Beauty SymposiumThe Beauty Visionaries

3Regional ConferenceThe Future Is Here:

The Marriage of Form and Function

4Retail Symposium

Retail Reality Check

5Next Generation Series:

An Evening with Chris Benz, Creative Director of Bill Blass

Upcoming Events

ChairKatie Kretschmer

Editor / Contributing Writer

Writers / EditorsWendy D'Amico, Creative Consultant

Nancy Jeffries, Contributing Writer

Carolyn Moss, Contributing Writer

Melissa Pastore, Contributing Writer

Graphic DesignDebora DeCarlo, DDC Graphics

PhotographyMaryanne Grisz Jan Klier

Nancy Jeffries

THE PUBLICATIONS COMMITTEE

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A stimulating program, a stellar breakfast and aglimpse into the future of beauty marked The FashionGroup International’s Beauty Visionaries presentation,held at The Hilton’s Mercury Ballroom in New YorkCity on May 14. A panel of experts shared theirinsights into current trends and the growth of customization in the beauty market.

Margaret Hayes, president of FGI, welcomed guestsand introduced moderator Caroline Fabrigas, CEO,Scent Marketing, Inc., who in turn introduced guestspeaker April Long, executive beauty editor of Ellemagazine, and the Beauty Visionaries panel: DoreenArbel, SVP, marketing, Lancôme; Katia Beauchamp,cofounder and co-CEO, Birchbox; Trudi Loren, SVP,corporate fragrance development, The Estée LauderCompanies, Inc.; Salvatore Mauceri, CEO, Wella NorthAmerica; and Kate Oldham, SVP/GMM beauty, lingerie& swim, Saks Fifth Avenue.

Fabrigas said the event offered the perfect opportunityto celebrate beauty’s vision, as well as FGI’s 85thanniversary, and announced that Scent Marketing Inc.had created a signature scent for the occasion,inspired by Margaret Hayes, that was, like FGI’s membership, “fearless, purposeful, powerful, compassionate and creative.”

Beauty Market Innovation

Long gave a preamble to the discussion, noting that ofthe 10,000 products launched each year, only one infive will be on the shelf 18 months later. “We are notchasing trends, but rather representing the here andnow. Just being new doesn’t guarantee success,” shesaid. She cited three types of products that enter themarket today. First, the pivot products, which takepreexisting products and adapt or pivot them, like theinterpretations of Clarisonic’s cleansing device. Pivotproducts offer an element of surprise.

From left: Caroline Fabrigas, Doreen Arbel, Katia Beauchamp, Trudi Loren, Salvatore Mauceri and Kate Oldham

Refinement was the second category, where newlaunches optimize technological advances, for example, with sheer face masks in skin care, andfragrance refinements. The third product type is the“lightning bolt,” and includes products like LipVenom and Bioré Pore Strips. “These products provethemselves and resonate with consumers via their innovation. Lightning-bolt products, rather than ‘me-too’ products, make a significant impact on the market,” she said.

Fabrigas opened the panel discussion with the topicof Innovation and Reinvention, asking panelists toaddress recent disruptions in the beauty market.Arbel said, “Our Grandiose Mascara was the biggestlaunch for Lancôme this past year. The design and the collaboration with our makeup artist took the industry by storm, with 11 percent of market share.”

Beauchamp, who cofounded Birchbox four yearsago, pointed to her own company as a disruptor inthe beauty industry. She explained how she and herbusiness partner saw an opportunity to create amonthly subscription program offering five differentbeauty products to customers. Customers get to try arange of products, navigate the beauty market andselect their favorites.

“The way we’re approaching the consumer is key,”said Loren. “Putting the consumer at the center ofthe experience, like with Le Labo, with personalizedperfumery, shows the importance of this high-touchmodel.” Mauceri also emphasized the customer. “I have managed global marketing in Europe, SouthAmerica and Africa, and I’ve really learned about thelifestyles of beauty consumers. If you focus on spe-cific innovations and on the biggest blockbusters,you are successful. We found that 90 percent ofconsumers color their hair. Our Color ID, whichwe’ve had for 20 years, delivers color on color forconsumers. We’ve combined science and creativityfor our colorists to use in salons and this is nowbecoming more mainstream.”

