Footwear Plus | The Source for Retailers | 2010 • August

THE SOURCE FOR RETAILERS • AUGUST 2010 $10.00

DEFINING THRIFTY CHIC OPENING CEREMONY: THE NEW GOLD STANDARD RECESSION-BUSTING RETAIL TACTICS ANGEL MARTINEZ: ‘EVERYBODY WANTS TO BE SOLD’ OUTDOOR FORGES NEW PATHS

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14 Spice It Up

Caroline Diaco Publisher

Need some ideas for livening up your retail store this fall? Retailers and analysts offer ways to add some heat. By Melissa Knific

Greg Dutter Editorial Director Nancy Campbell Creative Director

16 Q&A: Deckers Outdoor Everyone wants to be sold, says CEO Angel Martinez. Here, he details how his company continues to convince shoppers to shell out.

By Greg Dutter

36 Olympic Achievement Opening Ceremony carries a retail torch with its innovative merchandising and hot brand collaborations. By Leslie Shiers

8 Contributors 10 Editor’s Note

38 Nifty & Thrifty

12 This Just In

Gen Y consumers are answering the economy with a value-first, less-is-more fashion sense. By Angela Velasquez

22 Trend Spotting

54 Outdoor Preview Spring ’11 trail runners, light hikers, water shoes, aprés-sport models and more, all set to brighten the shoe wall for next season.

33 Brand Focus 34 What’s Selling 52 Shoe Salon 58 Wellness 60 Kids 64 Made You Look

EDITORIAL Leslie Shiers Managing Editor Melissa Knific Features Editor Angela Velasquez Associate Editor Christine Bove Editorial Intern CREATIVE Trevett McCandliss Art Director CONTRIBUTORS Dorothy Hong Photojournalist Bahar Shahpar Stylist Jamie Wetherbe West Coast Editor Kathy Passero Editor at Large Paola Polidori European Editor ADVERTISING Jennifer Craig Advertising Director Rita O’Brien Account Executive Erwin Pearl Special Accounts Laurie Guptill Production Manager ADMINISTRATION Alexandra Marinacci Operations Manager Theodore Hoffman Special Projects Director Melanie Prescott Circulation Manager Sanford Kearns Webmaster

On the cover: Messeca suede sandal. Malene Birger blouse and shorts; vest by Issa. This page, from left: Restricted suede peep-toe bootie. Odd Molly skirt, worn as dress; Act 1 sweater; vest by Allude. Lace-up sandal by Dulce.

Madeleine Thompson vest; sweater by Rebecca Taylor; shirt by Odd Molly; Patricia Field skirt.

CONTACT INFO Sales/Editorial Offices 8 West 38th Street, Suite 201 New York, NY 10018 Tel: (646) 278-1550 Fax: (646) 278-1553 nyeditorial@ symphonypublishing.com

42

Cut Out Laser-cut details add a graphic punch to spring styles.

OOPS! We ran the wrong photo with our story on Aetrex’s new Xspress collection in July. To view the line, call (800) 833-2700 or visit www.aetrex.com.

Also, the correct phone number to contact Klas Shoes, maker of the Stroll-eez, Rotasole and Roc-A-Bouts brands, is (781) 276-4502. —Eds. 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.

Circulation Office 21 Highland Circle Needham, MA 02494 Tel: (800) 964-5150 Fax: (781) 453-9389 circulation@ symphonypublishing.com CORPORATE Symphony Publishing NY Corporate Headquarters 26202 Detroit Road, #300 Westlake, OH 44145 Tel: (440) 871-1300 Xen Zapis, Chairman Lee Zapis, President Rich Bongorno, CFO Sid Davis, Group Publisher

A message to anyone thinking about infringing on any of our 200+ patents and trademarks.

VIBRAM, FIVEFINGERS, the Octagon Logo, the Yellow Octagon Logo, and the color Canary Yellow are registered trademarks and trademarks of Vibram S.p.A.

contributors i n s i d e t h e c r e at i v e m i n d

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CLEO SULLIVAN, PHOTOGRAPHER Sullivan’s first photographs were taken of her pony, Magic, around age 8.

Inspired by her mother and grandmother, who were both artists, she attended Pennsylvania Academy of Fine Arts, graduating with a degree in painting. By age 24, Sullivan was shooting professionally in Milan and Paris. Her images take cues from her early childhood and often convey her quirky sense of humor. In addition to shooting editorial work for The New York Times Magazine, Interview, Vogue, W, Elle, Marie Claire, Condé Nast Traveler, New York, Blackbook, Newsweek, Entertainment Weekly and Vibe, she has done photography for Givenchy, Nordstrom, Sephora, Vera Wang, Judith Leiber, Absolute Vodka, Bergdorf Goodman, Neiman Marcus, Chanel, Barney’s, Bloomingdale’s and Saks Fifth Avenue. Sullivan currently resides in New York with her boyfriend, two sons and her Italian greyhound.

GREG BITTERMAN, HAIR & MAKEUP STYLIST Born and raised in Hawaii, Bitterman jumped to the contiguous 48 to pursue his talents, where he’s filled his editorial roster with styling stints for Marie Claire, Elle, Velvet, Flair and Flaunt magazines. He has also done hair and makeup for corporate clients including Neiman Marcus, Bergdorf Goodman, Stuart Weitzman, Kiehl’s, L’Oréal and Olay. Bitterman’s artistic inspirations include peace, landscaping, sunsets and sunrises, painting and good relations.

MICHEL ONOFRIO, FASHION STYLIST Born in Brooklyn, NY, Onofrio got into fashion as a kid, when she would spend hours in her room making collages out of magazines.

Today, she is a new mom and a full-time freelance stylist. Onofrio has done styling for Rolex, A.B.S., Joan & David, W Hotels, and the footwear brands Born and Yellow Box. Her editorial work has appeared in Blackbook, Zoo and A4 magazines. For this shoot, Onofrio played with clothing that highlighted the “whimsical feel of the shoes and boots.”

editor’s note always be prepared 7

Crisis Mode EARTHQUAKES, EPIC OIL spills, endless wars, terror attacks, global financial meltdowns…

It seems as though the world is just waiting for the next manmade or natural disaster to take over the 24-hour news cycle. Just as viewer fatigue or, worse, indifference sets in, a fresh calamity is sure to occur and trigger an all-new buzz.

While the shoe business may pale in comparison to these all-too-graphic and far-too-frequent catastrophes, our industry is undeniably impacted by these events.

Sometimes it’s a direct and brutal blow. For instance, many Gulf Coast retailers are on the brink of extinction now that the flow of tourist traffic critical to their survival has been reduced to a trickle. And it’s not like the beaches will be clean any time soon now that the well has finally stopped leaking. Another factor to consider: Once tourists have been forced to go elsewhere, who’s to say they will return to the Gulf next year or the season after that? Tar ball–free beaches or not, tourists may discover new family destinations, leaving these retailers high and dry.

Just think, what if the Times Square bomber had succeeded? The terrorist’s failure to trigger his car bomb properly is hardly an incentive to shop in Times Square or, for that matter, anywhere else considered a likely target. If, God forbid, a similar plot is successful, I suspect the implications for retailers will go far beyond carnage directly related to the blast.

Then there’s the ongoing financial crisis, with its far-reaching effects and perhaps long-term consumer spending implications. As we all adjust to the so-called new normal, one thing is sure: As long as this remains a jobless recovery, “normal” will be a drag on our industry. Sure, millions of anxious Americans have smartened up about lavish spending, but it’s the fear or reality of unemployment that’s put the tightest tourniquet on shoe buying.

Start adding more names to payrolls and I’m confident that shoe shopping, which is fueled by need as well as desire, will rebound markedly.

In fact, we have witnessed significant growth in the wellness category despite tremendous economic obstacles. If that category’s success tells me anything, it’s that some things never change, like the fact that innovative products that deliver on their claims of improving consumers’ lives— be it an iPhone or Vibram FiveFingers—will always grab a meaningful share of shoppers’ discretionary dollars. In essence, they fulfill a basic human desire: the need to be sold something really… neat.

In the ongoing fight for survival—be it the industry or as individuals— we are all in it together. We at Footwear Plus will continue to bridge the communication gap between retailers and wholesalers to the best of our abilities across all media platforms. Now into our 20th year, we’re leveraging our position as a trusted industry voice and successful print product to forge ahead into the digital era under a new corporate banner, 9 Threads.

Going forward, we’ll offer path-blazing services such as website design, ecommerce platforms, social media content creation and management, and digital marketing programs for wholesalers and retailers.

Whatever catastrophes this world deals us, we can only hope to be lucky—and as prepared as possible. But it’s a good rule of thumb to remember that the more prepared and proactive one is, the “luckier” one tends to be when it comes to surviving a crisis.

Greg Dutter, Editorial Director

THIS JUST IN

All’s Well Toning footwear takes on the Big Apple.

By Dorothy Hong

Tamara Doherty, 33 Nurse, Brazil Wearing: Skechers Shape Ups For fashion or function? Both. They add height and are comfortable. I can wear them all day during work.

How did you first hear about these shoes?

I was looking for comfortable work shoes and found them on Zappos. They’re the only ones I’ll buy now. I want to be taller and comfortable. I have them in every color.

Have they delivered on their wellness promises? Yes. My calf muscles are much more toned.

How often do you wear them? Every day. I have one pair for work and another for going out.

Were they worth the investment? Very. They are expensive, but they’ll last forever.

Would you recommend these shoes? I recommend them to everyone.

Where did you buy them? Zappos, for $100.

Is wellness footwear a fad? No. There’s no better work shoe. I’ve been walking for four hours now and nothing hurts.

12 footwearplusmagazine.com • august 2010

Catheryn Smith, 53 Publishing/advertising, Miami Wearing: FitFlops.

For fashion or function? Both.

How did you first hear about these shoes?

My daughter picked up a pair in Europe for me before they came out in the States.

Have they delivered on their wellness promises? They’re incredibly cushioned and comfortable, and therefore great for walking. The padding is incredible, and you don’t realize you’re working out. You can feel something in your calves, a sort of soreness. Originally I bought them for toning, but now I wear them for comfort.

How often do you wear them? Pretty often, about three times a week.

Would you recommend them? Yes. My daughter stole the first pair I bought because she liked them so much.

Where did you buy them? I bought these at Jildor for $65.

Is wellness footwear a fad? Because of the comfort, it’s not a fad. I can wear these every day in Miami.

Katie Neary, 39 Pediatric dental hygienist, Long Island, NY Wearing: FitFlops.

For fashion or function? Both. They have arch support, which most sandals don’t have.

How did you first hear about these shoes? Through patients’ parents.

