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| Kelly Shimoda for The New York Times |
Kelly Shimoda for The New York Times |
StuartRamson/AssociatedPress |
| Models in Vera Wang’s lower-priced
line, which will be in Kohl’s stores in September. |
Vera
Wang with a model. Ms. Wang said her Kohl’s alliance will help her
keep her own business going. |
Some
designs from Vera Wang’s pricier line for fall 2007. These clothes
won’t be on Kohl’s racks. |
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| Kelly Shimoda for The New York Times |
Kelly Shimoda for The New York Times |
Kelly Shimoda for The New York Times |
| Another glimpse at the
direction of Kohl’s. The company says it has been weighed down by
conservative fashions but hopes its new Vera Wang line is a step
toward repositioning itself |
|
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PARTNERING WITH KOHL'S
With
her back to a room full of Kohl’s department
store executives in a Manhattan studio, Vera Wang reviewed prototypes from
an exclusive new collection of mainstream fashion that Kohl’s plans to
sell under her name. “This is all black,” said Ms. Wang, dismissively.
“Black is very ’90s.”
Later, Julie Gardner, a marketing
executive for the Kohl’s chain, described the meeting as an epiphany of
sorts — a moment when she realized that much of what she had assumed to be
fashionable was, in fact, out of date. “We were hanging on her every
word,” Ms. Gardner recalled. “We all looked down and we were all wearing
black from head to toe.”
Kohl’s, based in the pastoral haven of
Menomonee Falls, Wis., is a retailer that sells clothes to the masses, a far
cry from the trendy New York image of Ms. Wang, who is best known as a
designer of exquisite — and often very expensive — bridal gowns. So
aesthetic tension is to be expected. But with its introduction of Ms.
Wang’s new cut-rate collections coming in September, Kohl’s has been
uncommonly deferential on matters of style to someone more accustomed to
Madison Avenue boutiques than suburban strip malls.
Even so, as it tries to recast itself as
a department store that offers not only affordable fashion but a dash of
style as well, Kohl’s intends to make Ms. Wang the public face of its
reinvention. For her part, Ms. Wang says that her relationship with Kohl’s
is more than a marriage of convenience. Like many successful entrepreneurs
before her, she has reached a crossroads: her business has grown so rapidly
and in so many directions that she lacks the resources — especially cash
— to keep expanding it on her own.
“I know actors always say, ‘I’m
just grateful that I get to continue doing what I love most,’ but for
actors their tool is themselves and their talent — designers need a lot
more help,” Ms. Wang says. “We need money. We need infrastructure,
design talent, promotional budgets. We need a lot more to play in the
sandbox, so to speak. Because of that, every decision I have ever made has
been motivated by staying alive and keeping the doors open with the
employees that I have.
“I’m not being overly dramatic,”
she adds. “I’m being really truthful.”
Given the disastrous performance over the
last year of Wal-Mart Stores’ version of
inexpensive designer fashion — with a collection called “George M.E.”
by the lesser-known designer Mark Eisen — the union of Kohl’s and Ms.
Wang is a gamble. But democratized style and cheap chic peddled by famous
names has already found a successful niche, whether it’s Martha Stewart at
Kmart or Isaac Mizrahi at Target. Long lines for the latest Karl Lagerfeld,
Stella McCartney or Viktor & Rolf designs at H&M, or Vivienne
Westwood shoes for Nine West at Macy’s, or for offerings from budding
designers making clothes for Gap and Uniqlo, have helped midmarket stores
increase sales and gain more cachet with consumers.
On the other hand, there have been
notable blunders besides that at Wal-Mart, which said its weakness in
fashion had crimped its recent sales. Kohl’s itself made a modest attempt
to move away from its classic looks four years ago, but customers balked at
designs like moose-themed shirts. Sales of its new cosmetic lines by Estée
Lauder, repackaged as “American Beauty” in Kohl’s stores, have
disappointed analysts.
By making a long-term commitment to
Kohl’s, Ms. Wang may be navigating even more dangerous waters. Many
high-end designers fear that creating mass collections undermines their
prestige among affluent customers, a worry rooted in the classic example of
the downfall of Halston, the designer of sexy jersey gowns for the Studio 54
set: in the 1980’s, luxury retailers dropped his collection after Halston
signed a deal for a cheaper line with J. C. Penney.