Points of Differentiation

“Experiencing a product drives differentiation. Wehave created a ‘Stop and Stare’ moment for our customers with our windows at Saks. We are lettingthem know that there is something new for them at Saks,” said Oldham. Arbel noted that whileLancôme is celebrating its 80th anniversary, thebrand’s mission continues. “Women are coming tothe counter to look more beautiful and they leavefeeling happier. That mission will not change. It willcontinue to drive Lancôme. We’ve elevated our imageand modernity and have chosen Lupita Nyong’o as aperfect fit for Lancôme in representing happinessand self-confidence for the brand,” she said.

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“Our unique point of differentiation at Birchbox isthat we’re reimaging the beauty industry forever bydelivering a personalized selection of beauty brandsfor our customers.” Loren cited the creation of newmolecules that impact the quality and performance offragranced products. “In every case, we’re talkingabout creativity. The connection with the consumerthrough scent is always significant. Rollerballs andsolids have been with us for years, but innovationcomes from quality and creativity,” she said.

Mauceri said, “We help stylists create an experiencefor the customer in the chair, and educate them aboutthe product and how to deliver the service.” He notedthe impact of digital as having both an e-commerceand educational aspect, taking stylists to the nextlevel to deliver higher quality and innovation. Fabrigassaid that salons have become entrepreneurial withthis approach.

Oldham said Saks leverages the digital world to createstronger links to their customers, allowing associatesto virtually “view their closets,” to understand theirneeds, what they’re buying and what they will needfor the future. “The digital age has given us a lot ofnew opportunities to reach consumers,” added Fabrigas.

Market Trends

“Most innovation is coming in the makeup category.Highlighting and contouring are on fire this year,”Arbel said. Lancôme launched Le Duo, a dual-endedhighlighter and contouring stick. A second trend iscushion technology, very popular in Asia. “Lancômelaunched Miracle Cushion in Asia and one millionunits sold in two months. Quick, fast and on-the-goare key factors,” said Arbel.

“We’re going through this digital revolution together,”said Arbel, noting a variety of social influences bringingrelevancy to consumers, reflecting the brand and creating authenticity. Beauchamp explained Birchbox’stransition from being solely an online entity to brickand mortar. “We recognized anecdotally that the concept was changing for the beauty customer. We sawthat the average Birchbox consumer was doubling herbeauty product consumption, so we also wanted to tryto be offline for her with unique brick and mortar. It’s a marriage of data and technology to turn consumers intopurchasers of the right products.”

Loren added, “High-end, niche brands are bringingthe qualities of this métier into the industry, particu-larly in the fragrance segment. In the Middle East fragrance represents 76 percent of the beauty market.In Brazil this is significant too, with Orientals, spices,and mixed woods coming into play in high-qualityproducts. This is important in emerging markets aswell, so we are addressing all levels of consumerinterest.”

Mauceri added, “We have a traditional approach totrends, working with fashion houses, as well as tapping into local trends, by exploring digital influences. In South Beach, we’re looking at Latininfluences, and our analysts educate and train oursalon stylists so they can interpret local markets. Our stylists are our biggest source of connection.”Oldham commented, “We’re offering an elevated expe-rience for our consumers, letting them know they’re inthe right place for the products they want. The wholestore has aligned with consumers’ product needs.”

Arbel remarked on Lancôme’s expanded portfolio andmulticultural positioning. “In the past few yearswe’ve looked at our portfolio and addressed differentethnicities and different skin types and foundationshades. We offer 200 different shades, and we’veopened our portfolio as well as sought an ambassadorto represent our brand. Lupita Nyong’o perfectlymarries our philosophy and has brought modernity tothe brand.”

Beauchamp said, “We engage with more than 50million consumers each month and consumer data isat the core of what we do. It starts with a quickbeauty profile, which becomes a living, breathingthing. We use algorithms to adapt to your profile andcustomize your Birchbox. When you log in, we knowwhat is relevant to you.” Loren noted that while testingis used to determine if a concept is viable, it shouldnot be used without knowledge of what a consumerwill love. She said that some of her fragrance part-ners are doing research into what drives a consumer’s attraction to a certain scent, which shereferred to as “liquid emotion.”