Have they delivered on their wellness promises? It’s toning you can feel.

How often do you wear them? One to two times a week.

Was it worth the investment? Yes. Would you recommend these shoes to a friend? Yes. Where did you buy them? Online, at FitFlop.com.

Is wellness footwear a fad? It’s a part of my wardrobe now because of the arch support. I have to wear orthopedic shoes, so these are perfect, as are Reebok EasyTone sneakers, which I wear to work every day. You can really feel them toning your hamstrings.

Wander on purpose.

The stroll•eez modified rocker bottom helps to naturally realign your body while walking.

The uniquely-engineered, comfort footbed promotes a natural walking motion creating a whole new wellness experience.

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SPECIAL REPORT

Spice It Up Experts weigh in on how to avoid tired retail. By Melissa Knific WE WON’T NAME names, but even industry insiders have complained that lately the world of retail—from the product on the shelves to the means of selling it—has grown tired. In an effort to give the market some extra kick for the fall sales period, Footwear Plus asked store owners and retail analysts for advice on how to add some heat to the world of sales. Here, some of our favorite ideas:

of embarrassed. Stop overbuying what you ‘like’ and aggressively get rid of the dogs. Then, only replenish your top five categories and get out of your lowest five. If the market has changed, be proactive. If the swanky sandals didn’t sell this past spring, be assured they won’t next spring either—give them a great discount and get out of them.” —Bob “The Retail Doc” Phibbs, retail analyst

PLAY HOST | “Weekly, we are hosting special events, contests and any creative ideas that I can muster. One recent week, if ladies purchased a pair of shoes between 5 and 7 p.m., they stepped into a life-size ‘Barbie Box’ and took a picture with our photographer. The following week, they sent friends and family into the store to vote for them. The winner won a $100 gift card, a beautiful dress and a one-hour photo shoot. Also, we held a family and friends night for all of our staff and community friends and a client appreciation night with champagne and chocolates. I will even begin doing seminars to help build ladies’ self-esteem, like a ‘Walking in Heels 101’ class. We are living off of special events right now. I’ve determined one thing: Quitting is not an option.” —Nicole Jones, owner, Sensual Steps Shoe Salon, Chicago

TAP YOUR REPS | “Our main goal is to make customers feel welcome and that they can achieve any fitness goal they may have. Representatives from various companies are invited to come talk about their products. We just had a rep from Pearl Izumi here in partnership with a half-marathon. He brought ‘test’ shoes for people to try out and answered questions about the brand’s products. We also hold drawings for free entries into events and sometimes have shoe or sunglasses giveaways. Our staff can be very entertaining, and our customer service and referrals are what brings most people into our store. We have a website, an e-mail newsletter and a Facebook page where customers leave comments on their experiences at the store.” —Leone Rusher, owner, Shu’s Idaho Running Company, Boise, ID

GET SERIOUS | “Stop the discount coupons, fire your clerks who are jaded and only clerk the merchandise, and remember to show two pairs for every one a customer asks to try on. Have a shoeshine fundraiser with the local high school instead of a car wash. I would personally create a ‘Have you looked at your shoes lately?’ campaign and show various shoes with the idea that new shoes from your shop could make them proud instead

ADD SOME JAZZ | “Aside from sending e-blasts, advertising in airline magazines and starting a birthday promotion, we have increased our selection of accessories to spice up the appearance of the store. We’re merchandising necklaces, bracelets and earrings to sell with particular sandals and displaying products by color themes and fashion stories. Our business is dependent on the traffic for tourists. This year, Canadians and >63

14 footwearplusmagazine.com • august 2010

PHOTOGRAPHY BY DEAN POWELL

CREATE BUZZ | “We’re not waiting for the media to contact us; we’re contacting them. I’m always supplying stories and pitches to television and print. Obviously it’s self-promoting, but I do it in a way where we’re not just talking about our stores. I’m a regular on a local morning show, ‘Charlotte Today,’ where I talk about fashion.

We also dress the anchor and get a credit. The station is working on a local version of ‘What Not to Wear,’ where I’d be like Clinton [Kelly] and my store manager would be Stacy [London]. We’re also hosting Brief!, a tasteful men’s underwear fashion show that raises money for cystic fibrosis. I’m not opposed to doing whatever we can to spin media attention around us. Right now, survival is the new black.” —Dan Mauney, owner, Step by Sloan, Charlotte, NC

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TA L K I N G

O&A

Fueled by the firm belief that everyone wants to be sold something, Angel Martinez, CEO of Deckers Outdoor, discusses why the portfolio continues to do just that: sell a ton of shoes. By Greg Dutter

ASK ANGEL MARTINEZ any question across a wide range of topics and you can expect a candid, intelligent and in-depth reply. Whether it be in response to politics, society, the economy, consumer behavior, war, Hollywood, America or the obvious subject of shoes, Martinez owns a wealth of knowledge and isn’t shy about voicing his personal opinions. Take his unique advice for President Barack Obama: “Tell the American people that you are going to be a one-term president—the best one-term president there has ever been.” By doing so, Martinez theorizes, Obama would be able to tackle the real issues at hand without having to cater to special interests or make concessions just to get re-elected. Martinez believes such a novel approach to leadership would ring true with an overwhelming majority of Americans sick of the status quo. “The broad cross section of America is very wise, and that’s a [collective] voice that needs to be heard,” Martinez offers. “It’s a silent majority, which is very pragmatic and not reactionary, and sees both the extreme right and left elements as absurd.”

This novel approach to presidential leadership is highly unlikely to occur any time soon, which makes Martinez more concerned about the country’s current dire straits. “We are in a gigantic crisis of leadership in this country, and that’s probably more detrimental than Hurricane Katrina, the BP oil disaster or the economic debacle,” he says. “It’s a system that allows people to lead from mediocrity. They sell out so much and are left with an inability to lead.” Which brings Martinez’s to another of his original ideas: “We need a benevolent dictator for about four years.”

While Martinez waits for those political hypotheticals to come to fruition, he remains as grounded as ever in the business of making and selling shoes. Now in his fifth year at the helm of Deckers Outdoor, manufacturer of the Ugg Australia, Teva, Simple, Ahnu and Tsubo brands, Martinez has found his stride professionally and believes the portfolio has, too. Despite whatever hand the recession and its consumer spending fallout has dealt, the company remains on a solid growth trajectory. Specifically, Ugg continues to post record sales quarters on a regular basis and Teva has scored impressive sales gains—21 percent growth in the first quarterof 2010—that Martinez believes signals a genuine turnaround. His quick take on Teva: “If it took 10 years for the brand to degrade, it was going to take five years to fi x, but we have done it in four. The response to our new products has been exceptional.” In addition, Martinez cites how Simple is being repositioned as a great-looking casual brand first and an eco-friendly one second, while 16 footwearplusmagazine.com • august 2010

P O I N T S

the fashion-forward Tsubo and outdoor lifestyle Ahnu are niche brands by design yet poised for solid growth in the seasons to come.

“We are very bullish on everything we are doing,” the CEO says, mindful of the shaky economy. “We’re on a good path, but we have to earn our success every day and continue do a better job of satisfying our wholesale customers so they can make money. That’s what it’s all about.” Martinez adds that unlike the big banks that were deemed “too big to fail,” Deckers doesn’t have such a safety net. “The club called ‘too big to fail’ is exclusive and tiny. Deckers is certainly not in that club, and neither is Nike,” he offers. “We still have to make great stuff that sells or we’re done.”

Overall, Martinez says keeping focused on each brand’s long-term vision within a corporate structure that allows tweaks to be made quickly is crucial to the company’s continued success. “You have to focus on the fundamentals, stay very clear on your customers’ needs and make sure your products are great,” he says. “And you must be very consistent, because you then become a rock when everything else is changing.” Martinez also believes that constant pressure—be it financial, intellectual and manpower—applied on a good idea will always yield a positive result over time. “So long as one has a coherent management team and a singular vision, you can accomplish incredible things,” he offers. “We haven’t thrown

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O&A lion in venture capital for some bogus idea that everything out each year and tried to start over.” was never even vetted? That’s the extreme case, Martinez adds, “Imagine if our government bebut we have been through an era where oncehaved like that. That’s called China, by the way. difficult things became very easy to do. And it And while I don’t want their system of governmade us lose our discipline and forget that there ment, there’s a lot to learn about the ability of an are some fundamentals that are core to success. entire economic power focusing on select goals for the benefit of everybody.”

But back to the shoe business: Martinez, who retired once before, has no plans to check out anytime soon. With a handful of exciting brands to oversee as well as the onWhat are you reading? I just won’t in my business life. going search for a few more to admit finished Michael Lewis’ “The into the Deckers fold, he remains Big Short,” which gives the Are we suffering from crisis busy and entertained. “I’m having best explanation of how the fatigue? Yes. That’s the nature fun,” Martinez asserts, adding that financial crisis happened and of the 24-hour news cycle. he wasn’t sick of the footwear busiits lunacy. I also read “War” by People watch MSNBC and Fox ness before, just burnt-out on his forSebastian Junger, a frontline like they watch the World Cup. mer company. “It’s like if you play the take of Afghanistan and its But it’s not a game. There’s a lot saxophone, and the band you’re in absolute futility. more at stake: people’s lives. is grinding on you. But you still like playing that instrument. The footWhat was the last movie you What’s your escape? I just wear industry is my saxophone.” saw? “Iron Man II.” spent two fantastic weeks in

OFF THE CUFF

What are your most frequented websites? The NASDAQ site, unfortunately, and Pandora.

Costa Rica. I had no Internet or TV. You want a vacation? Take two weeks off from watching those newscasters that only care about making themselves wealthier. It’s causing an inability for people to meet in the middle, which is the place where problems get solved.

Are you at all surprised by the solid growth of Deckers in the midst of this recession?

