Fashion Entrepreneur Report – Delivering the business of fashion from Nolcha: Fashion Busi: October 2008

Macy's Turn 150

Posted by fashionentrepreneurreport On Thursday, October 30, 2008 0 comments

Macy’s Department store has its 150 year anniversary. The Herald Square Flagship store has launched hundreds of brands, been featured in movies and has become the cornerstone for retail in the United States with 800 stores nationwide. Originality and consumer growth has always been at the forefront of the Macy’s vision and even after 150 years, the plan of action has not changed. Anyone in the fashion industry needs to recognize the influence that Macy’s has heralded throughout their time in business.

Thinking outside of the box, it was Macy’s original move to Herald Square that spurred Lord and Taylor and B Altman to do the same making the area between Macy’s and Fifth and Madison Avenues the shopping Mecca in Manhattan that it is today. R.H. Macy was one of the pioneers who lobbied for the Third Thursday of November to be declared Thanksgiving, effectively starting the Holiday shopping season. The kick off of his famous Thanksgiving Day Parade perpetuates the shopping frenzy to this day. The windows which are also unveiled on that day are a marketing dream and from the beginning infuse the retail world (that was until Macy’s about necessity and consumerism) with creativity and a bit of magic and delight.

Macy’s is still pioneering projects throughout the fashion community. First are the Fashion Incubator and New Designer Trunk shows that take place in the State Street store which used to be known as Chicago’s own Marshall Fields. “Macy’s has understood independent designers from the beginning. It started with Ralph Lauren getting notice while selling ties out of the trunk of his car and placing him on the sales floor. The Fashion Incubator [a project where chosen designers have workrooms and showrooms inside the State Street store to boost their beginning fashion label] created by the Greater Loop Alliance, was the first group of people to do this for young designers here in Chicago.

"Macy’s has the ability to do huge orders with very major designers, but they have chosen to support us as well,” says Lara Miller, an independent designer, Chicago native and former student of the renowned School of the Art Institute.

Don’t forget about the charitable contributions, runway shows and their endless support of the HIV/AIDS fight with their Passport series. Raising $27 million to date the charity runway show that used to be held in only LA and San Francisco hit the cinema on October 23^rd in 27 cities to bring fashion fun and aid to the community.
Two new New Orleans stores opening this month prove the commitment to the community. In an area where homes and businesses are still being re-built, Macy’s dedication and belief in the prosperity of that city comes at an important economic time. It is also important to know that Macy’s Department Store was R.H. Macy’s eighth try for a successful business and by the end of the year; he had gross earnings of $90,000. That legacy has made the belief in trying new things and supporting the entrepreneur what it is today.

“Macy’s is putting money into seeing independent designers succeed. Giving indie designers flexibility teaches us how to launch a business and do it right. They work almost as an independent boutique within a major retailer,” says Elisa Bergman. “Community support is essential for success in the market place for any new business.”

During this Thanksgiving season, retailers and fashion designers alike should give thanks for the pioneer that makes a young entrepreneur’s dream seem possible.

Interview | American Express

Posted by fashionentrepreneurreport On Thursday, October 30, 2008 1 comments

American Express has long been the option to choose for small businesses that need support and one on one attention from their credit card company. Features like their rewards program as well as the new PlumCard, give back to members instead of taking their money and increasing interest. Rosa Alfonso, Director of Public Affairs, American Express OPEN, sat down with us to talk about credit, debit and business growth.

Nolcha: What programs does Amex have to help the small business owner?

Rosa Alfaro: An entire division is dedicated to entrepreneurs and small businesses. They have different needs than consumers do (OPEN (the small business division) has about twenty four cards and services). Consumer Vs. Small Business owners is something American Express understands and studies. We recommend that they separate their financials from personal and business. Reason being, it makes things more clear for tax implications for their business!

N: What things do you advise business owners think about financially when running a business?

RA: Cash flow. The thing to live by, is to know how to measure your cash flow and know the causes of cash flow problems. A business owner needs to implement building strategies to maximize your cash flow. For instance, if “x” vendor pays me early, is it possible to give them a discount off of the total bill?” Prepare for the worst. Line up several sources of financing first. Grow smart. Know how to smooth out the bumps in your cash flow. Spend in a wise way. Really understand the difference between good debt and bad debt. How is the purchase going to add revenue to the bottom line of our company? If the answer is by a percentage greater than about ten percent then that is something you would want to add to your business.

N: What advice can you give new credit applicants to keep their credit in tact?

