Restoration Hardware’s New Boston Home

RH's Boston store is a branding tour-de-force.

RH’s Boston store is a branding tour-de-force.

Expect to be awestruck, breathless, converted to a quiet, monastic, simple life. The Restoration Hardware (now called RH ) has completed their renovation of one of Boston’s most iconic Back Bay buildings into one of the most moving retail brand experiences I ever had.  In my career as a trend watcher, I have been in countless thousands of them, but haven’t been this moved by a retail experience since the first time I stepped into the Food Halls at Harrod’s.

RH has recently completed their renovation of the former retail location of the venerable Louis of Boston, at the corner of Berkeley and Newbury Streets in Boston. The grand, free-standing building was built in 1864 for The New England Museum of Natural History. (which later became the Museum of Science and moved to The Charles River). It was vacant for several years when Louis moved to the South Boston waterfront. I wondered what retail tenant could do justice to this uniquely beautiful property. Ralph Lauren topped my short list for companies with the capital and vision to pull it off. RH was not on my list.

The floral area on the first floor.

The floral area on the first floor.

The store is a triumph.  It is the essence of modern, traditional home furnishings… spare, classic, oversized and dressed with buttery leathers and neutral linen. It is masculine and quiet, but emotionally rich on every level. It is palatial and clubby. RH has hit exactly the right note blending contemporary touches like the commanding glass elevator and slick concrete stairwell, while paying homage to the sheer beauty of the original architecture of this edifice. It is a textural, neutral symphony, with a hip background track. It is like experiencing their products through vintage sepia photos.

This tour-de-force brand experience is not to be missed. Expect to be converted to an RH disciple. It may have you shopping for a larger home to fit their enormous furnishings.

Dix&Pond is the blog of www.dixandpond.com Creative and strategic consulting for retail, wholesale apparel,  footwear, consumer products and branding agencies. Follow me to get the latest posts

This commanding stone bar is for in-store events.

This commanding stone bar is for in-store events.

Fashion Faux Pas-Stereotyping Older Consumers

For decades fashion retailers rode the Baby Boomer purchasing wave as they started, advanced and continue their careers. They were the first generation of educated women who fully intended to join the professional ranks, often putting off child-rearing to later in life or never at all. Consequently, they are the most travelled, wealthiest and most independent women ever in the westernized world.  Retailers are always looking for unmet consumer demand and opportunities.  This large demographic still offers opportunity for companies that don’t fall in the trap of underestimating her, by addressing her with one broad brush.

There is unmet demand for age-appropriate, forward fashion for a 45+ contemporary customer.

There is unmet demand for age-appropriate, forward fashion for a 45+ contemporary customer.

This is the misconception. As all women age, they no longer want to show their figure and take fashion risks. They want cheaper quality and want to disappear into a decorative tunic. I won’t name names, but you all know the colorful, “soft” retailers that subscribe to a stereotypical formula and have hit a ceiling in an aging market. The customer for this type of merchandise is already well-served.

How could brands that target an older customer fail with a burgeoning aging female population? There are many lifestyle and niche markets in men and women of all ages from extremely conservative to fashion-obsessives. It is critical to understand the lifestyle and persona of the target audience and have realistic expectations of the demand.

Many 45+women still have great bodies, a sophisticated fashion sense and plenty of disposable income. They care about their appearance. Many customers don’t want to identify as old and reject the brands that imply it. The designers and retailers who subscribe to a one-size fits all image of this age group are having their matronly hat handed to them.

I know many stylish women in their 40-80′s, that won’t set foot in the well-known specialty stores and sites that target a “so-called” aging consumer with their floaty tops and frumpy pants. In fact, the softer the body, the more flattering structure becomes in a garment.

Of course, people’s bodies change as they age. All apparel companies in any category, have to target an age/body type for their consumer. They have to develop a standard fit, but not necessarily safe product to go with it. In some sense, the notion of a larger fit only for an aging population is becoming debatable, because of rising obesity rates in younger people raised on whipped caramel lattes.