I have a tremendous confidence in what we can do, and I’m not surI say BP, you say… Tone deaf. prised when we are successful because I expect it. But I’m a little Which is worse, the financial surprised by the traction that we crisis or Gulf oil disaster? have gotten in this economic enviDefinitely the global financial What’s inspiring you right ronment. I expected it to be a harder meltdown, which has impacted now? Our company and our road—looser gravel, if you will. But far more people in more perpeople. I’m also feeling positive that’s not to say we are expecting manent ways. While we are about the ultimate democracy, our growth to continue at this pace, getting used to the idea that which is the evolution of social because I’m not convinced we are in there’s a new normal, we don’t networking and people’s ability any kind of a turnaround economiknow what that normal is. It to coalesce. Eventually, people cally. I think we are in a flat spot isn’t going back to what it was will discover the intrinsic where we could just as easily go any time soon, and certainly power of the collective mind. down or up. It depends on quite a lot of things, with employment being the biggest one. We’ve got to Such as? get people investing again and creating jobs, Training and development of employees. That’s introducing new ideas and aggressively pursing an old idea that’s coming back. The idea of late opportunities. was you didn’t need to do that because you were only going to have them for three years. People Have businesses, by and large, been frozen? now want stability and want to grow with a comI think there’s a new normal, and what we are pany. All of a sudden, training and development going through right now is no different than are important topics again and are being conthe way business was before the wild growth of sidered as essential in a not-so-easy period—a the last 20 years. It used to be very difficult to time where you have got to pay attention to destart up and drive a business. The dot-com craze tail, build relationships with consumers and remade it seem like any apple off the tree could tailers, focus on what true customer service is, start a business. Suddenly, a guy finds $50 mil18 footwearplusmagazine.com • august 2010

make sure your product quality standards are legit, and on and on. Too many companies were paying lip service to all of that and it was camouflaged by easy growth. Now we are back to how hard it always was to be successful. You also have to take into account consumers’ assumption that they already have what they need, and something better be special if they’re going to part with their money.

Isn’t all of that really a good thing?

I think so, because it makes us all stronger. If you survive this period and can actually grow, then you are really well set up for the future. When the atmosphere becomes less difficult, we can be very powerful.

Teva is growing again. Is the brand now on a meaningful growth curve?

Oh, yeah. I think the brand will be stronger than it has ever been. It’s a yearround brand now. And I think our position in premium sports sandals is back to where it should be as the No. 1 brand in the category. Both of those aspects are really important and give everyone here a sense of pride. In addition, we just held the Teva Mountain Games again and approximately 40,000 people attended.

There were tons of young families at a cool event with a lot of excitement about our products. We’ve been investing heavily in Teva and now it’s paying off.

So what was wrong with Teva before?

The biggest problem was that there was not a culture of innovation. The brand had grown stagnant and didn’t have a vision for its own future. I’ve always said that it takes a hell of a lot longer to turn a brand around than it does to start one. In Teva’s case, there had been a long ongoing consumer following that valued the brand, but it had not grown or expanded to more consumers. So we started by understanding where the brand was and then thought about where it could expand so that we could invite more people into the franchise with better and more relevant product.

Do you foresee Teva breaking the $100 million annual sales mark in the near future?

Realistically, Teva is a multi-hundred million dollar worldwide brand. I fully expect that’s what it will be. It could be more, but that’s what we have been gearing towards. And it’s not based

on hope—that’s a bad business strategy. It’s the expected outcome.

It’s refreshing to witness a revival.

It is. And I don’t care who you are, if you are not coming out with new stuff, you’re dead. New product gives you a story and lets you become part of a conversation again. Retailers want a story to tell their customers. The footwear industry is like that. People were fretting about the big-box format killing the business, but footwear’s real environment is between a sales clerk and the customer. “Let me try this on,” “What do you think of this shoe,” “Do you have this in widths,” “Why does this shoe look like this,” “What’s the benefit of this feature,” “How does this work.” Those are all things people love to talk about.

One might argue that a customer gets more interaction these days online than they do in a lot of brick-and-mortar stores.

Well, whose fault is that? That’s not the customer’s fault. That’s the retailer abdicating a core element of their business. Those who complain that the online dealer has got them beat: shame on them.

You’ve got a customer in real time standing before you and those online dealers are out-selling you? What’s the matter with you? That is more a lack of execution, vision and a fundamental approach to salesmanship. People love to be sold.

That love affair certainly applies to the wellness category these days. What’s your take on that market segment?

It’s good for the footwear industry. It makes for good conversation— people are talking about those shoes, their functionality, and are curious to see if they’ll work for them. So Vibram FiveFingers and MBT are good for the business, and so was Crocs, for that matter.

I don’t know for sure if toning shoes will deliver a tighter butt and firmer legs—although I doubt it, because I’m still waiting for running shoes that make me run faster and basketball shoes that make me jump higher, like the PF Flyer commercials advertised back when I was a kid. None of that happened, but that didn’t stop the quest.

Similarly, women want shoes that make them look pretty. We’ve got to give them the option to try and fi nd that. It’s all an ongoing story of innovation, and like I said, people love to be sold. Even people who say, “I hate to be sold,” or “You can’t sell me”… That’s actually a challenge: “Go ahead and try to sell me.”

Are there plans for Deckers to enter the wellness category?

We have to understand what’s at the core of people wanting those products and not just knock off the other guys. We have to determine the next opportunity and be at that intersection. Whether wellness has sustainability depends on if it delivers beneficial value to the consumer. If it’s just a style, it will eventually run the way of fashion and may not be here down the road. These brands have to ask the question: Are you delivering something that people feel they got their money’s worth from and would buy again? Reebok’s EasyTone ads are very overt: You will look sexy and your butt will firm up. In contrast, MBT has been built on this strange-looking shoe and the curiosity of why people are wearing them—the same way Earth shoes did way back in the day.

That’s exactly what Vibram FiveFingers is doing.

Yes. There is a segment of the population that is not so much driven by fashion as they are by innovation. The athletic market was built around that premise, and then the innovation itself became fashion.

Beyond wellness attributes, a rocker profile also means that a platform type of shoe is now more contemporary, and from a design perspective we can now do other things because the visual envelope has opened up a bit. And in the case of FiveFingers, things that might have looked weird may not look as strange in comparison. A >61

TREND

Turquoise Delight

Dip a toe into shoes the color of warm and inviting Caribbean waters.

Clockwise from top left: ankle-strap wedge by Sanita; Teva hi-top; Rialto sandal with medallions; Clarks jeweled sandal; cut-out peep-toe by Spring Step; Daniblack woven micro wedge. Center: pump by Elizabeth Brady.

22 footwearplusmagazine.com • august 2010

PHOTOGRAPHY BY DEAN POWELL

SPOTTING

SPOTTING TREND

Against the Grain Designers break tradition with a new take on clogs.

Clockwise from top left: Jessica Bennett wedge; green cut-out with cork heel by Restricted; buckled clog by Blossom; slingback platform by Two Lips; Matisse peep-toe mule; stingray wedge by Joe’s Jeans. august 2010 • footwearplusmagazine.com 23

TREND SPOTTING

In the Buff

Designers show their natural side with shades of nude, beige and tan.

Clockwise from top left: Bernardo cuffed sandal; lace-up bootie by Fergie; desert boot by J Shoes; Elizabeth Brady ruffled sandal; slip-on by Hush Puppies; Bebe tassle clog.

24 footwearplusmagazine.com • august 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.

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

TREND SPOTTING

Nautical By Nature Maritime accents cruise into the season with a preppy vibe.

Clockwise from top left: peep-toe flat by Restricted; Charles David striped wedge; Birki’s thong; boat shoe by Rockport; Simple sneaker; Sperry Top-Sider hi-top; Sebago loafer wedge.

26 footwearplusmagazine.com • august 2010

Come see us:

Atlanta Shoe Show: Booth #1317 FN Platform: Booth #62031

TREND SPOTTING

Foam Party

Seafoam green rides the color wave for spring.

Clockwise from top left: platform with faux-python details by Charles Albert; Ugg Australia boot; cut-out stiletto by Pour La Victoire; Poetic License Mary Jane; Cordani slingback espadrille; French Sole micro wedge.

28 footwearplusmagazine.com • august 2010

TREND SPOTTING

Jean Pool

America’s go-to fabric fades into footwear.

Clockwise from top: Jessica Bennett peep-toe shoetie; Pazzo wood and crepe wegde; gladiator heel by Franco Sarto; White Mountain slide; slip-on by Ugg Australia. Center: Pour La Victoire wingtip.

30 footwearplusmagazine.com • august 2010

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TREND SPOTTING

Nothing But Net

Mesh details liven the game, scoring major style points for spring.

Clockwise from top left: Chinese Laundry suede slingback; lilac platform pump by Two Lips; Velvet Angels peep-toe platform; boat shoe by Rockport; Charles Albert oxford; lace-up wedge by Tsubo.

32 footwearplusmagazine.com • august 2010

BRAND FOCUS

The Art of Fashion

Anuschka’s unique handpainted leather goods offer a wearable gallery.

B

usiness is a family affair at Anuschka, maker of handpainted leather bags and accessories. The brand, founded

by Roma Basu and her husband Swapan and now headed by their son Bhaskar, has earned a devoted following for its colorful, evocative “wearable art”—masterpieces for connoisseurs who prefer to hang their collection on their shoulders rather than relegate them to a living room wall.

The brand has also made a name for itself among specialty boutiques and family-run shoe stores in the United States, Canada, Europe and Australia with distinctive products that bring out the collector in shoppers.

Fans have been known to amass eight or more bags from Anuschka’s array of hobos, slouches, clutches, cross bodies, totes, shoppers, satchels and overnighters, and they wear them season after season.

“Once a shopper gets used to the quality, functionality and durability, they get hooked for life,” Bhaskar says. “They use Anuschka bags for every occasion—work, travel, grocery shopping or taking the kids to a soccer game. The bags are classic, so they don’t go out of style.”

Anuschka’s fan base is expanding, thanks partly to the public’s growing familiarity with the concept of wearable art. That interest is a result of well-known brands experimenting with putting prints of paintings on a variety of fashion products, from shirts to shoes, Bhaskar adds. This is causing an increasing number of twenty- and thirtysomethings to be drawn to Anuschka. In general, Bhaskar describes the brand’s end customer as someone who is comfortable with her fashion sense and looking for an accessory that stands out. “Art is very personal. We accept that not everybody will fall in love with every piece. That’s why we do a wide range,” explains Bhaskar, who works with Roma to conceptualize all Anuschka designs. “We are influenced by fashion and color trends, but we don’t restrict ourselves to what’s on the runway.”

The newest collection, for example, in-

cludes themes such as Jaipur Paisley, which harks back to Mughal art and European history; the Spirit of the Southwest, guided by traditional Southwestern Native American tribal art; Peacock Floral, which combines the iridescence of peacock feathers with blush-pink lilies; and Hawaiian Hibiscus, featuring vibrant jade green, fuchsia, purple and golden yellow. All Anuschka products are cut, stitched and painted by hand by a team of artisans at the firm’s workshop in Calcutta, India. Refusing to outsource and jeopardize quality control, Roma and Swapan still oversee daily production. Once finished, each bag is inspected and signed by a Basu family member.

