44
THE SOURCE FOR RETAILERS JUNE 2010 $10.00 MASCULINE AND FEMININE LOOKS BEND THE RULES WO ( MEN ) FORECASTING NEXT SPRING’S SUMMER CIRCUIT: MARKETS NOT TO MISS INSIDE THE USRA’S MAY EVENT TREND SPOTTING: DUCK BOOT SEASON RUNAWAY HITS

Footwear Plus | The Source for Retailers | 2010 • June

Embed Size (px)

DESCRIPTION

Metal Heart: Feminine and masculine collide, heightening the androgyny factor in Fall '10 designer dress wear; Q&A: White Mountain; Spring Pickin's: Taking the turn into 2011, designers draw from the '70s, American heritage and the natural world

Citation preview

Page 1: Footwear Plus | The Source for Retailers | 2010 • June

THE SOURCE FOR RETAILERS • JUNE 2010 $10.00

MASCULINE AND FEMININELOOKS BEND THE RULES

WO(MEN)

FORECASTING NEXT SPRING’S

SUMMER CIRCUIT: MARKETS NOT TO MISS

INSIDE THE USRA’S MAY EVENT

TREND SPOTTING: DUCK BOOT SEASON

fw_06_cover_02.indd COV1 5/26/10 3:08:29 PM

RUNAWAY HITS

Page 2: Footwear Plus | The Source for Retailers | 2010 • June

full_ads_jun.indd COV2 5/25/10 9:26:47 AM

Page 3: Footwear Plus | The Source for Retailers | 2010 • June

SSSSSSSSSSSSSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee ttttttttttttthhhhhhhhhhhhhhheeeeeeeeeee BBBBBBBBBøøøøøøøøøøøøøørrrrrrrrrrrrrrrrrrrrrrrrrrnnnnnnnnnnnnnnn aaaaaaaaannnnnnnnnnddddddddddddddddddddd BBBBBBBBBBBBBBBBøøøøøøøøøøøøørrrrrrrrrrrrrrrrnnnnnnnnnnnnnnnnnnnn KKKKKKKKKKKKKKKKKKKKKKKKKKKKiiiiiiiiiiiddddddddddddddddddddddddsssssssssss SSSSSSSSSSSSSSSSSSpppppppppprrrrrrriiiiiiinnnnnnnngggggggggggggggggg 222222220000000000011111111111111111111111111 CCCCCCCCCCCCCCCCooooooooooooooooollllllllllllllllllllllllllllllleeeeeeeeeeeeeeeeeeeeeeeecccccccccccccctttttttttiiiiiiiiiiiiiiiiiooooooooonnnnnnnnnnnssssssssssss aaaaaaaaaaaaatttttttt FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFAAAAAAAAAAAAANNNNNNNNNNNNNNNNYYYYYYYYYYYYYSSSSSSSStttttttuuuuuuudddddddddddddiiiiiiiiiooooooooooooooooooo 44444444444444444455555555555555555500000000000000,,,,, 444444444445555555555550000000000 WWWWWWWWWWWWWWWWWWWWWWWWWeeeeeeeeesssssssssssstttttttt 333333311111111ssssssssttttttttttttt SSSSSSSSSSttttttttttrrrrrrreeeeeeeeeeeeeeettttttt,,,,, 1111111111122222222tttttttthhhhhhh FFFFFFFFllllllllooooooooooooooooorrrrrrrrrrrrrr,,,,,,,,,,,,, NNNNNNNNNNNNNeeeeeeeewwwwwwwwwwww YYYYYYYYYYYYYYooooooooorrrrrrrkkkkkkkk,,,,,,,, NNNNNNNNNNNNeeeeeeeeewwwwwwww YYYYYYYYYYoooooooorrrrrrrrkkkkkkkkkkk

full_ads_apr_may.indd 1 5/25/10 9:20:11 AM

Page 4: Footwear Plus | The Source for Retailers | 2010 • June

Metal Heart

Feminine and masculine collide, heightening the

androgyny factor in Fall ’10 designer dress wear.

26 Caroline DiacoPublisher

Greg DutterEditorial Director

Nancy CampbellCreative Director

EDITORIALLeslie Shiers Managing EditorMelissa Knific Features EditorAngela VelasquezAssociate EditorChristine BoveEditorial Intern

CREATIVETrevett McCandliss Art Director

CONTRIBUTORSDorothy HongPhotojournalistBahar ShahparStylist Jamie Wetherbe West Coast Editor Kathy Passero Editor at LargePaola Polidori European Editor

ADVERTISINGJennifer CraigAdvertising DirectorRita O’BrienAccount ExecutiveErwin Pearl Special Accounts Laurie GuptillProduction Manager

ADMINISTRATIONAlexandra MarinacciOperations ManagerTheodore HoffmanSpecial Projects DirectorMelanie PrescottCirculation Manager Sanford Kearns Webmaster

CONTACT INFOSales/Editorial Offices8 West 38th Street, Suite 201New York, NY 10018 Tel: (646) 278-1550Fax: (646) [email protected]

Circulation Office21 Highland Circle Needham, MA 02494Tel: (800) 964-5150Fax: (781) [email protected]

CORPORATE Symphony Publishing NYCorporate Headquarters26202 Detroit Road, #300 Westlake, OH 44145Tel: (440) 871-1300Xen Zapis, ChairmanLee Zapis, PresidentRich Bongorno, CFOSid Davis, Group Publisher

FOOTWEAR PLUS ™ (ISSN#1054-898X) The fashion magazine of the footwear industry is published monthly (except for bimonthly April/May and October/November editions) by Symphony Publishing NY, LLC, 8 West 38th Street, Suite 201, New York, NY, 10018-0150. The publishers of this magazine do not accept responsibility for statements made by their advertisers in business competition. Periodicals postage is paid in New York, NY, and additional mailing offices. Subscription price for one year: $48.00 in the U.S. Rates oustide the U.S. are available upon request. Single copy price: $10.00. POSTMASTER: Send address changes to FOOTWEAR PLUS, P.O. Box 8548, Lowell, MA 01853-8548. Publisher not responsible for unsolicited articles or photos. Any photographs, artwork, manuscripts, editorial samples or merchandise sent for editorial consideration are sent at the sole risk of the sender. Symphony Publishing NY, LLC, will assume no responsibility for loss or damage. No portion of this issue may be reproduced without the written permission of the publisher. ©2010 by Symphony Publishing NY, LLC. Printed in the United States.

Streamlined and focused, the summer trade

show circuit is getting back to business.

By Angela Velasquez

8 Back to Basics

Partners Greg Connors and Kevin Mancuso revisit

their company’s 30-year history and reinvention as a

global sourcing operation. By Greg Dutter

10 Q&A: White Mountain

16 Spring Pickin’sTaking the turn into 2011,

designers draw from the ’70s, American heritage

and the natural world. By Melissa Knific

On the cover: Chie Mihara heels. Jane Oh jacket; Wolford pants and hosiery; Worth & Worth hat. This page: Jean-Michel Cazabat sequined pump. Vintage top; VPL pants; Worth & Worth hat; Lavvicci ring. Photography by Aneta Bartos.

4 Editor’s Note

6 Op-Ped

24 This Just In

25 Trend Spotting

34 Shoe Salon

36 Kids

37 Street

40 Made You Look

A law expert explains why a recent patent-infringement ruling in Crocs’ favor serves as a warning to all knockoff

artists. By Greg Dutter

22 Don’t Knock It

Candela

A recap of USRA’s May Event, which sparked

conversations, friendships, orders, healthy debates

and ideas for improving business. By Leslie Shiers

18 Refreshed & Revitalized

FP0610_TOC_03.indd 2 5/27/10 8:30:07 AM

Page 5: Footwear Plus | The Source for Retailers | 2010 • June

full_ads_jun.indd 3 5/26/10 8:50:53 AM

Page 6: Footwear Plus | The Source for Retailers | 2010 • June

IT’S APPROACHING NEARLY two years since the initial shock and awe of the fi nancial crisis shook capitalism to its core and a little over a year since the scare brought retail to its knees. But as predicted, many major retailers’ Q1 2010 sales rebounded from historic lows—even if the expectations were primar-ily based on “it can’t get worse than this” logic.

American consumers appear calmer (although numb might be a more accurate diagnosis) and will-

ing to shop again—at least a little. But the question can be heard from the proverbial backseat: Are we there yet? Has the U.S. economy (let’s ignore Eu-rope’s debt crisis for the moment) turned the corner? My gut, unfortunately, says “not yet.” It feels like we are on more stable ground, but the road ahead is not smooth. And while it sure beats the queasy freefall of last year, until there is sustainable growth—i.e. businesses hiring in bulk—then there’s yet to be a legitimate recovery taking root.

Let’s face it, consumers shop a whole lot differently when there’s a weekly paycheck acting as an enabler. In addition, those fortunate enough to have jobs will shop more confi dently once the looming fear of the unemployment line subsides. The fi nancial crisis has since morphed into an unemployment crisis, and while the Street still has plenty of jitters, it’s pink-slip paranoia that

weighs far more heavily on consumer confi dence. The recent unemployment data is encouraging, but it doesn’t yet project a clean bill of health.

Just how this slow recovery impacts our world of shoes remains to be seen. Many pundits believe the American shopper has been forever scarred by liv-ing in a world where frugality is the new black. However, it seems too early to tell whether any changes in habit are permanent 180s or just knee-jerk reactions. Once again, in my gut I remain skeptical that consumers have changed all that much. If a recovery is indeed already taking hold in under three years, I suspect the shock will fade rather than profoundly alter how America shops. Unlike my parents’ generation, who lived through 10-plus years of the Great Depression followed by WWII, this crisis—hopefully—will pale in comparison and, for better or worse, not have as long-lasting effects.

If consumers have learned anything, I hope it’s how to live more within their means. The fi nancial hangover of too much debt is simply not sustain-able. Luckily, within that bigger picture, the world still needs and wants shoes. And on a scale of indulgences, a nifty new pair is small potatoes compared to splurging on, let’s say, a boat. The need to cut back is critical, but let’s not get too carried away. Consumers most likely will continue to be cautious for the foreseeable future, with many spending less overall. But within that pie, shoes should fare quite well—just like past economic downturns have proven.

So are we there yet? My gut tells me we are getting there. Slowly.

Are We There Yet?

Greg Dutter, Editorial Director

e d i t o r’ s n o t e7instincts on a recovery

FW_06_EdNote_02.indd 4 5/26/10 3:27:29 PM

Page 7: Footwear Plus | The Source for Retailers | 2010 • June

THESE BOOTS AREN’T JUST MADE FOR WALKING.

Come see us at FFANY, June 8-10 at the Hilton Hotel Booth #2006

For years, outdoor enthusiasts have trusted MUCK® to keep their

feet warm, dry and comfortable in some of the toughest conditions

around. Now, with our new All-Terrain Collection, you can get that

same legacy of performance with a splash of color and style.

Arctic Sport HimalayasDove

To learn more about the All-Terrain Collection or to fi nd a representative near you, please contact our National Sales Department at 978-475-4889.

full_ads_apr_may.indd 5 5/25/10 9:21:38 AM

Page 8: Footwear Plus | The Source for Retailers | 2010 • June

OpPed

RUNNING IS HOT. Participa-tion is up as many Americans have turned to a relatively af-fordable form of exercise, and many more partake in a growing number of charity-related fun runs and walks. Moreover, the industry is on the verge of a po-tential radical barefoot technol-ogy revolution that may change how people run altogether and, subsequently, the types of shoes they will buy. Thanks largely to the buzz being generated by the glove-like Vibram FiveFingers (sales have leapt from $400,000

to an estimated $40 million since the shoes hit the market in 2006) and the debut of barefoot styles by market verifi ers Nike (Free) and Adidas (AdiZero), running is the talk of the town. The barefoot topic has been debated on HBO’s “Real Sports,” featured in The New York Times and posted all over the blogosphere. There’s also pavement proof: FiveFingers are now a regular sighting in New York—we’ve spotted them on a number of Central Park runners as well as the odd fashion-forward downtown hip-ster—and many elite personal trainers are sporting the shoes.

