered at the Efficient Collaborative Retail Marketing’s Cosmetics & Fragrance Efficient Program Planning Session, held here July 19 to July 21.

Fresh on conference goers’ minds was Revlon’s recent announcement that several big-box retailers planned to cut distribution of Vital Radiance, the beauty fi rm’s new cosmetics brand for women older than 50, from a number of their doors.

But Revlon was not the only source of concern. Despite the onslaught of new product initiatives, mass market cosmetics sales ticked up a mere 1.4 percent year-to-date for the period ended June 18, according to Information Resources Inc. data, which excludes Wal-Mart.

“Revlon has a fi ve-year [turnaround] plan. If Vital Radiance had been successful, it could have been a three-year plan,” said William B. Chappell, an analyst with SunTrust Robinson Humphrey Capital Markets. As for whether the fl edgling brand sours Revlon’s re-lationship with retailers, Chappell said its distribu-tion partners likely will say, “Revlon took a shot, it didn’t work. Now let’s move on.”

All eyes are now on Revlon’s management team, and many observers are waiting to see if the compa-ny’s primary owner, Ronald Perelman, will call for new leadership. Chappell, however, doubts Perelman will revamp the current roster.

“This management team is leaps and bounds better” than its predecessors, said Chappell, adding that the com-pany’s previous management would not have been able to convince retailers to clear room for Vital Radiance.

During a conference call with analysts last week, Revlon president and chief executive offi cer Jack Stahl noted that Vital Radiance seems to resonate better in the food and drugstore channels — venues visited more frequently by Baby Boomers — than in mass retailers. However, as Revlon’s competitors pointed out, on average, big-box stores — such as Target and Wal-Mart — generate three times more sales per linear square foot than drugstores. So, in general, the loss of productivity in one big-box store roughly equals lost business in three drugstores.

Many beauty fi rms — a few of which lost display space this year as retailers made room for Vital Radiance, Almay and L’Oréal Paris’ HIP — grumbled that the megalaunches have failed to prove their worth. Several of Revlon’s competitors said the list of retailers ousting Vital Radiance from a portion of their chain include Wal-Mart, Target and CVS. These retailers could not be reached for comment. When it’s all said and done, industry sources estimate that

Vital Radiance could lose distribution in roughly 3,800 doors. Industry sources said Physicians Formula stands to benefi t from Vital Radiance’s lost space in Wal-Mart, and Coty Beauty’s Rimmel London brand may pick up the available space at Target.

Revlon started this year with gusto, gaining 22 per-cent of additional shelf space for Vital Radiance and its revamped Almay brand. Yet, the company’s sales trail behind. Revlon said it expects second-quarter sales to grow in the midsin-gle digits. It is not yet known how much of that 22 percent space gain Revlon will retain next year. Retail buyers also said Revlon plans to expand Vital Radiance with a skin care range due out this spring.

Vital Radiance is hitting its stride in several re-gional outlets, including Meijer, a chain of 173 stores in the Midwest, and Lewis Drugs, a drugstore chain based in Sioux Falls, S.D.

“We’re actually very happy with Vital Radiance,” said Mark Griffi n, president and ceo of Lewis Drugs. He noted that Lewis’ customers, who, for the most part, fi t Vital Radiance’s target demographic, have shown their willingness to buy premium price for [color] cosmetics that address their needs. “It’s a value perception that, so far, Revlon’s been able to pull off,” Griffi n added.

As for when new product programs should begin to hit their stride, Griffi n said: “Typically, we like to see them come out of the box strong. But you need to leave them in long enough if there is an initial [sales] lag. We’re patient, and I think that’s very key these days.”

A number of other retail executives surveyed said they can now gauge a success in a mere three months, down from a year time frame in years past. Almay is not immune to retailers’ growing impatience, either.

A cosmetics buyer from one leading drugstore chain said the retailer plans to trim Almay space’s from 6 feet to 4 feet next year. Several buy-

ers at the ECRM show also expressed disappointment about L’Oréal Paris’ HIP brand, originally positioned to retailers as the MAC Cosmetics of the mass market. Slower-than-expected sales have defl ated L’Oréal’s ex-pectations for HIP, said one cosmetics buyer. The buyer noted that L’Oréal had planned to build HIP into an 8-foot line by 2008. “I think L’Oréal has scaled back that request.” The line does appear to be gaining traction at Target, where industry sources said it’s already gener-ating an estimated $2 million in retail sales.

“Companies make mistakes. We all do,” said one beauty manufacturer. “It’s the size and the frequency of the mistakes that matter.”

ECRM: Retailers to Rethink Cosmetics Displays

GREAT WALL: Pantina, which is sold promotionally in some 5,000 drugstores, hopes to gain 2 feet of permanent display space next year. For retailers without space to give, Pantina has created a countertop display featuring its core items, including a blush

stick, lip gloss, eye shadow, tinted moisturizer and face shimmer powder. Its spring collection, dressed in pink packaging, includes two mineral makeup color palettes. Each $10 palette contains four eye shadow shades, blush and pressed powder. All Pantina mineral makeup products are free of talc, parabens, fragrance and preservatives, declared Wendy Chang, vice president of product development.

ACNE ACTION: American International Industries has built Bye Bye Blemish, a brand that it acquired a year ago, into a six-item skin care collection designed to prevent and treat acne. The collection, due to launch in January 2007, includes the existing Bye Bye Blemish Drying Lotion — billed as the star product — as well as Healing Minerals to reduce redness, Acne Control Gel, Daily Acne Repair, Clean Pore Peel and Anti-Acne Cleanser.

JESSE’S GIRL: CRL Marketing seeks to expand its color cosmetics brand, Jesse’s Girl. The whimsical line is currently sold in 700 Rite Aid doors, and expects to add another 100 doors within the drugstore chain by year’s end.

STICKY SITUATION: Vapon — the maker of TopStick Hairpiece tape for men — has turned its attention toward women with Fashion-Fix, a double-sided tape designed to prevent “wardrobe malfunctions.” Fashion-Fix, which contains 50 strips of tape for $7.99, launched in Sally Beauty Supply stores in May.

BAG APPEAL: E.L.F. Cosmetics wants to clean up the cosmetics bag business. The fi rm plans to introduced brightly patterned bags housed in acetate boxes, which make for easier, more attractive merchandising, said company chief executive offi cer Joseph Shamah. The bags, which range from $5 to $10 each, are slated to launch in the fourth quarter.

ADDING UP BEAUTY

SCENE & HEARD AT ECRM

Inside Massage Envy.

By Michelle Edgar

LAS VEGAS — Cosmoprof North America, which recently held its fourth annual convention from July 16-18 at the Mandalay Bay Convention Center here, attracted more than 25,000 visi-tors and 675 exhibitors from the spa, wellness, beauty, packaging and raw materials industries. While atten-dance was good, it was not up mark-edly from last year’s show, according to Laura Zaccagnini, general director of SoGeCos, the organizer of Cosmoprof.