The artisans are an indispensable part of Anuschka’s story. In 1988, when Roma started making handpainted bags, she realized artists would be loath to spend hours in a factory repeatedly painting the same design. So she set out to hire unemployed and economically challenged young men and women with a basic sense of art and an eagerness to learn. She taught them leather painting, a craft that takes years to master. (The actual acrylic-based painting techniques and leather-treatment process is a family secret.) It gave these employees a rare commodity—the ability to earn a stable living that provided for their families—and many of the current artists have been with the Basus for decades. The Basu team designed for other labels until 2000, the year they launched Basu Corporation (now The Basu Group).

Defying the economy, the brand—which sells its bags for $50 to $500 retail—has enjoyed high double-digit growth every year for the past decade, Bhaskar reports. Anuschka is now targeting resort and holiday locations, well-established shoe stores, specialty boutiques and select catalog companies.

“Our sales team is very focused on education,” Bhaskar adds. “Consumers often have questions like, ‘Is it difficult to care for?’ or ‘Will the paint run?’ We help retailers learn our story so they can convey it when a customer walks in.”

A team of artisans at the the family-owned firm’s workshop in Calcutta, India, creates each piece by hand.

w h at ’s s e l l i n g

outdoor specialty

Outdoor Divas

River Sports Outfitters

With the motto “Women are not small men,” Outdoor Divas is devoted to providing active women with gear and apparel, whether it is for snowboarding, skiing, biking, hiking and and other outdoor pursuits.

Open since 2002, Outdoor Divas has a second location in Denver. “We are a onestop shop for women that are active in the outdoors,” co-owner Alysia Krupp asserts.

“We provide women with opportunities to get active, get them the gear and clothing they need, and then teach them how to use everything.”

Bringing together outdoor enthusiasts for 28 years, River Sports Outfitters now has its own social networking site, Outdoorknoxville.com, where outdoor enthusiasts can discuss products, trails and events. Covering all outdoor sports—including boating, biking, backpacking, camping and trail running—the locally owned store’s main focus is the community it serves. “We want to serve others through the outdoors,” says manager Laura Jones.

To do so, it carries the most innovative and newest products. “We are usually the first to experiment with these products and a lot of other stores look at us to see how they perform,” Jones explains.

Best-selling brands: Patagonia, Merrell and Scarpa.

Most popular category: Light hiking.

Are you expanding your après sport category? For fall, we’re adding to our casual boot selection.

Best new footwear brand added this year: Sorel was a great new brand for us last year, so we’re committed to making it even better this year.

What is the average footwear expenditure per customer? About $65.

What has been the biggest surprise this year in footwear? Due to a late spring, we saw a steep decline—more than projected— in early sandal sales.

Best-selling accessories: Superfeet insoles and SmartWool and Sock Guy socks top the list for footwear accessories. Headbands are also killing it right now.

In what ways has the recession most affected your customers’ shopping habits?

For a while they were not spending at all.

Now we are seeing people spend, but they are making solid purchase decisions.

How important is a brand’s ‘green’ factor with respect to your customers? It’s important, but I wouldn’t say it really impacts the decision to buy for about 95 percent of our customers. However, once they make the purchase, that aspect does make them feel better.

In what ways is your store becoming more eco-friendly? The goal is to someday be a zero-waste company. We’re still pretty far away from that point, but we’re working towards it.

What phrase best defines your store?

“Girls kick ass.”

Best-selling brands: Chaco, Vibram FiveFingers, Salomon, La Sportiva and Keen.

Most popular category: Hiking and water sports.

Are you expanding your après sport category?

We have always been known as a technical end-use store, but we are getting new customers by offering more lifestyle footwear and clothing.

Best new footwear brand added this year: We’ve been carrying Vibram FiveFingers for three years now, but this year they have exploded—our sales increased four times over last year.

What has been the biggest surprise this year in footwear? Our overall footwear business is up by double digits as we continue to focus on quality and fit. Also, increasing the selection of Keen and Salomon has added to the increase.

What is the male-female ratio of your footwear sales? We are probably 1 to 1.5 women to men. We still are considered male dominant, but our women’s categories are growing by leaps and bounds.

Best-selling accessories: SmartWool socks. A few years ago we decided to offer the breadth of one sock line so as to not have too many stories for the staff to tell. SmartWool is by far the best sock in our industry—if you’ve tried a pair, you know. In particular, women’s lifestyle socks have been huge for us—the colors and styles are fabulous. They’re like a party on your feet.

In what ways has the recession most affected your customers’ shopping habits? We didn’t see much of a downturn, but I’ve noticed more thoughtful purchases and not a lot of impulse buying.

How important is a brand’s “green” factor with respect to your customers? The green story is compelling for us to make customers aware when making a purchase.

In what ways is your store becoming more ecofriendly? We are recycling throughout the store and are always looking how to cut back on waste.

What phrase best defines your store? “Community.” We are always looking for ways to help our community through our outdoor world via events, cleanups, involvement on city and county boards… the list goes on and on.

Boulder, CO

Patagonia

Chaco

Sorel

Keen

Vibram FiveFingers

Merrell

34 footwearplusmagazine.com • august 2010

Knoxville, TN

OLYMPIC ACHIEVEMENT

An eclectic trove of fashionable finds, Opening Ceremony takes home the gold for its ‘fresh, fun and unexpected’ approach to boutique retail. By Leslie Shiers

Opening Ceremony’s Ace Hotel location offers a fun-to-plunder mix of fashion, footwear and arty curiosities.

36 footwearplusmagazine.com • august 2010

WHEN IT COMES to fashion—and fashion retail—there’s something to be said for skirting regulations. This is what makes Opening Ceremony, a fashion boutique with stores in New York, Los Angeles and Tokyo, such an of-themoment retailer, declares Oona McSweeney, vice president of retail and special markets for the Stylesight trend forecasting agency. She describes the store’s approach as “fearless”: “We’ve all heard about the ‘rules’ in retail regarding price points, brands, visual merchandising... but I think they need to be rethought. Rules are meant to be broken.” And this, she attests, is just what Opening Ceremony’s founders, Humberto Leon and Carol Lim, have successfully done.

Fashion editors, trendsetters and retail followers have honed in on the duo’s exciting approach since they opened their first store in 2002, and today Opening Ceremony frequently pops up in the credits of major magazine’s fashion editorials and stories pinpointing celebs’ favorite shops.

Experts cite its uniquely curated product mix, hard-to-find labels, exclusive collaborations and a treasure hunt–like shopping experience as reasons for its fast rise to retail renown. As Edina Silver, co-owner of the New York-based fashion consultancy BPMW (producer of the Compass trade show) asserts, “Opening Ceremony has [done] in a relatively short time what many boutiques aspire to: to achieve cult status.”

It is something of a cult when urban fashionistas will wait in a two-hour line for access to a sale, as Silver says was the case recently at the original store on Manhattan’s Lower East Side.

Leon and Lim, it seems, have shoppers willingly drinking the Kool-Aid. The pair, who met while attending the University of California, dreamed

up their concept after a trip to Hong Kong, envisioning it as retail’s answer to the Olympics—a place where customers could find the best brands from all over the world. But the result is not a global hodgepodge; rather they offer a carefully curated mix of cutting-edge fashions and emerging designers.

According to McSweeney, that mix includes everything from avant-garde designers to emerging labels and a great offering of exclusive products. “As a retailer, they’re very curious, and they always have their explorer hat on,” she explains. In addition to sourcing brands and fashions from around the world, she notes Leon and Lim also study the activity of shopping in different countries and cultures, bringing over the best ideas and building their experience around it. Opening Ceremony is known for selecting one country per year to highlight (check out its current Parisian theme online at Openingceremony.us), and consumers have responded well to its, ahem, “foreign” methods. “It’s the edit that sets them apart,” Silver agrees.

The hugely positive response has let the retailer expand to new markets.

Its West Coast locale was founded in 2003, followed by the Japan store in ’09 and an outpost in New York’s trendy Ace Hotel earlier this year. Along the way, Opening Ceremony sprouted a much sought-after house label, and the company now has a New York showroom where it highlights the wholesale collection as well as like-minded Keds for brands. Shoppers beyond these three Opening markets can also shop the merch via Ceremony an online store, and rumor has it the owners are sniffing around for their next retail extension.

So just how has Opening Ceremony landed on the top of the retail podium?

A spin around the New York stores hints at the rule book Opening Ceremony is rewriting. On the Lower East Side, visitors will find a multi-level, loft-like space filled with product anchored by one key characteristic: the cool factor. From apparel and foot–edina silver, wear to music and literature, the boutique offers high style and items that are tough to find elsewhere. Hanging garments line the walls, while footwear is sprinkled across tabletops and shelves. Jewelry is housed in antique cases that would be right at home in a museum. “The visual merchandising is fantastic; it’s fun, fresh and unexpected,” McSweeney notes. “It’s so [surprising] to walk into a high-end retail establishment that’s covered in, say, giraffepattern carpeting and has cases with ostrich legs. It’s a little unnerving, which I think is a good thing.” Shopping nowadays can be a very “Groundhog Day” experience in which all shops start to look alike, she adds: “Any store that’s different—that’s visually stunning or maybe is playing oddball music—anything out of the norm is important. And Opening Ceremony certainly knows how to do that.”

That skill is perhaps even more evident at the Ace Hotel store, where designer apparel brands like Comme des Garçons and Jean Paul Gaultier sit amid hipster labels like Band of Outsiders; Happy Socks are interspersed among footwear by Camilla Skovgaard and Alexander Wang; and the whole lot is broken up by high-end jewelry and funky novelties, such as Poloroid cameras, art and design magazines, Kiehl’s skincare products and the complete set of Criterion Collection DVDs. Recent shoe candy has included choice styles from the designers listed above, plus a somewhat surprising assortment from Repetto, F-Troupe, Bass, Sperry Top-Sider, Red Wing, Timberland, Keds, PRO-Keds, Dr. Martens and more. Many of these have been exclusives created in collaboration between the retailer and the brands—yet another reason Opening Ceremony has consumers coming back time and again. “The footwear assortment is amazing,” McSweeney attests, noting the retailer has a solid track record for working with heritage brands on capsule collections that put a slightly “left-of-center” twist on their well-known designs.

According to Tom Slosberg, vice president of premium and pinnacle sales for Keds and PRO-Keds, collaborating with Opening Ceremony was a fabulous way to give his brands fresh appeal. “A big part of our strategy has been to take the iconic Keds Champion and build premiumness and relevance around that American classic,” he says. “Who better to do that than Opening Ceremony?” To date, the company has done three women’s collaborations with the store and two for men’s. Slosberg, who worked most closely with Leon, says the store owner’s simply selects product he personally loves. “If he doesn’t love it, it’s not in his store,” he reports, adding that because Leon enjoys reworking traditional styles for modern tastes, Keds is considering giving him full access to its archives for future renditions.