Oldham said that everything is put through a filter atSaks. “We see how our customers react when theywalk into the store and we differentiate the fragranceexperience for our customers, letting them know thatwe have everything from Le Labo to Frederic Malleand beyond,” she said. Beauchamp also noted thecompany’s customer demographic, which is a diverseage group. “For us, it’s more of a psychographic thana demographic. Our customer is, by definition,‘underserved,’ because she doesn’t have time in herlife. She’s a multitasker. Our personalization abilityallows us to speak to customers in six markets, andsoon more,” said Beauchamp, adding, “Using per-sonalization, individual experience and micro-data ishighly efficient for us.”

In sum, the panelists agreed that being consumer-centric in creative ways and offering innovation andquality, are key. Product exclusivity, personalizationand customization are significant. “It’s always important to have a 360-degree view,” concludedFabrigas.

— Nancy JeffriesContributing Writer, bnjcasa@aol.com

Beauty Symposium The Beauty Visionaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Kindred reinforced the idea that a product mustnot only be beautiful but useful too. Consumersare demanding that the product must do some-thing for them before they are willing to buy it.

Kindred asked about each company’s future plans.Mercando mentioned her brand is planning to make its product smaller. Adapting to her customers’ lifestyle is key. Puliafito hopes to partner with other fashion brands. Muller says hergoal is currently a work in progress and feels thatafter two and a half years, they are on the way toaccomplishing their goal.

A short question period followed. Some askedabout the long-term use of the products. Puliafitomentioned that they had medical personnel onstaff who tested reactions to wearing a watchbandfor long periods of time. Members were also concerned about safeguarding the personal information that Muller’s eyeglasses would contain. She mentioned that since no cameras areinvolved, security would be a priority.

The audience was interested in the panelist’sbackground. Mercando said that although she was not an engineer, she had a background incomputer technology. This brought up the importance of directing future generations ofwomen towards the new fields of technology. Inthis male-oriented field, the career path towardtechnology must be fostered. Perhaps by adding alittle glitter to the new products, women will beencouraged to use their minds while assuring thatthey can walk in beauty too.

–– Carolyn MossContributing Writer, carolynkmoss@gmail.com

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Kindred asked the panel how their products aremodified to appeal to women. She mentioned, asan example, that products are often tested on menand some of the original devices got caught inwomen’s longer hair. Mercando emphasized toRingly engineers that their product must evincebeauty rather than technology. As beauty was tocome first in their product’s design, no buttons orswitches were to be visible.

Kindred stressed the need, therefore, for wearable-technology companies to have fashion knowledge.They must ask themselves a series of questions,such as: Would I wear it? Is it beautiful? Is itwearable? Would I buy it again? Does the worldreally need it?

Puliafito admitted that there are many day trackers in the market. Some of the ideas thatthey are working on to differentiate Misfit’s product is determining how much movement canbe tracked. This includes how long a battery canbe made to last and if continuous wearing is amust. They are working to create an elegant pieceof technology by offering 10 colors and an assortment of bands.

A discussion was brought up about current connected devices, which operate outside thebody, leading to the future where connecteddevices would be located within the body.

In this vein, Muller mentioned that the long-termgoal of her product is to track data and personal-ize it to the individual wearer. It will track steps,calories and intimate details that can be sharedwith one’s doctor or healthcare provider.

Regional Conference The Future Is Here: The Marriage of Form and Function . . . . . . . . . . . . . . . . . . . . . . . . . . . .

At the annual meeting of Fashion GroupInternational’s Regional Directors, held May 7 to9, one of the most interesting events was a paneldiscussion examining wearable technology.

The program was introduced by moderator LizaKindred, founder of global fashion-tech think tankThird Wave Fashion, which helps companies manage the breakneck speed with which fashionand technology are converging. She introduced thepanel, which consisted of Amy Puliafito, directorof communications for Misfit, Christina Mercando,founder of Ringly, and Leslie Muller, design director of Marchon.

Kindred asked the panelists how their companiesare creating wearable technology. Puliafito’s company, Misfit, produces modular accessories.Its recent partnership with Swarovski has allowedthe fitness-monitor company to appeal to awoman’s fashion sense by feminizing the productwith the addition of the latter’s crystals.

Mercando explained that Ringly creates rings that,via an app, connect to the wearer’s telephone.Through the app, the consumer can set customcolor and vibration patterns for different types ofnotifications. The accompanying ring box acts as acharging station when the battery is low.

Muller works with the research division ofMarchon, the famed eyewear company. Devoted tohealth for eyes, this division is working on a prototype that will allow all of one’s healthcaredata to be gathered via one’s eyeglasses. The idea was hatched when glasses were prominently featured in a 2013 Diane Von Furstenberg fashion show.