To beef up attendance, next year’s show promises to expand on its most popular sector, Wellness, and cater to hotel spa managers, destination and resort spas, as well as dietary supple-ment manufacturers. The Wellness pavilion drew 500 exhibitors this year, nearly doubling last year’s exhibitor turnout.

“Since more and more people are looking to go to one place where they can fi nd all aspects, we’re thinking of a more holistic approach featuring ev-

erything from dietary supplements and vitamins to destination and day spas, so that the category will have a broader appeal,” said Zaccagnini.

Currently, the Wellness pavilion features professional skin care, spa equipment, and medi-spa supplies. Next year Cosmoprof plans to educate attendees by offering a broader range of classes on skin care products; nutri-tion and overall well-being, and busi-ness seminars featuring real estate in-vestors who are interested in opening wellness centers.

Cosmoprof, which caters mostly to domestic companies looking for export opportunities, brought together exhibi-tors and international buyers and dis-tributors. This year, however, there was an especially strong showing among in-ternational exhibitors, with 25 percent of exhibitors coming from abroad. Some first-time visiting countries included Jordan, Turkey, Austria, Egypt, Malaysia, Sweden, Singapore and the Philippines.

“Our show is much more diversi-fi ed, with a bigger variety of products in various categories from wellness [and] fragrance to skin care,” said Zaccagnini, who noted that Cosmoprof North America has grown from a do-

mestic trade show into an international exhibition. “We are looking to provide quality to our manufacturers and buy-ers as we match them to one another through our buyers’ program.”

Early next year, show organizers plan to expand even further with the Monaco Spa Event, which will be held Jan. 20-22.

“Any person who wants to know more about the spa industry can come to Monaco and get the full picture. They can come in contact with spa con-sultants, suppliers, engineers, interior designers, cosmetics, spa managers and architects,” said Zaccagnini. “We hope to bring this expertise from the Monaco trade show and put it at the wellness disposal of our U.S. show, which is fo-cused more on beauty and cosmetics.”

Next year, the North American glob-al beauty trade show plans to showcase exhibitors from countries known for being wellness destinations, such as Thailand. The government of Thailand,

Zaccagnini said, has already agreed to participate as a featured country in next year’s show.

In an effort to help European and American brands break into the China market, Cosmoprof will introduce its sixth show, Cosmoprof Shanghai, Jan. 31-Feb. 3. As the second trade show in China, Cosmoprof guarantees to prese-lect exhibitors, and it already has some 300 exhibitors lined up.

“The China market can represent a big opportunity for foreign brands, as long as the brands present themselves in the right setting. Chinese importers and end consumers have to know they’re getting the original brands from abroad and not counterfeit products,” said Zaccagnini. “It’s important to showcase brands and be able to say to major Chinese importers that ‘these are the real brands.’”

Next year’s Cosmoprof North America will be held July 15-17 in Las Vegas at the Mandalay Bay Convention Center.

“We’re thinking of a more holistic approach featuring everything from dietary supplements and vitamins to destination and day spas.”— Laura Zaccagnini, SoGeCos

8 WWD, FRIDAY, JULY 21, 2006

The HBA Report WWD.COM

Cosmoprof to Grow Wellness Sector

AWARDS FOR HAIR: Michael Gordon, founder and chief executive offi cer of Bumble and bumble, was presented with the North American Hairstyling Awards’ Lifetime Achievement Award Sunday night. Other awards went to Maureen Anlauf for Hairstylist of the Year, and Heather Wenman for Master Stylist of the Year. Carmen DePasquale,

founder and ceo of DePasquale Cos., was also inducted into the Hall of Leaders. This year’s show was hosted by “Dancing With the Stars” winner John O’Hurley, also known for his recurring role as J. Peterman on “Seinfeld.”

TONIGHT SHOW VISITS COSMOPROF: “The Tonight Show With Jay Leno” stopped by Cosmoprof to fi lm a segment featuring Alonzo Bodden of NBC’s “Last Comic Standing.” The segment is a comedian’s take on what Cosmoprof had to offer. The crew spent two days fi lming everything from backstage models and stylists at NAHA to visiting around 50 booths, including Woody’s, BettyBeauty and Natural Way’s Wax ’n Waxing.

BROCATO’S BEAUTY: Hairstylist Sam Brocato is relaunching his Blond line, reformulating it to be treatment-based, as

well as infusing it with proteins. “We’re making it more for people who are blonde by choice, rather than blonde by nature,” said Brocato. The company is also introducing four products in its Volume line: a shampoo, conditioner, treatment and spray. While Blond is scheduled to be in 3,000 salons in fall, Volume will be available in January.

IKKS LAUNCHES FRAGRANCES: Sportswear fashion company IKKS, known as a key European children’s fashion player, is launching a line of fragrances — Young Man, Little Woman and Baby — designed for infants to 16-year-old boys and girls. The fragrances range in price from $25 to $35. Both the boys’ and girls’ fragrances have fruity and spicy fl oral scents, with boys’ version having a woody aspect, while the girls’ is more fl owery.

NEW YORK — Several first-time inter-national exhibitors looked to make a splash at this year’s Cosmoprof North America beauty trade show in Las Vegas last weekend.

Known for its classic Agua de Colonia Concentrada, Alvarez Gómez is one of the oldest perfume houses in Spain, dat-ing all the way back to 1899. Its signa-ture cologne is composed of scents taken from Mediterranean plants, fl owers and fruits. The company is launching a new line of personal care products for chil-dren, as well as two “Balneario” spa collections, Aguavital and Aguacalma. Aguavital is designed to regenerate and hydrate with a fresh fragrance com-posed of shea nut butter, carrot oils, avo-cado, wheat germ and vegetable extracts like Indian pennywort and mimosa. Aguacalma, for its part, nourishes the skin with ingredients including grape-seed oil, ginkgo biloba vegetable extract and pennywort.

The spa collections, ranging from $5 for the lip balm to $25 for the fragrance spray and Regenerating Shea Nut Body Butter, will launch this fall in more than 2,000 doors in Italy, Ireland, Ecuador and Portugal, as well as in the Alvarez Gómez’s fi ve freestanding boutiques in Madrid.

Another Spanish company making waves at this year’s show is Alvi Olor, founded in 1983 and known for its nat-ural, handmade line of bath and home fragrances. Each of the six lines features its own scents for different moods and atmospheres, including “relaxing,” “pas-sion,” “energizing,” “calming,” “ocean” and “harmony.”

In the hair care category, a new curl-ing technique, Curlformers, was intro-duced by British company Hair Flair Ltd. Curlformers vary in size, length and width to provide options. For instance, a Curlformers Hook allows users to take a strand of hair and slide it through the Curlformer. The company also devel-oped four styling products in the Wet Goods range to help keep curls intact, including soft hold cream Stay Loose, holding gel Hold Tight, holding styling spray Spray & Style and hair spray Hold & Shine. The products range in price from $10 to $20.

