Description
Detailed elucidation in relation to gathering of established serial entrepreneurs.
Norma Kamali Seeks Investors for New Line
by VICKI M. YOUNG
Posted MONDAY DECEMBER 20, 2010
From WWD ISSUE 12/20/2010
Norma Kamali
Photo By John Aquino
NEW YORK — Staying true to her own convictions, Norma
Kamali is embarking on her next challenge: She is seeking
investors for a new venture selling an accessibly priced product
line on her Web site.
Kamali, who spoke Wednesday at the Fashion Institute of
Technology, which hosted FashInvest’s first “Capital Conference:
Where Creativity Gets Down to Business,” declined to provide
specifics, stating the collection was still in the early stages but that
it would be a line under her name.
Kamali said she felt a responsibility to design apparel that women
could use for five to 10 years. Some people thought her venture
with Wal-Mart featuring $20 jackets and $12 vests was a risky
career move, given her existing high-end collections, she said.
Kamali boasted the entire outfit she was wearing on Wednesday
was from her line at Wal-Mart.
“I felt Wal-Mart wasn’t a risk because it was a challenge I wanted
to do,” she said, noting the idea came from her work in the public
schools, where she noticed that many moms didn’t go to the
parent-teacher meetings. “Some women were so embarrassed
that they didn’t go to the school because they didn’t have anything
to wear.”
Neil Cole
Photo By: John Aquino
Norma Kamali told attendees one key to success is to “reengineer
yourself.” She noted that since starting in 1967, she’s been through
many changes, and that to survive, one must “stay true to
yourself....Make those painful experiences the most valuable
ones.”
Thinking ahead continues to serve Kamali well, as she noted her
firm was one of the first to communicate directly with consumers via
her Web site in the mid-Nineties. These days the company is using
technology to stay ahead of the curve in ways that help her
customer shop better. One example is the “try before you buy”
service that enables consumers to scan barcodes to determine if an
item is within the price range sought, then try at home and garner
opinions from friends and family for 48 hours before deciding to
buy. The service is even set up to allow the use of Skype to
communicate with friends wherever they are located. Purchases
after the 48 hours are up are considered final sales.
The FashInvest event featured a gathering of established serial
entrepreneurs, those seeking funding and venture capitalists.
Founded by David Freschman and Karen Griffith Gryga, both
experienced venture capital investors, the conference was set up to
allow 15 firms the opportunity to give eight-minute presentations to
potential investors, get critiqued on their pitches by a panel of experts and listen to advice from those who have been
there and done that.
Neil Cole, chief executive officer of brand management firm Iconix Brand Group Inc., described the company’s
evolution from its roots as footwear firm Candie’s, and how he was always intrigued by the licensing model.
“It took 20-something years to make it work. I struck out a few times, at least twice, but I kept going. For
entrepreneurs, when you’re beat up, you’ve got to keep going. Today, the company is a licensing model. We only do
advertising and marketing. We have no inventory, no capital expenses and over $600 million in income that is
guaranteed,” he said.
Some keys to success have been the direct-to-retail deals his firm has done, include three each with Wal-Mart,
Target and Sears/Kmart, two with Kohl’s and one with Macy’s. The Material Girl line with Madonna will be launching
at Hudson’s Bay in spring 2011, he said, after being introduced at Macy’s this fall.
“A total of $1.3 billion was paid for the brands [there are more than 20 now under the Iconix umbrella], and $900
million was recouped in revenues, and we have $12 billion in annual global sales,” Cole boasted.
He candidly admitted, “I’m not a good operator, sourcer or retailer, but I’m good at marketing. Think of your specialty,
of what you’re good at....Find something you love to do and have a passion for doing it.”
Cole is hoping the credit markets will open up further next year so he can make a few more deals in 2011 to add to
his portfolio of “iconic brands.”
Matthew Kaness, executive director of business development and strategy at Urban Outfitters, noted in the retail
panel discussion that stores and catalogues are moving away from optimizing the density of pages in the catalogue
and how it’s more about advertising. “Listen to the customer [because she] is telling you which direction she is going,”
he advised.
He noted after the presentation that Urban Outfitters is still eyeing possible store openings for its Leifsdottir concept,
but will see how that brand’s handbag collection is received when it launches in February before deciding what the
next move will be.