There are fashion-forward contemporary brands such as Theory, Vince, Lululemon, Diane Von Furstenburg, AG, Joie to name a few, who are enjoying great success because they work for a wide range of body types that relate to their brand. Unfortunately the list is short. There is also a male boomer who wants stylish age appropriate contemporary merchandise. Brands like Hugo Boss, Theory, Robert Graham, AG and Michael Kors are appealing to this ageless male contemporary customer. I believe the men’s business is experiencing robust sales because young men are adopting more dressed up looks for an edge in the job market, the major trend toward slimmer silhouettes and the 45+ customer who is fit, has money and doesn’t want to look old.

Fashion foward shoes & bags have been stand out sellers for all ages. (Valentino Rockstud Ballet Flat)

Fashion foward shoes & bags have been stand out sellers for all ages. (Valentino Rockstud Ballet Flat)

Why have shoes, bags, accessory and beauty products been the standouts categories for years? Partly because these are the democratic categories, in which all women can participate. There is a redundant oversupply of apparel in the market. Opportunity lies in forward, casual, flattering merchandise that accommodates an aging body. It may be a tad longer, less clingy and revealing, but maintain a serious sense of style, quality and sophistication. Simplicity is always in good taste. What is age-appropriate? Appropriateness, more than anything, is a flattering fit.

Dix&Pond is the blog of www.dixandpond.com Creative and strategic consulting for retail, wholesale apparel,  footwear, consumer products and branding agencies. Follow me to get the latest posts

Hubris Maximus – Ron Johnson and JCP

Unsurprisingly, Ron Johnson, the former Apple retail executive, has finally been dumped by the J.C. Penney board after 17 disastrous months, as CEO at the mid-tier department store. He took the Texas-based company from a profit in 2011 to a staggering loss in 2012.

William Ackman the activist hedge fund manager (who owns an 18% stake in the ailing JCP), pushed for Ron Johnson to take over the plodding retail behemoth and got his wish to huge fanfare. He touted Johnson, because of his success at Apple and stint at Target as the divine solution to turnaround JCP. No one doubted the need for an overhaul and Johnson provided a compelling sales pitch of a reimagined JCP.

Entrance to the Joe Fresh Department at JCP

Entrance to the Joe Fresh Department at JCP

Johnson was given free rein to continue living in California and play chess with the lives of thousands of employees, vendors and shareholders while disappointing loyal customers. He laid off thousands, stopped sales promotions and created slick Target-esque marketing before changing lack-luster product lines.

This was a classic case of  big-city-smarty-pants going to show those country bumpkins, how to run a better company. Johnson’s attitude was arrogance unchained and a sense of self-infallibility. This is a perfect case study in “Hubris Maximus” for the B-schools. Ackman imparted and granted supernatural powers on a big coastal ego that had no clue how to create and sell apparel and home products. Let face it, anyone can be a genius (pardon the pun he invented the “Genius Bar” in Apple stores) when you are selling the world’s most coveted products. Apple products will sell out of a shack, peddled on the street or at any ordinary retailer. He didn’t create the magic of Apple, he ran their stores.

A JCP turnaround requires more than making physically appealing stores (he succeeded with better visual merchandising); it is a product issue, reinvention of many private label brands and establishing meaningful creative partnerships that would inspire existing customers and attract new ones. There are a few bright lights, but for the most part the new products, like the revamped Liz Claiborne department, is nothing more than make-up on a very big corpse.

William Ackman isn’t the only guy to hire someone who breathes his same rarefied air. So many companies, only want to hire from their social circles, élite schools or MBA’s without regard to their actual credentials and cultural sensitivities to get the job done. They like smelling their own and like-minded perfume.

Better visual merchandising didn't substitute for the traffic driven by promotions.

Better visual merchandising didn’t substitute for the traffic driven by promotions.