From Brazil’s Rio de Janeiro comes Plumas & Gemas, a bath, body and skin care collection composed of rainfor-est botanicals, butters, oils, herbs and therapeutic clays. Each of the line’s four ranges contains a specific fra-grance. Baptism is a sensual, oriental fl oral scent with warm and sweet un-dertones, while Jungle has a woody fragrance with undertones of fresh tropical fl owers. Coconut Water is a fresh, fl oral scent with undertones of exotic fruit, and White Amazonian Clay is composed of exotic spices and thera-peutic herbs and teas with more of an earthy fragrance.

— M.E.

International Brands Eyeing Distribution

Cosmoprof

SNIPPETS

Attendees walk the fl oor at Cosmoprof.

WWD.COM9WWD, FRIDAY, JULY 21, 2006

By Sharon Edelson

NEW YORK — The Shops at Columbus Circle has been a lightning rod for scrutiny since opening here in 2004.

In this most vertical of cities, vertical malls have struggled, and the Shops was viewed as a brash attempt to fl out conventional wisdom. The gamble was heightened by the high-profi le venue in the $1.7 billion Time Warner Center, headquarters of the media company, as well as the use of costly materials and design, including marble fl oors, a four-level glass facade and two bronze Fernando Botero sculptures standing sentry in the concourse.

Many real estate brokers and community leaders credit The Shops with invigorat-ing the upper West Side’s retail environment.

“The streets are much more crowded,” said Monica Blum, president of Lincoln Square Business Improvement District. “We’re seeing the halo effect all over the neigh-borhood. We are getting trendier stores. BCBG Max Azria is opening farther north. Even restaurants that aren’t in the center are feeling the effects. Rosa Mexicana’s lunchtime business has gone up 20 percent and we think that’s directly related.”

Zeckendorf Development’s redevelopment of the former Mayfl ower Hotel one block north of the Shops, has 85,000 square feet of retail up for grabs. At Broadway and 63rd Street, the Empire Hotel will have 40,000 square feet of new stores. “It’s certainly changed the neighborhood for the better,” Blum said.

Urban malls have had a troubled history in the city. The retail component of Manhattan Mall at Sixth Avenue and 33rd Street, was downsized in 2004 to four levels from nine. Herald Center on Sixth Avenue and 34th Street failed as a luxury venue and is now home to Daffy’s, Modell’s, Mrs. Field’s and Staples.

The Shops has been closely watched by other developers and retailers. Skeptics have cited the demise of V, chef Jean-Georges Vongerichten’s steak restaurant, and a planned restaurant by Chicago chef Charlie Trotter, which never opened, as signs of trouble. Some also read dire messages into the June 23 closing of a Joseph Abboud store.

But The Shops’ 40 stores with 350,000 square foot of retail space are fully rent-ed, and Bebe in September will take over the two-level Joseph Abboud space.

“The expense structure didn’t work for us in that location,’’ said Marty Staff, chief executive officer at Joseph Abboud. “When the store opened, we were a principally a men’s suit company and there wasn’t the breadth of product to support the space. Next year we’re going into fra-grance and women’s wear.”

The fi nal pieces of the dining puzzle are Porterhouse New York, chef Michael Lomonaco’s steakhouse concept with fi sh and regional specialties, and Landmarc, a bistro operated by Marc Murphy.

“The location in the Time Warner Center will give us great visibility for an underserved market in New York,” said Greg Scott, ceo of Bebe. “We’re going to show Manhattan what Bebe is about today. We know it will be our largest-volume store. It will have more of a luxury assortment and a dedicat-ed shoe and handbag area. This was a once- in-10-year opportunity.”

Some brokers said the Shops’ mix is fairly predictable. Although there are some offbeat tenants, including J.W. Cooper and Montmartre, others such as United Colors of Benetton, Sephora, Coach, J. Crew, Cache, Solstice and Borders Books & Music are mall staples.

One retail broker who asked not to be named because she may do a deal at the Shops in the future, said, “It suffers from too much of the same tenants, the Coaches and J. Crews. The selection is boring. It needs an infl ux of a few more interesting retailers. That would give New Yorkers a reason to go there.”

Still, Joanne Podell, senior director of Cushman and Wakefi eld, the real estate com-pany, credited The Shops with boosting the West Side. “They get a targeted destination-driven customer,’’ she added. “Maybe they get less foot traffi c but they get the numbers.”

Kenneth Himmel, president and chief executive officer of Related Urban Development, has heard the comments about the tenant mix, including the question of why there aren’t more luxury stores.

“Why didn’t we bring more luxury retailers from Fifth and Madison Avenues? Because we catered to people who live on the West Side. Between 60 percent and 65 percent of customers are local. These are the things that bring them to the project every day,” he said, referring to Whole Foods, Borders, Sephora and J. Crew.

“The health of retail is sales per square foot,” Himmel said. “Stores here do north of $1,200 a square foot. It’s a pretty remarkable story.”

Stuart Weitzman has an 1,800-square-foot store for his signature shoes, range in price from about $250 to $475. The unit has access from the street as well as the mall’s interior.

“For us, it’s been great and anybody else on the ground fl oor would give kudos,” Weitzman said. “It’s a nice mall, you can walk quickly through it. Whole Foods has re-ally been quite unbelievable and helping us all,” by drawing big crowds.

Weitzman said most of his traffi c comes from the mall. About 30 percent is tourists, and most of the others are West Side offi ce workers or residents.

Himmel highlighted the retail performance of several stores. He said A|X Armani Exchange is up 16 percent to 17 percent in comp-store sales year-to-date. Cache’s same-store sales are up 26.5 percent, Eileen Fisher, 25 percent and Hugo Boss, 32 percent over last year, and 44 per-cent for the month of May.

Williams-Sonoma’s fl agship at the Shops is the company’s highest-volume store, Himmel said.

Whole Foods’ 58,000-square-foot unit is among its top 1 percent of stores and is expected to do $80 million in sales for 2006, said a retail source. An estimated 4 million people will pass through the store this year.

The Face Stockholm unit at the Shops is “the second most profi t-able store after SoHo, which is always our most popular,” said spokes-woman Molly Hamann. “It does an average of $1,000 a square foot in sales. There’s a great mix of local New Yorkers and tourists. In addi-tion, there are extended hours. The Center is open until 9 p.m. and our other stores close at 7 p.m. We defi nitely get business from the hotel.”

“It seems like the mall has really matured,” said Todd Rauchwerger, owner of J.W. Cooper, an accessories shop that sells belt buckle sets priced from $200 to $15,000. “We’re seeing double-digit sales increases. A lot more people are coming from the East Side and downtown. The fi rst year and a

half it was an iffy kind of thing. Now, people are coming here specifi cally to shop.”Montmartre, which sells labels such as M. Missoni, R.E.D. Valentino, Tocca, Tahari

and Vivienne Tam, is also seeing positive results.“We’re doing great,” the store manager said. “We’re getting a mix of tourists from

the Mandarin Oriental Hotel [part of the complex], neighborhood residents and em-ployees of Time Warner and CNN. We’re doing $1,000 a square foot. Last year we had huge increases. This year we’ve been up a little, down a little. We’re pretty much fl at to 5 percent ahead. That’s compared to a 35 percent hike in our second year. This is our highest-volume store in Manhattan.”

