Karolina zmarlak plan jan2015 4copy-min

BUSINESS PLAN (HEREIN)

COMMUNICATION PLAN

K A R O L I N A Z M A R L A K POLISH AMERICAN DESIGNER KAROLINA ZMARLAK DEVELOPS MODERNIST EUROPEAN TAILORED DESIGNER READY-TO-WEAR UTILIZING INNOVATIVE CONVERTIBLE TECHNIQUES AND FABRIC FUSIONS; SHE COMBINES MODERN SENSIBILITY WITH A COOL SOPHISTICATION. EACH COLLECTION IS AN EXPLORATION OF THE FEMININE FORM AND STRENGTH DEMONSTRATED THOUGH REFINED CONSTRUCTION AND SEAMED ARCHITECTURAL DETAIL.

IDENTITY SUMMARY – BRAND COMMUNIQUE 2

K A R O L I N A Z M A R L A K AIMS TO BE A MAJOR EUROPEAN OF ORIGIN AMERICAN DESIGNER OF READY TO WEAR COLLECTIONS, SPECIALIZING IN CRAFTSMANSHIP, TECHNOLOGICALLY ADVANCED AND EXOTIC FABRICS, AND FUNCTIONALITY AS A WOMAN KAROLINA HAS SPENT HER ADULT LIFE UNDERSTANDING AND CREATING PIECES THAT FIT THE FEMALE FORM THAT RESPOND TO A WOMAN’S NOTION OF BEAUTY -ON GOING RELATIONSHIPS WITH WOMEN CUSTOMERS, VISITING THE STUDIO, ATTENDING THEIR PLACE OF WORK, AND ENGAGING ON THE FLOOR DURING TRUNK SHOWS -MORE SCHEDULED TIME NEEDED TO DEDICATE KZ TO RELATIONSHIP DEVELOPMENT ARCHITECTURAL SEAMING IS USED TO CONTOUR, PROTECT AND ACCENTUATE THE FEMALE FORM, UNDERLYING THE UNIQUENESS IN APPEARANCE AND FIT NEW YORK CITY’S GARMENT DISTRICT IS THE PRODUCTION HOME OF KAROLINA ZMARLAK, WHERE SHE PRODUCES HER GARMENTS WITH EXACTING DETAIL, WHILE SELECTING ONLY THE HIGHEST QUALITY AND INNOVATIVE OF FABRICS FROM ITALY AND JAPAN, WITH TRIM FROM SWITZERLAND -AS A CONSEQUENCE OF THIS FOCUS AND DILIGENT BUSINESS COMMUNICATION, WE ARE THE RECIPIENTS OF NEW YORK CITY’S FIRST FASHION PRODUCTION FUND (NYCFPF) WITH THREE PRIMARY DESIGN TYPOLOGIES, KAROLINA ZMARLAK WILL BECOME KNOWN FOR HER VISION WORLDWIDE: -THE FITTED ARCHITECTURALLY SEAMED DRESS: EACH SEASON, EXCITING NEW FORMS FOR MOVEMENT, SUPPORT AND BEAUTY, BASED ON PERFECT FIT, FEEL AND FABRIC WILL FOUND THE KAROLINA ZMARLAK LOOK -THE TECHNO WRAP JACKET: REVERSIBLE, TAFFETA AND SILK, VARIABLE IN HONOR OF THE MADE TO MEASURE PROCESS. MODERN COLORS AND CUT. ESSENTIAL ITEM FOR ALL WOMEN -CORE VALUABLES OF ELONGATED, REVERSIBLE AND UNDERSTATED BASICS MADE WITH THE HIGHEST QUALITY TIGHTLY WOVEN WOOLS AND SILKS, ALONG WITH TECHNICAL FABRICS OF GREAT CAPABILITY, COMBINED WITH LEATHERS AND EXOTICS: LEGGINGS, BLOUSES, SKIRTS AND PANTS