Not surprisingly, the industry is keeping stride with the expanding and evolving consumer base. Running specialty brands like Brooks, Saucony and Asics have introduced—or are on the verge of releasing—their own barefoot shoe interpretations, and retailers are catering to the techni-cal needs and preferences of more serious enthusiasts. The Sports Au-thority, for example, plans to launch a new smaller concept, S.A. Elite, with a focus on higher-end footwear and apparel—much of it running related. Not surprisingly, the concept looks to be similar to the formats found in the healthy independent running specialty store channel—one of the few tiers that have weathered the recession relatively well. The fi rst S.A. Elite location will open in Denver this August. “S.A. Elite’s format was the brainchild of extensive consumer research and customer insight, including advanced basket analysis, ethnography and other innovative primary research techniques,” says Jeff Schumacher, the chain’s execu-tive vice president. Sounds as scientifi c as the tech-fi lled shoes it will sell. The stores will range in size from 12,000 to 15,000 square feet (the typi-cal Sports Authority location is about 42,000 square feet). S.A. Elite will feature high-end lighting fi xtures, custom brand shops and highly knowl-edgeable store associates, COO Greg Waters adds.

Apparently, consumers are willing to pay more for the expert service and technical products found in specialty locations. According to a re-cent NPD Group study, runners pay an average of $14 more than leisure wearers. “Purchases of running shoes that are ‘used for running’ con-tinue to show strength as core runners remain passionate about their lifestyle,” notes Marshal Cohen, NPD’s chief industry analyst.

The running buzz offers a contact high for our industry overall. Histori-cally, tech breakthroughs start here and then fi lter out to other categories. And any time footwear is front-page news and, in the case of barefoot technology, subject to intense debate that delves into millions of years of human evolution… Well, I say we run with it. —Greg Dutter

In the Running

3 for more off-the- cuff coverage, visit: footwearplusmagazine.com/blog

LAS VEGAS AUGUST 17.18.19. 2010

AT THE MAGIC MARKETPLACESHOES & CLOTHES TOGETHER AT LAST.

EXHIBITORS/BUYERS: 818.593.5000 | PRESS: 818.227.4047 [email protected] FNPLATFORM.COM

FW_06_Op_Ped_01.indd 6 5/25/10 4:13:29 PM

Page 9: Footwear Plus | The Source for Retailers | 2010 • June

www.aetrex.com

See us at FFANY, Hilton Suite 4229June 8-10, 2010

full_ads_apr_may.indd 7 5/25/10 9:21:56 AM

Page 10: Footwear Plus | The Source for Retailers | 2010 • June

8 footwearplusmagazine.com • june 2010

THE SMOKE AND MIRRORS ERA of trade shows is over—at least, ac-cording to the show coordinators working overtime to reel retailers and ex-hibitors back to market this August. There is little argument amongst show management, manufacturers and retailers that the recession has ushered in a new landscape of wiser retailers with a sharp eye for value and exhibitors choosing to invest more in their product—not disposable trade show tricks. As Laura Conwell O’Brien, executive director of the Southeastern Shoe Trav-elers Association’s The Atlanta Shoe Market (TASM) puts it, “We’re about shoe business, not show business.”

It wouldn’t be trade show season, however, without tension in the air over show dates, travel expenses and competing exhibitor lists. Still, show directors are eager to expand upon the optimistic vibes of last February and working to make their respective markets a worthy stop on the circuit.

Three months out, shows are reporting “amazing retention” and “growth across the board.” FFANY president Joe Moore notes the show’s 30th year is shaping up to be its biggest ever. February’s attendance more than doubled from the year prior. Moore anticipates the next edition, taking place Aug. 3-5, will see a similar increase in traffi c. “It’s proof that vendors are getting well covered by retailers and that FFANY is a buying and selling show,” he adds. WSA president Tom Nastos says now that the hardest edge of the economic downturn has passed, “people are feeling comfortable again and are looking for opportunities.”

Speaking of opportunities, relocating WSA (taking place Aug. 9-11) to Las Vegas’ Sands Expo—and securing that venue for the next fi ve shows—was a chance to create the one-stop shop the show’s management sought. “People wanted WSA under one roof,” Nastos explains. “We’ve found a place that ac-commodates everyone. This will make it a signifi cantly better show.”

The Atlanta show also banks on its convenience as a draw for retailers. “The beauty of TASM and part of its success is that the entire show [next taking place at the Cobb Galleria Centre Aug. 13-15] is all under one roof and it has an open booth format, which allows retailers to easily shop for new lines,” O’Brien notes. With time being a hot commodity, coordinators consider the single venue a big incentive for buyers. It’s a good move for manufacturers, too. TRU Show coordinator Phyllis Wright explains that having one roof means “exhibitors are all on a level playing fi eld,” and it gives everyone the chance to see the breadth of the industry. [Go to trushow.com for show dates and locals.]

Retailers get a double dose of fashion at FN Platform (Aug. 17-19 at the Las Vegas Convention Center). Chris DeMoulin, president of Magic Inter-national and executive vice president of Advanstar Fashion Group, touts FN Platform as a well-merchandised, head-to-toe show—thanks in part to its shared roof with WWDMagic’s apparel market. “That is one major way FN Platform is different from the rest. You can see footwear with ready-to-wear and see how trends are represented across all fashion categories,” he says.

Coordinators agree that in order for a retailer to stay in business, buyers

must bring in fresh inventory that addresses the comprehensive scope of the industry. “If you’re staying home and relying on reps, you’re isolating your-self from the rest of the market,” Nastos remarks.

According to Outdoor Retailer (OR) coordinator Kenji Haroutunian, this rings particularly true for its market, where consumers often rely on retailers’ technical recommendations. As such, he encourages retailers to attend OR’s Summer Market Open Air Demo (taking place Aug. 2, prior to the Aug. 3-6 show) at its new location, Salt Lake City’s Jordanelle Reservoir. There, they can fi eld-test vendors’ new products. “Retailers are focused on what’s in their face now, but they have to think about the future,” he says. “The pace of change in this business is so fast,” he adds, noting that it includes the evolution of service, manufacturing and social media. At OR, attendees can stay connected through up-to-the-minute Twitter updates, while TRU Show is introducing a mobile app that allows buyers to locate booths by category on their handheld devices.

Reminders of the economic downturn still linger as shows seek ways to cut attendees’ costs via hotel deals, free lunch, local transportation and open seminars. Similarly, manufacturers have realized they don’t need gimmicky booths to draw attention. “These days, everyone is about the ROI and the bottom line,” O’Brien says. Leanne Milliken, marketing manager for the San Diego-based Action Sports Retailer show (happening Aug. 13-15), says that brands are being more realistic about spending, which suits retailers’ tastes.

“Giant corporate booths are intimidating and off-putting. People are tired of booths that are closed in with four walls and require a password to enter,” agrees DeMoulin. FN Platform’s inaugural show in February pre-sented a sleek environment of simple white turnkey booths and lifestyle lounges (complete with a pool table, chandeliers and an abundance of foli-age) which, according to DeMoulin, retailers enjoyed. “It was a welcoming environment,” he says. Nevertheless, DeMoulin reports that—upon vendor request—there will be more opportunity for branding going forward. Booth interiors will be tweaked this time around, he explains, but they won’t stray too far from the original concept.

At ASR, most exhibitors are electing to use turnkey booths to cut costs, Milliken notes. “Structures are expensive, but we’re allowing retailers to customize these structures,” she says, adding that exhibitors will be able to choose their preferred racks, shelves and graphics.

Just what the future of trade shows may hold remains to be seen. If the economy enters a boom phase perhaps a new booth arms race will ensue. “People overreact when the economy is good and when it is bad,” Nastos says. In the aftermath of recent seasons’ “doomsday vibes,” as Moore describes, even the smallest movements toward pre-recession business is a leap. “Shoes are not jumping off the shelf, but hell, it’s better than 2008,” Moore says. • IL

LUST

RATI

ON B

Y SU

SAN

KEN

T

S P E C I A LR E P O R T

Streamlined and refocused, the summer trade show circuit gets back to business. By Angela Velasquez

Back to BasicsATLANTA

SALT LAKE CITY

LAS VEGAS

NEW YORK

FP_06_Special_Rpt_02.indd 8 5/27/10 8:23:08 AM

Page 11: Footwear Plus | The Source for Retailers | 2010 • June

Cobb Galleria Centre | Renaissance Waverly Hotel | atlantashoemarket.com | 706.923.0580 | August 13-15 2010

Fresh.All the latest styles. All under one roof. Convenient. Affordable. And fresh new areas to shop: The Fashion Collection and The Kids Shoe Box.

The Atlanta Shoe Market: the one show you should attend this season.

full_ads_apr_may.indd 9 5/25/10 9:22:12 AM

Page 12: Footwear Plus | The Source for Retailers | 2010 • June

YOU KNOW TWO people have been working to-gether for a long time when they can complete each other’s thoughts almost seamlessly. It usually re-fl ects a comfort factor, an understanding of the role each individual plays in the business and strong

agreement in the corporate philosophy as well as the direction in which the company is headed. White Mountain’s Greg Connors and Kevin Mancuso, two of the four partners (with brother Nick Connors and Peter Fong) are a perfect example. When asked to refl ect on their most memorable moments at the company, now celebrating its 30th year, their responses intertwine, each adding to the other’s recollection because they lived it together. Their bond is solid and it doesn’t take long to realize that Connors and Mancuso’s working relationship is also a friendship that runs deep.

Connors says his most memorable moment was seeing White Mountain’s fi rst-ever shoe go down the production line in their little factory in Lisbon, NH. Their initial styles were named after the partners’ daughter; (original partner) Frank Ferrelli’s oldest daughter, Alison, was bestowed the debut honor. Connors notes that virtually all of the components in the Alison were from vendors that extended the fl edgling company credit as it struggled to get off the ground. “The design had nothing to do with what was hot in the market, it was all about what we could afford,” he says with a chuckle. But the Alison ended up doing well and kept the new company busy in its fi rst year. Connors recalls feeling an overwhelming sense of accomplishment from building the team and getting the factory up and running.

Mancuso, who joined White Mountain as a partner in 1989, recalls two milestones that happened very close together. The fi rst was the closing of the Lisbon factory in 1994—a gut-wrenching decision, particularly for the Connors brothers who had lived in the area all of their lives and had grown up with many of the factory’s workers. However, the cost and logistics in-volved to manufacture shoes in the States was simply no longer viable. “The four of us thought we were going to lose our homes and everything else,” Mancuso recalls. “It was that stressful.” But better days were to come. He remembers the development of White Mountain’s Monica clog, which sky-rocketed and saved the company. “It was an Italian import and it really changed our whole approach to the business,” says Mancuso, noting the timing couldn’t have been better as the partners’ backs were against the wall. “It was a near-death experience,” Connors agrees.

“We couldn’t get the samples made in time,” Mancuso continues. “I was literally calling up friends in the industry and asking them to buy 4,000 to 5,000 pairs of clogs that we were going to make...” The company didn’t even have an image of the shoe to sell from, Connors adds. “We didn’t have anything and they were giving us orders, which was very gratifying.” The clog was a true overnight success and, according to Mancuso, the company soon began importing millions.