Many stores stay open late to take advantage of diners going to restaurants such as Per Se, Masa and Cafe Gray, and performances at Jazz at Lincoln Center, which is in the building.

“We’re doing very well,” said Allison Slater, vice president of retail marketing at Sephora. “We’ve seen incremental growth year after year. We’ve noticed that the busi-est times are lunchtime and after hours.”

“The sweetest revenge of all for all the naysayers is that the retailers are doing well,” Himmel said.

— With contributions from David Moin

Time Warner Shops Make Manhattan ImprintThe atrium’s soaring glass windows.

The mall’s marble fl oors and generous

space add to a sense of luxury.

The Shops at Columbus Circle might be the city’s fi rst successful vertical mall.

WWD.COM

PUBLICATION SEPT. 2006 PERCENT CHANGE YTD PERCENT CHANGEAllure 188.1* 28 1,088.5 13.2Cosmopolitan 210* -15 1,299 -1.9Elle 363 5 1,576.7 15Glamour 274.6* 15.5 1,339.8 7.5Harper’s Bazaar 309* 9 1,155 6In Style 370 -2 2,384.2 -1Jane 122* 12.5 429 -33.8Lucky 302.4* 23 501.9 6.5 Marie Claire 170* -1.2 923.4 -2.7Self 153* 27 918 3.2Shop Etc. 102* -5 463.7 6.9Vanity Fair 330* 23 1,262.3 -5.7Vogue 625.4* ** -9.5 2,135.0 0.6W 390* 1 1,377 3

Cosmogirl 135.4* 12.3 588.2 1.4Seventeen 131.5* 3.5 732.4 -2.6Teen People 132 -5.5 522.3 -13.6Teen Vogue 269* 57 897.9 24

Best Life 64 42 256 47Details 246.1* 22 779.2 -2.5Esquire 168* *** Flat 788.4 11.3GQ 308* 4.8 1,133.3 1.9Maxim 115 18.8 66 -7Men’s Health 144 3 681.94 -10.7 Men’s Journal 96.9 1 713.7 3.3Men’s Vogue 163.5* N/A 273.5 N/AStuff 70.1 Flat 482.9 -0.7* MIGHT INCLUDE PAGES COUNTED FROM AN ONSERT** 2005 SEPTEMBER PUBLISHERS INFORMATION BUREAU NUMBER INCLUDED PAGES FROM MEN’S VOGUE SPECIAL ISSUE*** ISSUE HAD NOT YET CLOSED AS OF PRESS TIME

10 WWD, FRIDAY, JULY 21, 2006

Media/Advertising

GOOD GENES: Good magazine founder Ben Goldhirsh’s late father may have founded Inc. magazine, but Goldhirsh, 26, isn’t the only staffer with big paternal shoes to fi ll. Former second son Al Gore 3rd, a recent Harvard graduate, is Good’s associate publisher.

A mutual friend connected the two during the youngest Gore’s postgraduation job hunt, a spokeswoman said. The magazine’s entrepreneurial-idealist bent clearly has won mom and dad’s approval: In town for the magazine’s San Francisco party last Friday, the former vice president and Tipper mingled with reveling twentysomethings for three hours. A New York

charity launch party is expected in early September, though the elder Gores are not expected to attend. — Irin Carmon

DELIVERY ZONE: While The New York Times is crunching its local coverage into one multiregion weekly, the New York Daily News is beefi ng up its claim on the outer boroughs. The tabloid launched Queens and Brooklyn weeklies in May, with 32 pages of borough-specifi c news and features appearing on Tuesdays and 125,000 freestanding pullouts locally

distributed two days later. Sources said a Bronx edition will follow by next month, with new hires to match. “We’re going to stick with our roots — and strengthen them — with our borough editions,” said a spokeswoman for the News. Of course, there are other incentives. “Advertisers love it,” she said. — I.C.

MEMO PAD

September ScorecardIn the world of magazine advertising, September issues — with their glut of fashion and luxury pages — are typically the most important of the year. But thanks to the special onserts being packaged with a number of major titles in September, this will be a difficult year to judge. After all, it’s hard to say who, exactly, is up and who is down when there’s a comfy layer of padding obscuring what’s underneath.

Condé Nast titles will have the latest installment of “Fashion Rocks” attached to September issues going to many of their sub-scribers. That means Teen Vogue, which was already up over its corresponding 2005 issue, will post a 57 percent increase for September, with 269 pages. Meanwhile, even with “Fashion Rocks,” Vogue, which last year counted the fi rst issue of Men’s Vogue as part of its September ad page totals, will be down 9.5 percent for September this year, to 625.4. Several other Condé Nast titles, such as Vanity Fair and Jane, which have seen pages dip all year, were able to fi le their fi rst big percentage gains of 2006 courtesy of the onsert.

Over at Hearst, nine titles are participating in “30 Days of Fashion,” an added value program that will include a 36-page maga-zine going to 500,000 New York-area Hearst subscribers. That little boost wasn’t enough to keep Cosmopolitan in the black this year, after a fat September issue in 2005, though. “The September 2005 issue was the single most profi table issue in Cosmo’s history, as it was the 40th anniversary,” said a spokeswoman. “As you know, it’s always a challenge coming back after an anniversary year.”

Elsewhere, Men’s Health will run its largest issue to date, with 144 ad pages, and Maxim will log a 18.8 percent rebound, with 115 ad pages in its September issue.

Here, WWD looks at how the year and the year’s most important issue are shaping up for the major women’s, men’s and teen players. Numbers are based on publishers’ best estimates, with a little help from Publishers Information Bureau and Media Industry Newsletter.

AD PAGES, AS OF SEPTEMBER

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WWD.COM11WWD, FRIDAY, JULY 21, 2006

Island Company Broadens ImageWEST PALM BEACH, Fla. — Island Company is multiplying into an archipelago. From its humble roots as a small collection of bikinis, the swimwear company based here has expanded into men’s swim-wear, women’s accessories and women’s and men’s T-shirts, polos and shoes and is now positioning itself as a lifestyle brand, according to chief executive offi cer, founder and creative director Spencer Antle.

“We’re looking to create a very branded and broad image, like a younger version of Tommy Bahama,” he said, estimating swimwear will account for only 10 to 20 percent of the business within the next fi ve years. “Swim is too seasonal for real growth.”

As far as Antle is concerned, the island lifestyle he leads both per-sonally and professionally can be applied to an endless array of busi-ness offshoots including a TV channel, linens, resort apparel, furni-ture and freestanding stores. His ambitious push called for relocation from a cramped offi ce at the southern tip of Miami’s South Beach to a 3,000-square-foot studio and showroom on West Palm Beach’s Clematis Avenue, the city’s original main drag-turned-nightlife district. The lofty setting is decorated with sea grass throw rugs, British Colonial-in-spired desks and beachy, white sofas favored by Bahamian residents. It serves as an image-conscious workplace for 12 employees.

“We launched in spring 2003 with just two people — myself and my girlfriend at the time who couldn’t fi nd a basic, cute bi-kini that fi t,” said Antle.