VISION AND GOALS 3

6 KEY BUSINESS DEVELOPMENT GOALS: WITH SAKS FIFTH AVENUE AND NEIMAN MARCUS THE TWO LARGEST AND MOST IMPORTANT LUXURY RETAILERS IN THE UNITES STATES, KAROLINA ZMARLAK WILL EXPAND FROM OUR EXISTING FIVE SAKS DOORS TO 12 AND FROM ONE NEIMAN DIRECT DOOR TO 8 DOORS NATION-WIDE BOUTIQUE LUXURY STORE DEVELOPMENT WITH THE SUPPORT OF IN HOUSE SALES DIRECTION SOURCED FROM THE ROW, WE WILL GROW OUR 5 REGIONAL STORES TO 13 IN THE NEXT THREE YEARS PUBLIC RELATIONS AT THE HIGHEST LEVEL WILL BE USED TO GROW THE IMAGE AND AWARENESS OF KAROLINA ZMARLAK (FURTHER PRESS, CELEBRITY SUPPORT, EVENT PARTICIPATION, COLLECTION PRESENTATIONS), THE BRAND WILL BE RECOGNIZED AS AN IMPORTANT GLOBAL MODERN WOMEN’S LUXURY DESIGNER BRAND CORPORATE ENTITY PARTNERSHIPS WILL BOLSTER THE BRAND WITH MEDIUM TERM PARTNERSHIPS TO SUPPORT FULLY EXECUTED AND PROMOTED FASHION EVENTS AND PR -EXAMPLE: WE HAVE PARTNERED WITH POLISH VODKA BELVEDERE TO PRODUCE OUR FASHION FILMS AND POLISH COSMETIC FIRM INGLOT TO PRODUCE OUR SPRING SUMMER 14 PHOTOSHOOT AND WRAP PARTY. WE WILL GROW THESE PARTNERSHIPS ‘SHORT CUTS’ WILL BE TRAILBLAZED IN ONE OR ALL OF THE FOLLOWING WAYS: -KAROLINA WILL WIN THE FGI, ECCO DOMANI OR CFDA FASHION AWARDS -KAROLINA WILL BE TAKEN UNDER THE WING OF ONE OF THE MAJOR FASHION EDITORIAL FORCES, SUCH AS ANNA WINTOUR -KAROLINA WILL BE RECOGNIZED AND WORN BY A MAJOR CELEBRITY FORCE, SUCH AS CATE BLANCHETT -KAROLINA WILL BE SELECTED BY A MAJOR AMERICAN LABEL TO HEAD THEIR NEW DESIGN DIRECTION, SUCH AS RALPH LAUREN -BRAND WILL BE INVESTED IN AND PARTNERED WITH A MAJOR INDUSTRY PLAYER: ROSEN, LVMH RENT THE RUNWAY -RUNAWAY GROWTH IN THIS DESIGNER LEVEL PRODUCT -OPENS AWARENESS TO VAST YOUNG MIDDLE AMERICAN MARKET -VOLUME CAN REACH $1MM/YEAR OR MORE, IF THE PRODUCT IS SUCCESSFUL WITH CUSTOMER -RtR HELPS BRIDGE THE GAP BETWEEN FAST FASHION AND DESIGNER

VISION AND GOALS 4

DESIGNER BIO – BRAND COMMUNIQUE

K A R O L I N A Z M A R L A K CONCENTRATES ON MODERNIST TAILORING, REFINED ARCHITECTURAL CONSTRUCTION AND INNOVATIVE FABRICS. KAROLINA WAS BORN AND RAISED IN POLAND BEFORE SHE EMIGRATED TO CHICAGO IN 1992, WHEN HER PARENTS WON THE CLINTON GREEN CARD LOTTERY. HER EUROPEAN SENSIBILITY, DIVERSE COMMUNITY AND IMMIGRANT SPIRIT INSPIRED HER INTEREST IN THE WORLD OF TECHNICALLY BASED, VISUAL CREATIVITY. SHE STUDIED APPAREL DESIGN, SPECIALIZING IN FINE TAILORING, AT THE FASHION INSTITUTE OF TECHNOLOGY IN NEW YORK CITY, GRADUATING WITH HIGH HONORS. NAMED A GEN ART STYLES WINNER IN 2005, KAROLINA HONED HER SKILLS AT CAROLINA HERRERA AND THEORY. IN 2009, WITH HER PARTNER JESSE KEYES, SHE LAUNCHED HER EPONYMOUS WOMEN’S DESIGNER READY-TO-WEAR LINE. HER DEBUT COLLECTION WAS LAUNCHED IN THE FALL OF 2009 AT TAKASHIMAYA. KAROLINA OFTEN CREATES CLOTHING THAT ALLOWS FOR CONVERTIBILITY. CUTTING CLEAN, SIMPLE FORMS, AND TAKING THE IDEALS OF THE MADE-TO-MEASURE PROCESS, HER DESIGNS PERMIT PERSONALIZATION: ONE FORMS THE PIECES TO THE BODY AND SELF. IN CONTRAST, HER FOCUS ON PRECISION TAILORING AND THE FEMININE SILHOUETTE ADHERES TO THE IDEA OF A CONSTANTLY CHANGING PRESENT DAY WOMAN, WHILE COMMUNICATING THE AESTHETIC FOUND IN HER NATIVE POLISH HERITAGE: EASTERN EUROPEAN MINIMALISM. THE ENDURING DESIGNS ORIGINATE IN A HIGHLY PERSONAL AWARENESS AND OBSESSION WITH THE FEMALE DIMENSION AND SHAPE. BUSINESS PARTNER JESSE KEYES CONCEPTUALIZES THE COLLECTION INSPIRATIONS AND PRESENTATIONS. WITH A BACKGROUND IN ARCHITECTURE AND BUSINESS, KEYES BRINGS A UNIQUE DESIGN AND FINANCIAL EXPERIENCE TO THE BRAND. HE IS ALSO BEHIND SOME OF NEW YORK’S MOST INNOVATIVE DESIGN DEVELOPMENTS, INCLUDING ONE 7TH AVENUE SOUTH, LA ESQUINA, THE CASSA HOTEL, CBGB AND HOTEL GRIFFOU. KEYES HAS SEEN PRESS COVERAGE IN THE NY TIMES, DAILY NEWS, NY POST, ETC. HE BEGAN HIS BUSINESS CAREER AT THE BOSTON CONSULTING GROUP. HIS ALMA MATERS INCLUDE PRINCETON UNIVERSITY, COLUMBIA UNIVERSITY, UNIVERSITAT POLITECNICA DE CATALUNYA, AND HE IS A FULBRIGHT FELLOWSHIP RECIPIENT (REF: WWW.MODO-NYC.COM) THE COLLECTION IS DESIGNED AND PRODUCED IN NEW YORK’S GARMENT DISTRICT UNDER THE DESIGNER’S HANDS-ON EXACTING STANDARDS. THE COLLECTION IS AVAILABLE AT SAKS FIFTH AVENUE, NEIMAN MARCUS DIRECT, AND A NUMBER OF SPECIALTY RETAILERS AROUND THE WORLD INCLUDING HARVEY NICHOLS, SAKS JANDEL IN DC, STANLEY KORSHAK IN DALLAS, OAK HALL IN MEMPHIS, YUTA POWELL ON MADISON AVENUE AND OTHERS.