Timberland has also done several projects with Opening Ceremony; a new version of the TBL 30 water shoe, which the brand put out in the ’90s, hit the stores last month. Ken Beaulieu, global category director for Timberland’s classics, says the opportunity has given the boot brand a lift. “They give us exposure to consumers who may not shop in our typical channels of distribution,” he explains. “They’ve created a very unique shopping experience and it’s exciting to be part of that. It is helping us reinvent segments of our brand.” And a further bonus for both retailer and vendor? “Opening Ceremony’s customer is willing to pay for that special product—two or even three times what the classic product costs,” McSweeney reports.

“Any brand that partners with Opening Ceremony essentially gets a new lease on life—exposure to a new, early-adopter segment of the market and lots of buzz on the blogs and Twitter feeds that get excited about fashion,” Silver adds. “That new burnished image can... reinvigorate a heritage brand.” Slosberg saw that effect with Keds and PRO-Keds. In fact, he says the co-branded line put co-owner, bpmw the brand inside high-profile stores worldwide—like Colette in Paris— since Opening Ceremony sells its footwear line to outside retailers.

Beyond the co-branded product, the retailer’s own shoe label is as edgy as its other fashion offerings might suggest, but it still covers all the style bases.

For Fall ’10, the footwear landed right on trend with chunky pumps, clogstyle boots, oxfords and desert boot silhouettes retailing for approximately $280 to $630—roughly centered between the prices on high-end heels from Alexander Wang and lower-priced Gurkees rope sandals or F-Troupe kicks.

Which exemplifies yet another reason McSweeney says the retailer is thriving: a great mix of price points. “At Opening Ceremony, you can buy a $48 T-shirt or a $1,000 dress—and the same girl would wear both,” she says.

Becoming a must-shop spot for trendsetters may also have something to do with guest-designed lines from quirky stylistas like actor Chloë Sevigny, who has been known to step out on a fashion limb or two. And it’s that willingness to experiment and reinvent that style insiders say should keep Opening Ceremony at the top of the boutique game going forward. “You never know what you’re going to find when you walk in, but you always know you’ll find something that makes you say, ‘Wow, look at this!’” Beaulieu says, lauding Leon and Lim for not being afraid to be different.

McSweeney expects the store’s popularity will continue thanks to the owners’ endless curiosity and willingness to forego traditional premises about retail. Other retailers can learn from its example, she says: “Opening Ceremony strikes me as the kind of company that, if they see they’re becoming repetitive or falling into a pattern, they’ll shake it up. I don’t think they’ll become formulaic, because their philosophy is so not. They don’t stand for one particular thing, but rather what’s right for the customer at the moment.” •

“Any brand that partners with Opening Ceremony essentially gets a new lease on life—exposure to early adopters and lots of buzz on blogs that get excited about fashion.”

august 2010 • footwearplusmagazine.com 37

thrifty Amid an ongoing recession-induced new world shopping order, Gen Y consumers have altered their buying habits to reflect a value-first, less-is-more fashion sense. By Anglela Velasquez

OFT DESCRIBED AS greedy, selfish, pampered, lazy, stunted, miserable, conspicuous consumers (and hopefully thickskinned), Generation Y’s lack of empathy and blasé attitude toward just about everything but their own Facebook pages has become popular fodder for headline and commentary writers. And now you can add “cheap” to that list—even if the moniker has largely been forced upon them thanks to a brutal recession and a jobless recovery that shows little sign of improving any time soon. Millennials are landing on their Tomscovered feet in the thick of a global recession, and to naysayers’ surprise, they are reacting by proactively cutting costs, saving more, shopping less and making “thrifty” nifty.

It’s chic to be cheap these days. In a survey recently released by Citi and conducted by Hart Research Associates, close to half of young women 18 to 39 years old are saving and investing more than they did a year ago; a full 43 percent are using extra money to catch up on bills; and over 60 percent plan to cut their level of debt within the next six months.

“Where my money goes is at the forefront of my mind,” says Sarah Boatright of Brooklyn, NY. After graduating college, the 23-yearold could only find part-time work and lived without an expendable income. Until she finally landed a full-time position in interior design about two months ago, “I didn’t buy a single thing,” she says, adding that she has been reluctant to start since. With the exception of picking up a few key pieces to wear to her new job, Boatright says she continues to save by packing her lunch, biking to work, taking advantage of free events and making good use of her new Costco membership card. “I’m even catching myself looking for inexpensive ways to keep my dog,” she laughs.

Yet Boatright remembers a time where she could justify spending $100 on a pair of shoes—back when she shopped with her mother.

Now she’s hesitant of spending $55 for a pair. On the bright side, she believes her personal style has actually improved, noting, “I make more well thought-out choices. I’m not knee-deep in pieces I’m not 100-percent sure about, and I’m more wary of seasonal trends.”

“The truth is a big percentage of the country was always frugal,” 38 footwearplusmagazine.com • august 2010

&n

says Dianna Baros, editor of The Budget Babe fashion website.

Since 2007, Baros has dished about sample sales, celebrity looks for less, and the uptick in designer and discount giant collaborations on her blog. Most of her readers couldn’t pay $800 for a pair of Christian Louboutins, she says—especially students and twentysomethings who were living thriftily long before the recession. “The economic downtown is reinforcing that they were making the right spending decisions to begin with,” Baros explains.

Take Ashley Nguyen, an 18-year-old student from Irvine, CA, who cuts coupons, reviews weekly circular ads and shops sales racks. Not too long ago, she recalls friends being embarrassed about cutting costs. But now, with two major issues looming over everyone—the economy and the environment—Nguyen believes the perception of thriftiness will continue to improve. Not only does she view reusing clothing as a way to recycle and spend less, but among her peers, she notes, “it is also very trendy and hip.”

Joe Peters, an 18-year-old college student from Dallas, says the secret it out: “You can get great quality clothes and shoes at thrift prices and look just as good if not better than someone who paid full price at a luxury department store,” he asserts.

Paul Shoemaker, a 24-year-old sales associate living in Manhattan, has never considered himself an extravagant shopper. “I rework the clothing I already have and wear things in new ways,” he explains. Still, Shoemaker is spending less these days because of what he witnesses at work. “I’m not seeing any positive changes in customers’ attitude toward spending,” he explains. “I’m not directly affected by the real estate and stock market crashes, but my customers are—and I feel the aftershocks.” And in a city where spending $10 by 10 a.m. is the norm, Shoemaker says it’s easy to become bogged down by the rising costs of daily necessities. “The city isn’t getting any cheaper despite the fact that everyone is broke,” he adds.

When Shoemaker and his friends go shopping, they skip the Fifth Avenue institutions and head to discounters like DSW and Filene’s Basement. “We’re just having to try that little bit harder,” he says.

“This generation is so in tune with the media. They’ve heard enough doomsday-related news about the economy to know they have to spend wisely,” explains James Matush, general manager of Restricted Footwear. Just over a year ago, Matush went to his boss

Cheap Culture

nifty with an idea to tap into the high school and college markets now living on a much stricter budget. The result is a new brand, Unrestricted, for Spring ’11—a true fashion line fabricated with manmade materials, trendier elements than its predecessor and walletfriendly $39 to $70 price points. Unrestricted’s target audience, Matush says, is smart and savvy shoppers who want perceived value but not with bigger price tags. “They want both,” he explains. “Cheap isn’t what it once was. Today it’s chic.”

This shift is fueling a rise in popularity of thrift shops, resale stores and sample sales. Businesses like Tuscon, AZ-based Buffalo Exchange, where new or gently worn clothing, shoes and accessories can be traded in for cash or store credit, are expanding at a time when most retailers are downsizing. Buffalo Exchange’s marketing director, Michelle Livingston, reports a 7.51-percent increase in the company’s yearto-date revenue through May. Four new locations have opened since late 2008, for 38 stores now in 14 states, and a San Antonio outlet just opened in July. “Young working adults and students are our top customers—the 12- to 45-year-old clothing-obsessed individuals looking for something unique or for a bargain,” says Kerstin Block, president of Buffalo Exchange. Inventory changes daily and sometimes hourly, she says, as store buyers quickly price and roll out merchandise.

“This creates an ever-changing selection that keeps shoppers coming back to look for more treasures,” Block explains, noting it’s a repeat customer that many other retailers are finding difficult to attract.

“Buffalo Exchange has some really cute used shoes at a good price,” says Nguyen. At the Sherman Oaks, CA, location, 25 percent

of the store’s wall space is dedicated to footwear. The average price is $20.50 for women’s shoes and $28.50 for men’s. The Manhattan store sells around 200 pairs of women’s shoes a week. Popular brands include Blowfish, Punkrose, Not Rated and Naughty Monkey.

High-end labels like Louis Vuitton occasionally rotate through the shops, but Manhattan’s Buffalo Exchange manager Viki Stevenson says she’s more focused on the condition and style of the shoe than the brand. “You have to look over the wear of the heel and toe... I’ve turned down many a Manolo and Choo because of the condition,” she reports.

“I buy used shoes, but [the purchase] is only suc-

Modern thrift-seekers Kinga Mojsa, Paul Shoemaker and Sarah Boatright

IT’S NOT JUST DOOM-AND-GLOOM ECONOMICS INSTIGATING YOUNG ADULTS TO HUNKER DOWN AND SAVE. THE HUNGER FOR BARGAIN SHOPPING IS FEEDING OFF OF POSITIVE INFLUENCES, TOO—AND SHARP RETAILERS WILL WORK THESE CUES. — A.V. IT’S THE MIX | TheBudgetBabe.com website has built a following by detailing when and how celebrities mix high-end apparel and accessories with cheaper items. In order to be relevant, you have to mix high and low brands, says the blog’s editor Dianna Baros, who notes celebs often rock things like American Apparel tees and Toms shoes with pricier pieces. Take a cue from fashion magazines’ popular “get the look for less” stories, merchandising upscale items with less-expensive quirky add-ons, and consumers might walk out with the full ensemble.

COPY CATS | Trendsetters—whether they be a Hollywood A-lister or a Pitchfork Festival headliner—also incite shoppers to find the complete look within the everyman’s budget. Joe Peters, an 18-year-old student from Dallas, notes he pays attention to what the members of his favorite bands wear and sources similar items from resale stores, while the vintage-loving Olsen twins inspire Ashley Nguyen, a student from Irvine, CA, to shop secondhand stores for comparable styles within her budget. Hunt out images of stars wearing a look and display similar items at a variety of price points, so all consumers can dress in their image.

THRILL OF THE HUNT | Digging up unusual and affordable pieces has become something of a competition among young fashionistas, and landing a killer deal is often touted with pride.