After playing around with fabric swatches online, he settled on a facto-ry in Brazil, where the line continues to be manufactured, and introduced his fi rst collection of 13 pieces. As a former TV ad director in Los Angeles, Antle didn’t have a day of fashion de-sign experience to his credit.

“When designing, I just think of what I’d like to see on a girl and now on myself, too,” he said.

Antle reports the only reaction he seeks about his styling is how clean and classic it is. If something looks too sexy on the rack, he thinks it overwhelms the wearer or appears dated. The company focuses on simple prints like nautical stripes or midsized pol-kadots without embellishment, a lesson he learned his second season.

“Applications are a nightmare because they’re inconsistent and too trendy. This is more about your favorite timeless suit,” said Antle, who plans to show geometric patterns, retro stripes and French sailor looks at the Miami Swim Show in July. The line also exhibits at MAGIC, Surf Expo and ASR Trade Expo.

Signature styles such as triangle bikinis, halters and bottoms with corset side detail are equally basic and never feature under-wire support or built-in cups. Concerned more with fi t and ease, Antle creates true sizing in 0 to 12 and added an extra small for 2007 due to juniors’ demand. “Fit determines 95 percent of swimwear purchases,” he said, predicting total company sales of more than $1 million for 2006. “We’ve had 100 percent growth annually.”

Wholesaling in the low $40 range, the women’s swimwear col-lection is sold in more than 100 doors including Urban Outfi tters; Everything But Water in Orlando, Fla.; Darien Sport Shop in Darien, Conn., and C. Orrico in Palm Beach, Fla. The collection is also avail-able through the company’s Web site, islandcompany.com, which Antle reports brings in 20 percent of total sales of all the fi rm’s divisions.

In 2006, the fi rm introduced men’s boardshorts in subtle tropical or graphic prints because Antle and his resort accounts, like the Ritz-Carlton, couldn’t locate looks that weren’t too short, conservative or surf-inspired. During the Miami Swim Show, he plans to launch a small line of polo shirts in pastels with the company’s palm tree and star logo for $30 wholesale. The women’s fi t is slim, while the men’s is loose. He’ll also use the event to launch beach bags in sailcloth with zipper closures for $22 wholesale. The bags sport the company’s “Quit Your Job” motto patch, and come in navy, white or pale pink.

“We gave away T-shirts with the motto to retailers at shows, and now they’re selling like crazy at $15 wholesale,” said Antle of the division that began production in 2006. Other shirts read “Escapist,” “Island Maniac,” or “Escape Travel Live.”

Growth continues with a 2007 collection of classically styled fl ip-fl ops in pastel colors with nylon mesh webbing, leather detail and rubber soles. Eight women’s and men’s styles wholesale for $22.

In 2008, freestanding stores are slated for Grand Cayman Island and Nassau in the Bahamas.

— Rebecca Kleinman

Berlin Gets Hugo Boss ShowroomBERLIN — Hugo Boss opened a 21,536-square-foot showroom here during the Berlin fairs last week-end on Stralauer Allee.

The two-fl oor expanse in a former warehouse — Universal and MTV have their equally chic digs in the renovated waterside complex — has a glass back wall looking out onto the Spree River, a patio for sum-mer entertaining and a huge living room-lounge sec-tion. The space is primarily devoted to merchandise, with the worlds of Hugo, Boss Orange and Boss acces-sories housed on the ground fl oor, and Boss Black for men and women in an open loft setup above.

This isn’t Boss’ first big Berlin investment, company spokesman Philipp Wolff said. The Metzingen, Germany-based fashion house opened two fl agships for Hugo and Boss here and has staged two six-fi gure fashion events in Berlin; in addition, this was the fourth year Boss sponsored the Berlin Film Festival.

“We identify with Berlin,” Wolff said. “It’s close to our hearts, and this showroom, which replaces a small-er one, is a statement. Germany is our most important market, and to be present in the capital is a duty.”

But Boss isn’t doing this “just for fun,” Wolff said. “We’re here to earn money.”Boss is doing well with its Berlin stores, he said, and the company’s growth in the last year means

“we have to have major sales spaces in key markets, which is why we also have large-scale showrooms in cities like New York, Paris and São Paulo” as well as Düsseldorf.

In addition to catering to the 100 clients in the immediate Berlin area, the showroom is expected to attract buyers from the Netherlands, Belgium and the U.K. for a fi rst Boss look during the Bread & Butter and Premium fairs here, as well as buyers from Eastern Europe year-round.

The Berlin opening came just two weeks before Boss’ celebration of the brand’s 25-year sponsorship of the McLaren Mercedes Formula 1 racing team. About 1,200 people have been invited to Hockenheim, Germany, on Thursday for a show of the new Boss Black and Boss Orange spring-summer collections, which will be staged on the Formula 1 race track.

Also slated for this year is the opening of the fi rst Shanghai store in September, a show in Moscow in October and the opening the same month of the new Rodeo Drive store in Beverly Hills, Calif., which will double in size, as well as the Hugo Boss prize ceremony in New York in November.

In Metzingen, a new building and showrooms are set to open at the end of the year.— Melissa Drier

DALLAS — The Dallas Market Center will present its highest honor, the Fashion Excellence Award, to eveningwear designer Carmen Marc Valvo at the 31st annual Dallas Fashion Awards gala on Oct. 28.

“Carmen Marc Valvo is a legendary American designer who brings glamour to women every-where through his collections,” said Bill Winsor, president and chief executive offi cer of the mar-ket center.

The designer began offering slinky bead-ed gowns under the label Carmen Marc Valvo Collection in 1989 and has since added a Couture collection as well as CMV, a daytime dress label. Among the celebrities who favor his gowns are Queen Latifah, Mary J. Blige and Katie Couric.

During the past two years, Valvo expanded with licensed shoes and swimwear, and in June he introduced a fur collection. The company

does about $8 million in annual retail sales, not including the licensed products, said spokesman Frank Pulice. Valvo’s next project is a fragrance.

Valvo, who was vacationing in Sweden, said via e-mail, “Being asked to receive the Fashion Excellence Award from the Dallas Market Center was a complete and total surprise….The ladies in Texas really love fashion and love to dress, and I am thrilled to be recognized for my designs.”

Neiman Marcus here has carried Valvo since the beginning, and the designer is to appear at two area Neiman’s units in October. Valvo also sells to Saks Fifth Avenue, Bloomingdale’s and Nordstrom.

The designer plans to present his spring Couture collection on the runway at the Dallas Fashion Awards. Winners of DFA trophies in eight catego-ries will also be announced at the black-tie gala.

— Holly Haber

Italian Textile Industry Comes TogetherBy Whitney Beckett

NEW YORK — As global competition in textiles in-creases, Italy’s historic industry is working to hold on to its market share.

Italy is reenergizing the “Made in Italy” brand image with a three-pronged approach: uniting its textile trade shows, launching a $2 million global public relations campaign and using technology to improve the quality of its fabrics.