But Kohl’s and Ms. Wang are plowing
ahead — boldly so, by the look of their collection. Called “Simply Vera
— Vera Wang,” it includes the designer’s high-end signatures (or what
fashionistas politely call “directional” designs), which may be
challenging for a broader audience. Among the offerings are an inky black
jacquard bubble skirt with an elasticized hem ($98), a charcoal knit cap the
size of a chef’s toque ($25) and an ash-colored ribbed wool coat with
short sleeves ($128).
A short-sleeve coat? At Kohl’s? Well,
yes, says Kevin Mansell, Kohl’s president.
“When we launch these brands, often
there are questions either on the investor or media side of ‘How do you
know it’s going to be good?’ ” he says. “They say, ‘Vera Wang at
Kohl’s seems more of a stretch,’ ‘It’s the next step up’ and
‘Why do you feel so confident?’ The reason is, we do a ton of
research.”
As negotiations over a deal with Ms. Wang
stretched out over more than a year, Kohl’s surveyed consumers about their
perceptions of the designer and their expectations for the proper price and
quality of her collections. “This is not like putting up dartboards,
throwing darts and seeing which ones stick,” Mr. Mansell says. “This is
really based on quantitative research.”
For Ms. Wang, however, it is also about
something much more personal.
“This is more about keeping my business
going so I can continue to do what I love most,” she says.
AT 57, Vera Wang has worked in the
fashion industry for 37 years — longer if you count her college summers as
a sales associate at Yves Saint Laurent on Madison Avenue — first as an
assistant and an editor at Vogue magazine and then as an accessories
designer for Ralph Lauren. She started her signature company in 1990.
She grew up in Manhattan, in an apartment
on an expensive block of the Upper East Side. There, her father, C. C. Wang,
the son of a former war minister under Chiang Kai-shek, who made a fortune
in pharmaceutical sales to China, discouraged her from pursuing a fashion
career. After studying at Sarah Lawrence College in Yonkers, N.Y., and at
the Sorbonne in Paris, Ms. Wang asked her father to allow her to take
fashion courses in New York, but he refused. “He said, ‘If you really
think you’re that good, go get a job.’ And I did; I went to Vogue,”
she recalls.
In her late 30s, Ms. Wang went to work
for Mr. Lauren and discovered that she loved to design. When she spotted a
woman carrying a plaid tote she had made, Ms. Wang said she started
“jumping up and down.” At 40, she married Arthur Becker, a technology
executive. Only then, sensing that Ms. Wang had demonstrated that her
interest in fashion was sincere, did her father agree to finance her own
fashion collection — with the condition that she design bridal dresses.
“What I haven’t said before is that
when my father suggested that I go into the bridal business, I had lost that
desire really to go off on my own by then,” says Ms. Wang, whose father
died in September. “This had been a dream for me since I lived in Paris,
but my father wouldn’t do it. He wouldn’t pay for it. He wouldn’t help
me. I had been in the business 21 years by then.”
But once Ms. Wang got started, she
quickly made her mark. She became widely known in the 1990’s for
modernizing bridal design, which had traditionally been dominated by
billowing poufs and antique lace and ignored by serious designers. Sharon
Stone and Mariah Carey have been among the brides in Ms. Wang’s gowns, the
most elaborate of which can cost $15,000 to $30,000. Jennifer Lopez ordered
a Vera Wang dress, but never wore it, during her derailed engagement to the
actor Ben Affleck, then borrowed another for her marriage to the singer Marc
Anthony in 2004.
Ms. Wang’s frequent television
appearances, often commenting on red-carpet fashion, as well as heavy
magazine coverage of celebrities wearing her gowns, made her a household
name and made her designs synonymous with stylish weddings. She developed
the core of her bridal business with slightly less expensive dresses — the
simplest currently start at around $3,000 — and a lucrative roster of
licensed products like china, crystal and bedding that are geared toward
bridal registries.
Last year, she says, products bearing her
name, including a successful fragrance, had retail sales of $300 million
(although Ms. Wang receives only a small fraction of that amount, probably
in the range of 5 to 10 percent, through royalties). But her real passion,
on which she has focused for the last four years, is women’s fashion —
apart from bridal.
Her nonbridal aesthetic may best be
described as ballerina grunge. She is fond of intentionally frayed hems and
raw edges, and complicated silhouettes of slim bodysuits worn under
oversized layers of heavy knits. A professional ice skater as a child, Ms.