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BRAND QUALITIES AND DESCRIPTIONS USED FOR PRESS, RETAILERS AND CUSTOMERS: •  WOMEN’S DESIGNER CATEGORY READY-TO-WEAR COLLECTION •  DEFINED BY A EUROPEAN MINIMALISM AND MODERNISM •  ARCHITECTURAL SEAMING, INNOVATIVE TECHNIQUES AND FABRICS: STRUCTURED, PRECISE

AND REFINED •  OUR COLLECTION IS TRANSLATED THROUGH THE RELATIONSHIPS WE HAVE WITH THE WOMEN

WHO WEAR OUR PIECES: WE ARE DRIVEN TO UNDERSTAND AND PERFECT FIT AND SILHOUETTE, TO UNDERSTAND THE SUBTLETIES AND NEEDS OF THE FEMALE FORM

•  WE FIT THE CLOTHING ON SOPHISTICATED, MODERN WOMEN WHO ARE LOOKING FOR TWO

FUNDAMENTAL THINGS IN FASHION: THAT IT ACCOMMODATES THEIR SHAPE AND EXPRESSES THEIR SENSE OF BEAUTY

•  THE QUESTION KAROLINA ASKS: “DO MY PIECES HELP A COMPLEX WOMAN NAVIGATE COMPLEX

ENVIRONMENTS WITH STRENGTH AND FEMININE AWARENESS?” •  ALL VIEWED THROUGH KAROLINA’S FEMININE LENS, AND A RESTRAINED YET SUBSTANTIAL

DESIGN AESTHETIC

PRODUCT 6

PRODUCT – PRIMARY DESIGN TYPOLOGIES 7

RESORT 2015

FALL | WINTER 2014

FITTED ARCHITECTURALLY SEAMED DRESS

TECHNO WRAP JACKET

CORE VALUABLE

STRUCTURED JACKET

CORE VALUABLE

FITTED ARCHITECTURALLY SEAMED DRESS

K A R O L I N A Z M A R L A K IS ONE OF MANY EMERGING FASHION LABELS OVER THE LAST FIVE YEARS THE MARKET IS SATURATED WITH CONTEMPORARY WEAR IN THE JEANS, SPORTS AND TREND CATEGORIES THREE WAYS NEW DESIGNERS CAPTURE ATTENTION: -EXTREME DESIGN DIRECTION: GARETH PUGH IN HIS SCULPTURAL GOTH -TRENDY PUBLIC RELATIONS AWARENESS: RUFFIAN IN THEIR PARTY HOLDING AND ATTENDANCE -FOCUSED CATEGORY OFFERING: CUSHNIE ET OCHES IN SEXY EVENING WEAR DESIGNER PRICE POINT IS RARELY ACHIEVED BY EMERGING DESIGNERS, AND FOR THOSE THAT HAVE PENETRATED THIS CATEGORY, THEY ARE PART OF A $25BILLION US MARKET(1) IN SALES OF DESIGNER READY TO WEAR APPAREL LUXURY SHOPPING THUS FAR REMAINS THE PURVIEW OF LUXURY RETAIL ESTABLISHMENTS, WITH OVER 90% OF ALL LUXURY APPAREL SOLD IN STORES, WITH ONLY A SLOW ON LINE SALES PENETRATION -THE INTEREST IN THE LUXURY SHOPPING EXPERIENCE BY SOPHISTICATED BUYERS MAINTAINS ITS APPEAL -NEVERTHELESS, THE MAJOR LUXURY RETAILERS, BARNEY’S, SAKS AND NEIMANS ARE INVESTING HEAVILY IN ‘OMNI CHANNEL’ SALES PLATFORMS OF THE 6O PREMIER DESIGNERS AVAILABLE AT NEIMAN MARCUS DIRECT (WITH KAROLINA ZMARLAK), ONLY FIVE CAN BE CONSIDERED YOUNG OR EMERGING DESIGNERS (1) Women’s Wear Daily