“The past year for textiles was very complicat-ed, because we did not know what direction the future would be, but then we had the idea of com-ing together and putting together all-Italian inge-nuity,” said Alberto Jelmini, president of Moda In and co-president of Milano Unica, the Italian trade show that has brought together fi ve Italian textile events. “Now, we can compete with the world and bring Italian textiles back.”

He spoke during a presentation on trends in Italian textiles last week at the Rainbow Room in Rockefeller Center that was sponsored by the Italian Trade Commission.

The third Milano Unica show is set for Milan on Sept. 12-15. Before 2005, each of the fi ve major Italian textile shows, including Moda In, took place at its own date and location.

“We try to involve the whole city, and for this show, we are coming back to the heart of Milano,” Jelmini said. “People who come in town for the show like to see Milano as well. We hope to build a synergy between the city and [the] show itself.”

Since the shows came together, their sales have

increased 8 percent, Jelmini said.“It’s not a big increase, but considering the in-

creases in competition, we’re happy about it,” he said. “We want to not only keep our size, but also increase.”

This year will likely have about 700 exhibitors, the same as last year, but there will be a “larger presence, because a lot of exhibitors are taking more space,” Jelmini said. He wants to attract more visitors, particularly from Asia and the U.S.

Italy, the fourth-ranking textile supplier to the U.S., exported $145 million in textiles to the U.S. in the fi rst four months in 2006. As top-ranked China gains a bigger market share, the Italian government has decided to invest $2 million in a communications campaign extolling the virtues of Italian textiles.

“We are very concerned with brand image of ‘Made in Italy’ and have been working on promo-tional activities,” said Aniello Musella, executive director of the ITC in the U.S. “American design-ers like Donna Karan, Ralph Lauren and Marc Jacobs…use Italian fabrics, and our challenge is to let people know that.”

The ITC is funded by the Italian government and industry.

One part of the campaign targets what to ex-pect from Italian textiles for fall 2007. The presen-tation spotlighted three trends: simplicity, wild-ness and the future. Technology was a big focus, with overdyeing, intricate weaves and surprising fabrics, such as linens for winter.

“We do not need to grow in volume, but instead grow in value,” Jelmini said. “That is our direction.”

Dallas Market to Honor Valvo

The Hugo Boss space in Berlin.

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Bush Trade Chief Schwab: PersiBy Evan Clark

WASHINGTON — Susan Schwab has been a virtual com-muter to Geneva during her six weeks as the Bush ad-ministration’s chief trade negotiator.

Schwab, who grew up in Africa, Asia and Europe, is at home abroad — and she needs to be.

As U.S. Trade Representative, the 51-year-old former university dean is now a player in international com-merce and politics, thrust into deadlocked trade talks that have the potential to remove economic barriers and help alleviate poverty in some of the world’s poor-est countries.

With a varied background in government, business and academia, Schwab is a policy wonk who has the intellectual heft and the personality to be the public face of the Bush administration’s trade agenda, col-leagues and experts said. However, that agenda is largely set and its jewel — World Trade Organization negotiations in Geneva — has dimmed as dead-line after deadline has been missed.

Schwab will meet again with her counterparts from the European Union, India, Brazil, Japan and Australia this Sunday and Monday and on July 28 and 29 to try and reach a framework agreement on how global tariffs on industrial and agricultural goods could be re-duced. A deal would need to be approved by the WTO’s 149 member countries.

Launched in Doha, Qatar, in 2001, the Doha talks might cut tariffs on apparel and textiles, an outcome sought by retailers because it would lower prices, but opposed by domestic tex-tile fi rms competing with low-cost imports. Many countries are afraid that freer trade in apparel and textiles would only strengthen China’s dominance.

The Bush game plan has been to pursue the Doha talks while signing smaller regional deals, such as the Central American Free Trade Agreement. In executing that plan, Schwab faces rising anti-trade sentiment in Congress and the expiration of the presiden-tial Trade Promotion Authority, which restricts Congress’ ability to amend trade bills.

“I suspect that Sue will be limited to closing up regional agreements or negotiating a limited WTO deal, which is something she says she won’t do, but if the President decides to do it, she’ll do it,” said for-mer colleague Peter Morici, professor at the University of Maryland’s Robert H. Smith School of Business. “I have a lot of respect for her, but this is not an enviable position.”

For supporters such as Kenneth Duberstein, chief of staff to President Ronald Reagan, Schwab has all the tools to succeed.

“Too many in this town are good at knowing every-thing about a widget, but not much about the world,” Duberstein said. “Sue Schwab has the ability to under-stand all of the fi ne points, but also be pragmatic in un-derstanding what the big goals are.”

In addition to the Doha talks, Schwab has inherited an often tense relationship with China — the U.S. had a record $202 billion trade defi cit with the Chinese last year. The Bush administration, as well as Congress, has called for China to adjust currency policies that artifi -cially lower the prices of its exports.

The obstacles are formidable for Schwab, who made her itinerant childhood — her father was a foreign ser-vice offi cer — a source of fl exibility and worldliness.

Some critics viewed Schwab’s selection to suc-ceed her boss, Rob Portman, who was named director of the Offi ce of Management and Budget, as a signal that the administration was downgrading trade as an issue because Portman, a former Republican congress-

man from Ohio and a Bush friend, had a high profi le. Schwab was his deputy.

“There’s no getting around the political loss of Rob Portman moving to O.M.B.,” said Dan Griswold, direc-tor of the center for trade policy studies at the Cato Institute. “He had a lot of good will on the Hill and was well liked on both sides of the aisle.”

Comparing Schwab and Portman is tricky, said Frank Vargo, vice president of international economic affairs at the National Association of Manufacturers.

“His strongest set was knowing people on the Hill,’’ Vargo explained. “Susan I don’t think is going to have those Hill skills, but in some ways is going to be a tough-er negotiator. She really knows trade. She is tough, but she’s not nasty. She’s got good antennae. She reads the person she’s negotiating with. She doesn’t concede.”

Duberstein said the White House’s ability to move on

trade is strengthened by Portman’s move to O.M.B. and Schwab’s appointment, especially considering they join other high-profi le free traders, including chief of staff Josh Bolten and chief political strategist Karl Rove.

Although she had been thrust into the spotlight, Schwab was relaxed during a meeting with reporters on her fi rst day as trade chief, leaning back in her chair with legs crossed and hands clasped on her lap, sipping tea from a navy blue mug with a pink heart that read “Best Friends.”

“I suspect every trade representative, anyone who’s ever been in this position, has probably assumed that the geopolitical and the domestic political situation that he or she is facing is the toughest that any trade repre-sentative has faced,” she said.

The trade debate in textiles and apparel won’t make her job any easier.

During a question and answer session after a speech this month at the National Press Club in Washington,

Schwab said: “The discussion on textiles and apparel tends to be somewhat schizophrenic — maybe that’s a bad word and I probably just said something that we’re all going to regret later.

“There are countries that want to see markets open-ing in textiles and apparel because they want access, and yet they’re very nervous about it because they look at the competition from China, for example, and don’t necessarily want others to have the access,” she said.