The key to the JCP turnaround was respecting the desires of their loyal customers, a willingness to listen and learn before you shoot, testing before your roll out, building meaningful brands and inspiring and empowering your employees. Success was never going to happen with the blind ego of a mere mortal. Ackman made a fool’s bet and lost his shirt.

Dix&Pond is the blog of www.dixandpond.com Creative and strategic consulting for retail and wholesale apparel, shoe and consumer product companies. Follow me to get the latest posts

Lululemon Pant Recall – Sheer Madness

Last week Lululemon’s stock took a hit on news of a recall of a batch of their ”Wunder Under” black yoga pants. When worn by a consumer the pants appeared too sheer. This represented about 17% of their first quarter bottoms assortment and will have an impact on first quarter sales. Lululemon reacted quickly to recall the pants and in the spirit of “transparency”, notified Wall Street of the flap.

Lululemon spring gym bags.

Lululemon spring gym bags.

This sort of thing happens to all manufacturers and brought to mind an incident in my career when the company I worked for, shipped black pants weakened by overdyeing. The pants were splitting in the field and the unassuming customers were showing a lot more than a shadow of their undies! We survived and thrived. This is a case of sheer madness.

Jealous competitors will be disappointed, this incident will not put a dent in the Lululemon lovefest. The beloved Canadian active maker acted the hero, the protector of quality and the decency of their customer.  The missing inventory only represents a piece of their bottoms assortment.

Lululemon continues to innovate and delight their customers.

Lululemon continues to innovate and delight their customers.

The big winners will be those who buy the stock on the dip!

Dix&Pond is the blog of www.dixandpond.com Creative and strategic consulting for retail and wholesale apparel, shoe and consumer product companies. Follow me to get the latest posts

Coral – Must-Have Color Summer 2013

Coral - Spring-Summer 2013's Must-Have Color

Coral – Spring-Summer 2013′s Must-Have Color

Spring/summer 2013′s must-have color is pink’s fraternal twin coral. Coral conjures thoughts of beaches, bikinis and chilled Bellini’s. Fashion is on a feminine trajectory and these pinky-orange hues are found in every level of the apparel (and home) markets for tops, jeans, active wear, swimwear, lingerie, dresses, handbags, footwear, jewelry, etc.

Pale lady slipper, peach, melon to rich begonia, this blushing beauty flatters all skin tones. It is precious and precocious, tender and tantalizing. Whatever the shade, it packs a lady-like punch and says girly girl from a thousand feet.

Pair coral tonally, with pure white or soft neutrals. Expect these trending hues to bloom bigger for spring/summer 2014.

Dix&Pond is the blog of www.dixandpond.com Creative and strategic consulting for retail and wholesale apparel, shoe and consumer product companies. Follow me to get the latest posts

Coach – Stellar to Stumble

On the short-list of first-class American fashion brands, Coach certainly makes the top ten. The nature of market leaders is their willingness to take chances. No one becomes an Olympic skater holding the rail.

Coach fourth quarter 2012 North American sales were down 2% over last year, which sent the stock tumbling this week, in spite of increased international sales. North America accounts for two-thirds of the company’s business.

I have great respect for the aspirational luxury bag and accessory seller. They have turned a 72-year-old leathery dowager into a fashion powerhouse with their risk taking market leadership. There are far too many lackluster brands, that stand for nothing. I give them credit for ground breaking newness and willingness to take bold moves.

As an avid Coach watcher, the answer for the poor results is obvious. For many successful years, they addicted their logo-adoring masses to fresh shapes and colors of their iconic fabric “C” patterns. These signature looks fulfilled the fantasies of mainstream wanna-be social climbers. Unfortunately, the patterned bags have become, all too common on the arms of every stroller pusher and tweeny bopper in the mall.