Still trawling Memory Lane, Connors recalls how the two original part-ners—the late Ferrelli and since retired Gerry Dameshek—were integral pieces to White Mountain’s rebirth as an import-driven sales and market-ing company. Connors says Dameshek, a line builder who was very dogged about interpreting new shoes, fi rst pushed to make that clog when the rest of the partners were unaware of its potential. And Ferrelli, whose parents were fi rst-generation Italian immigrants and therefore he spoke the language fl u-ently, played a huge part in establishing the factory contacts. “It’s just fi tting that Frank and Gerry played a very big role in the fi nancial turnaround and how our company would be run going forward,” Connors says.

Connors and Mancuso also quickly cite the invaluable contributions Fong made to White Mountain upon his arrival as a partner in 1989. Having fi rst sourced out of Italy and later Brazil, Mexico, Eastern Europe and Taiwan, the White Mountain management team knew the next frontier was main-land China. “We were just starting to explore the mainland,” Mancuso says. “Peter was sent over, and he eventually made all of our contacts.”

Fong, who was originally an accountant, had been a co-worker of Man-

O&A

10

Commemorating the brand’s 30th anniversary, White Mountain partners Greg Connors and Kevin Mancuso offer a fi rsthand account of how a small American manufacturer evolved into a successful worldwide sales and marketing-based sourcing operation. By Greg Dutter

P I O N E E R b S P I R I T

Left to right: Peter Fong, Greg Connors, Nick Connors and Kevin Mancuso.

FW_06_QA_02.indd 10 5/26/10 4:05:56 PM

Page 13: Footwear Plus | The Source for Retailers | 2010 • June

Tuesday – Thursday

Hilton New York Hotel, Flatotel

& Member Showrooms

ffany.org

AUGUST 3-5

DECEMBER 1-3

Wednesday – Friday

Hilton New York Hotel

& Member Showrooms

full_ads_apr_may.indd 11 5/25/10 9:22:34 AM

Page 14: Footwear Plus | The Source for Retailers | 2010 • June

cuso’s in the early ’70s at Vulcan, a footwear components supplier, and he later followed Mancuso to Maine Woods. There, Mancuso was national sales manager and assisted in line building. When the Connors brothers invited Mancuso to join their team, the fi rst thing he did was recommend they make Fong a partner as well. Mancuso says he’ll never forget how they hired Fong basically sight unseen. “Greg said, ‘Kevin, if he’s associated with you—and we know what type of individual you are—then we will assume Peter is the same way.’” Adds Mancuso, “I think we have that same regard for all of our employees.” He cites two in particular: Robert Geller, president of White Mountain’s branded sales (including the Rialto and newly launched Cliffs brands), and Dennis Eichin, president of the company’s private label division. “They are two wonderful people who have been working with us for close to 20 years. They are treated as part of the family, and we try to treat all of our employees that way.”

With offi ces in Lisbon (at the original factory, which now houses the company’s shipping, adminis-trative and fi nancials departments); Westwood, MA, (sales, product de-velopment and customer service operations); and Dongguan, China, White Mountain’s family spans the globe and refl ects a mini United Na-tions. In the 50-person-strong China production offi ce, for example, there are Taiwanese and Chinese workers, a number of Brazilian product devel-opment people, a handful of former Yugoslavian (now-Serbian) tech-nicians and many quality-control staffers who hail from India. “It’s a real mixed bag but something we are very proud of,” Connors offers. “All have fairly signifi cant cultural differences, yet at the end of the day, we still manage to be something of a family and get the work done.”

Getting it done for three decades now has al-lowed White Mountain to signifi cantly expand its portfolio of branded and private label and steadily grow its sales. It’s a feat easier said than done, especially taking into account the dra-matic changes the industry has endured over the past three decades and the fact that so many

others have failed to adapt. The proof, Connors says, occurred recently when he came across a Top 10 customer list from White Mountain’s second or third year: “None of those retailers ex-ist today,” he reports.

While many factors go into achieving such longevity, Connors—whose grandfather was a

shoemaker and whose father owned several shoe factories (some of which he later sold to Don Munro of Munro shoes)—reveals one key com-ponent: “We are open to other cultures and we respect difference. We don’t frustrate ourselves by trying to have people adapt to us; rather, we adapt to them.”

White Mountain has come off a solid year of

growth despite the recession, and it has not lost any steam in 2010 as it readies to deliver its new-est brand, Cliffs by White Mountain, this sum-mer. Business is good and the four partners are bullish on the prospects for continued growth in the years to come. That’s because regardless of how the industry and the world around them

changes, their resolution to be the quick-est to adapt and react never tires. With more than a century of combined shoe in-dustry experience between the four part-ners, those entrepreneurial survival traits are simply instinctive. “I always felt that the second we stop moving forward, we should toss in the towel,” Mancuso says. “Particularly in the fashion business, you can’t sit and enjoy the few successes you may have. Because while you do, there will be 10 people passing you by.”

“Maybe if we had been smart, we would have been doctors, lawyers or In-dian chiefs,” Connors interjects with a laugh. “But we didn’t, and we ended up in a business that we know quite a bit about and like a lot.”

Thirty years ago, could you have ever envisioned how White Mountain has since evolved?Greg Connors: Our main objective back then was just to stay employed, but the odds seemed stacked against us. It was a very diffi cult time in the economy—interest rates and infl ation were both in the double digits and credit was dif-fi cult to come by. In addition, manufac-turing was on the decline, and here we were trying to start a business. In fact, we were out of work because our previ-ous company had just closed all of its factories, putting about 600 people out of work in Lisbon, alone. Basically, we wanted to manufacture shoes and em-ploy some of these people. While imports were certainly a part of the equation at that point, we concentrated on manufac-turing and limiting ourselves to what we did well. We tried to keep the mix tight and come up with shoes that represented

value to our customers.

Is there anything that has remained constant in this business since you founded White Mountain? GC: The need to inspire trust with your custom-ers and the commitment to quality and value from your employees. Those fundamentals al-

What are you reading? Kevin Mancuso: “A World Without End” by Ken Follett. It’s about English society in the 1300s. Greg Connors: “Let the Great World Spin” by Colum McCann. It’s about New York City in the ’70s.

What famous person in his-tory to you most admire? GC: Barack Obama. KM: Abraham Lincoln; a shrewd president who appoint-ed all the people who opposed him to his cabinet so he could watch them.

If you could hire anyone, who would it be? GC: Bill Belichick. He’s a great detail person and manager. I want a tough, no-nonsense guy. KM: Steve Jobs and Stephen Spielberg, for their creativity.

What was your fi rst-ever pay-ing job? GC: When I was 15, I started working summers—for $1 an hour—in the cutting room of a shoe factory. KM: A sales rep for a wholesale fl oor covering company.

What did you want to be when you grew up? GC: I wanted to be the catcher for the Boston Red Sox, but I wasn’t as good as Carlton Fisk. KM: I wanted to be successful and appreciated by my peers. That’s how I was raised.

What is your motto? GC: “God is in the details.” KM: I’ve got two that vex our employees: “There are many reasons for failure but never a good excuse,” and “Self praise is no praise.”

Who is the world’s most infl u-ential person in fashion? KM: Coco Chanel. Her infl uence and styling transcends to this day.

What is your favorite home-town memory? GC: Memorial Day weekend and the opening of Little League baseball sea-son in Littleton, NH. We played a triple header.KM: I grew up in Newton, MA, and the memory I look back to most is my fi rst Red Sox game with my father. They played the Washington Senators.

O F F T H E C U F F

12 footwearplusmagazine.com • june 2010

O&A

FW_06_QA_02.indd 12 5/26/10 4:06:06 PM

Page 15: Footwear Plus | The Source for Retailers | 2010 • June

June 1, 2010

Dear Friends,

Times continue to be difcult for far too many Shoepeople and their families.

Two Ten wants to respond and help.

If you or someone you know is struggling with:

-Rent/Mortgage -Utility bills -Car payments -Other emergencies

We want to hear from you or them. Please contact us.

Phone: (800) 346-3210 Web: www.twoten.org

No membership required. We are all part of the footwearcommunity.

Warmest regards,

Peggy Kim MeillPresident, Two Ten Footwear Foundation

| | | |

full_ads_jun.indd 13 5/25/10 4:10:19 PM

Page 16: Footwear Plus | The Source for Retailers | 2010 • June

ways apply. But apart from those philosophical concepts, everything has changed about this business.Kevin Mancuso: From the four original partners to the current four, there has always been a good understanding of how shoes are made. We also have always had a good general understanding of the shoe business. Of course, the customer base and the whole environ-ment have changed. Most of those small entrepreneurial companies did not transcend to become marketing- and sales-based import companies. While we experienced diffi cult times in the mid-’90s, we were able to acclimate ourselves to this new environment.

A hands-on understanding of how shoes are actually made surely makes you part of a dying breed, no?GC: Yes. The next generation in the U.S. might be smart, talented and imaginative about product with respect to sales and marketing, but none have ever darkened the door of a shoe factory. KM: There’s simply no infrastructure for a young person to learn those skills today. When I fi rst came into the shoe business, there was a thriving domestic manufacturing base. I learned the com-ponents end of the business while at Vulcan and my next stop was working for the then-largest shoe factory under one roof, Lawrence Made in Lawrence, MA. They used to make 54,000 pairs a day, and that’s where I learned shoe manufacturing.GC: This scarcity of experience is becoming true even in places like Brazil and Europe. There’s no real next generation of young shoe-makers. The manufacturing has primarily concentrated in China, and that gives us all a little pause. With so much turmoil in that country, the challenge over the next six or seven years will be how to deal with those issues, because it doesn’t look like there’s a “next place” on the immediate horizon. In the 30 years that we have been in business, there has always been a next place: from New England to the southern U.S. to Europe to southeastern Brazil to northern Brazil to Taiwan to China. We have always been gypsies, and now we are moving around China—further north along the coast as well as inland north and west.

Might production one day come full circle back to the U.S.?KM: I don’t see that happening.GC: It would be tough. The vibrant infrastructure that supported shoe manufacturing—the tanneries and components business—is gone. To re-create that would be very hard. There are no technicians or people with a history of working in shoe factories to even do it.

So footwear companies have no choice but to try and adapt.GC: Yes. Three years ago, we were sourcing 85 to 90 percent of our product out of six or seven factories all within 45 minutes of our Dongguan offi ce. Today, even taking into account our growth, we are sourcing from 25 factories in four different provinces and six different cities. It used to be a car ride to visit the factories; now it takes getting on a plane. It’s a lot more challenging to juggle the balls when you are diversifying so broadly. But China is a big coun-try and has established a world-class infrastructure that, at this point, no one comes close to competing against. While each of the new factories and regions have their own quirks and differences that you must fi gure out, I suspect China will continue to be a viable resource for footwear and other goods.

I’m amazed by your ability to continually adapt despite the re-moteness or exoticness of each ‘next place’ you’ve encountered. GC: We have to. It’s one of the advantages of being a small, privately held company: We are not too hidebound to tradition and we are pretty nimble in order to stay competitive. KM: We are not the biggest company, but we are a decent size and can zig and zag as quickly as most of our competitors, if not faster.