Schwab’s ascension to trade chief has brought her full circle.

Her fi rst job 29 years ago was in the trade offi ce, ne-gotiating access to the Japanese market for U.S. beef and citrus products. By then, she had lived in at least eight countries, from Togo in West Africa to Thailand, and received a bachelor’s degree in political economy from Williams College and a master’s degree in devel-

opment policy from Stanford University.

Schwab, who lost fam-ily members in the Holocaust, always has been persistent and competitive, said her fa-ther, Gerald, who now lives in Alexandria, Va.

“One time in Togo, she for some reason decided that she was going to be an Olympic swimmer,” he said. “Keep in mind at that point she was six. She decided to start training. I think if her mother hadn’t hauled her out, she was going to drown. She was going to be-come an Olympic quality swim-mer that afternoon.”

His daughter, who lives in Annapolis, Md., has since de-veloped a sense of patience and planning, if not a career in sports.

“I would say she doesn’t even like games of chance because you can’t control that,” her fa-ther said. “Where she could depend, or was able to express herself or accomplish some-thing on the basis of her own work, she always did well.

“She is a workaholic, but she also knows how to ease off if the opportunity presents itself,” he said.

Schwab shares a love of the opera and musicals with her par-ents, who took her to the opera in Vienna as a child. She also likes fi ne wines and is consid-ered a good conversationalist.

“She’s the kind of person that, if you’re looking for a date, you’d love to have her for a date, just good to talk to, lots of fun,” said Tom Schelling, a Nobel lau-reate in economics and former University of Maryland profes-sor who chaired the search com-mittee that picked Schwab to be dean of the School of Public Policy in the Nineties.

“She’s a good listener,” he said. “She makes you feel good when you talk with her.”

After that fi rst job as an ag-ricultural negotiator, Schwab moved on to be trade policy offi -cer in the U.S. embassy in Tokyo

and then, in 1981, joined the staff of Sen. John Danforth (R, Mo.), chairman of the Finance Committee’s inter-national trade subcommittee, a capacity in which she helped shape several major trade bills.

In 1989, she joined the administration of President George H.W. Bush to be an assistant secretary at the Commerce Department and director general of the U.S. and Foreign Commercial Service, which promotes U.S. goods and services abroad.

Throughout her career, Schwab has placed an em-phasis on preparation, which was apparent when she worked on her doctorate in public administra-tion and international business at George Washington University.

“She reads everything she can get her hands on,” said Susan Tolchin, who guided her dissertation and is now a professor at the School of Public Policy at George Mason University. “She goes well beyond what she has to do.”

Susan Schwab with her predecessor, Rob Portman, and President Bush.

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Tolchin said Schwab was one of her brightest students in 40 years of teaching. “I encouraged her to get a doctoral or a law degree,” she said. “To compete with

the men, you’re going to have to have a law degree or a PhD.”So Schwab went to classes at night while working crushing hours for Danforth

on the Hill. Her dissertation was published as a book, “Trade-Offs: Negotiating the Omnibus Trade and Competitiveness Act.” (Harvard Business School Press).

In addition to giving a behind-the-scenes, nonpartisan look at the 1988 legislation, “Trade-Offs” traces U.S. trade policy from the Boston Tea Party through the protec-tionist Smoot-Hawley Tariff Act of 1930 and into the Eighties.

After working at Commerce, Schwab went into the private sector in 1993 as di-rector of corporate business development at Motorola Inc., and then to academia in 1995.

Schwab’s scholarly approach and sense of trade history informs her decisions and she is quick to turn to historical references when examining, for instance, the enthusiasm for free trade in Washington.

“In terms of the politics of trade, there has been some erosion in the bipartisan consensus favoring a pro-trade agenda, favoring an agenda that is steadily continu-ingly opening markets, that the United States launched initially in 1934,” she told reporters.

Understanding the pressure points, especially on Capitol Hill, is a must for Schwab, given that the legislature must ultimately approve major changes to trade policy.

“The USTR has to understand that Congress has a signifi cant role and Sue’s been there,” said Michael Farren, a former undersecretary in the Commerce Department

who is now a vice president at Xerox Corp. “She’s frankly been on the Hill, in the Senate Finance Committee pounding on the table, demanding that USTR be respon-sive to the concerns of the Hill, so she will know how to respond.”

The President’s standing during his last two years in offi ce will infl uence how much Schwab can accomplish.

“She’s subject to the overall status and condition of the White House and the President she works for, and it’s really a function of, is George Bush a lame duck and if so, every Cabinet agency is going to suffer,” said Auggie Tantillo, executive director of the American Manufacturing Trade Action Coalition.

Much of what gets done will also depend on external forces, including global eco-nomic conditions.

“She has what I think is so important in a USTR,” said Robert Mosbacher, Commerce Secretary under the fi rst President Bush, a time of trade tension with Japan. “She can not only deal with them intellectually, but she can do it in a more personal, less confrontational way than others might. Particularly with Japan, she could very often and did get one of the negotiators aside to discuss things with them on an informal level.”

That personal touch seems to set Schwab apart. “She is very persuasive in a kind of interesting way, you sort of don’t know what’s

happening to you,” said Walter Broadnax, whom Schwab recruited to be a professor while she at the University of Maryland. “She’s got this wonderful smile and even when she’s disagreeing, you think she’s agreeing with you. She just has this tremen-dous ability to get people to do what she wants.”

Broadnax, now president of Clark Atlanta University, had been deputy secre-tary and chief operating offi cer of the Health and Human Services Department and planned to take a position at Case Western Reserve University before Schwab wooed him, mostly in a series of phone conversations.

“Susan loves the telephone, she’s a telephone person,” he said, noting it was ap-parent that she had prepared between conversations. “She likes to be able to do her homework. She likes to know what she can do to move a process. She doesn’t want to show up without something in her kit bag.”

After eight years as dean, Schwab became president and chief executive offi cer of the University System of Maryland Foundation, before returning to the trade world as one of Portman’s deputies last year.

“As I started to watch her in action, I realized that she had the potential to not just do the day-to-day work of a deputy, but really lead, to be proactive,” Portman said.

As deputy USTR, Schwab wrapped up diffi cult negotiations for free trade pacts with Peru and Colombia and reached an accord with Canada on a long-running soft-wood lumber dispute.

“She works with intensity and sometimes tenacity and persistence,” he said. “She literally had an all-nighter with the Colombia agreement. The same was true with Peru and softwood lumber. She was willing to go the extra mile to get to ‘yes.’”

“[Susan Schwab] has what I think is so important in a USTR. She can not only deal with them intellectually, but she can do it in a more personal, less confrontational way than others might.”

— Robert Mosbacher, former Commerce Secretary

stent, Persuasive and Pragmatic

By Kristi Ellis

WASHINGTON — The House passed the U.S.-Oman Free Trade Agreement on Thursday by a vote of 221 to 205, as Democrats split their votes amid a debate over labor provisions, working conditions and port security issues.