Fall 2012 Coach Legacy bags

Fall 2012 Coach Legacy bags

They saw this coming. In second half of 2012, they took a radical step and introduced the Legacy collection. I never warmed up to this collection of vintage leather Coach styles in bold colors. They bet the ranch on Legacy and it dominated the second half assortment. I awaited its pending arrival and wanted to love it. Somehow, it didn’t feel modern, and the traditional leathers seemed a bit dowdy in a digital world. Perhaps it is the sea of wristlets and cross-body bags, aimed at an over-indulged teen? It doesn’t have the freshness of their more innovative styling. The only thing it had going for it was color. I give them an A+ for trying. This is the fashion business and leaders sometimes stumble.

CEO, Lew Frankfort is blaming the lack of demand on “competition.” Some say Michael Kors is taking a bigger share. I think the iconic Kors bags with the MK charm, are getting a tad stale, too. Kors does a larger shoe collection and dominates in uber-hot fashion watches. Kors stores have a consistent mix of accessories, apparel and shoes and isn’t reaching for an entry-level teen. I think Marc Jacobs, Kate Spade, Tory Burch and others are sucking the aspirational luxury winds in bags.

Coach won’t stay on the rails for long. This champion will bounce back. In bags, I think they need to explore more luxe leathers, modern materials like colorful patent leather and even silicone, as well as bold new shapes. They are talking about relaunching their shoe collection. I think their shoes offer tremendous value in terms of fashion quality to price. Expanding fashion jewelry and watches is an opportunity as well. Stay tuned. See Coach.com

Fall 2012 Coach loafers - A modern twist on a classic

Fall 2012 Coach loafers – A modern twist on a classic

Dix&Pond is the blog of www.dixandpond.com Creative and strategic consulting for retail and wholesale apparel, shoe and consumer product companies. Follow me to get the latest posts

Feeding Frenzy – Lululemon

I admit it, I’m a dyed-in-the-Lycra, full-blown fan of Lululemon Athletica. I was one of the sharks in the holiday feeding frenzy for all things Lulu. On a visit last week after Christmas, I could hardly move around the 60 or so people I counted in the little store lusting after Lulu. They were spending gift cards, making exchanges and if they expected markdowns, they were sorely disappointed. This fashionable Canadian purveyor of athletic clothing has risen to cult status at full-price. This is a true fairy-tale ending to a lackluster holiday season for most retailers.

There are always sexy and functional sports bras and tops.

There are always sexy and functional sports bras and tops.

In a highly competitive apparel market Lululemon has proven that there is always still room for fresh design and a compelling brand experience. (I think the stores are bit dark, though). They churn out unique and creative silhouettes that flatter the athletic and not-so-athletic bodies of their adoring masses. They create demand for their feminine and tastefully sexy styles. They tout performance fabrications for real yoga and running aficionados, but the rest of us just love the great quality and are willing to pay for it. They have broken every rule of the old footwear apparel players. They make expensive, feminine, comfortable, durable and sometimes radical styles for women and men. They almost singlehandedly started the trend for yoga wear as everyday wear in and out of the gym.

Certainly upper management from the major athletic companies are sending spy drones in the stores to figure out their secret sauce. They are buying and dissecting garments and creating their own vanilla versions. This is a recipe without all the ingredients. They are missing the point; it is Lululemon’s originality that makes it special. It is getting to the finish line first. Who cares about second place?

The opportunity for growth for Lululemon is still very great, as they are still far from a household name. They could benefit from larger stores and certainly more men’s product. Girls would be a smash hit, too. If I was a Nordstrom or Bloomingdales’s buyer, I would be begging for a wholesale line.

December Lululemon deliveries included signature pink and black jackets and a unique lace print used on tops and bottoms.

December Lululemon deliveries included signature pink and black jackets and a unique lace print used on tops and bottoms.

Dix&Pond is the blog of www.dixandpond.com Creative and strategic consulting for retail and wholesale apparel, shoe and consumer product companies. Follow me to get the latest posts

6 Reasons Fashion Brands Fail to Thrive

Many apparel, shoe or accessory brands fail to grow, thrive or evolve over time. Fashion is discretionary. Clothing, footwear,  jewelry, handbags and accessories are emotionally driven purchases. Brands are much more than products, they are a total experience.