From left: Leslie Muller, Liza Kindred, Christina Mercando and Amy Puliafito

w e a r a b l e t e c h n o l o g y

and they’ve also distributed numerous iPads totheir salesforce. While this was an expensivemove, Katz said it’s the single biggest factor thathas transformed their business. “We have shiftedquickly from old world to digital marketing,” saidKatz. According to Katz, one of the biggest challenges in implementing new strategies is getting her team to embrace taking risks and theidea that some strategies will fail. One such failure was Neiman Marcus’ attempt to set up e-commerce in China. However, this failure ledher team to realize they needed to acquire a partner to help them expand their e-commercebusiness internationally. “Out of failure camesomething really positive,” said Katz. Their misstep in China led the brand to acquire and partner with international e-commerce juggernaut MyTheresa.

Charron also asked the panelists to share whatgives them sleepless nights. At Neiman Marcus,Katz is most concerned with the customer experience. “When we have a dissatisfied customer, I take it very personally,” she said.Katz personally receives e-mails from customersevery day and she responds to every single one.Katz said one of her other major challenges is figuring out where to place bets and take riskswhen it comes to technology.

At Shinola, Bock said things are moving so quickly that his major challenge is ensuring“whatever falls through the cracks, make sure noone sees it.” Uchitel shared similar concerns saying that given the fast pace of the digitalworld, Spring is challenged to innovate, repositionand deliver quickly.

Overall, each of the panelists was optimisticabout the future of retail and agreed on theimportance of adapting and adjusting to the newwave of highly educated consumers. “Some retailerswill be toast because they aren’t adapting,” saidCharron.

–– Melissa PastoreContributing Writer, Melissa.Pastore@swarovski.com

Spring is a direct-to-consumer marketplace thataggregates a variety of brands in a single destinationfor consumers. Despite launching just ninemonths ago, Spring already works with a roster ofupwards of 760 brands with more launching everyweek. Spring’s mobile-first approach allows themto provide “a turnkey solution for brands onmobile.” They encourage their partner brands tooffer exclusive merchandise on the platform andthey have sophisticated data that helps brands fig-ure out what’s working.

Coming from a heritage brand like NeimanMarcus, Katz shared a different perspective.Neiman Marcus currently runs the largest luxury e-commerce business in the world and the customer is at the center of all of its strategies.“As a result of technology, it’s completely transformed how we think about our customers,”said Katz. “Our goal is to be as seamless as possible. Omnichannel is how we do business, it’s no longer a strategy,” she continued. Katz s aid Neiman Marcus’ next big challenge is personalization.

Charron moved the discussion along by asking the panel to discuss how they are incorporatinganalytical marketing and big data in their strategies. Spring can “really give brands a snap-shot of the consumer,” said Uchitel. “It’s verymuch an educational process.” Since Spring is atech platform, they capture everything from howlong a consumer is using their app to what products he or she is browsing. With all of thedata Spring can provide, brands are able to usethe platform to test out different strategies and quickly adjust if something isn’t working. “Weencourage brands to think uniquely. It’s morehand-holding than I thought,” said Uchitel.

At Neiman Marcus, Katz said they’ve made a biginvestment in customer-experience tech. All5,000 of their sales associates were given iPhones

The changing face of the retail landscape was themain topic of discussion at FGI’s Retail RealityCheck breakfast held at The New York Hilton onThursday, June 4. The event kicked off with anintroduction by Robin Lewis, an author, speakerand consultant with expertise in the retail andconsumer products industries. Lewis mapped outhow retailers can stand out in the overcrowdedretail marketplace during the current sluggisheconomic situation. According to Lewis, retailersneed to target millennials, who will account for40 percent of all retail sales by 2020. In order tolure this increasingly important demographic,Lewis suggested creating a compelling retail experience, developing an omnichannel approachand implementing a vertically owned and integrated value chain.

Lewis then introduced Paul Charron, former chairman and CEO of Liz Claiborne, Inc., whoserved as the moderator for the lively panel discussion that followed. Throughout the discussion, Charron challenged the panelists toexplore how retailers can create an interactiveexperience for consumers. The panel includedSteve Bock, president of Bedrock Manufacturing,parent company of Shinola and Filson, two prominent made-in-the-USA brands; Karen Katz, president and CEO of Neiman Marcus Group; and April Uchitel, chief brand officer of the innovative shopping app Spring.