FW_06_QA_02.indd 14 5/26/10 4:06:16 PM

Page 17: Footwear Plus | The Source for Retailers | 2010 • June

Even when we realized it was becoming more challenging to manu-facture footwear in the States, we took advantage of our factory and became one of the fi rst companies to make leather shoes in China. We utilized our sample facility in the U.S., developing the patterns and the lasts, then transferred them to mainland China. Soon af-ter, we sent our factory superintendent to China to help us adapt further. GC: Gene Keiler was the superintendent of our New Hampshire fac-tory 30 years ago, and 20 years ago we sent him to China on a one-way ticket (laughs). He runs our entire technical and QC operation.

The average person simply has no idea of the global team of peo-ple behind the shoes they wear each day. GC: There are a lot of hands and aspects coming together to get a shoe made. It’s more complicated then people think. And today there are more challenges than ever: We now must make shoes that are free of any harmful chemicals, which really wasn’t a con-sideration 10 years ago. Human rights is also a big concern. It’s a big challenge to not only fi nd factories but ones that are trying to raise the bar with respect to worker conditions and fair pay. For example, we sell to a lot of the big-box stores on a fi rst-cost busi-ness, and Kohl’s, Sears and Target all have strict standards as to what factories qualify to make their goods. The fact that we are now concentrated more in one country makes it somewhat easier. At one point about six years ago, we were in Brazil, Italy, Eastern Europe and China, with a little bit of production happening in India and Mexico. That kind of sourcing was far more challenging and, quite frankly, dysfunctional and not at all cost effective compared to where we are now.

Speaking of dysfunction, how has White Mountain performed since the fi nancial collapse?KM: We’ve been very fortunate. While these are very challenging times for our country and the shoe industry in particular, we have had some nice growth over the past two years.

To what do you attribute that success?GC: Both our brands and private label businesses feature a strong value equation. We are close to entry-level price points in each of our brands’ respective distribution channels—White Mountain at Macy’s and Rialto at Kohl’s or Shoe Carnival. That proposition has become a fairly attractive one in the marketplace of late. KM: I would agree, but we also sat down six months before the re-cession truly hit and proactively prepared. We took a look at the lay of the land and saw an opportunity. That’s why we started Cliffs, whereas most other companies were in a retraction mode. Granted, our existing businesses were steady and White Mountain and Rialto had opportunities for exponential growth. Nevertheless, we thought there was a void and because it was just the four of us, we made the decision quickly. We are shipping our fi rst Cliffs shoes in July.

Who is the target customer for the Cliffs brand?KM: It’s centered toward the mid-tier department stores that are a bit more price-sensitive than White Mountain’s customer base. Conversely, Rialto is more of a novelty division that can do a lot of fun items and is even more price-sensitive.

Having launched White Mountain in the early ’80s recession and worked through several in the years since, how does this current one compare?GC: No recession is good, and they are generally not good for any-body’s business. What’s different today is that the world has become such a small place that is all interconnected. A country as small as Greece with its debt troubles, for example, can turn Europe up- >38

FW_06_QA_02.indd 15 5/26/10 4:06:30 PM

Page 18: Footwear Plus | The Source for Retailers | 2010 • June

16 footwearplusmagazine.com • june 2010

Experts predict the top trends of early 2011. By Melissa Knifi c

“The biggest trend is non-color,” Caressa CEO David Graves declares. Nudes—ranging from light beige to espresso—will serve as the neutrals of the season. Apparel-wise, trend experts say Spring ’11 will be less cov-ered up (expect short shorts and miniskirts), and nude footwear that correlates with a person’s skin tone works as a way to lengthen the legs. If not used alone, the nudes will be mixed with other top hues from spring, such as lilac.

Natural materials will also play big: Paola Ven-turi, creative director of Via Spiga, is planning to use raffi a, while Graves notes jute, cork, bamboo and wood (or materials that look like it) will be impor-tant in Caressa’s collection. Monique Umeh, footwear editor for fashion trend fore-caster Stylesight, references beachgoers in Cornwall, England, noting that part of the look features espadrilles and alpargata slip-ons like TOMS.

Along those lines, styles that have a handmade, artisan feel will also be popular. Woven leathers, for example, are being used all over oxfords or as a trim on pumps. Beading and bright-colored stitching also provide a handmade touch, lending a tribal aesthetic to spring. (Umeh predicts that African, Egyptian and Far Eastern ethnic details will replace 2010’s dominant Na-tive American theme.)

Americana isn’t anything new to Rockport, but Haysun Hahn, vice president of the women’s business unit, says the company is banking on its heritage for Spring ’11. “We have an American nautical agenda—and we’re one of the only [brands] that can claim to own it,” she asserts. Navy and white will be Rockport’s top colors, mixed with pops of bubblegum pink. Leatrice Eiseman, director of the Pantone Color Institute, says more saturated, deeper variations of blue will evolve from turquoise, which was 2010’s color of the year. (Messeca, for one, is using bright blue as one of its pop colors against a primarily pale palette.) As for materi-als, the use of vintage-looking leathers, canvas and denim will strengthen the American vibe.

Designers say they’ll continue to reinterpret classic American styles, as consumers took a liking to heritage brands over the past few seasons. Styles traditionally linked to men will cross genders: Lug-sole hikers, whether fl at or with chunky heels, continue the Fall ’10 grunge trend; ankle-height cowboy boots keep the Western look alive; and boat shoes continue to evolve with new materials, prints and embellishments. And desert boots, which may not be completely American but certainly coincide with the polished look, will fi nally hit the masses in Spring ’11, Umeh reports.

Sneakers are also returning to their classic roots—a departure from recent seasons where tattooed, vulcanized styles and colorful, urban lo- and hi-tops ruled the streets. Instead, simple lace-ups like Keds’ Champion style sum up the new direction.

AU NATUREL PARTY IN THE U.S.A.

SPRING PICKIN’SCharles David

Caressa

Lovely People

Rockport

FW_06_spring_trend_feature_01.in16 16 5/26/10 3:44:12 PM

Page 19: Footwear Plus | The Source for Retailers | 2010 • June

june 2010• footwearplusmagazine.com 17

While studs have been the chief detail of the past few seasons, Spring ’11 will see a softening of embellish-ments. Metallic hardware won’t com-pletely dissolve, but going forward, fl oral accents provide a more chic feel. Designers are giving fl orals a modern twist by mixing and match-ing prints and putting the feminine fabrics on wooden platforms for a pretty, boho vibe. Stylesight’s Umeh cites the “Reality Bites” era of the ’90s—think military-inspired lace-ups softened with a fl oral print—which lightened up the decade’s heavy grunge looks.

Women’s oxfords will continue for Spring ’11 but will feature more feminine twists such as pointier toes, animal prints, ribbon laces or cut-out details, plus pastel hues. Speaking of which, Eiseman says “true pastels”—i.e. bolder shades, like those of a Baskin Robbins array, rather than Easter’s wimpy palette—will be im-portant; of those, she highlights Pan-tone colors Gossamer Pink, Bright Chartreuse and Royal Lilac. (Lovely People owner Patricia Kerrigan says the latter is her brand’s top hue for the season.)

Also, welcome back the kitten heel. According a recent article in The Wall Street Journal, “Now, amid considerable economic uncertainty, lower-heeled styles—particularly tapered ‘kitten’ heels—are back with a vengeance… That leads some to speculate whether there’s a relation-ship between sinking heels and the stock market.” Either way, designers, such as Franco Sarto, are adding them to their Spring ’11 collections: “The 50- to 60-mm heel will be a major trend, which is good news for the woman who can’t always walk around in stilettos.” •

Perhaps the most obvious infl uence of the decade is the reemergence of the clog. “It’s proving stron-ger than ever for spring,” Venturi of Via Spiga says. Designers will provide various takes on the style, from sexy, sky-high plat-forms to designs remi-niscent of Dr. Scholl’s orthopedic look. “We’re putting [clogs] in every category,” says Ellen Schiff, fashion coordina-tor for Chinese Laundry. “You can dress them up or down.” Rita Nakouzi, director of fashion trend forecaster Promostyl North America, is also expecting hybrids, such as clogs combined with a Western boot upper.

Also channeling the disco era’s vibe is the continuation of the platform. Lauri Carleton, president of wholesale for Charles David, says the company will feature “ag-gressive wedges,” while Julie Messeca, co-owner of the eponymous brand, plans to let the architec-tural aspect of wedges and platforms speak for itself. “We see a lot going on with apparel, and we wanted the shoes to be more simple,” she notes. Trend experts predict socks (whether ankle-length or knee-high) will be worn with open-toe silhouettes for spring, furthering the dance decade’s infl uence.

It’s also important to note that the artisan and ethnic details from other categories—such as woven leathers and beading—cross over into this category, obviously replicating the bohemian lifestyle of the ’70s.

1970s REWIND FUNKY FEMME

Photos courtesy of Stylesight unless indicated otherwise.

Messeca

Spring streetwear sketch from Promostyl

FW_06_spring_trend_feature_01.in17 17 5/26/10 3:44:30 PM

Page 20: Footwear Plus | The Source for Retailers | 2010 • June

18

REFRESHED & REVITALIZEDUSRA’s May Event provided the perfect setting for business leaders to get

reenergized via idea-sparking info sessions, relaxed vendor/buyer interactions and a convivial atmosphere. From day one’s rousing keystone speech to a heated trade show

debate, Footwear Plus editor Leslie Shiers was on hand to document the highlights.

FW_06_usra_feature_leslie.indd 18 5/27/10 8:19:57 AM

Page 21: Footwear Plus | The Source for Retailers | 2010 • June

SOCIAL CHAIRS: CONFERENCE ORGANIZERS GARY AND LINDA HAUSS DISCUSS WHY THEY AIM TO MAKE USRA’S ANNUAL EVENT BOTH EDUCATIONAL AND FUN.

Just two years ago, the United Shoe Retail-ers Association’s (USRA) May Event was in trouble. Its focus had grown fuzzy, and that caused attendance to droop. But if this year’s edition was any evidence, the conference is back on an upward track. More than 220 industry members trekked to Palm Springs, CA, where the relaxed setting of the Wes-tin Mission Hills Resort let retailers and vendors kick back, hobnob, trade tips and brainstorm new ways to increase business.

“This year couldn’t have gone more per-fectly,” says Gary Hauss, a USRA offi cer and one of the key organizers behind the annual conference along with his wife, USRA ex-ecutive director Linda Hauss. He notes the focus has returned to the people the asso-ciation serves—independent retailers—and the event’s sponsors were highly involved in planning this year’s itinerary.

“One Industry, One Goal, One Place” is the event’s tagline, and to Linda, that motto cap-tures the true meaning of the retreat. “This event reenergizes those who attend,” she says. “It lets people connect with old friends and meet new people. It allows vendors to network with retailers, and vice versa.” The USRA also hosts brand reps, trade show

staff, industry press and relevant nonprofi ts. “The industry is all here,” Gary adds.

Perhaps that’s because the three-day event is meant to be as enjoyable as it is informa-tive. “When everyone has fun, everyone is willing to do a lot more,” Gary says, noting the getaway puts retailers and vendors in a neutral territory. The conference schedule is packed with vendor presentations and busi-ness seminars (this year, speakers addressed marketing and promotional strategies, hir-ing practices, ways to motivate employees, the potential of various market segments and more), but recreation is a high priority. A golf tournament, casino night and nightly happy hours give attendees much fodder for future ribbing and lasting friendships.

Once a level of comfort is established, Gary notes the industry can focus on key issues—and nowhere was that more obvious that in a colorful session about the industry’s trade shows, which Gary led with Earth president Gary Champion. There, WSA director Pam Baffo fi elded opinions from a cross-section of industry members, pledging to address their comments and concerns.