Wang later developed passions for art, dance and ballet that routinely
influence her work, with colors that are almost always rendered in muddy,
somber shades — in contrast with the cheerier bridal designs that she felt
had handcuffed her creatively. She once designed an entire collection around
the theme of the raw, down-and-dirty HBO Western series “Deadwood.”
Ms. Wang says that her more recent
fashion endeavors have been much more expensive for her to finance and
support than her bridal line — it costs her about $10 million a year to
finance just the fashion line — and that is what led her into Kohl’s
arms. Sitting at a conference table in her design studio on 39th Street,
near Seventh Avenue, wearing a jacket with inverted pleats on capped
sleeves, she speaks pragmatically about that decision: the risk of devaluing
her trademark was outweighed by the resources and business expertise that
Kohl’s brings to the partnership.
“I didn’t spend 20 years going to
Harvard Business School and then Morgan Stanley,” she says. “I spent 20
years styling clothes.”
From a branding perspective, Ms. Wang has
much at stake. In a recent survey of 1,500 consumers with an average net
worth of $3 million, the Luxury Institute, a research firm that tracks
designer brands, found that the exclusivity of Ms. Wang’s name was tied
with Hermès — a fashion house so prestigious that only its best customers
are invited to the seasonal sales that female customers covet. (The survey
did not take Ms. Wang’s deal with Kohl’s into account).
“She has been very focused on the high
end for a long time, so it actually concerns me that she is doing a Mizrahi,”
says Milton Pedraza, the chief executive of the Luxury Institute. “It may
not affect the prestige of Vera Wang, but if you’re a betting person, if a
brand becomes ubiquitous, how exclusive can it be?”
But Ms. Wang says consumers’ desire to
find better-designed fashion and home lines at mass retailers, fed by media
attention for lines like Mr. Mizrahi’s at Target, justified her decision
to design for class and mass. (A person familiar with the Target design
program said Mr. Mizrahi’s merchandise has become a $100 million business
there.) Ms. Wang says she plans to use the proceeds from her contract with
Kohl’s to finance new stores for her signature line in New York and Los
Angeles, which she hopes will reduce the possibility of a Halston-like fate.
Still, some fallout has already occurred.
Macy’s, a major Kohl’s competitor, carries several home and intimate
apparel lines that bear Ms. Wang’s name, aimed at the upper echelon of
department store customers and bridal registries.
Wanting exclusivity, Terry J. Lundgren,
the chief executive of Federated, Macy’s parent company, dropped Ms.
Wang’s lingerie line after she signed with Kohl’s. (Alas, Mr.
Lundgren’s wife wore a Vera Wang wedding dress down the aisle in 2005.)
LINDA PAYNE, a 48-year-old nurse with a
Vogue-like sense of style, is ecstatic that Vera Wang is coming to the
Kohl’s store in a Paramus, N.J., mall. “I love Vera Wang,” she said in
a parking-lot interview outside the store. “Her gowns are outrageous. My
girlfriend just found one of her dresses on discount for her daughter’s
prom.”
But another customer, who would not give
her name as she headed into Kohl’s with a teenage daughter in tow, perused
a catalog of Ms. Wang’s clothing and deemed all of it to be a bad fit for
her.
“It’s too over the top,” she said.
“I couldn’t imagine wearing that in my construction office. This is not
‘mom’ clothing. I would not wear that to work, or to a P.T.A. meeting,
so where would I wear that?”
Such is the finicky — and often
unpredictable — customer base that Kohl’s and Ms. Wang are trying to
crack. The partnership represents the first time that Kohl’s will offer a
product line bearing the imprint of a high-class, high-gloss Seventh Avenue
designer, and is the pièce de résistance of the retailer’s image
overhaul. While it has spent much of its 35-year-history courting
middle-income Americans — and intends to continue doing exactly that —
it wants to give its customers a broader, more stylized range of choices.
“We’re not going to be the person to
bring fashion first,” says Mr. Mansell, the Kohl’s president. “But I
think we can bring fashion very close after that and at a much better value
and in a much more efficient way.”
Selling fashion by a renowned designer is
a far reach for a mass retailer that, in the beginning, was never supposed
to sell clothes. Max Kohl, a Polish immigrant, opened his first grocery
store in Milwaukee in 1946 and turned it into the largest food chain in
Wisconsin. In 1962 — the same year that Wal-Mart, Target and Kmart opened
their doors — Mr. Kohl started selling clothes the same way he sold food.