Consumers must identify with the implied promise of the brand to become loyal customers. Here is a slide show of the 6 main reasons that fashion brands fail to thrive and some of the stellar brands that are knocking it out of the park:

Neimans & Target Abomination

Neiman Marcus and Target released their much-talked-about holiday 2012 collaboration last week. I call it an abomination not a collaboration. This collection of random home and apparel items designed by well-known designers, like Carolina Herrera, Jason Wu, Rag and Bone, Tory Burch, Tracy Reese and Diane Von Furstenburg are poorly designed, low quality and strangely merchandised.  

The packaging is also big-box boring. They could have used high-end packaging to create a perceived value for the jewelry boxes, letter openers, lunch boxes, purses, glasses, dog accessories, etc. Instead they took the discount low-road and dished up the products to please the distribution center, not the customers.

This collection is just excess inventory and hype for Target stores and an embarrassment for the Texas-based bastion of luxury.  Shame on you Neiman Marcus, for putting your gold-plated name on some of the priciest drek I have ever seen. If you wanted to entice the aspirational luxury customer, you could have turned to your vendors to create some special value handbags, accessories, sweaters, tech cases and other compelling giftables. This Target collaboration can’t hold a soy candle to previous home runs like Liberty of London and Missoni. It will confuse and disappoint customers on both of the ends of the spectrum.

This public relations stunt has gone horribly wrong. These strange bedfellows have given birth to some very strange children. 

Products from the Neiman Marcus and Target holiday 2012 collaboration.

Products from the Neiman Marcus and Target holiday 2012 collaboration.

Dix&Pond is the blog of www.dixandpond.com Creative and strategic consulting for retail and wholesale apparel, shoe and consumer product companies.

I started my career as a knitwear designer, so I will always have a passionate love affair with sweaters. The stores are filled with some of the most irresistibly cozy, sporty and whimsical knits seen in many seasons. Knits have their fashion ups and downs, but we are currently spinning in one of the biggest sweater cycles in years.

Sweaters are the dominant apparel category for holiday 2012. Fresh shapes, colorblocks, fairisles, metallics, embellished and quirky intarsias are everywhere. When intarsias come back in style, you know you are in full-blown knitwear revival.  I suspect sweaters will be standout sellers for 4th quarter 2012 and will be back with a vengeance for 2013.

Shape is the biggest story with a flair for the dramatic. These scene-stealers are easy and oversized.  There are voluminous cardigans, off-the shoulder scoop necks, batwings, kimonos, crops and capes. Details include uneven hems, ties, wraps, outside seaming, sporty details and back interest. The silhouettes are full- fashioned or sewn into radically new shapes. Outside seaming is used to tailor and create interest.  Oversized shapes tend to have some close to the body element, like tight sleeves on a boxy wide crop. Dramatic necklines include oversized cowls, deep v’s, shawls, wide scoops and mega ruffles.

Color is either wearable sumptuous neutrals, especially greys and navy or mouth-watering bright and bold.

Gauges are either very chunky or drapey, soft fine gauge.

Fibers are soft and inviting, not itchy or harsh. Cashmere and merino wool dominate in fine gauge. For chunky machine knits there are complex blends of soft, lightweight wools, acrylics and slub yarns.

Techniques include machine and hefty hand knit Jacquards, fine gauge intarsias, pieced and patched materials and stitches, color blocking, cables, sporty details, embellished  jeweled collars and  bibs and ribs of all weights.

Here is a roundup of the looks:

Dix&Pond is the blog of www.dixandpond.com Creative and strategic consulting for retail and wholesale apparel, shoe and consumer product companies. Contact us for custom trend analysis, creative direction, strategic marketing, brand profiles, merchandising, etc.

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