“This event was created to get all segments of the business together to share ideas and solve issues rather than just complain,” Gary says. “People can learn while having fun in a resort environment.” Linda notes that any-one who keeps an open mind should leave with a notepad full of ideas. Adds Gary, “Ev-eryone in the shoe business should be here.”

> TIP FOR THE TAKINGYour passion for your products is not enough to make you successful. You have to understand the diff erence between sales and marketing, and you must become a savvy marketer. Good marketing doesn’t cost, it pays—and when you fi nd something that works, do it again. —Bob Negen, WhizBang! Training

TALKING TRADE SHOWS: USRA called a Townhall meeting to discuss the need for one national trade show. As anticipated, the session invoked a heated debate, but attendees agreed it was a much-needed occasion for both independent retailers and comfort brands getting lost between the fashion markets’ power struggle to say their part. Here, some com-ments from those who stepped up to the mic.

“WSA was our most important show, but I stopped going when it became a three-day show. I can’t cover the costs for what, ultimately, only provides two-and-a-half days of shopping. If the show goes back up to four days, I’ll be the fi rst to show up.”

“I love the Vegas show, but sometimes you have to [practically] interview to get into a booth. And the show did get too short. Now, I can’t see my existing vendors and still have time to see new lines.”

“Booths need to be more open and visible, and the big guys shouldn’t have such overpowering booths. Vendors and reps need to take the show more seri-ously as a place where real business takes place. Why waste my money if the vendors are there but aren’t really there?”

“We [vendors] want retailers to come to shows to have conversations, but the big shows have become a place for show-and-tell. Now, the best place to do business is at a regional show where we can sell more shoes.”

“The Vegas show is supposed to show us retailers the big picture. When vendors started pulling out, it told people, ‘you don’t have to go there.’ We need to go back to having one major show.”

“[ENK, the owner of the WSA Show, has] to get involved with footwear industry politics, and it needs to court the majors. Until it does, more people won’t come to the show—even if ENK does know how to put on a great show. Personally, I believe shoe people need to run shoe shows.”

From far left: Picturesque Palm Springs; USRA officer Gary Hauss and his daughter with Earth’s Gary Champion; prepping for the golf scramble; winning big at Casino Night; an evening happy hour.

june 2010 • footwearplusmagazine.com 19

FW_06_usra_feature_leslie.indd 19 6/7/10 2:01:00 PM

Page 22: Footwear Plus | The Source for Retailers | 2010 • June

> TIP FOR THE TAKINGFront line people make the diff erence. When people enjoy going to work, they go beyond expectations. When staff ers are just paid monkeys, that’s what you’ll get. Your people are your No. 1 asset, so treat them as such. Their positive attitude, enthusiasm and passion will fi lter through to your custom-ers. To maintain motivation, communicate openly and of-fer challenges, rewards and job enrichment opportuni-ties. When you’re in a service business, you cannot aff ord to have unhappy people on the fl oor. —Joe Salzano, vice president of sales, Clarks

BUSINESS BOOSTER: ATTENDEES WEIGH IN ON WHY THE MAY EVENT IS A MUST.

Avonne Ofenstein of Safety Boot Store, Lubbock, TXWhat was the best part of this year’s conference? I think there’s a common thread among everyone here—we all want to be better at what we do. Everyone has been super-attentive, taking notes during the seminars and engaging in discus-sions. I fi nd that really compelling.What’s your top takeaway? Some-times we think there’s nothing left to learn, but it’s benefi cial to hear other retailers talk about experiences they’ve had that we’re going through now and getting their input. Some-times it’s about what not to do.

Dave Astobiza of Sole Desire, Santa Rosa, CAWhat do you fi nd most benefi cial about attending the May Event? The network-ing is No. 1. It’s always about the networking. What other aspects have you enjoyed this year? The seminars have been excellent. I really enjoyed the keystone address [on marketing ideas] by Bob Negen [of Whiz-Bang! Training].

Joe Sama of Harry’s Shoes, New YorkWhat have you enjoyed most about this busi-ness retreat? It’s always a refresher course for me. There are always things we can do to im-prove business—things we often forget. Was it worth the trip? The May Event is defi nitely worthwhile. The industry should have more conferences like this than shoe shows.

Networking under the palms; Barry Gunches of Liberty Insurance and Steve Miskulin of Parcel Management Group outline the benefits of becom-ing a USRA member.

Dave Astobiza

Avonne Ofenstein

Joe Sama

FW_06_usra_feature_leslie.indd 20 5/27/10 10:12:06 AM

Page 23: Footwear Plus | The Source for Retailers | 2010 • June

• At age 14, Fraser—who grew up in Berlin during WWII—was told by a school counselor that she should study dressmaking, but she was enrapt by a book called “German Merchants Over-seas.” She told her father she intended to study international relations, to “make sure people outside Germany know that not all Germans are bad.”

• Fraser did become a dressmaker, attending fashion school in Canada, then moved to the U.S. after her fi rst marriage. Citing heredity as the reason for her poor feet, she would seek out comfort shoes each time she returned to Germany; in 1966, a yoga instructor introduced her to Birkenstocks.

• In a letter to Birkenstock’s founder, Fraser asked for permission to wholesale the product Stateside. He approved her request, but with no knowledge of the sales business, she was repeatedly turned away. Eventu-ally, at a trade show where the brand attracted no business, she distributed the footwear to exhibitors in neighboring booths with weary feet—which led to an initial convert and her fi rst sale.

• Fraser began expanding through health food stores, and didn’t land a shoe store account until 1973. But fearless about asking questions, she began navigating the business with success. By ’94, Birkenstocks were on the shelves in many stores. By 2002, Birkenstock USA had 200 em-

ployees and was turning more than $120 million in sales. “People ask, ‘How did you build the brand?’” Fraser recalls. “But I didn’t do it—the customer did.”

• When fashion trends shifted to “dressing for success,” Fraser wor-ried Birkenstock was done for. The company had to cut staff and revise its growth trajectory, but eventually it rebounded and hired several of those people back. “Hang on to what you believe in,” she advises. “But remember, the product has to work.”

• Fraser educated herself on cash fl ow, and eventually brought her entire staff to a cash fl ow seminar to gain the same understanding. That edu-cation component played a large role in her company direction. “Not all employees loved it—some like to work 9 to 5,” she says. “But most like to learn.”

• “The world has changed, but I think fundamentally [the busi-ness] is still the same,” Fraser mus-es. “Connect with your customers. Believe in your product and your people. That’s the only way a busi-ness can survive these days.”•

VALUES ADDEDUSRA WELCOMED BIRKENSTOCK USA FOUNDER MARGOT FRASER, WHO SHARED INSIGHT ON THE FOOTWEAR WORLD’S EVOLUTION AND HOW SHE BUILT A SUCCESSFUL CORPORATE CULTURE BASED ON HER OWN PERSONAL MORALS.

Fraser (center) greets attendees after their standing ovation.

Fraser shares her story with an eager crowd.

REVOLUTIONARYComfort

Experience Rich, New Textures for Spring 2011

FFANYJune 8-10, 2010Hilton New York HotelNew York, NYBooth# 2008NEACJune 13-16, 2010Royal Plaza Trade Center & HotelMarlboro, MAATLANTA SHOE MARKETJune 16-18, 2010Embassy Suites GalleriaAtlanta, GASMOTAJune 27-29, 2010Miami Beach Conv. CenterMiami, FL 800-962-0030 | www.springfootwear.com

FW_06_usra_feature_leslie.indd 21 5/27/10 8:20:38 AM

Page 24: Footwear Plus | The Source for Retailers | 2010 • June

22 footwearplusmagazine.com • june 2010

In the wake of Crocs winning its recent de-sign patent infringement case, should all knockoff artists be afraid? I’m not sure they should be “afraid,” but they certain-ly should take note. In short, the opinion confi rms that minor design differences will not be enough to avoid infringement.

Given the differences in design between the Crocs version and some of the accused designs, the Crocs court apparently assigned a considerable fuzz factor to what constitutes “too similar.”

Meaning? The lawyers proved the overall appearance of the accused water clogs were substantially similar to Crocs’ patented design in the eyes of an “ordinary observer” (i.e. not a shoe expert) familiar with the prior shoe designs. [See sketches on opposite page.] Because the test is visual, there is subjectivity. In this particular case, one can see some aspects that were nearly identi-cal and some that were quite different. Yet the court held that infringement was effectively a slam dunk decision, and that’s where the rubber hits the road in terms of the importance of this case. If a company gets too close in the eye of an ordinary observer, they will be liable for infringement, which in district court liti-gation could subject them to money damages and an injunction.

Might we see a barrage of design patent infringement suits in the coming year? While I don’t expect a barrage, I do expect to see an upward trend. Companies without design patents will obviously fi rst have to acquire them before they can be enforced. It currently takes approxi-mately 12 to 14 months to secure a U.S. design patent from fi ling to issuance. With expedited processing, the patents can be obtained in as little as three to four

DON’T

KNOCKIT

Design law expert Christopher V. Caranidiscusses why a recent Crocs ruling in its favor is a major warning shot to all knockoff artists. By Greg Dutter

FW_06_lawyer_QA_02.indd 22 5/26/10 9:07:19 AM

Page 25: Footwear Plus | The Source for Retailers | 2010 • June

june 2010 • footwearplusmagazine.com 23

months. It generally costs a couple thousand dollars to prepare an applica-tion. It should also be noted that, by law, the original designer has one year to secure that patent once that particular design is on the market or other-wise it’s made public. Oftentimes, they fail to secure protection within this time frame. For example, they will do a test market and forget, or sit back a few seasons and wait until they see returns at the register. Unfortunately, by then it’s too late. The safest play is to apply at the outset.

Numerous other cases have been fought over the years, yet they never seem to stop the fl ow of knockoff s. Why might the outcome of this case be diff er-ent? Frankly, I don’t think that we’ve seen too many cases won over the years. I attribute this to three things: First, all too often the asserted design patent is drafted poorly and thus easy to avoid. Garbage in, equals garbage out. If you have a poorly drafted claim, it should come as no surprise that it did not ensnare the infringer. For example, say you have a new shoe and it features novel tongue, toe and tread designs, but the attorney fi les only one application for the entire shoe. In that case, a competitor might copy the tread design and be able to avoid infringement since the majority of the design is not similar. The key is to apply for protection not just on the overall design but also its subcomponents. Sometimes I will fi le a dozen patents on one product. This claiming tech-nique is frequently lost on general intellectual prop-erty practitioners who don’t focus on this niche area of the law. It also seems that the footwear industry has been so label driven that manufacturers simply overlook the protection of design. I can’t tell you how many times I have walked the fl oor of the WSA show and people don’t even realize you can protect a shoe design, let alone its subcomponents. It seems there’s much understanding regarding protecting a trade-mark but very little understanding about protecting a design.

And the potential fi nancial retribution is worth the due diligence and upfront costs? Design patents can be particularly effective in that, unlike utility patents, an infringer’s profi ts are an available remedy. In other words, you can dis-gorge and obtain all of the ill-gotten gains from the infringement. In the retail context, this can be huge. For example, a big-box store’s profi ts can amount to a large dollar volume. In addition to money damages, a design patent holder can seek a court-ordered immediate injunction to get those shoes off the shelves. Furthermore, with a court order, a design patent holder can enlist the assistance of U.S. Customs to stop the importations of infringing goods into the country.

Sounds enticing enough, but after 17 years covering the footwear industry I remain skeptical that knockoff s will be markedly curtailed. Like weeds in a garden, knockoffs will continue in perpetuity. The goal is not elimination but rather mitigation. To bear the fruits of one’s labor, you need to tend the garden, which includes “de-weeding.” Effectively, this is a cost of doing business.