Instead of finding a traditional department store layout, customers found
shopping carts, doorside checkout counters, big price stickers on the racks
and a wide circular lane at the center of the store.
Today, Kohl’s offers more sophisticated
layouts and merchandising, and since 2002 has introduced exclusive brands
like Daisy Fuentes, Chaps, Tony Hawk and Apt. 9 that speak to different
demographics, like teenagers or working moms. But it still is well aware of
who shops there. Having closely monitored the successes and failures of
competitors banking on the prestige of name designers, Kohl’s says it is
sensitive to the perils of moving its fashion threshold so far forward,
possibly beyond the expectations of customers who rely on it as a
neighborhood destination for a quick purchase of sneakers, a dress or
everyday work-friendly attire
Still, the company says that survey after
survey has shown that its customers, who are increasingly fashion savvy,
adore Ms. Wang and expect more style and higher prices in a collection she
would design for Kohl’s.
The biggest challenge in designing for
Kohl’s, Ms. Wang said, was adjusting to the concept of producing fewer
styles in greater quantities. She is a perfectionist who has occasionally
tossed out bolts of extravagantly treated lace and chiffon that did not meet
her expectations. She and her design team typically create 300 to 400
designs for a season but select only about 55 to present to the media and to
stores just before her runway show, ultimately discarding the rest. It is a
wasteful process, but one that allows Ms. Wang to show only the best of her
work each season.
For Kohl’s, her average monthly
delivery will consist of 20 pieces, which need to be mapped out months in
advance.
“I wasn’t used to being very, very
merchandise-focused — to have to choose and make the right decision and
then be able to put it back together on the floor as a collection,” Ms.
Wang says. “I couldn’t just say, ‘Here’s a sequin dress and here’s
a little short skirt.’ They would say, ‘You have five skirts, Vera,’
and then we had to choose together which are the best five.”
Ms. Wang began meeting with a team of
Kohl’s designers in October, when she assembled some of her most popular
designs from previous seasons, her favorite handbags and her jewelry
collection. There was an oversize satchel made of white snakeskin, and
necklaces and charms with early Russian Empire and Japanese influences. To
brighten the line of black clothing that Kohl’s designers had shown her,
she persuaded the company to add some more unexpected designs, like a skirt
in gold brocade.
“Kohl’s went, ‘Yikes,’ ” she
says. “ ‘Vera, this is for nearly 1,000 stores. You can’t just start
throwing things in,’ like I do on collection.”
But in limited quantities, the skirt was
added, looking nearly identical to one shown in her fall runway collection
that will cost $890 when it arrives in stores like Bergdorf Goodman and
Louis Boston. The Kohl’s version will be $68.
For his part, Mr. Mansell is bemused by
any concerns that Simply Vera is “too fashion.” The bigger issue, he
says, is ensuring a proper balance of contemporary and classic clothes.
“Kohl’s was way too heavily weighted
to very classic and traditional styling,” he says. “We were doing a
disservice to our customer because we were duplicating so many things in
either different brands and labels or at the same price point.”
To make way for Simply Vera, Kohl’s
reduced its stock of labels with older names like Villager and Sag Harbor,
and it dropped the Norton McNaughton label.
Kohl’s leaves pricier megabrands —
Tommy Hilfiger, Ralph Lauren and Nautica — to traditional department
stores like Macy’s, Bon-Ton and Dillard’s. Mr. Mansell says that the
retailing environment is just as competitive and cutthroat as ever, and that
Kohl’s wants to remain out front.
Kohl’s has also benefited from the
troubled consolidation wave that has swept over American department stores,
high and low. The 2005 merger of Federated Department Stores and May
Department Stores, and Macy’s absorption of many historical local
nameplates, have turned off many mall shoppers. The combination of Kmart and
Sears has not done much for the image of either chain.
“Other than inflation, the pie
essentially isn’t getting any bigger,” Mr. Mansell says. “It’s all
market share and we are trying to attack market share wherever we see
weakness.”