The panelists began by giving a brief overview oftheir respective brands. “Shinola is a brand andconcept-driven by design,” said Bock. Shinola’sproducts span shoe polish, bicycles, watches andleather goods but the company’s core mission ofcreating design-driven products and jobs in theU.S. is at the heart of everything they do. “We think we have a very compelling story,” said Bock.

Retail Symposium Retail Reality Check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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From left: Paul Charon, Robin Lewis, Karen Katz, Nancy Berger Cardone, April Uchitel and Steve Bock

“Mr. Blass always had an ongoing dialog with theconsumer,” said Benz. He hopes to continue thisdialog through new channels like social media and video. The new Bill Blass brand will launchentirely through e-commerce in order to maintainthis direct conversation with consumers. Benz saidthis strategy will democratize fashion and bringthe Bill Blass brand to as many people as possible. “Mr. Blass would have been the first person on Twitter,” he said.

BillBlass.com will launch on November 2, withfive initial categories including ready-to-wear,fashion jewelry, handbags and shoes. The web sitewas built from the ground up and will feature progressive technology that will suggest productsbased on what consumers are browsing.

In order to convert social media fans to customers,Bill Blass will include products across multipleprice points, all featuring the same design philosophy. “I want the accessibility of the collection to be one of the main goals,” he said.While the launch will solely focus on e-commerce,Benz said he would like to offer a tangible experi-ence at some point. “I do love the concept of atrunk show. Some sort of trunk show, caravan,Oregon Trail,” he joked.

The conversation ended with Benz taking ques-tions from the audience. He offered one key pieceof advice for upcoming designers: the importanceof working for someone else first before going outon their own. “I would’ve worked at J. Crewlonger,” Benz replied when asked what he wouldchange about his own career path.

–– Melissa PastoreContributing Writer, Melissa.Pastore@swarovski.com

On June 17, Fashion Group International’s Next Gen Committee hosted an evening with Chris Benz, the new creative director of Bill Blass,at Space 530 on Seventh Avenue. Over thecourse of the evening, Benz shared insights on relaunching the iconic American sportswearbrand. Benz has a solid fashion pedigree with a degree from Parsons, an internship at MarcJacobs and a stint on the design team at J. Crew,where he worked under retail legend MickeyDrexler. “I went to Mickey’s graduate school,” hesaid of his time at J. Crew. Benz then went on tofound his namesake fashion line, which lasted forfive years.

Benz took on his role at Bill Blass just six monthsago, with three employees on staff. While he wasattracted to the heritage and legacy of the brand,he also wanted to think about fashion in a completely new way. “Our answers are in thefuture,” said Benz. He compared reviving the Bill Blass brand to renovating a house that is“crumbling but it has a good foundation.” Benzhas access to an impressive archive featuringmore than 2,500 samples, sketches and audioand video recordings collected over 30 years.

The new Bill Blass collection will fall in a bridgeprice point and will target a broad age range.Benz said their target demographic is the “casualAmerican girl who wants to feel as though she’swearing jeans and T-shirt even if she’s wearing afloor-length dress.” Benz said the original notionof a “lady who lunches” is just not practical anymore.

Next Generation Series: An Evening with Chris Benz, Creative Director of Bill Blass . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chris Benz

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Calendar of Events

Wednesday, July 29

Just Work ItActivewear:

Out of the Gym and Into the Boardroom

A Frontliner panel discussion focusing on how the activewear trend isimpacting the apparel industry

Trimlab, 252 West 37th Street, 3rd FloorReception: 5:30 p.m. – 6 p.m. Program: 6 p.m. – 7 p.m.

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Tuesday, August 4Staying In Business: A Financial GPS

A Frontliner panel discussion focusing on financeFashion Group Headquarters

8 West 40th Street, 7th FloorReception: 5:30 p.m. – 6 p.m.

Program: 6 p.m. – 7 p.m.

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Tuesday, August 18The New Gifting Experience

A Frontliner panel discussion focusing on whatmakes a gift special, personal and memorable

The Javits Center – Room 1A02-03Breakfast: 8:30 a.m – 9 a.m. Program: 9 a.m. – 10 a.m.

For more information and to purchase tickets and/or tablesVisit www.fgi.org or call 212.302.5511