There are very big companies backed by teams of lawyers that surely scoff at such potential threats. What might you say to them now? Bring it on. I am convinced that if one is armed with a properly drafted design patent and thorough knowledge of design law, enforcement can be obtained. To be sure, the Crocs case is not going to provide a tectonic shift for all. Its true value is going to be felt on a case-by-case basis where the design patent is procured and enforced strategically by learned counsel.

Some say the copiers will always be one step ahead. For example, designs are being knocked off in the factories—long before they ever hit a trade show fl oor or retailers’ shelves. Can this ever be nipped in the bud? Here again, it’s a matter of mitigation, not elimination. As for nipping it in the bud, effective tools include securing and enforcing design patents in the jurisdictions where the goods are sourced. The enforcement can be obtained through the courts, customs or both. I know one thing for sure: If you don’t have a design patent, you will never ever win a design patent infringement case.

Are knockoff s more rampant in footwear than in other industries? This in-dustry is certainly on par with—if not ahead of—other major trade sectors where appearance is everything. The infringement in footwear is similar to the watch industry in that the primary sales driver is the look. Thus, it behooves the knockoff artist to mimic the successful appearance and not the functional attributes.

Beyond the patent holder losing sales, what other negative impacts could be linked to knockoff s? A knockoff not only impacts lost sales but can also cause a signifi cant reduction in goodwill for the original design. First, the original design patentee may want to limit the distribution of the product. Exclusivity can create value. Second, a poor-qual-ity knockoff might refl ect poorly on the perceived quality of the original design. The consuming pub-lic, having been deceived, does not know the differ-ence between the two and assumes they are both of poor quality.

How might retailers benefi t from stricter design pat-ents? Those retailers who deal in original and au-thentic goods will benefi t because their market will be more effectively protected and preserved. Those dealing in non-original design will be hurt in that they will not be able to so easily ride the coattails of the original designs.

Might that be unfair to consumers who can’t aff ord the real deal? Yes, but I believe that if you want the real thing, you have to pay for it. The funda-mental reason as to why we have design patent rights is for creating the incentive for people to come up with new designs to advance the useful arts and sciences. If you allow people to encroach on that incentive, it inhibits future design advancements.

Do you feel like you’re fi ghting the good fi ght? While I represent design patent holders, I also counsel law-abiding companies to legitimately avoid infringement upon others. There are many companies who are “good cit-izens” and genuinely do not want to infringe. They come to me seeking advice on “how close is too close?” That said, I believe valid design rights should be protected.

What is the best free advice you could give to a designer? If you care about your product design, secure protection—and do it early. Otherwise, you risk being your competitor’s personal designer.

How about some free advice for a knockoff artist? Watch your step, I’m com-ing for you! (laughs)

Lastly, whose shoes are you wearing? Bontoni. And, yes, they’re authentic. •

You be the judge: Is this Crocs clog (left) too similar looking to Holey Soles’

version? The court says it is.

FW_06_lawyer_QA_02.indd 23 5/26/10 9:07:30 AM

Page 26: Footwear Plus | The Source for Retailers | 2010 • June

Summer lovin’ demands showing some leg. These ladies dare to bare. By Dorothy HongWe Wear Short Shorts

Ahra Ko, 28Maitre d’, Jersey City, NJWhat shoes go best with short shorts? Flats and sandals.What would you not wear with these shorts? High-heeled pumps.What kind of shoe style best shows off your legs? Nude platforms.What’s on your wish list for sum-mer? Gladiators. I’d buy them from Gilt Groupe for $30.Where do you do most of your shoe shopping? Saks or Bloomingdale’s—both have great variety and good style.Which of your winter shoes will you miss most this summer? Probably my Hunter boots.Boots in the summer—thoughts? I hate that. It’s like people wearing sandals in winter: It just doesn’t go.

Ayana Mbaye, 22Sales, Bronx, NYWhat shoes go best with short shorts? I like riding boots.What would you not wear with these shorts? Running shoes.What’s on your wish list for summer? I have my eye on some jelly fl ip-fl ops by Tory Burch. They’re $65.Where do you do most of your shoe shopping? Tory Burch. I usually wear fl ats and she offers a lot of them.Boots in the summer—thoughts? Rid-ing boots are OK but not snow boots.Will people ever tire of fl ip-fl ops? No, because they’re comfortable and easy to throw on.Clogs or oxfords? Oxfords. I’ve seen them coming back. Now a lot of stores sell them, for babies through adults.

Monique Darton, 25Model, Minneapolis, MN What shoes go best with short shorts? Something like my mocca-sins, or a pretty sandal. What would you not wear with these shorts? There’s not much you couldn’t wear. If you have the confi -dence, go for it.What kind of shoe style best shows off your legs? Probably not little ankle boots, which chop off the leg. I’d say a nice sandal, fl at or heel.Where do you do most of your shoe shopping? Some storefronts just get your attention, like Filene’s Base-ment. But I’m an equal opportunity shoe shopper. I’ll go anywhere. Clogs or oxfords? Clogs. I’ve had a favorite pair for quite some time.

Heather Morris, 21Student, State College, PAWhat shoes go best with short shorts? Chunky espadrilles.What would you not wear with these shorts? Heels—but wedges are OK.What kind of shoe style best shows off your legs? Heeled booties.What’s on your wish list for summer? A pair of Sam Edelman gladiators. I’d pay the full $110 for them.Where do you do most of your shoe shopping? Bloomingdale’s and Nord-strom. They always carry good brands and they have amazing return policies.Which winter shoes will you miss most this summer? My Frye boots.Clogs or oxfords? Oxfords. Clogs are nerd shoes; they’re clunky. You can wear oxfords with everything.

THIS JUST IN

24 footwearplusmagazine.com • june 2010

THIS JUST IN

FW_06_This_Just_In_01.indd 24 5/26/10 12:10:59 PM

Page 27: Footwear Plus | The Source for Retailers | 2010 • June

Forget hunting season staples: These women’s styles come in all colors and heights.

Duck, Duck, Boots

PHOT

OGRA

PHY

BY M

ARKU

S M

ARKE

NHA

USER

Clockwise from top left: The Original Muck Boot Company; Sperry Top-Sider; Native Shoes; Sorel; Ugg Australia; Western Chief. Center: Southpole.

june 2010 • footwearplusmagazine.com 25

S P O T T I N GT R E N D

fw_06_trendspotting_01.indd 25 5/25/10 9:08:17 AM

Page 28: Footwear Plus | The Source for Retailers | 2010 • June

FEMININE AND MASCULINE COLLIDE FOR

ANDROGYNOUS LOOKS.

PHOTOGRAPHY BY ANETA BARTOS

Raphael Young suede lace-ups. VPL

bodysuit; Laruicci necklace and bracelet; D Caruso headpiece;

vintage gloves.

26

FW_06_fashion_02.indd 26 5/26/10 4:35:52 PM

Page 29: Footwear Plus | The Source for Retailers | 2010 • June

27

metal heart

FW_06_fashion_02.indd 27 5/26/10 4:36:14 PM

Page 30: Footwear Plus | The Source for Retailers | 2010 • June

28

Styl

ing

by E

dda

Gudm

un; h

air b

y Se

iji fo

r The

Wal

l Gro

up; m

akeu

p by

Van

essa

Eve

lyn.

Fas

hion

edi

tor:

Mel

issa

Kni

fic

FW_06_fashion_02.indd 28 5/26/10 4:36:27 PM

Page 31: Footwear Plus | The Source for Retailers | 2010 • June

29

Blue velvet oxford by Bettye Muller. VPL dress and lingerie; Laruicci earrings; stylist’s socks.

Opposite: Elisa Palomino booties with suede flower details. Jose Duran skirt; Kiki De Montparnasse wristband.

29

FW_06_fashion_02.indd 29 5/26/10 4:36:56 PM

Page 32: Footwear Plus | The Source for Retailers | 2010 • June

FW_06_fashion_02.indd 30 5/26/10 4:37:11 PM

Page 33: Footwear Plus | The Source for Retailers | 2010 • June

31

From left: Pedro García midnight blue slip-ons with jewel embellishments. Aftur outfit; Worth & Worth hat. Boot with crystal buttons and back cutout by Giuseppe Zanotti. Outfit and headpiece by threeASFOUR; vintage rings.

FW_06_fashion_02.indd 31 5/26/10 4:37:27 PM

Page 34: Footwear Plus | The Source for Retailers | 2010 • June

32

Camilla Skovgaard over-the-knee boots. Pepper & Pistol shirt; D Caruso headpiece; Bobae gloves.

Opposite, from left: Ted Baker plum wingtips. Suit and vest by Yigal Azrouël; stylist’s socks. Studded platforms

with tassel laces by Laurence Dacade. VPL outfit.

FW_06_fashion_02.indd 32 5/26/10 4:37:38 PM

Page 35: Footwear Plus | The Source for Retailers | 2010 • June

33

FW_06_fashion_02.indd 33 5/26/10 4:38:06 PM

Page 36: Footwear Plus | The Source for Retailers | 2010 • June

GERMAN DESIGNER GABRIELE Strehle is a self-proclaimed working—and walking—woman. “I am aware of what it means to stand while you are working for long hours,” she notes. With the lines Strenesse Gabriele Strehle and Strenesse Blue, the designer aims to cre-ate feminine and timeless shoes that are, above all else, comfortable.

Both footwear lines—which debuted in Germany in 1996—recently launched their women’s product Stateside in the wake of the brands’ U.S. apparel debut. (The company also produces men’s footwear, which remains exclusive to the brands’ fl agship stores at this time.) Strehle realizes the U.S. woman differs from her German counterparts, and tries to fulfi ll the needs of both with her collections. “Ameri-cans primarily want products that amaze them and create a strong statement, while Germans want products that are mostly comfortable,” she explains. The designer says each of the brands embodies a disctinct personality: Strenesse Gabriele Strehle (re-tailing from $400 to $950) takes “an emotional ap-proach to fashion,” while she hopes to suggest “joie de vivre” with Strenesse Blue ($300 to $835).

Each collection has 27 styles for Fall ’10. The Strenesse Gabriele Strehle collection was in-spired by architectural icons including the Col-osseum, Acropolis, Brandenburg Gate, Empire State Building and the Eiffel Tower. It includes an over-the-knee wedge boot, a ballerina fl at with metal hardware, a black leather chukka, a pointy-toe wingtip and more. Strehle says Strenesee Blue was infl uenced by ’80s fashion through the use of zippers, studs and clasps; highlights include a lug-sole motorcycle boot, hi-tops with ribbon laces, leather and wood slip-on wedge booties, plat-form lace-up booties, fur-covered boots and more.

Designer Chat: Gabriele Strehle

EDITOR’S PICKSGeneral Patent

A classic material adds a sophisticated sheen.

“They are both light and dynamic, strong and fragile, just like the woman I think of when I design: harmoniously contradictive,” Strehle says about both collections.

Who is the Strenesse consumer? A sophisti-cated woman who does not obsess over brands. Her idea of fashion is natural and unforced.

Where do you look for design inspiration?I fi nd as much inspiration in tree bark as in a painting by Mark Rothko, as much in an old wall in Berlin as a calla lily, as much in a Milan woman’s walk as in a fi lm by Quentin Taran-

tino. Every day I feel so grateful to the world for supplying me with so many inspirations.

Who do you admire in the shoe world? Manolo Blahnik. His shoes are perfectly sculpted but still designed to allow women to make regal appearances.

Describe a shoe we’d never see in your line.One that is uncomfortable to stand or walk in.