MARKET ANALYSIS 8

DISTINCTIVE COMPETENCE

TECHNICAL EXPERTISE IN THE DESIGN AND DEVELOPMENT OF THE GARMENT FEMININE UNDERSTANDING THROUGH YEARS OF INTERACTION WITH CUSTOMERS MANIFESTING THE FEMALE FORM AND A SENSE OF BEAUTY A KEEN FABRIC SENSE FOR MODERN YET CLASSIC FABRICS OF TRADITIONAL QUALITY, LEATHERS AND EXOTICS, AS WELL TECHNOLOGICALLY ADVANCED MATERIALS A COLOR AWARENESS THAT BLENDS HARMONIOUSLY AND SIMPLY EACH SEASON, WITH THE FOUNDATIONS OF BLACK, MIDNIGHT BLUE, VARIATIONS OF GREY AND CREAM A TRUNK SHOW STRENGTH IN INTRODUCING OUR MODERN COLLECTION VIA KAROLINA’S STRONG COMMUNICATION SKILLS, OPENING SMALLER MARKETS WITH DIRECT AND ON GOING CUSTOMER RELATIONSHIPS THAT TRANSLATE INTO SALES STRONG PRODUCTION RELATIONSHIPS WITH ALL ASPECTS OF THE DESIGN TO DEVELOPMENT PROCESS IN NEW YORK CITY’S GARMENT DISTRICT: SOURCING, SAMPLING AND PRODUCTION A DEEP RETAIL NETWORK RELATIONSHIP BASE WITH OUR KEY RETAILERS: SAKS JANDEL, SAKS FIFTH AVENUE AND NEIMAN MARCUS RETAIL NETWORKING ABILITY TO EXPAND WITH IN HOUSE STUDIO SALES DIRECTOR EVIDENCED BY OUR PENETRATION IN PLACES LIKE MEMPHIS AND OKLAHOMA CITY WHERE SOPHISTICATED WOMEN NOW RESIDE WITHIN THE SAME DESIGN INFORMATION WORLD THAT THOSE IN MAJOR MARKETS DO -CRESCALA HAVE A VERY GOOD CONNECTION WITH RENT THE RUNWAY AND SAKS FIFTH AVENUE -IN HOUSE KAROLINA ZMARLAK STUDIO SALES DIRECTOR FOR LUXURY BOUTIQUE RETAILERS

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EXISTING OPERATIONS BUSINESS AND CREATIVE DEVELOPMENT: KARLOLINA ZMARLAK AND JESSE KEYES DEVELOP AND MANAGE ALL ASPECTS PRODUCTION: RAMONA JONES OUR PRODUCTION MANAGER SUPPORTS KAROLINA IN FABRIC PURCHASING, MANAGING SAMPLE PRODUCTION, AND WORKING WITH OUR VARIOUS FACTORIES IN THE GARMENT DISTRICT TO BRING DOWN COSTS AND MAINTAIN THE HIGHEST LEVEL OF QUALITY CONTROLS DESIGN: KAROLINA EXECUTES DESIGNS FROM SKETCH TO FABRIC SELECTION, TO MUSLIN DEVELEOPMENT, TO SAMPLE PRODUCTION WITH SUPPORT FROM TEAM SALES: -KAROLINA ZMARLAK HAS BEEN WITH THE CRESCALA SHOWROOM FOR TWO YEARS TO MANAGE LUXURY DEPARTMENT STORE SALES AND RELATIONSHIPS -JULIE BROWN, FORMERLY OF ‘THE ROW’, NOW SALES DIRECTOR FOR KAROLINA ZMARLAK BASED IN OUR STUDIO PUBLIC RELATIONS: JESSE AND KAROLINA WORK WITH DREW HUNTER OF ONE PR AND JACKIE VALLS FOR PRESS PREVIEWS, EDITORIAL COVERAGE AND NEW COLLECTION PRESENTATIONS STUDIO: SECURED A STUDIO SPACE AT 130 W25TH TO ENHANCE DESIGN DEVELOPMENT -PLAN TO INTRODUCE AND SELL TO PRIVATE CLIENTS OUR DEMI COUTURE COLLECTIONS -PLAN TO MAINTAIN AND FURTHER DEVELOP OUR EDITORIAL RELATIONSHIPS THROUGH REGULAR STUDIO VISITS, WITH UPDATES OF NEW COLLECTIONS AND INSPIRATION BUSINESS MANAGER: JOSH CHORAZY, JUNIOR PARTNER TO JESSE KEYES, MAINTAINS CONTROLS OVER BOOKKEEPING, ACCOUNTS MANAGEMENT, BACK OFFICE PURCHASES, TRAVEL PLANNING, LOGISTICS, COMPANY FINANCES MARKETING: JOSH SUPPORTS JESSE IN HIS LEAD OF CAMPAIGNS, MANAGING SOCIAL MEDIA AND COLLATERAL DEVELOPMENT, MANAGING IMAGE CONTROL AND COMMUNICATION STYLIST: KAREN SCHIJMAN WORKS WITH KAROLINA AND JESSE ON INSPIRATION, FABRIC SELECTION, PHOTOGRAPHIC STYLING, ACCESSORY STYLING AND CELEBRITY AND EDITORIAL PULLS