RA: You need to know what your weaknesses are as an entrepreneur. Then get someone to help with that weakness.

N: What makes American Express different than the average credit card or Bank Issued Credit/Debit?

RA: We have a whole division dedicated to really looking at an understanding small business and we are here to partner with them. We have the ability to actually look at your individual business and work with you to help figure out what is right for you. Think of us as a partner so we can help you through any situation whether it is growth or maintenance.

N: Realistically can a single designer, starting out in business start his/her first line with credit instead of investors and/or business partners and be able to keep his head above water in the first year?

RA: We are responsible lenders. We do not promote the idea that anyone should start their business on credit cards alone. We think it would be an arsenal of things lined up. It goes back to the “hope for the best and prepare for the worst” idea. For long-term investments, it is not the most prudent use for to put it on your credit card. A company would be better to take out a bank loan for something like that. It is just as dangerous get a lot of business and not be ready for it, as much as it is not to have any business coming in at all. Be prepared for all scenarios.

N: You said you work one on one with small business owners. How is that achieved?

RA: We have a partnership with Score. SCORE offers individual counsel with professional experts in the industry. To evolve that program we introduced a “Small Business Speed Coaching Test Drive” which allows a business to have a thirty minute one-on-one evaluation session with experienced business coaches. SCORE’s counselors are a bunch of retired entrepreneurs that can help give advice of growing the business. Not everyone can afford a lawyer and accountant in the beginning and this is a great resource.

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Interview | DEX New York

Posted by fashionentrepreneurreport On Tuesday, October 28, 2008 0 comments

Focusing on Global Entrepreneurs, it is an obvious step to turn to DEX New York. This one stop shop for general consumers and creative types alike was founded by Dexter Phillip, a fixture in the New York fashion scene for years.

Phillip started working in the couture section of high end department stores. With a huge clientele he then started La Mode New York, an image consulting company. That led to styling for glossy magazines, music celebrities and advertising companies. But something was still missing… and so he founded DEX New York; a home for creatives and clients alike.

“I’ve always been a creative person, and while I don’t mind big organizations, in the fashion world they can be stifling and extremely competitive -- too often in the negative sense of the word. I find that by having my own business, my creativity can run free, inhibited only by the breath of my imagination and the number of hours in day,” explains Dex.

With DEX New York, Phillip and his team have taken runway to reality on a multi-dimensional level. First, there is the photo studio (Ms. Victoria Beckham was shooting her denim line while we were doing this interview). It is a free flowing creative space that any client, from the new designer to major (can we really get more major than VB?) can feel both comfortable and productive in. The huge white walls give way to any light source and the high ceilings are a photographer’s dream, as any set is easy to construct. But with that, it is also a place for make up artists and hair stylists to be hands on in a studio environment. Usually make up artistry students need to travel across the Atlantic to actually see their work on camera with professional models and professional photographers.

There is a workshop for aspiring make up artists, that promotes the creative part of the industry, not just the retail end, which is the sole thing that many of the other cosmetic lines offer. The entire front of his haven is stocked full of beautifully colored disks just ripe for the picking. Touted by celebrities like Tyra Banks both this mineral based cosmetics line is fashionable, functional and easy to grab on the go.

And who doesn’t want the celebrity treatment? In this day of wanting the biggest and the best faster than the rest, Dex has brought the reality of the runway to the streets of Manhattan.

“We take our clients through every step of the transformation process at DEX New York. We inform them of the benefits, as well as the ingredients we are using on them. They are also kept in the know on the latest trends for each season, by attending various open houses that we produce at DEX New York, and newsletters sent to them via email,” states Dex. And he has the team to back him up.

“Every one of my employees is given a role that is larger and broader than anything they have done before. Thus a model becomes a producer, a makeup artist becomes a product developer, a hair stylist becomes an art director, and the front desk personnel become marketing coordinators. We empower our employees by allowing them to fulfill roles that may be beyond their experience, but certainly part of their dreams and abilities. They respond with enthusiasm, and they love being a part of a growing company, thus we have very little turnover. “

All of these elements and a career full of experience in all avenues of fashion make Dexter Phillip someone who knows the plight of the designer. A new label might have the clothes, but not the hair and make up team, or they have the models, but no shoot location. At DEX New York, anything is possible. Budget is always a factor, but with creativity at the heart of the organization, the team will work with the allotted amount to create campaign worthy images, because at the end of the day, gorgeous gets gorgeous… and who wouldn’t want to collaborate with someone who has their best interests in mind?

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