What is your motto? I don’t have one. Mottos prevent your ability to see the unexpected.

—Melissa Knifi c

34 footwearplusmagazine.com • june 2010

Shoe Salon

EDIT

OR’S

PIC

KS P

HOTO

GRAP

HY B

Y N

EAL

BRIS

TON

Clockwise from top left: Chocolate Blu ballet flat with bow; engineer boot by Franco Sarto; Marc Joseph New York pump; Contessa by Italian Shoemakers mule;

cut-out bootie by Sergio Zelcer; hidden platform pump by Schutz.

Clockwise from left: Jinny Kim boot; Tania Spinelli ankle-strap shoetie; pump by Coye Nokes; Strenesse Gabriele Strehle oxford.

FW_06_Shoe_Salon_01.indd 34 5/26/10 9:04:43 AM

Page 37: Footwear Plus | The Source for Retailers | 2010 • June

"I tapped into the younger energy level of OutdoorRetailer and the people it attracts. I'll continue tohonor our current customer base but want to expandmy thinking to reach into secondary markets."

–David Fischer, Owner of HealthShoes, Taos NM

FOOTWEAR BUYERSYOU’RE INVITED TO ATTEND OUTDOOR RETAILER SUMMER MARKET 2010

Join over 20,000 participants at Outdoor Retailer; 2,800+ footwear buyers!

Over 200 footwear brands occupy the show floor covering the full spectrum from casual lifestyle to performance running.

AHNUAVIA

BIRKENSTOCKCROCS

CUSHEECCOKEEN

K-SWISS

MERRELLNEW BALANCE

PATAGONIA REEF

SANUKSAUCONY

SIMPLE SHOESSKECHERS

TERRA PLANA TEVA

TIMBERLANDUGG

CHECK OUT THE FULL EXHIBITOR LIST AT WWW.OUTDOORRETAILER.COM

SOME OF THE HOTTEST FOOTWEAR BRANDS IN THE MARKET THAT YOU’LL SEE AT SUMMER MARKET 2010:

TRADESHOW • AUGUST 3-6, 2010 • Salt Palace Convention Center • Salt Lake City, UT

OPEN AIR DEMO • AUGUST 2, 2010 • Jordanelle State Park • Heber City, UT

full_ads_jun.indd 35 5/26/10 2:02:31 PM

Page 38: Footwear Plus | The Source for Retailers | 2010 • June

36 footwearplusmagazine.com • june 2010

KIDS

ATHLETIC

COMFORT

GREEN

STREET

WORK

WHILE CROCS MAY not be as hot as they were three years ago, the fact is many consumers are loathe to retire the brand’s lightweight, comfortable, go-everywhere slip-ons—especially pint-sized loyalists. Enter Native Shoes, a Vancouver-based company that’s putting a new streetwise twist on holey, featherweight footwear. The brand launched its adult line for Spring ’10, and the kids’ collection is fast on its heels for fall, with three funky takedown styles.

“EVA shoes have been out in the market for some time,” says Dre Hayes, U.S. sales manager. “People love them for their functionality. But what’s been missing is the fashion element, and that’s what Native brings to the category.”

Founders Damian Van Zyll De Jong and Matthew Penner dreamed up Native Shoes in 2009, wanting to design good-looking shoes out of EVA that had the airiness of a sandal but the look of their favorite clas-sic shoe styles. Most of all, they sought ultimate comfort. As a result, the brand has elevated the injected-foam shoe category by introducing silhouettes that mirror iconic casual styles. The Jefferson offers the look of a traditional vulcanized sneaker with a rubber toe; the Miller is a three-eyelet twist on simple canvas kicks; and the Corrado slip-on has the flavor of a boat shoe. All are washable, mold to the feet, have antimicrobial properties and feature non-marking soles. Children will get their pick from bright purple, red, green, black, pink, orange, royal and light blue uppers riding on top of a white outsole.

Native Shoes—which is already distributing to a dozen countries worldwide—addresses the entire family. The shoes are available in child sizes 3/4 to 11/12 ($29.99 retail) and junior sizes 1 to 3 ($34.99). Knowing parents are price-conscious when it comes to their kids’ foot-wear, Native kept prices as low as possible. “Our adult shoes are priced $5 more than Crocs, but on the kids’ we wanted to match them price for price,” Hayes notes.

Hayes says what really sets Native apart from its EVA predecessors is a distinct, lifestyle-focused distribution strategy. “For the adults’ launch, we were in Bloomingdale’s, Nordstrom, American Rag, Un-defeated, and surf and skate shops. Some of those places had never carried EVA shoes before,” he reports. Native Shoes will look to bring more of its adult styles—including boots—down to children in future seasons. —Leslie Shiers

Holey Moley

A GO-TO SOURCE for girls’ slip-ons and traditional Mary Janes, Pazitos is concentrating on an edgier tween customer with its new introduction: the Picaroz collection. “Picaroz is filling the gap left by Pazitos,” explains Roberto Paz, who co-owns the company with his wife, Letty, and views this age group as one typically overlooked by the market. “[The Picaroz] customer is more creative with her outfits and puts together looks with different textures, colors and styles.”

Set to hit retail this fall, Picaroz by Pazitos will have little fashioni-stas itching for their first day of school, where they can make a splash in the classroom wearing leopard, zebra or plaid vulcanized boots or Mary Janes; patent leather pull-on boots with tassel details; studded ankle booties; bejeweled ballet f lats; casually laidback desert boots; and more. Paz notes that the line is mostly made of synthetic materi-als. “This gives Picaroz great design alternatives and freedom to stay within budget,” he says, adding that the collection aims to provide fabulous designs at attainable prices.

While the company planned the line to target tweens in particu-lar, Paz notes that younger girls have also gotten excited about the trendy boots and shoes. One of the key pieces thus far for the U.S. market has been the Tahoe boot. “[This style] is a perfect example of what Picaroz is all about,” Paz says, ticking off its combination of and patent leather, gold shoe laces and tennis-shoe soles, which all come together in a singular, statement-making style.

Available in European sizes 22 to 39, the collection retails for $43 to $54. —L.S.

Girly Edge

Native Shoes bows fashionable EVA.

Traditional brand Pazitos unveils an edgy counterpart for stylish tweens.

KIDS

ATHLETIC

COMFORT

GREEN

STREET

WORK

FW_06_kids_01.indd 36 5/25/10 9:07:38 AM

Page 39: Footwear Plus | The Source for Retailers | 2010 • June

CIVIC DUTY FOOTWEAR wasn’t inspired by any other shoe on the market but rather the material another shoe came pack-aged in. Five years ago, Steven Weinreb was examining a shoe’s Tyvek casing and found himself wondering what a shoe made out of that material would look like. After founding the brand Civic Duty a year and a half ago, he got his answer.

Although it boasts durability and breathability and is water-proof and comfortable, Tyvek is a material most people usually throw away. It’s made some cameos in footwear in uppers by DC Shoes and PF Flyers, but Secaucus, NJ-based Civic Duty ups the ante with a line of shoes with uppers made entirely of Tyvek. Weinreb says the material passed all wear tests with fl ying col-ors. “Tyvek is very strong and we’ve backed it to give it more body,” he explains. “It is recyclable and prints well, too.”

The company aims to offer a completely eco-friendly line, down to the dyes it uses. In addition, Weinreb—who previously worked on Marc Ecko, Perry Ellis and Gola footwear—wanted to build in a charitable mission. “After seeing all of the bailouts on Wall Street, I realized no one helps the Main Street guy,” he says. Civic Duty plans to let consumers vote on a cause they believe the company should support for a full year. Once chosen, the brand will design shoes refl ecting that charity’s cause, with 100 percent of the proceeds going to that organization. “We’re trying to build a community of civic-minded people,” Weinreb explains.

Civic Duty offers fi ve sneaker silhouettes: the Exhilaration, Fascination, Dedication, Illumination and Sensation. Three are lo-tops—a slip-on, one with a rubber bumper and one without (each retailing for $54). The other two shoes are hi-tops, one with a rubber toe and one with hidden shoelaces ($64). Each style comes in white, pale yellow, brown paper bag, gunmetal gray, periwinkle, fudge brownie and navy blue.

Civic Duty’s focus on timeless, classic silhouettes was a cal-culated move that plays up the unique material story, Weinreb says, noting the shoes’ crinkled appearance sets them apart from the competition. The core market is 16- to 28-year-olds, but “anyone who appreciates leisure footwear will enjoy them,” he adds.

Weinreb reports buyers are loving the debut collection, which he plans to keep as the brand’s core offering. Civic Duty is tar-geting specialty stores, and come August, it will be sold in stores like Tani, Conveyor at Fred Segal and Cockpit USA, where buyer Rudy Gonzales applauds the brand’s novel spin. “Civic Duty is of-fering a new product—a sneaker made out of ‘paper’ that is very lightweight and easy to wear—and it comes in colors and styles that fi t with almost anything,” he attests. —Christine Bove

Duty CallsCivic Duty launches with a socially responsible assortment and mission.

Fashion brand Baracuta brings its new footwear collection Stateside.FAMOUS FOR ITS G9 Harrington jacket, British brand Baracuta has been popular around the world since 1937. Dressing icons and legends like Steve McQueen, Elvis Presley and Frank Sinatra, Baracuta is now applying its fash-ion expertise to footwear in a collection that will hit the States this fall.

Five years ago, the brand began adding categories to complement its famed jacket, growing its offering to include polos and knitwear. From there, “Foot-wear was a natural category to complete the look,” says Ian Cartwright, man-aging director for Base London, the licensed producer of the shoe collection. The initial Fall ’10 collection will complement the brand’s timeless, effortless style, incorporating the Fraser Tartan lining from the G9 jacket in the footbed of every shoe. Ten shoe styles fall under four categories: vulcanized casuals, desert boots, penny loafers and work boots. Highlights include the Isaac, a penny loafer available in multiple colors and fi nishes on a high-quality leather sole unit; the Pact desert boot, which comes in suede and nubuck variations on a traditional crepe sole unit; and the Waterloo, Diesel and Gas work boots constructed out of vintage leather.

The collection will range from $175 to $250 in the States. Cartwright says the brand’s core consumer falls between the ages of 28 to 50. “Ivy Leaguers and modernists will appreciate this purist brand,” he asserts.

In its home market, Baracuta clothing (which is sold worldwide) sells through fashion-focused specialty stores. The U.S. strategy follows suit, as Base London is targeting key independents and retailers like Urban Outfi tters and J. Crew. Cartwright notes the company is being picky about placement. “We’re looking for quality more than quantity,” he adds.

Ultimately, Cartwright believes buyers are taking note because of Baracuta’s history and authenticity. “Brands with genuine heritage and endorsements from icons are few,” he states. —C.B.

Brit Wit

june 2010 • footwearplusmagazine.com 37

KIDS

ATHLETIC

COMFORT

GREEN

STREET

WORK

FW_06_Street_01.indd 37 5/25/10 4:07:27 PM

Page 40: Footwear Plus | The Source for Retailers | 2010 • June

side down. The upheavals in any one place can have a ripple effect all over the world, and it’s harder to predict how the economy will react from one day to the next. Still, the heart of the problem now is unemployment.KM: Both the retailer and the consumer are still overly conscious of how they are spending, which I think is true of every recession.

Do you sense any improvement yet for the industry at large?KM: I don’t know if any of the improved numbers are sales-driven. People have contracted and are still trying to save money. Now that all of the cost-saving measures have been made, we have to start looking at top-line sales for improvement. But there’s still close to 10 percent unemployment, which makes it very diffi cult.