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THREE YEAR OPERATIONS PLAN

PRODUCTION: HIRE TWO FULL TIME PRODUCTION MANAGERS TO HANDLE EFFICIENT FABRIC PURCHASING WITH COMPARATIVE PRICING, MANAGE SAMPLE PRODUCTION WITH KAROLINA, AND EFFICIENTLY CHOOSE AND WORK WITH VARIOUS FACTORIES IN THE GARMENT DISTRICT TO BRING DOWN COSTS, IMPROVE SPEED OF PRODUCTION AND MANAGE LARGE ORDER QUANTITIES DESIGN: HIRE ONE PART TIME DESIGN ASSISTANT TO SUPPORT KAROLINA IN EXECUTING DESIGNS FROM SKETCH TO FABRIC SLECTION, TO MUSLIN DEVLEOPMENT, TO SAMPLE PRODUCTION SALES: -REMAIN WITH CRESCALA FOR LUXURY DEPARTMENT STORES AND DEVELOP JULIE BROWN IN HOUSE AS SALES DIRECTOR -DIGITAL: DEVELOP NEIMAN MARCUS DIRECT PREMIER DESIGNER AND ‘COOLS’ CURATED DESIGN SALES PLATFORM PUBLIC RELATIONS: CONTINUE TO WORK CLOSELY WITH INDUSTRY RESPECTED PUBLIC RELATIONS FIRMS THAT WILL EXPOSE THE BRAND TO EDITORS, TASTE MAKERS, CELEBRITIES AND RETAILERS, SUPPORTING SALES STUDIO: MAINTAIN OUR CREATIVE AND SALES STUDIO TO DEVELOP: -THE DESIGNS BEHIND EACH COLLECTION -INTRODUCE AND SELL COLLECTIONS TO PRIVATE CLIENTS BUSINESS MANAGER: HIRE ONE FULL TIME BUSINESS MANAGER TO SUPPORT JOSH IN CONTROLS OVER BOOKKEEPING, ACCOUNTS MANAGEMENT, BACK OFFICE PURCHASES, TRAVEL PLANNING, LOGISTICS MARKETING: HIRE ONE PART TIME MARKETING EXPERT TO SUPPORT CAMPAIGNS, MANAGE SOCIAL MEDIA AND COLLATERAL DEVELOPMENT, WORK WITH KAROLINA AND JESSE ON IMAGE CONTROL AND COMMUNICATION INDUSTRY FREELANCERS: PHOTOGRAPHERS, MODELS, STYLISTS, PUBLICISTS, EVENT COORDINATORS, DJ’S, BRAND AMBASSADORS, CORPORATE MARKET DIRECTORS, PARTY PLANNERS, ET AL, WILL CONTINUALLY BE ENGAGED TO DEVELOP THE BRAND

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RISKS AND HOW TO MITIGATE

SALES GROWTH STALLS BASED ON A POORLY RECEIVED SEASON COLLECTION MAINTAIN AND CONTINUE TO DEVELOP A STRICT KAROLINA ZMARLAK DNA WITH VARIATION AND NEWNESS: FIT, LOOK AND ATTENTION TO DETAIL THAT WILL GROW CUSTOMER BASE LOSE OUR MAJOR RETAILERS DEVELOP DEEP BUSINESS RELATIONSHIPS WITH ALL THE BUREAUCRATIC TENTACLES: BUYERS, FLOOR MANAGERS, MERCHANDISERS, ACCOUNTS, INVENTORY, LOGISTICS AND SALES STAFF. KAROLINA ZMARLAK WILL SUPPORT RETAILERS TO PROFIT FROM OUR PARTNERSHIPS THE ‘SHORT CUTS’ DESCRIBED PREVIOUSLY NEVER MATERIALIZE FOCUS ON THOSE WE’VE ACHIEVED: -MIKA BRZEZINSKI OF MORNING JOE AND TONI COLLETTE ARE NEW BRAND AMBASSADORS -SAKS FIFTH AVENUE AND NEIMAN MARCUS HAVE MADE MAJOR PURCHASES FOR A THIRD, CONSOLIDATING SEASON -BELVEDERE IS PRIMED TO SUPPORT ANOTHER KAROLINA ZMARLAK MARKETING INITIATIVE -CHRISTENE BARBERICH, EDITOR IN CHIEF OF REFINERY 29, IS AN IMPORTANT INDUSTRY SUPPORTER, WE WILL DEVELOP THIS RELATIONSHIP THE LUXURY MARKET IN THE UNITED STATES EVAPORATES IN A MOVEMENT TOWARD FAST FASHION AND DISCOUNT PRICING -HONE IN ON THE NEW MANAGEMENT OF SAKS FIFTH AVENUE, PURCHASED BY PRIVATE EQUITY FIRM HUDSON BAY, BUT NOW TO BE PRESIDED OVER BY MARIGAY MCKEE OF HARRODS: FIND A WAY TO DEVELOP A KAROLINA ZMARLAK - MARIGAY MCKEE RELATIONSHIP MAINTAIN THE UNIQUE AMERICAN MARKET STANCE THAT LUXURY PRODUCTS WILL ALWAYS REMAIN IN DEMAND WITH A SUPERIOR PRODUCT SOLD IN IMPECCABLE PLACES PRESIDED OVER BY INTELLIGENT AND SOPHISTICATED SALES STAFF