Growth in Kohl’s sales, profits and
number of stores has coincided with the exclusive brands strategy. Last
year, sales were $15.5 billion, up from $7.5 billion in 2001. The
company’s profits more than doubled over the same period, to $1.1 billion
from $458 million. It has also doubled the number of stores it operates —
to 834 from 382 — all at a time when overall clothing sales have
languished. Kohl’s may be smaller than Macy’s and J. C. Penney, but by
one closely watched measure in retailing, it beats both of them. Last year,
Kohl’s sold $224 for every square foot of space in its store, compared
with $171 for Macy’s and $166 for J. C. Penney, according to A. G.
Edwards.
“Kohl’s has built a significantly
better mousetrap,” says Bill Dreher, a retail analyst at Deutsche Bank
Securities.
Kohl’S also intends to increase the
size of its average sales transaction. Its five-year-old roster of exclusive
brands, which are displayed prominently in various departments, now accounts
for 8 percent of its annual sales. By adding Simply Vera and a Food
Network-branded collection of housewares this fall, Kohl’s believes that
it can increase exclusive brands’ share of its sales to 10 percent.
“We get more visits to our stores than
our competitors, which is not surprising because they are more convenient
and closer to neighborhoods,” Mr. Mansell says. The average sale is for
$50, and about half of customers buy items from only one department.
“A very small percentage of consumers
on a visit buy something in women’s apparel and, in the same visit, buy
something in women’s accessories,” Mr. Mansell says. “And they’re
right across the aisle.”
By placing Ms. Wang’s designs in
multiple areas of the store, Kohl’s wants shoppers to explore — and shop
— in more departments. Ms. Wang herself says she shops at Kohl’s. She
has two daughters, 13 and 16, who buy cargo shorts there by the armload.
“Listen, I’ve been in Sports Authority, P. C. Richard’s and Barnes
& Noble,” she offers. “That’s my other life.” Prices for luxury
fashion keep going up, to the point that Ms. Wang said it is a major
achievement to sell 250 pieces of any one style from her high-fashion
collection.
She says that “$3,000 is the new
$1,000, and $6,000 is the new $3,000,” adding: “Actually, maybe $10,000
is the new $3,000. The truth of it is, it can be very frustrating when you
have built up some degree of a name in this country and not be able to dress
more people.” - 2007 June
18 NEW
YORK TIMES by Eric Wilson and Michael Barbaro

Of the 15 or so wedding gowns delicately
suspended from black velvet hangers in the Vera Wang boutique at Saks Fifth
Avenue, not a single one is white.
Ivory, parchment, cream and pearl, yes.
Even a pale champagne that would look amazing on a fair-skinned redhead. But
bright, blinding white? Not one.
And sleeves? There aren't any of those,
either.
The story is much the same in other
bridal salons. Over the last 10 years, the bridal industry has undergone a
stunning makeover. Thanks to the leadership of Wang and other high-end
designers, women can now get married in gowns as sophisticated -- not to
mention sleek and bare -- as anything to slink down a runway or a red
carpet.
Details that once shouted
"bride" -- miles of frills and flounces, puffed princess sleeves,
bigger-than-a-wedding-cake bows -- are now as scarce as that blinding
blue-white.
In their stead are beautifully bared
shoulders and arms, gentle draping, subtle lace, delicate hand-embroidery,
and shapes either liquid or sculptural but never too overstated or fussy.
It's no surprise that more than a few of
these gowns' creators have roots in the broader fashion world. Wang was a
senior editor at Vogue and design director at Ralph Lauren before
frustration at finding a suitably chic gown for her own wedding led her to
launch her line. And Richard Tyler, Carolina Herrera and the design team
Badgley Mischka all had well-established ready-to-wear companies before
their names appeared on wedding gowns.
But at least as important as the input of
designers are the changes in brides themselves.
"Women are getting married at a more
mature point in their lives," says Nina Nichols Austin, buyer and
manager of The Bridal Salon at Stanley Korshak. "Lots of brides are
professional women. They're very fashion-savvy, very discerning. They expect
good fabrics and construction. They made the demand for gowns that were not
polyester and covered in plastic lace."
Hence the rows of gowns in rich, lustrous
silks. Two of the most popular choices: mikado, a heavy Italian silk that's
"a little like shantung, with a lot of body but lightweight so it's
comfortable even in the heat," and crisp silk twill, "a fabric
Christian Dior made famous in the 1950s."
There's also the subtle use of colour:
gowns in pale butter or "rum pink," smatterings of silver or
bronze beads, a band of pale blue ribbon.
- by Tracy
Achor Hayes The
Province