The Senate passed the trade accord June 29 and President Bush is expected sign it. Last-minute as-surances to strengthen labor laws from the Sultan of Oman, backed by the U.S. Trade Representative’s of-fi ce, appeared to secure enough votes, particularly among moderate Democrats.

The close vote might be a signal to the Bush admin-istration and Republican leaders that two pending trade bills before Congress — a free trade agreement with Peru and legislation granting permanent normal trade relations status for Vietnam — could face signifi cant challenges.

Oman is a small apparel supplier, exporting $53.5 mil-lion in apparel products to the U.S. last year. Importers support the deal because some do business there and the accord is part of an effort by the Bush administra-tion to create a Middle East Free Trade Area by 2013.

The U.S. textile industry opposed the pact because it allows apparel manufacturers in Oman to use 50 mil-lion square meters equivalent of cotton and man-made fi ber fabric from anywhere in the world in the assem-

bly of clothing and still receive duty free benefi ts when entering the U.S.

Democrats condemned the agreement’s labor pro-visions, saying they do not meet core international standards, including the right to bargain collectively and bans on slave and child labor, and argued the deal could jeopardize port security in the U.S. by allowing

an Omani company to acquire port operations.“Look, we need to have a free trade agreement that

meets the basic ILO standards in practice and in law,” said Rep. Sander Levin (D., Mich.). “In Bahrain, they were in practice and they made a commitment to do so in law. In Oman, there is no semblance of workers

having rights.”Republican leaders said other trade deals, such as

the Central American Free Trade Agreement, include provisions allowing foreign companies to perform “land-side” port functions and the maintenance of docks. They said all U.S. trade agreements include an “essential security” clause that allows the president to block foreign investment in port operations if the U.S. fi nds it could jeopardize national security.

“Opposition to this fairly straightforward agreement has generated not one, not two, but a whole school of red herrings that have to be knocked down quickly and in succession,” said Rep. Phil English (R., Pa.). “The mea-sure has been developed and gone through a legal man-date and legislative consultative process and resulted in clear guarantees on labor. On the matter of port se-curity, critics…have manufactured an issue by claiming the agreement gives foreign service providers unprec-edented access to U.S. ports and threatens security.”

Rep. Clay Shaw (R., Fla.), said, “I cannot stress enough the importance of the legislation now before this body. It is one of the best free trade agreements that this body has considered, granting the United States some of its broadest market access ever and es-tablishing a strong standard as we push to open the large, emerging Middle East market through a Middle East Free Trade Area.”

House Passes Oman Free Trade Pact, as Peru and Vietnam Votes Await

“The measure has…gone through a legal mandate and legislative consultative process and resulted in clear guarantees on labor. ”

— Rep. Phil English (R., Pa.)

Susan Schwab

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RANGOON, Burma — Korean soap operas aired day and night on state-run television stations in this military dictatorship are changing the way young women dress.

Pastel-colored spandex tops with deep-cut necks, as well as jeans, are gradually replacing the traditional longyis, or sarongs of almost two yards of cotton wrapped around the waist and brushing the top of the universally worn velvet fl ip-fl ops.

And instead of painting their cheeks and foreheads with circles and squares of yel-low thanaka, a ground tree bark said to protect against ultraviolet rays and wrinkles, some women are switching to rouge and lipstick in the palest pinks.

Even Burmese hair styles are changing. The standard of beauty has for centuries been length, and some women have grown their thick, dark locks down to their feet. Infl uenced by Korean styles, many are either cutting and further straightening their already naturally straight hair, or they are getting permanents to emulate what they

call “Korean curlies.”“Korea is the rising star of Asia,” said the editor of a youth-based magazine.

Because he risks imprisonment for speaking to Western media, he asked that he be identifi ed by the alias Oak Soe. He also asked that the name of his magazine not be disclosed.

It’s teenagers who are most attracted to the styles, said a shopkeeper at Dagon Department Store, one of the few places in Rangoon where anything other than tradi-tional styles can be spotted. She, too, asked that her name not be used.

Burmese dress designers and beauticians are ordering Korean fashion books and magazines to stay in step with the emerging popularity, Oak Soe said.

Yet any wholesale transition to Korean style — or any other fashion trend be-sides the traditional outfi ts that the Burmese have worn for centuries — will be

slow in coming for a variety of reasons, Oak Soe noted. Longyis are more affordable in Burma, where the average yearly income is less than $2,000. They can be bought at markets for less than $5, and are donned by men, who wear subdued checks, and women, who favor fl orals.

“I wear jeans,” he said, “but they are expensive. They can cost $20, and that’s not even a good quality pair of pants. I love tradi-tional wear, but I want to dress like the rest of the world.”

Cultural pressures also have slowed the transformation of Burmese fashion, he said. “If we try to act different, people think we’re doing something wrong.”

Women in pants, as well as in sleeveless blouses and shorts, are considered rude, and tourists are advised to dress modestly in this nation.

Western brands are few and far between. There is an upscale mall, called the Myanmar Shopping Center, that has a Marks and Spencer, Dunhill and Burberry, but it’s deserted, and shopkeepers don’t turn on the lights until someone comes in.

Also, since the U.S. imposed economic sanctions on Burma in 2003, Western style is diffi cult to come by. American apparel makers in Burma pulled out after the embargo, although the Chinese still have several plants here. Trade with the neighboring countries of India, Thailand and China is rising, and their products are prolif-erating in markets and shops. And any foreign entity that wants to open a store here needs a local partner.

The military junta, which controls everything from stoplight changes to censoring all print media, also has played a large part in protecting Burma’s traditional dress. It decreed that university students must wear traditional garb. When private publishers sub-mit their layouts to the censorship board, pictures of female Korean TV stars with plunging necklines are crossed out and banned. That censorship hasn’t seemed to apply to the state-sponsored broadcast of Korean TV shows, however.

The junta, a cast of starched green-uniformed generals, seized control of Burma after the opposition democratic party soundly won the 1990 elections. It renamed the country Myanmar — although the U.S. does not recognize that name — and exploited its gem mines, teak forests and energy deposits, and grew its narcotics trade. The junta also put Nobel Peace Prize recipient Aung San Suu Kyi under house arrest for 10 of the past 17 years. Instead of banishing her from the minds and memories of the Burmese, however, the move elevated her to icon status. Still, her name is rarely mentioned in public and her picture is nowhere to be seen.

The years of repression, jailings, torture and brutality of the junta have marked the minds of the Burmese, Oak Soe said. “We don’t have critical thinking skills,” he said, “so we need our national identity. But there are those who want to create their own self.”

Some youth have attempted a compromise and have adopted a combination of Korean and Burmese dress. Young men may keep their longyis, but they wear T-shirts instead of starched white-collared shirts. Women also may keep their longyis, but instead of a matching top, wear a knit top in the solid pastels popularized by Koreans.

Those who are assuming Korean style are often criticized by the government media, Oak Soe said, noting, “The critics say Burmese youth want to become Koreans, and that’s a problem.”

14

Korea Influences Burmese Style

Looks from the streets of Rangoon.

WWD, FRIDAY, JULY 21, 2006

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