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MARKETING

COLLECTION PRESENTATIONS: PRESENTATIONS ARE ATTENDED BY TOP PRESS, INTERNATIONAL RETAILERS AND FASHION INDUSTRY INFLUENCERS. PRODCUCED BY JESSE KEYES, EACH PRESENTATION IS AN ARCHITECTURAL AND EXPERIENTIAL HAPPENING LOOKBOOKS AND EDITORIAL CAMPAIGNS EACH SEASON A COMPREHENSIVE VISUAL AESTHETIC IS DEVELOPED: INSPIRATION, DESIGN, STYLING, PHOTOGRAPHY, EDITORIAL SHOOT. ALL DISTRIBUTED TO: RETAIL BUYING OFFICES AND FASHION PRESS FASHION FILMS: COLLIDES FASHION WITH THE ART OF FILM AS A MEANS TO EXPRESS THE FANTASY AND IMAGINATIVE STRUCTURE BEHIND THE DESIGNS AND THE WEARER. THE COMPLEXITY OF THE CLOTHES ARE EXPRESSED IN MOVEMENT, BODY AND FORM, WHILE THE SENTIMENT OF EACH COLLECTION IS PORTRAYED. UNDERWRITTEN BY BELVEDERE VODKA AND LAUNCHED ON W MAGAZINE AND STYLE.COM VIDEO SERIES PRESS: KAROLINA ZMARLAK FEATURED IN LEADING FASHION PUBLICATIONS INCLUDING: WWD | W MAGAZINE | INTERVIEW | ELLE | THE NEW YORK TIMES | STYLE.COM NEW YORK MAGAZINE | INSTYLE | MARIE CLAIRE | FLARE | NYLON | PAPER | SURFACE | REFINERY 29 EVENTS: EXAMPLE: LAUNCH OF FALL WINTER 14 FASHION FILM “AIRHEART” AT THE 2ND FLOOR ATRIUM AT SAKS FIFTH AVENUE COVERED BY INTERVIEW MAGAZINE DIRECT MARKETING: -CONSTANT CONTACT CAMPAIGNS -PRIVATE CUSTOMER ON-GOING OUTREACH AND INTERACTION -TWITTER -WEBSITE UPDATES AND REDESIGNS PLAN: MAINTAIN, GROW AND FURTHER DEVELOP THESE INITIATIVES

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MARKETING – RECENT PRESS EVENTS & AWARDS 14

MARKETING – RECENT PRESS: INDUSTRY COVERAGE AND CELEBRITY IN KAROLINA ZMARLAK 15

JULIANNA MARGUILES ON THE ‘GOOD WIFE’

TONI COLLETTE ON THE ‘LATE SHOW’

DEBRA MESSING ON THE ‘TONIGHT SHOW’

MARKETING – STYLE.COM GLOWING COLLECTION COVERAGE: INDUSTRY-WIDE RECOGNITION 16

“MY TARGET CUSTOMER HAS A HIGHLY FILTERED AND ELEVATED SENSE OF AESTHETIC QUALITY

AND DETAIL; SHE APPRECIATES THAT SIMPLICITY IS OFTEN THE MOST DIFFICULT VISUAL

CREATION TO ACHIEVE. SHE TRAVELS, SHE EXPLORES, ENGAGING IN CULTURE, HUMAN-MADE

ENDEAVORS THAT SHAPE THE FORCES OF NATURE TOWARD BEAUTY. SPECIFICALLY, AND FOR

EXAMPLE, SHE IS IRENE ROTH, A RUSSIAN CHEMIST WHO AFTER 20 YEARS WORKING IN

MINERAL EXTRACTION INVENTED A PROCESS TO CRYSTALIZE SALT FROM LIMESTONE. SHE

BUILT HER COMPANY FROM 2 PEOPLE, TO TRANSFORM AND DISTRIBUTE THE HIGHEST QUALITY

SALT THROUGHOUT EASTERN EUROPE, SOLD A LARGE PORTION OF HER COMPANY, AND NOW

LIVES IN WASHINGTON DC--SHE SHOPS AT SAKS JANDEL WHERE I MET HER TWO YEARS AGO AT

A STORE EVENT AND IMMEDIATELY RECOGNIZED WE WERE KINDRED SPIRITS--DEDICATING HER

LIFE TO THE VIRTUOSO BEAUTY OF CLASSICAL MUSIC. SHE CHAIRS THE MOST IMPORTANT

FUNDRAISING GROUP THAT SUPPORTS THE KENNEDY ARTS CENTER’S CLASSICAL MUSIC

PERFORMANCES. AT EACH OCCASION, RUNNING THE FOUNDATION, AND HOSTING THE

EVENTS, HER STYLE SHINES THROUGH BECAUSE OF THE PROPORTION, CONSTRUCTION AND

FORM FOUND IN OUR DESIGN AESTHETIC.”