Magazines are lauding great cheap finds, screaming cover lines like “OMG! 500 Genius Buys Under $50” (Glamour, July ’10) and even devoting entire issues to affordable fashion (i.e. Lucky’s July ’10 edition, a.k.a. “The Luxe for Less Issue”). If model/actress/fashion designer Milla Jovovich will wear $90 suede platforms from Aldo for her Lucky cover shot, maybe the $1,000 pair isn’t inherently the most soughtafter style on the market. Put unique shoes that provide style at value prices in the spotlight, then sit back and wait for shoppers to snatch them up.

cessful one in five times,” Boatright explains. Her “great to support local businesses hit by the economy. “We were find” was a pair of Bass granny-style boots just as the seeing local boutiques shutting down or having huge trend was taking off last winter. “When you have a good sales,” she explains. “When I saw an 80-percent-off sale eye for style, you can shop anywhere,” comments Kinga around Christmas last year, I realized we had a serious Mojsa, a 30-year-old Manhattanite who is shopping her problem.” Stores offered incentives, promoted events on own closet rather than seeking new pieces. Baros says blogs and social media sites, and sent personal e-vites to stores like Payless, Express and Ann Taylor Loft are domake the week feel like an “insider event.” ing a good job of delivering styles shoppers may need to Similarly, exclusive members-only discount sites like Manhattan’s Buffalo Exchange thrift store fill in any wardrobe gaps.

Gilt.com and RueLaLa.com have honed the art of “inDesigner budget lines are also hitting the mark. Mary Hall, editor of The sider” shopping. “You’d be amazed to find some of the brands they offer,” Recessionista blog, was impressed with Norma Kamali’s shoe range for WalHall says. “I pay attention to Gilt,” adds Shoemaker, noting he loves the site’s Mart and Target’s Miss Trish of Capri collaboration. But some other attempts steeply slashed prices—but not the added pressure. “It’s difficult to shop wisehave failed, she said, noting that Zac Posen’s clothing for Target is hanging ly when there’s a timer ticking the sale away,” he explains. Boatright felt the in the clearance section of some stores. “Zac Posen was not made well. There pressure when she happened upon Gilt’s warehouse sale in Brooklyn last year. were good pieces, but I was at a Target with women who couldn’t get the zip“For practical reasons, I don’t regularly buy high heels, but I picked up some pers to zip up,” she explains. Quality definitely counts. “After the initial frenzy designer heels for $15 and $20 apiece,” she says, noting a discount like that dies down, consumers tune into the fact the some inexpensive designer collecis rare. tions are not even worth their money,” she says.

That temptation is reason for Matush of Restricted to believe that eventu“I think people are balking at high-end designer price tags but are finding ally young shoppers will spend more freely. “Just as this generation of consumthe same or similar shoes for better deals at discounters,” Hall adds. Peters of ers is reacting to negative news by saving, I think spending will pick up when Dallas frequents TJ Maxx and Ross for designer shoes within his ideal $25 to headlines become positive,” he says. Others are more cautiously optimistic. $40 price range. Instead of trying to “catch the right sale at the right time” at Baros says people who want to have a shoe before it goes mainstream will Bloomingdale’s or Saks Fifth Avenue, Shoemaker goes directly to Nordstrom continue to pay full price, but she believes budget shopping is going to be a Rack for designer dress shoes under $80. Baros says retailers are taking new long-term habit for the majority. approaches to lure these shoppers. “It’s a buyer’s market, and ideas like MarHall describes this recession as a lesson for an entire generation: “We are shall’s new in-store Megashop shoe boutiques and TJ Maxx’s rewards programs pressing the restart button and developing new frugal shopping habits. And are making discount shopping exciting again,” she adds. once you start saving, it’s a bit addictive. I think most of us will not go back.”

In June, Toronto retailers joined forces for Frugal Fashion Week, an event Even if the health of the economy changed overnight, Boatright doesn’t think that included a shop crawl, pop-up boutique, fashion shows and a gala targetit would feel right to flaunt newfound wealth. “So many people have had to ing women in their early 20s. Founder Gillian Downes organized the initiative pare down—people you would never expect.” •

HEALTH AND WELLNESS WITH EVERY STEP!

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CUT OUT

LASER-CUT DETAILS ADD GRAPHIC PUNCH TO SPRING. PHOTOGRAPHY BY CLEO SULLIVAN

Caressa peep-toe bootie.

Malene Birger dress; denim jacket

by Topshop.

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44 Styling by Michel Onofrio; hair by Greg Bitterman for Jump Management; makeup by Silvia Dell’Orto for Art Department. Fashion editor: Melissa Knific and Angela Velasquez

Ballet flats by Hush Puppies. Allude sweater dress; tutu by Patricia Field.

Opposite: Rialto black and white stiletto. Allude sweater with bow; Rebecca Taylor black sweater; ruffled underwear by Odd Molly; Miu Miu thigh-highs.

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Platform bootie by Two Lips.

Sweater by Rebecca Taylor; Odd Molly shorts.

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Covered platform bootie by Bebe.

Rebecca Taylor sweater; Patricia Field tutu; tee by Malene Birger.

Opposite: Bernardo peep-toe oxford. Gap button-up; cardigan by Candela; Odd Molly dress.

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Wedge shoetie by Pour La Victoire.

Malene Birger sweater; ruffled collar by Madeleine Thompson.

Opposite: L.A.M.B. platform boots.

Society for Rational Dress vest; Malene Birger dress; boy shorts

by Odd Molly.

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Shoe Salon Clockwise from top left: Joe’s Jeans; Tsubo; Klub Nico; Michael Antonio.

Designer Chat: Julia Lundsten

In general, how do European and American consumers differ? I think the differences are more between individuals than nationalities.

Many American customers are very similar to our European customers—except when it comes to fit.

Americans tend to have narrower feet, especially 52 footwearplusmagazine.com • august 2010

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.

Cuff Links

E D I T O R’ S P I C K S

compared to northern Europeans.

Who is the Finsk consumer? Someone with an interest in design who wants something individual and different and also understands the handmade, high-quality craftsmanship.

Where do you find design inspiration?

From architectural details and shapes, natural materials, films and animation, as well as art and life itself.

Who do you admire in the shoe world?

Manolo Blahnik. He has the most amazing

Covered-ankle sandals put pedicures on display.

energy and personality. His shoes, lines, proportions and details are easily recognizable.

He follows his own aesthetic and doesn’t care about general seasonal trends.

What will we never see in your line?

Cheap, nasty diamanté ornaments. I really dislike fake jewelry stuck on shoes.

What would people be surprised to know about you? Although I live for art and design, I am also very passionate about exercise. I could not live without my personal trainer! I might design training shoes sometime in the future. —Melissa Knific

EDITOR’S PICKS PHOTOGRAPHY BY DEAN POWELL

FOLLOWING THE CROWD does not appeal to Julia Lundsten. “A designer should take risks and design shapes and details they’ve never tried before, without the fear of failing,” the London native asserts. She’s certainly thought outside the box for her women’s line, Finsk, which features unusual architectural shapes and color combinations.

“Many experiments don’t work, but when they do, it’s the best way to push design forward.”

This has been Lundsten’s goal since she launched Finsk overseas in 2005, and her innovative concepts landed Stateside for the first time last year. Lundsten studied shoe design at London’s Royal College of Art and combines the feel of London and Scandanavia in her collection, which she describes as having “modern, graphic shapes made from natural materials [with an] end product that feels organic yet futuristic.”

Sixteen styles, each in two color options, are available for Spring ’11. The collection—which retails for $430 to $690—features super-soft grainy, unlined leathers; asymmetric graphic shapes; and sustainable Brazilian hardwoods. Soft nudes and pastels (such as mint and warm gray) ground the palette, but pops of yellow and bright purple add spice. Details include draped cuffs and block-heel pumps. “There is a hint of a ’70s feel,” Lundsten says, “but it’s updated for a modern consumer.”

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S PR I N G

OUTDOOR PREVIEW

2011

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1. Patagonia 2. Ahnu 3. Keen 4. La Sportiva 5. Asics 6. Merrell 7. Teva 8. New Balance 9. GoLite 10. Salomon 11. The North Face 12. Lafuma 13. Tecnica 14. Brooks 54

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TRAIL BLAZERS Hot colors and techie elements forge new paths for offroad running and other wild pursuits.

S PR I N G

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OUTDOOR PREVIEW

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CAMP GROUND LACES Hikers and comfort shoes for before and during the evening bonďŹ re.

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1. Ahnu 2. Chaco 3. Sorel 4. GoLite 5. Teva 6. Sole 7. Timberland 8. Rocky 9. Merrell 10. Vasque 11. Hi-Tec 57

ATHLETIC COMFORT GREEN KIDS STREET WELLNESS

Rock Bottom

ExerSteps tone down the wellness price tag.

EXERSTEPS HAS SOLE. That is, uniquely designed midsoles and outsoles loaded with features to improve the wellness of the wearer. The St. Louis, MO-based company, which falls under Elan Polo International’s umbrella of brands, entered the shallow end of the wellness pool this year with a rocker-bottom shoe at an attractive (and almost unheard of ) $59.95 to $69.95 retail price point. Compared to competitors’ $100-plus toning footwear, ExerSteps marketing manager Katie Pelikan says the brand accomplished its goal of breaking the price barrier and opening the wellness category to everyone in just a matter of months. More importantly, Pelikan says the brand is able to keep costs down without sacrificing quality. “We make large quantities, therefore it costs less to produce,” she explains. And thanks to a strong online presence and a devoted crop of independent retailers, ExerSteps’ message is being heard. “The shoes are for anyone who wants to up their game,” Pelikan asserts. “Aside from the physical attributes, the best thing about these shoes is how it raises awareness of the importance of physical activity and encourages wearers to get moving,” she comments.

The contained line of fitness shoes for men and women balances the beneficial rolling function of rocker-bottom soles with mainstream design

aesthetics. The end product is a shoe that delivers toning to the calves, thighs and glutes, plus shock absorption, muscle stimulation, posture improvements, weight distribution and the possibility to enhance weight loss in a package that can be worn casually or during physical activity. Ladies’ options include the Selection, an athletic leather lace-up with airy mesh uppers for breathability and non-marking sole for traction and durability (which comes in white/gray/blue, white/gray, tan/white and black/white colorways); and the Temperance, a more aggressive-looking lace-up in white/silver and black/pink. The company is also offering a men’s style—the sporty Whirlwind—which is offered in black or a white option with navy accents. —Angela Velasquez

Recyclable and natural materials

“The no lifestyle style” by Snipe Everyone should stay the way they are, because your own style is the best style. The one-of-a-kind Snipe shoe collection is a perfect match for the lifestyle of the eco-conscious “LOHAS” generation. Environmental responsibility is combined with the timeless appeal of Spanish design. A perfect “fit” with today’s outlook on life and an approach supported by Snipe across the board, because the days of short-sighted design and materials are over.

