When deciding to sell your company, timing is everything.
Three top executives, who all recently sold their respective companies, shared their stories at the 2011 FN CEO Summit in Miami on Friday. Tina Aldatz, Founder and President of Foot Petals, who recently sold to R.G. Barry Corp., Sam Edelman, President of the Sam Edelman Division at Brown Shoe Co. and Jim Tarica, Co-President of Footwear for LF USA covered topics ranging from reasons for the sale, to finding the right partner and adjusting to the change of reporting to someone else.
Edelman discussed that for him and his wife Libby, it was important to have a succession plan in place. "I wanted to see the brand have a real future," he said. "When I was introduced to Brown Shoe it was the perfect match at the time."
Meanwhile Aldatz said it was important for her to find a partner that allowed for her to still be heavily involved in the business. "My objective was not just to sell, but to create a strategic partnership, I wanted to do something that would leave a legacy," she said, adding that after 10 years in business it has been a rocky transition at times. "I'm a very dominant personality and there is a whole language barrier when it comes to working with a corporation, but it's exciting because I'm learning."
And Tarica said that while the deal was four years in the making, the timing finally felt right when LF discussed the option to keep all of their employees and asked both Tarica and his brother Larry Tarica to stay on board for another 10 years. "[The company] made it very clear they wanted Larry and I [involved]," he said. "We gave him our vision of where the company was going and he agreed."
Karen Goodman, Managing Director at Financo Inc. also weighed in on the M & A activity within the industry and the importance of timing. "You have to be emotionally ready," she said.
Posted by Footwear News, The Editorial Staff
Emerging celeb designer Nicole Richie said she decided to enter the fashion world when she knew she could give it her all - and it's clear she's doing just that.
At the FN CEO Summit second night’s address, Richie, who designs House of Harlow 1960 and Winter Kate, described her customer as "a woman who wants to have fun with fashion and wears everything with ease and comfort."
Between working and being a mom, Richie said she has to find styles that can work for all day wear, although she loves high heels. "Comfort is the number one factor for me—I have great shoes that I don't ever wear."
Comparing her role as designer to her former experience singing, acting, or working on TV, she said it's been challenging in ways she hadn't expected. "In those other areas you can just be an artist but when it comes to design, you're forced to know everything from shipping to linesheets to pricing."
As for top trends, Richie declined to list of-the-moment styles, opting for a style mantra that says "It's important to know your body and what looks good on you."
Richie highlighted the importance of press in growing a young brand, but said she hasn't yet tackled a strong push with stylists and celebrities. Instead, she has focused her efforts on connecting directly with consumers on Twitter, Facebook and at Personal Appearances, which she feels are the best opportunity to have face time with her customers. "PAs are great and I see them as my chance to see what [the customers] are drawn to, what they want me to do and get feedback."
Richie confirmed she does all her own tweeting to her two million plus followers. "I love talking to people directly to keep them in the loop and get their feedback." Although she started off tweeting about her business to share the process and get feedback, Richie said she can't resist the occasional cheesy ‘knock knock’ joke or personal post. "For me, it's very important to know my customer and connect with them directly. I love that," Richie said.
Posted by Footwear News, The Footwear Editorial Staff
Getting TV viewers to buy something they can’t readily touch, taste or smell isn’t easy. And when you’re selling, say, footwear or perfume, the challenge is even more daunting.
But HSN has found a formula that works.
Mindy Grossman, its CEO, earlier today told a crowd of footwear and executives at the 2011 FN CEO Summit in Miami that consumers will splurge if retailers create experiences that go well beyond just selling product.
Merchants must deliver the “joy and excitement of new product everyday,” she said.
One simple way to do that, she suggested, is by creating experiences that come to life for the potential buyer.
For instance, when legendary crooner Rod Stewart was set to release a new album last fall, the giant TV retailer partnered with his record label to present a live on-air concert. The end result? More than 30,000 CDs were sold in an hour.
It proved, Grossman said, the music business wasn’t dead; it just needed fresh thinking. It also gave HSN a 20 percent spike in new customers.
“We need to create appointments to view,” she said.
HSN will take a similar approach next month when it debuts new music from Randy Travis.
Posted by Footwear News, The Editorial Staff
Three of the industry’s rising design stars and one celebrity footwear newcomer opened up about their growing businesses at the 2011 FN CEO Summit during a special panel this afternoon.
Nicholas Kirkwood, Jerome Rousseau, Alejandro Ingelmo and Yeardley Smith (the voice of Lisa Simpson from the “Simpson” series) talked about everything from their first big break in the business to the things that frustrate them most about the industry, including knockoffs.
It’s clear these four are determined to take their brands to the next level.
Ingelmo, who is nominated for a CFDA award this year, talked about opening his first store in New York last year, and how that has helped his brand become instantly more recognizable. Similarly, Kirkwood is debuting a London boutique, his first location, next month, and has plans for retail in New York, Asia and the Middle East.
Rousseau, who lives in Los Angeles, sounded off on the power of celebrity. “Early on, I got in with two young stars, Kristen Stewart and January Jones, and that really helped me at the beginning,” Rousseau said.
And Smith weighed in on leaping from Hollywood to footwear.
“I like to do things that people tell me I can’t do,” Smith said, of her new footwear venture, Marchez Vous YS. “I started acting at 17, and people told me I wouldn’t make it. Well here I am [all these years later].”
Posted by Footwear News, The Editorial Staff
Men’s designer John Varvatos kicked off the 2011 Footwear News CEO Summit on Wednesday night with a message of innovation.
As he recounted his childhood in Detroit and rise at Ralph Lauren — first in sales and later in design — Varvatos said he decided to be a designer at 29. After a stint at Cole Haan, a longer run at Calvin Klein and a return to Ralph Lauren, he started his label in 2000 with a focus on originality.
“[Back then] there was a lot of sameness,” he said. “And I thought, ‘This is the time for someone to do something different.’ I wanted to create a lifestyle brand, something with personality.”
And Varvatos said innovation continues to be important. “Our mantra is to create new designs and never copy,” he said.
The designer said 2010 was a record year for the company in revenue and profits. He just renewed his contract five more years for his collaboration with Converse.
And the company is looking at new ways to market, including streaming new music on its website and offering tickets to concerts before they are available anywhere else.
“We are hell bent on creating an experience,” he said. “In our 11th year, we kind of feel like we are just getting started.”
Posted by Footwear News, Editorial Staff