TARGET CUSTOMER- A NARRATIVE 17

K A R O L I N A Z M A R L A K TESTIMONIALS FROM SOME OF OUR IMPORTANT RELATIONSHIPS MAY BEST DESCRIBE HOW OUR COLLECTION SETS US APART: CHRISTENE BARBERICH, EDITOR IN CHIEF REFINERY 29: “SHE EPITOMIZES, IN A MOST COMPELLING AND UNDERSTATED WAY, WHAT I SEE AS AN IMPORTANT RECENT SHIFT IN DESIGN: A FRESH APPROACH AND APPRECIATION FOR PARED DOWN LUXURY, WITH AN ATTENTION TO EXCEPTION SHAPE, FIT, AND FABRICS. WITH A MORE MINIMALISTIC APPROACH, THERE IS DISGUISING WHAT IS SPECIAL AND UNIQUE HERE...IT IS PURE SKILL AND CONVICTION UNENCUMBERED BY TREND AND EXTRANEOUS EMBELLISHMENT.” LISA SALZER, DESIGNER AND HEAD LULU FROST: “OVER THE YEARS, I’VE SEEN THAT KAROLINA HAS CHALLENGED HERSELF TO FIND VARIOUS FORMS OF EXPRESSION, FROM PRESENTATIONS TO FASHION FILMS, FROM CORPORATE COLLABORATIONS TO EUROPEAN MILL VISITS, ULTIMATELY PROVIDING RICH CONTEXT TO HER DESIGNS. SHE HAS REMAINED CONSISTENT, FOCUSED AND DEDICATED TO HER DESIGN BELIEFS. HER CLOTHING IS AN EXPRESSION OF HER RELATIONSHIPS WITH LOCAL DEVELOPMENT AND MANUFACTURING IN THE GARMENT DISTRICT AND THE TECHNICAL AND PRODUCTION EXPERTISE SHE’S DEVELOPED THERE.” MATT TAYLOR, DESIGNER CATEGORY BUYER NEIMAN MARCUS DIRECT: “I HAVE ENJOYED BUYING KAROLINA ZMARLAK’S DESIGNS FOR TWO SEASONS NOW WITH NEIMAN MARCUS DIRECT. SHE FOCUSES ON SIMPLE AND STRUCTURAL FORMS THAT CREATE A BEAUTIFUL SILHOUETTE. HER CLOTHING REPRESENTS BOTH CLASSIC AND MODERN STYLING. HER ATTENTION TO FINISHED DETAILS AND SEAMING CREATES A FLATTERING FIT THAT SPEAKS TO EVERY WOMAN’S DESIRE TO FEEL BEAUTIFUL.” STACY LAUREN SMITH- PRIVATE CLIENT SINCE SEASON ONE: “CLEAN SLEEK LINES THAT ARE ALWAYS FRESH BUT ALWAYS TIMELESS AND THAT ALWAYS SHOWCASE THE BODY IN THE MOST FLATTERING WAY, THAT IS TIMELESS. KAROLINA’S CLOTHES ARE LIKE JEWELS THAT YOU KEEP FOREVER. THEY HAVE NO AGE.” VINCENT DOBAO- SAKS FIFTH AVENUE DESIGNER ATRIUM SALES: “YOUR DESIGN AESTHETIC IS VERY, VERY CLEAR, "MODERN CLASSICS". YOU EXPRESS YOUR INDIVIDUAL POINT OF VIEW WITH YOUR CHOICE OF FABRICS, YOUR CLEAN AND PRECISE LINES, HARMONY FROM THE JUXTAPOSITION OF YOUR SHAPES AND COLORS AND, LAST BUT NOT THE LEAST, YOUR ATTENTION TO DETAILS ON A FINE FINISHED GARMENT.” MARKIE PRICE- PUBLIC RELATIONS SENIOR EXECUTIVE WITH BRANDLINK, AND CLOSE FRIEND, RESPONSIBLE FOR OUR INITIAL PRESS: “I HAVE WATCHED KAROLINA'S CAREER EVOLVE SINCE DAY ONE, AND HER COLLECTIONS HAVE ALWAYS REMAINED 100% TRUE TO HER PERSONALITY AND VISION WITHOUT GIVING INTO TRENDS (AS MANY OTHER EMERGING DESIGNERS SO OFTEN DO!) SHE CONSISTENTLY CREATES UNIQUE PIECES SEASON AFTER SEASON THAT ARE ELEGANT YET WITH EDGE, FORWARD YET CLASSIC, RELEVANT WITHOUT BEING TRENDY, AND SEND A SUBTLE YET POWERFUL MESSAGE. SHE IS A ONE-OF-A-KIND DESIGNER AND A TRUE ARTIST.” IRENE ROTH- CUSTOMER THROUGH SAKS JANDEL: “YOUR LATEST COLLECTION IS JUST BEAUTIFUL, ELEGANT, "PURE", SOPHISTICATED AND ABSOLUTELY PRACTICAL. IT IS PERFECT FOR ME, WHO TRAVELS A LOT AND HAVE TO LOOK GOOD BOTH DURING THE DAY AND EVENING, THOUGH TO PACK EVERYTHING JUST INTO CARRY-ON LUGGAGE. I LOVE YOUR COMBINATION OF NEW FABRICS AND TECHNOLOGIES TOGETHER WITH CLASSIC ELEGANCE AND CHIC. THIS IS WHAT WOMEN NEED! THIS IS WHAT MAKES YOU, YOUR APPROACH TO STYLE AND DESIGN DIFFERENT AND VERY MUCH NEEDED.”