Anyone who does not show respect for the environment is going in the wrong direction in life. Snipe wants to encourage others to live as sustainably as possible and that starts with what you wear on your feet.

The materials are carefully selected, the leathers are always vegetable tanned and chrome free.

The topic of environmental protection is also taken seriously in manufacturing. From reducing water consumption, to utilization of heat build-up in production line equipment, all the way to natural drying of leather and reducing airborne emissions. Additional benefits result from the materials used by

Snipe. These are made from all-natural or recycled materials. Even the shoelace ends are made from recycled PET bottles.

An awareness for products which consume fewer resources is growing in society and calls for an appropriate response. Snipe combines exceptional quality, durability and perfectly tailored last shapes with modernday environmental responsibility. For Snipe, a brand manufactured by Gabor Footwear GmbH, sustainability is a key hallmark. The vibrant collection consists of women’s and men’s models with many unisex groups.

The unusual design is by Laura García and was created at the exclusive Snipe

design office in Valencia, Spain. The current collection includes wedge sandals for women, slip-ons, moccasins and lace-up shoes. One signature model is the “Ripple” which makes a statement with its unusual and distinctive sole.

Snipe will add to the appeal of any store – not only thanks to sustainability and design.

There’s always a sense of humor involved, no matter how seriously we take our business.

Snipe lives through unusually authentic images and design concepts, including original POS materials. Snipe: a guaranteed eye-catcher in upscale retail stores. www.snipe.com

ATHLETIC COMFORT DRESS KIDS OUTDOOR WORK

Think Sandals

Primigi focuses on breezy silhouettes to pair with its debut clothing collection.

KNOWN AS A luxury European brand for children’s footwear, Primigi has been providing “Italian style for kids” since its launch in 1976. As it prepares to spread the fashion quotient to apparel with a new complementary clothing line for Spring ’11, the brand is focusing on trusted summer designs and classic styling for the footwear collection.

Gina LaRossa, director of marketing for Primigi USA in Hingham, MA, describes the spring shoes as veering away from the current clog and oxford trends popular in adult categories. Instead, the brand is banking on sandals, dedicating 90 percent of its offering to these kid-friendly, warm-weather sta-

ples. “We’ve covered every way to make a sandal for boys and girls,” LaRossa offers. Natural materials like leather and canvas present an earthy vibe, and there’s an emphasis on the ankle for girls’ styles with straps, cuffs and embellishments such as rivets, beads, buttons and pearls. Boys’ styles are sportier and amphibious in nature, featuring plenty of mesh and suede combos with bright color pops.

The Primigi clothing line will mirror the footwear collection. “If there is a nautical look, then there is a nautical shoe,” explains LaRossa. “Everything has a reason, and when you see it paired with the clothes, it goes together well.” Popular colors for the shoes and clothing include purples, corals, natural tones and metallics. Primigi will also feature its traditional styles: dressier loafers for boys and shoes for girls produced with those extra touches that turn an ordinary shoe into a coveted item. “Our brand does core products with a twist very well,” LaRossa says. “We’re resistant to changing a winning formula with respect to the footwear line, so you’ll see more of the same great quality and style.”

Affordability is another focus. With the recession-minded customer still cautious, LaRossa says Primigi is offering pleasant surprises on its pricing without changing its status as a premium footwear label. “As an upscale luxury brand, the biggest danger is in being reactionary and changing policies and ideals that have worked for us for a long time,” she explains. “Of course there are some concessions every company has had to make with respect to pricing and margin, but we have not made any drastic changes to how we interact with the market.”

Knowing that the brand has an established space within the industry has left LaRossa and her team optimistic about future sales. And with the outlook for the back-to-school shopping season much rosier than last year’s, LaRossa believes Spring ’11 sales should fare well. “The residual effect of a strong back-to-school [season] would be a great boost psychologically for the industry and for the country as a whole,” she notes. Even if the economy is still on the fritz, LaRossa believes the brand’s head-to-toe coverage will be a boon: “There’s an elegance to this collection and a lot of attention to detail.

It’s an all-encompassing line.” —Christine Bove

Growth Category

ABG Baby bows a second fashionforward baby brand.

FOR HILLEL KIRSCHNER, the design director of ABG Baby, crib shoes have come a long way from their institutionalized styling era. “Baby shoes used to be treated more as a necessity item and were very boring and basic,” he says. Now, “shoes are bought to match specific outfits or special occasions and parents are buying multiples for their babies.”

It’s for this reason that ABG Baby, a division of Elegant Headwear in Elizabeth, NJ, is launching a second label, Step Forward, to join its already established Rising Star crib shoe brand. Both brands will present a full line of soft- and hard-soled shoes for infants and pre-walkers. While Rising Star concentrates on updated basics, Step Forward will be a more trend-driven collection. “We look to fashion when creating our lines, and now we are seeing much in the way of color, sparkle and metallics playing an important role in footwear,” Kirschner explains. For the Spring ’11 collections, the company’s categories will include sneakers (including hi- and lo-tops, plus laceless and twin-gore styles); dressy, special occasion footwear; and casual shoes and sandals, an area in which Kirschner has witnessed a lot of recent growth.

While styling is always key, ABG Baby shoes are also known for their good fit and Velcro and elastic closures for easy-on/off. Affordability is also taken

60 footwearplusmagazine.com • august 2010

Step Forward

into consideration. Both Rising Star and Step Forward target parents “who want style but don’t want to pay high prices and don’t want to give up on good quality or construction either,” Kirschner notes. “Retailers like that we bring high fashion at low prices.”

Since ABG Baby’s start in 2007, the company has reached $10 million in annual sales. The plan is to double this number by the end of 2011, Kirschner says. “[Soft-sole shoes and pre-walkers have reached] a whole new level as far as being a true fashion accessory for kids,” he says, noting that thanks to this new popularity, ABG’s goal is well within reach. —C.B.

Q&A • continued from page 20

shoe with a split-toe design, for example, doesn’t look so odd anymore.

The reinvention never stops.

That’s the beauty of footwear. We have an advantage over other forms of worn items because footwear combines functionality with fashion, performance, comfort and materials—all aspects available in the palette of designing shoes that are not as much so with respect to apparel. And the extent that you remain open to those possibilities is key to the survival of your business.

Where does Ugg stand in its ongoing evolution?

At one point I would have described Ugg as premium luxury comfort, but I think we have moved beyond that to personal luxury. When times are tough, there’s nothing that makes you feel better than slipping on a pair of Uggs. You feel that you are indulging yourself. And I believe this idea of personal luxury is here to stay. Once people discover a little of it, they will always want a little more. Human beings don’t voluntarily move from comfort to discomfort.

So it’s not a ‘bling’ brand?

Not at all. Ugg is about great value for the money. The idea of personal luxury is that it has to be accessible. We believe the very nature of the word “luxury” is changing. It used to be caught up in bling, but Ugg was never that kind of brand. Ugg was for the enlightened who discovered its incredible comfort.

They didn’t care if it looked good with any outfit. And that’s still true. Now we have more diverse offerings of styles that bring more people into the franchise. But the core items are fashionproof, just like jeans.

to the fundamentals with Simple: just great-looking shoes and, by the way, they are the most sustainable footwear that you can buy. The headline now is: “Wow, Great-Looking Shoes.”

But hasn’t that always been the headline, no matter the category?

Yes. But for a little while we had that sustainability headline to ourselves. I also think we started drinking a little too much of our own Kool-Aid on the green issue. It became a hindrance in design. We couldn’t do certain things because it wasn’t green enough. Well, how green is green enough? We could go so far that we couldn’t even source the materials. So we’ve got to be practical, and you will see the advent of that in the next few seasons. I think in 2011 you will see some breakthrough stuff, particularly in the fall.

Where does Tsubo fit into the mix?

Tsubo is almost diametrically opposite from Simple. Tsubo offers a very sophisticated statement of comfort and technology where style is No. 1.

We are going to make the most stylish comfortable shoes in the world.

That’s a big statement, but I think an important one for Tsubo because its customer is a very sophisticated style maven. They are early adopters of shapes, colors and materials, and they value that above everything else.

At the same time, they feel the brand delivers an unexpected form of comfort because in the past, style always yielded less than comfortable shoes.

I’m really happy with the progress that’s being made and we’ve had a great response to this fall’s and next spring’s lines. The business is progressing nicely and we’ve built the core of a great team, headed by Jim Van Dyne and designers Nick O’Rourke and Fiona Adams. Tsubo has always been a brand that people in the industry have rooted for because it brought fresh looks to the market. We are continuing to do that, but now we don’t have to compromise on that idea just to sell shoes. Don’t get me wrong, I love selling shoes, but Tsubo is not for everybody. We are not going to compromise our target customer because we need to do more volume. If Tsubo ends up a $60-$80 million global business and is also the coolest brand in the world, then I’m happy. Our expectation for Tsubo is that it be Tsubo, and not an Ecco, Rockport or anyone else.

“If Tsubo ends up a $60-$80 million global business and is also the coolest brand in the world, then I’m happy.”

Or a Converse Chuck Taylor.

Yes. It’s become iconic for an attitude and point of view. If a 40-year-old walks up to you wearing Chucks versus tassel loafers, it says a lot about that person right away. Not that there’s anything wrong with tassel loafers—they are just two different kinds of people. I can tell you what country a person is from just by looking at their shoes. I’m pretty good at spotting Germans, Italians and Spaniards, and I’m really good at identifying Americans, because they are the only ones in the world wearing athletic footwear. If I were a sociologist, I would do a thesis on this subject.

So what does someone in the airport wearing Uggs tell you?

They are not going to compromise their comfort. They are very practical and not too hung up on what other people think. They are just going to be comfortable in their environment. The Teva wearer tends to be an outdoor enthusiast and would rather be outside doing something active than stuck in an airport. Or, they are going to a place where their Tevas will be essential to an activity.

And Simple?

Sustainability is important to them. They have a choice of buying other types of sneakers, but they like what Simple stands for. You recently asked me if Simple has deemphasized its sustainability message. The answer is we have not with respect to how we make our product. What we have discovered, however, is that sustainability has become confusing as so many people are making bogus eco-friendly claims to the extent that it’s not a good handle anymore. There’s been too much green washing. So we’re back

So then how would you describe Ahnu?