Are you optimistic regarding the outlook for second half of this year?KM: We are always cautiously optimistic. We have weathered previous re-cessions. The four of us try to be very proactive. We don’t live beyond our means and we try to keep things under control.

Far too many consumers were living beyond their means, which was at the root of the problem.GC: That’s right. We watch our cash fl ow and bot-tom line very carefully and we generally don’t fall in love with inventory. We liquidate any mistakes as quickly as possible. Shoes aren’t like wine; they don’t appreciate with age. We saw a pretty good uptick in business in 2009, during which most of our product performed well. But one of our sales-people recently said he didn’t know how to behave when calling on customers anymore, because the approach for the past 20 years has been to sell from fear—like every sale was possibly his last. Now it’s a bit easier for him to get the date and commit-ment from his customers. I think it’s always been a part of our mindset: You have to keep running faster than the next guy. That’s how we approach our business.

In what ways has your target customer changed of late?KM: They are much more selective and very price-conscious today. There are so many options for purchasing footwear today that didn’t exist before, taking into account the Internet alone. From the ability to price-compare or communicate on social media sites, retail has changed. It isn’t about just going to a department store anymore.

Yet White Mountain’s business is primarily with traditional depart-ment stores.KM: That’s not going away, and those retailers are developing their own viral marketing programs. GC: A lot of our customers do a surprising amount of business on their own e-commerce sites. For example, we do a signifi cant business with the QVC network, which is a totally different format on how product is sold, but they also do a signifi cant part of their business via QVC.com.

Some pundits say one of the biggest casualties of the recession has been the luxury tier. Would you agree?GC: People may say that, but I just came back from Europe and I can tell you that it doesn’t look like Chanel and Louis Vuitton are having a diffi cult time selling handbags.

I believe it’s hyperbole. Consumers still appreciate and desire fashion-able items.KM: Fashion trends will continue. Nevertheless, I think you have two con-sumers today: The people who are frugal and look for value and then those who are fashion-driven. To me, just because you are being frugal doesn’t mean you have to buy cheap. Frugal means fi nding the best value. And at different price points, there’s different value. That’s a segue into our com-pany: We have always had understandable fashion at a great value. When we develop and price our shoes, we always think about the retail price points and what is going to drive our business.

Any other brand launches planed for the near future?KM: Right now, we’re absorbing the Cliffs launch. And Rialto is only about four years old. We like to walk before we run, and I think there is tremen-dous upside in both of those divisions.

Why are you so bullish—let’s face it—many others haven’t been?KM: Retailers want newness. And we’ve developed a wonderful relation-

ship with our retail partners. I don’t mean to sound like a country bumpkin, but we have nur-tured those relationships and most of our cus-tomers have a comfort factor with us. So when we launched Cliffs and told them what our objective was, we didn’t need to spend $10 million to market the brand. We pretty much pioneered it the old-fashioned way, and we’ve had a nice reception.GC: If we were a completely new company trying to promote a new concept, it would be very diffi cult to get traction today because of the consolidation at retail. Customers have all gotten bigger, and being a successful vendor with any of them has gotten more diffi cult. It’s more than just making the product and then sticking it in a box in order to sell Macy’s, QVC, DSW, Kohl’s, Target, etc. Every customer comes with a set of rules and to one degree or another they have all pushed work they used to do in their distri-bution centers back to the manufacturers. So being

somewhat fl uent in talking their language and satisfying their demands is what it takes to be in the game. If you are in the door already and have their trust, it’s easier to have them be receptive to a new idea.

Might this consolidation prevent new blood from entering the industry?KM: Anyone who is creative and develops a better mousetrap will always be successful. That’s part of the American way. You just don’t have as many opportunities when you are starting out from scratch. GC: The consolidation at some point might also reinvigorate the indepen-dent retailers. In a sea of consolidation where everything starts to look a bit too much alike, there’s opportunity for a creative person to build something that will attract customers. Independents may fl ourish on the local, micro level, but on the macro level, I think consolidation is here to stay.

As long-time industry survivors, do you have any advice for retailers?KM: Most of the time they don’t ask for my advice (laughs).GC: One of the bylaws of our partnership was that I wasn’t allowed to talk to customers (laughs). But I give advice to my brother Nick and Kevin all the time, and that’s to raise prices and sell more shoes. But I don’t think that advice reaches our retailers.KM: I think retailers today have to understand their strengths and maxi-

Q&A • continued from page 15

“We liquidate any mistakes as quickly as possible. Shoes

aren’t like wine; they don’t appreciate

with age.”

38 footwearplusmagazine.com • june 2010

FW_06_QA_02.indd 38 5/26/10 4:06:45 PM

Page 41: Footwear Plus | The Source for Retailers | 2010 • June

mize them. I also believe they should focus on their competition, so they know where they can take advantage and where they can’t. Of course, they also have to focus on their consumer and develop their own niche.

But doesn’t consolidation make it more diffi cult to carve out a niche—for retailers and suppliers alike?KM: It does, but I think certain vendors will become more dependent on certain retailers over time. It’s already starting to happen where you have concept shops in the stores. At one time, people just made shoes. Now it’s shoes and handbags and clothing. And it‘s not just couture brands doing it; mid-level brands are as well. GC: Consolidation has made it more diffi cult for sup-pliers in that retailers all demand difference from each other. The challenge for our product development teams is virtually creating an individual line for every customer. Even if you have product that is well thought-out and will potentially resonate with the consumer, you will have to change it for the next retailer.

What’s new for Spring ’11?KM: I think fl ats are going to continue, oxfords will return in a major way, clogs are going to be very big at all levels and you’ll see a classic/vintage theme—boat shoes and styles of that ilk. At the same time, there’s still a lot of embellishment out there. If you look at White Mountain’s heritage, clogs and oxfords are right up our alley. But there’s always a new twist. To-day, in addition to the traditional slip-on clog, there are clogs in all heel heights, shapes and with different types of embellishments.

I watched ‘Desperately Seeking Susan’ recently and I could swear I saw some of those same shoes in showrooms a few months ago. GC: I’ll get the DVD right away… Along those lines, I was recently looking at an ad we ran with Nordstrom in a Portland, OR, newspaper from about 25 years ago. It featured three of our shoes—two wingtips and cuffed bootie. That’s what we stood for then and both of those looks are coming back. But it’s not as simple as dusting off what we did 25 years ago.

Do you have a fi ve-year plan for White Mountain?KM: Historically, we have never really looked out that far. That said, we’ll be exploring e-commerce, possibly move into accessories and obviously con-tinue to maximize our three brands. At that point, it could be either an acquisition or developing another brand to target another segment of the marketplace. That’s pretty much where we want to be.

Any desire to slow down?KM: Not at this particular time.

What do you each love most about your job?GC: The challenge of staying alive and averting those near-death experiences keeps you young and fresh and your mind working. But I love the people part

most—putting together the hodgepodge of people we deal with. I’m much more involved in the sourcing side and experiencing different cultures and the challenges those differences present is the most fun aspect of my job.KM: I can’t stress enough how pleased I am with the group of people who are associated with White Mountain. I think they are all a refl ection of what the partners stand for. They are truly wonderful people who are ex-tremely loyal and dedicated to our company. I also love that my job is con-stantly evolving, and that keeps you young, vibrant and alert. I love the challenges it brings from day to day. I believe the most awful thing for a person would be to wake up and dread heading to work. I’ve always been very grateful that I look forward to going to work each day. •

AUGUST 13-15, 2010 • SAN DIEGO CA

The most comprehensive business to business marketplacefor surf, skate, swim, moto, music, art and youth culturelifestyle brands in the Western Hemisphere.

Register today: www.ASRbiz.comInterested in exhibiting? Contact [email protected]

www.ASRbiz.comwww.ASRbiz.com

ASR Marketplace is the platform for Retailers from aroundthe world to do business with over 500 authentic actionsports brands.

FW_06_QA_02.indd 39 5/26/10 4:06:56 PM

Page 42: Footwear Plus | The Source for Retailers | 2010 • June

40 footwearplusmagazine.com • june 2010

m a d e y o u l o o kåhandmade in the u.s.a.

From top: Calleen Cordero;

the factory’s artisanal

manufacturing process; a recent

ad and boot design; Cordero’s

Los Angeles boutique.

“AT AGE 17, my Friday nights were spent studying every angle of my shoes,” confesses Calleen Cordero, who at that point had already been working at a high-end footwear boutique for two years. “The architecture, the balance of footwear has always been fascinating to me.” That appreciation sparked a career that has carried her through virtually every aspect of the biz, from consulting to shoe modeling to store management. When Fred Segal came calling, Cordero relocated from San Francisco to Los Angeles but wouldn’t accept their management position, prefer-ring to work the fl oor of the Melrose Avenue store herself.

Cordero got her fi rst hands-on shoemaking experience when working with designer Jim Barnier on the revitalization of a domestic brand. But in the ’70s, U.S. manufacturing began to crumble. “California used to be thriving,” Cordero attests, noting she watched factory after factory close its doors. By 1992, she had entered wholesaling, representing brands like Kenneth Cole and Dr. Martens. After a stint at Steve Madden, Cordero began imagining her own name on a shoe box. “I knew I needed to either get out of the business or start my own,” she says, noting a studded, vintage belt sparked her fi rst design idea.

As fate would have it, several Lebanese shoemakers still called California home, and Cordero found one who believed in her. Inheriting a fully trained staff of 25 from a man exiting the fi eld, Cordero set to work. In 2001, her team unveiled the Calleen Cor-dero collection—a handmade luxury line with a range that can accommodate virtually every woman’s taste. From sexy to funky to bohemian, “I design all over the board,” Cordero says.

Most of Cordero’s shoes feature the hand-carved wooden soles California manufacturers had been known for, and while imitators have tried, “Nobody out there can do the woods like I’ve done,” she asserts. The artisanal styles, which range in price from roughly $300 to $900, are a favorite of celebs such as Renée Zellweger. Cordero is also committed to eco- and socially conscious production, which she can oversee fi rsthand every day. Five years ago, she opened a Calleen Cordero store in L.A. to showcase her varied range, and its interiors were built out of locally sourced wood and materials, just like her shoes.

Keeping her factory staff busy can be a challenge, Cordero says, which is why she’s constantly working on something new to offer. Lately, Cordero is seeing a void in classic shapes, and thus clean and simple (“but not conservative”) looks are on the draw-ing board. At the same time, expect to see her current obses-sion—precious stones like turquoise and jade—to land on other styles. As Cordero says, “You can get away with a really simple outfi t when you’re wearing a fantastic pair of shoes.” •

California Dreamin’

Luxury designer Calleen Cordero embraces her West Coast roots, offering an

eclectic array of styles each season. By Leslie Shiers

FP06_Made_You_Look_02.indd 40 5/27/10 9:28:10 AM

Page 43: Footwear Plus | The Source for Retailers | 2010 • June

FFANY June 8-10 Warwick Hotel • 65 West 54th St. at Avenue of the Americas • NY, NY 10019 • Warwick Suite

www.rialtoshoes.com

Rialto_s4s_blue_gray.indd COV3 5/25/10 9:13:46 AM

Page 44: Footwear Plus | The Source for Retailers | 2010 • June

FFANY - Hilton Hotel, NY Jun 8-10 Booth 2005 | FFANY - Hilton Hotel, NY Aug 3-5 | WSA - Las Vegas, NV Aug 9-11Magic - Las Vegas, NV Aug 17-19 | 800.925.7463 | www.chookaboot.com

full_ads_apr_may.indd COV4 5/25/10 9:19:48 AM