KAROLINA ZMARLAK TESTIMONIALS 18

THE FASHION RUNWAYS ARE BEING STALKED BY INVESTORS WANTING TO BUY MORE THAN THE LATEST LOOKS. DEALMAKING IS HEATING UP IN THE INDUSTRY. AND WHILE DESIGNERS ARE VERY FAMILIAR WITH MANY OF THE WOULD-BE BUYERS — INCLUDING BERNARD ARNAULT, FRANÇOIS-HENRI PINAULT AND JOHANN RUPERT — THERE’S ANOTHER GROUP OUT THERE THAT’S EXTREMELY WELL-FUNDED AND CAN’T BE IGNORED. SO DESIGNERS NOT ONLY NEED TO KNOW THOSE THREE LUXURYTITANS, BUT ALSO STEPHEN SCHWARZMAN, JOHN DANHAKL, DAVID DOMINIK AND LOTS, LOTS MORE. •  THE SUCCESSES OF NOT JUST THE MICHAEL KORS AND TORY BURCHES OF THE WORLD. •  “YOU’VE GOT TO FIGURE OUT ANOTHER WAY TO GET THAT BRAND CONNECTIVITY BECAUSE PEOPLE ALSO WANT TO HAVE THEIR

OWN STYLE,” SAID JOHN COYLE, HEAD OF THE NEW YORK OFFICE OF PERMIRA. “INDIVIDUALISM IS IMPORTANT AND THAT’S TOUGH TO DO IF YOU’VE GOT A BIG LOGO STAMPED ON IT.”

•  JASON WU LAST WEEK SOLD A CONTROLLING STAKE IN HIS FIRM TO INTERLUXE, A NEW INVESTMENT HOUSE CHAIRED BY FACTOR GARY WASSNER AND BACKED BY LEE EQUITY. THIS BRINGS TOGETHER LEE’S MONEY AS WELL AS THE EXPERTISE OF ALLEN QUESTROM, WHO WORKS WITH THE PRIVATE EQUITY FIRM, AND WASSNER’S INSIGHT AS A FINANCIER TO MANY NEW YORK DESIGNERS.

•  LUXURY IS A GOOD PLACE TO BE. PEOPLE WANT THE FINER THINGS IN LIFE. SOME [BRANDS] HAVE A LOT OF PERMISSION TO EXPAND THE PRODUCTS THEY DESIGN. IT’S A BIG WORLD AND WE WANT TO PLAY WITH BRANDS THAT COULD BE DISTRIBUTED GLOBALLY.

•  EQUITY IS LOOKING FOR EXPERTISE AND INDIVIDUALITY, ATTRACTED TO PEOPLE WHO HAVE THEIR OWN NORTH STAR. THE OPPORTUNITY IS WITH COMPANIES THAT ARE IN A GROWTH MODE OR ON THE VERGE OF A GROWTH MODE AND NEED CAPITAL.

•  INVESTORS IN GENERAL HAVE BECOME MORE COMFORTABLE WITH THE VICISSITUDES OF THE INDUSTRY. “THERE IS AN INCREASING APPETITE FOR FASHION RISK, IN PART BECAUSE SOME FOLKS HAVE EXPERIENCED SUCCESS IN THE CATEGORY,” SAID ANDREW CRAWFORD, WHO HEADS GENERAL ATLANTIC’S RETAIL AND CONSUMER BUSINESS AS MANAGING DIRECTOR. “THERE’S THE NATURAL CHURN OF A FEW NEW ENTRANTS AND A FEW OF THE ESTABLISHED PLAYERS NOT BEING AS ACTIVE.”

INVESTMENT CLIMATE 19

INVESTOR PARTICIPATION OBJECTIVE: -FINANCIAL -BOARD OVERSIGHT -EVENTS AND MARKETING -SALES DEVELOPMENT

INVESTOR PARTICIPATION 20

K A R O L I N A Z M A R L A K 130 W25TH STREET, STE 5D NEW YORK, NY 10001 KAROLINAZMARLAK.COM JESSE KEYES PRESIDENT [email protected] COMMUNICATIONS [email protected] 212 243 0005

CONTACT 21

Karolina zmarlak plan jan2015 4copy-min

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