Ahnu’s main focus going forward will be women’s outdoor lifestyle and fashion. If I had to make a correlation, I would say Ahnu is to outdoor footwear what Lululemon is to yoga. The outdoors is an important part of a woman’s life as a great respite from her obligations. Women are increasingly walking together for exercise like they used to run and do aerobics together. And they love to find a place that’s away from it all. But who says you can’t look super stylish and be comfortable while doing that? I think Ahnu has a really big opportunity in that market. Like everything else, it depends on compelling, relevant product. I believe our team is going to do that.

Having good teams at each brand frees you up to do what most?

It allows me to float at 10,000 feet, if you will; to get a bigger perspective.

I don’t have to be as into the gritty details of management as I used to be.

Although, some people would argue that I never was (laughs). But I’m OK with that. It allows me to focus on the evolution of markets and opportunifootwearplusmagazine.com • august 2010 61

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Q & A • continued from page 20

Special Report • continued from page 14

ties, and lets me guide brands from a different perspective.

Australians held up the buy due to favorable exchange rates, but customers still bought what they needed. However, if you had something compelling and different, they would buy it. Luckily, I see definite trends for next season. Brands have worked very hard to bring fresh merchandise to the market. Some of the early Spring ’11 lines look fantastic.” —Paula Sussex, owner, Sandal Tree and Walking In Paradise, Honolulu, HI

Do you envision more brands coming into the Deckers fold?

Yes. We are looking at opportunities. But it’s frustrating because we are sitting on a fair amount of cash, however it’s slim pickings out there. First of all, a lot of companies are sitting on cash and shopping for the same thing. And given the economic environment, there’s not that many $100 million-plus companies doing really well and looking to be acquired. On top of that, it has to be a cultural fit, because the people are everything. Sometimes you’ll find a company where the people are ready to check out and there’s only a shell left. So the parameters of an acquisition become very narrow and difficult to access.

But something is out there.

We want to find a brand that immediately drops $15 million to the bottom line to move the needle of a company our size. That said, if I see a genius startup idea, I’m all over it. I saw it in Keen. Tsubo and Ahnu are good examples, and there are others out there. The entrepreneurial side of me won’t go away, and I think it’s important that it doesn’t.

It keeps us focused on bringing freshness to the marketplace. And the beautiful thing about the footwear industry is that you are always an item away from a $100-million business. Lastly, finding and developing potential great brands is a part of Deckers’ DNA. That’s what we do best. We are not hierarchical or bureaucratic. We give the entrepreneur a chance to fulfill his or her dreams.

You sound pretty bullish about the footwear market in general.

Yes. It’s grounded in the idea of innovation and the fact that footwear satisfies people’s curiosity: They love the notion of trying stuff on and feeling something new and talking about it. And essential to this mix are retailers. They cannot neglect the obligation they have to create a great environment for consumers. They have to be hands-on with the consumer and take on their responsibility of telling stories at retail.

If you want to survive, you better get focused on the core idea of what makes your business unique, invest against that and be consistent. If you do not offer a point of difference for someone to come into your store, you are going to go away. And the same is true of brands. No one has time for a commodity mindset of more of the same old stuff. I believe that increasingly applies even at an entry price point. There’s a pretty sophisticated young consumer who can beat you on price by shopping online—and that includes the good stuff and not just the imitations. Innovation has to be a component for what you do across the board. For everyone’s sake, if this industry is going to continue to perform, then we can’t lose sight of that.

Why even bother to open a store if you are not willing to do that?

The mistake often made is seeing the store opening as an end of something. The day you open the store is the beginning of something. It’s a daily challenge and evolution. If you aren’t walking into your company or store every day and asking, “What does today mean, in terms of how I have to modify my approach?,” then you will suffer in the long run.

If you were to open a shoe store tomorrow, what would be the fi rst thing you’d do?

I would make the Internet a key component. It would be on a continuum with a total consumer experience that touches them from the Internet to the store and back. They’d have to come into the store to get certain things they could not get online. I can’t drink a cappuccino online. I can’t get a person looking me in the eye and making me feel good online. I can’t touch a shoe online. I can’t have fantastic lighting celebrating the product. But, online I can get ease and convenience of a transaction. I can get information. I can get stimulated and made curious. I can become educated. I can become a part of a community.

And the two are symbiotic; both help each other. Retailers are not there yet, but it’s coming. And those who figure it out will survive. •

OFFER EXLUSIVITY | “Compared to two years ago, we definitely focus less on flashy window-dressing shoes and more on styles our customers can tie into their everyday wardrobe. People buy based on need, but we still work directly with designers to select styles that other retailers don’t offer, including working in some exclusives. We’ve had success with exclusive styles from designers Bettye Muller, Alexandre Birman and Ron Donovan, and we make sure to get the message out that these shoes are rare and unique to customers. We also invite special customers to presales. They like to come in and get a deal without all the signs and hoopla that usually accompanies a sale.” —Richard Erani, president, Chuckies, New York

“We try to buy more of the runway styles than the more classic shoes.

Why bring in what everyone else has?”

READ THE RUNWAY | “June and July are typically slow months, so we have a 75-percent-off sample sale with our last pairs. We have little drawers that we use to segment the sizes.

We don’t want to lower the value of these shoes since we’re a highend boutique; we want a subtle sale. Once in a while, I’ll bring customers in and we’ll hang out and talk about shoes—there will be some Pellegrino and champagne—but we don’t pressure them to buy. For example, this is the first season we’re carrying Valentino, so I invited my top 10 customers in to see the line. Some came back the following week and purchased the shoes. In terms of buying, we don’t want to bring in the exact same thing as the department stores. We try to buy more of the runway styles than the more classic shoes. If we know for a fact that a black shoe is being shown in suede in showrooms, we’ll do a different variation, like patent leather, or swap it out with a different heel height. We like to see all variations before making a final decision.

Why bring in what everyone else has?” —Chant Asparian, owner, Angelo Shoes, Pasadena and Glendale, CA

–chant asparian, angelo shoes

SPREAD THE WORD | “I became creative by force. I’m up to almost 4,600 people on my personal Facebook page (the limit is 5,000), I have 1,600 on my fan page and 2,000 followers on Twitter. I’ve been using Foursquare a lot recently, too—the other day, I posted a ‘shout’ that Havaianas were $5 for only three hours. We have a special event planned for mid-September with two local girls who sell organic bags; if you buy a $30 hemp bag and bring it into the store the remainder of the year, you can get 10-percent off your future purchases. Customer service is probably the most important thing right now—it’s the only thing you can really hang your hat on. [As a former Nordstrom employee], you can take the guy out of Nordstrom, but you can’t take Nordstrom out of the guy.” —Tony Zelaya, owner, Zelaya Shoes, Bethesda, MD •

Additional reporting by Angela Velasquez footwearplusmagazine.com • august 2010 63

made you look continuing education

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Boots U.

Retailers attending Rocky Brands University get schooled on the portfolio’s finer selling points.

From top: Rocky’s staff details the fundamentals; retailers get a tour of the company HQs; a zipline course amps up the fun; graduation day at RBU.

64 footwearplusmagazine.com • august 2010

RATHER THAN SLOGGING away for a four-year degree in the hopes that any knowledge gleaned might one day pay dividends, retailers need only spend two-and-a-half days earning their Rocky Brands University (RBU) diploma.

This degree comes with a CEO-backed guarantee: As soon as they return to their stores, graduates will see improvement. “Our dealers will experience greater sales and business growth through increased knowledge of the technical aspects of footwear in general and specifically Rocky’s products,” maintains Michael Brooks, chairman and CEO of Rocky Brands. “The objective of RBU is to train the trainer—the supervisor on the floor selling Rocky’s products who is also responsible for training additional sales staff.”

Day One begins with a history lesson from president and COO David Sharp at Rocky’s headquarters in Nelsonville, OH. Retailers get the grand tour plus some one-on-one time with Brooks, RBU’s acting “dean.” Later, they visit with customer service reps and view the company’s state-of-the-art distribution center. Day Two moves off campus to the Big Sky Lodge in the nearby resort area of Hocking Hills, where extracurriculars mix business with pleasure (i.e. catered meals, evening entertainment and a treetop zipline experience). But during school hours, product designers, developers, brand managers and sales VPs from each of the company’s brands (Rocky, Georgia Boot, Durango and Dickies Footwear) provide intensive courses. “Footwear 101,” for example, details how Rocky’s footwear is constructed, what the various components do and the benefits they provide. Also on the syllabus: effective retail selling techniques. “Retailers leave with multiple training tools to take back to their stores,” Sharp promises. Day Three is graduation, where retailers who’ve passed muster receive diplomas and parting gifts, like a $25 gift certificate to spend at the Rocky outlet.

Attendee feedback has been very positive, says Brooks, who notes 40 retailers have matriculated from four invite-only program sessions to date, including representatives from Orr Safety, Wilco Farm Store, Sunbird, Di Prima’s Shoes and Boot Barn. “They appreciate all aspects, including interacting with our professional teams as well as with each other.” Brooks adds that the students are also teaching the teachers. “We’ve learned as much from them—their successes and challenges—as they have from us,” he notes. “They are intimately engaged with our products as well as our competitors’ products, so we have gained invaluable insight into how and why our shoes perform at retail.”

Shane Baganz, CEO of J Gear, parent company of the Onlinebootstore.com, and an RBU alum, says interacting with Rocky’s corporate decision makers was particularly beneficial to him. Furthermore, after seeing the company’s commitment to its people and products firsthand, he says he plans to focus harder on Rocky—“a brand that is setting the bar by which all others will be measured.”

Kate Cunningham, training manager for California’s Boot Barn chain, says RBU gave her a chance to openly discuss business issues with her peers.

“The sharing of experiences between attendees and Rocky’s design teams made for extraordinary sessions that were engaging, enlightening and revealing,” she adds.

For Patrick Maguire, manager of Harrison’s Workwear in Roebuck, SC, the most important takeaway was the difference between the company’s constructions and the competition’s. “While I have always been loyal, RBU gave me more confidence in selling all of Rocky’s brands and removed some small doubts I’ve had for being so heavily invested in the company,” he says. The one-on-one time was also priceless, he notes. “In the past, it was just myself and the salesman, and once in a blue moon, a visit from a sales manager. Now I feel I’m more important to Rocky, and I have a friend in Nelsonville.” —Greg Dutter

www.rialtoshoes.com August 3-5 FFANY Show, Warick Hotel 65 West 54th Street (at Ave of the Americas) Warwick Suite, Mezzanine Level

August 13-15 THE ATLANTA SHOE SHOW Cobb Galleria Centre Booth #537 and 636

Sandalistas

TM

liberation of the sole!™

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