In addition, social media is playing a role in how the firm reaches out to its customer base. “Each concept has a
different strategy,” Kaness said, noting the Urban Outfitter customer, with its college-age demographic, is more into
blogging and music, while the Anthropologie shopper prefers surfing the Web. That suggests that on the social media
front, blogging and music would play a bigger role at the Urban site than at Anthropologie. He also reiterated the
company’s stance that it is always on the prowl for small acquisitions as a way of adding concepts to its portfolio
umbrella.
Paul Hurley, founder and ceo of online shopping site Ideeli, told attendees, “It really does matter who your venture
capitalists are. Getting the money is not the only thing. You need to have good people help you to think things
through and you have to have the right people on your board.”
Ben Fischman, ceo of Rue La La, advised the entrepreneurs, “Not all investors are the same. Getting to know the
partner leading the fund-raising is critical to any deal.” He also said it’s important to give up some equity and control
to build the company, but not when it comes to hiring senior members of one’s staff.
Daymond John, founder of FUBU and co-star of the ABC show “The Shark Tank,” was master of ceremonies
coordinating the four three-member panels that provided feedback to the 15 presenting firms seeking venture capital
funding. He told WWD that he’s now contemplating investing in industries outside of apparel because of the
inflationary costs — up to 30 percent and more — the industry has been hit with so far this year, due to rising labor
costs and higher prices for cotton.
His advice to entrepreneurs pitching to potential investors is that the pitches should be shortened. “If you keep the
presentation laser focused on just one segment, you would have a much better chance in gaining interest,” he
advised.
doc_468911198.pdf
Detailed elucidation in relation to gathering of established serial entrepreneurs.
Norma Kamali Seeks Investors for New Line
by VICKI M. YOUNG
Posted MONDAY DECEMBER 20, 2010
From WWD ISSUE 12/20/2010
Norma Kamali
Photo By John Aquino
NEW YORK — Staying true to her own convictions, Norma
Kamali is embarking on her next challenge: She is seeking
investors for a new venture selling an accessibly priced product
line on her Web site.
Kamali, who spoke Wednesday at the Fashion Institute of
Technology, which hosted FashInvest’s first “Capital Conference:
Where Creativity Gets Down to Business,” declined to provide
specifics, stating the collection was still in the early stages but that
it would be a line under her name.
Kamali said she felt a responsibility to design apparel that women
could use for five to 10 years. Some people thought her venture
with Wal-Mart featuring $20 jackets and $12 vests was a risky
career move, given her existing high-end collections, she said.
Kamali boasted the entire outfit she was wearing on Wednesday
was from her line at Wal-Mart.
“I felt Wal-Mart wasn’t a risk because it was a challenge I wanted
to do,” she said, noting the idea came from her work in the public
schools, where she noticed that many moms didn’t go to the
parent-teacher meetings. “Some women were so embarrassed
that they didn’t go to the school because they didn’t have anything
to wear.”
Neil Cole
Photo By: John Aquino
Norma Kamali told attendees one key to success is to “reengineer
yourself.” She noted that since starting in 1967, she’s been through
many changes, and that to survive, one must “stay true to
yourself....Make those painful experiences the most valuable
ones.”
Thinking ahead continues to serve Kamali well, as she noted her
firm was one of the first to communicate directly with consumers via
her Web site in the mid-Nineties. These days the company is using
technology to stay ahead of the curve in ways that help her
customer shop better. One example is the “try before you buy”
service that enables consumers to scan barcodes to determine if an
item is within the price range sought, then try at home and garner
opinions from friends and family for 48 hours before deciding to
buy. The service is even set up to allow the use of Skype to
communicate with friends wherever they are located. Purchases
after the 48 hours are up are considered final sales.
The FashInvest event featured a gathering of established serial
entrepreneurs, those seeking funding and venture capitalists.
Founded by David Freschman and Karen Griffith Gryga, both
experienced venture capital investors, the conference was set up to
allow 15 firms the opportunity to give eight-minute presentations to
potential investors, get critiqued on their pitches by a panel of experts and listen to advice from those who have been
there and done that.
Neil Cole, chief executive officer of brand management firm Iconix Brand Group Inc., described the company’s
evolution from its roots as footwear firm Candie’s, and how he was always intrigued by the licensing model.
“It took 20-something years to make it work. I struck out a few times, at least twice, but I kept going. For
entrepreneurs, when you’re beat up, you’ve got to keep going. Today, the company is a licensing model. We only do
advertising and marketing. We have no inventory, no capital expenses and over $600 million in income that is
guaranteed,” he said.
Some keys to success have been the direct-to-retail deals his firm has done, include three each with Wal-Mart,
Target and Sears/Kmart, two with Kohl’s and one with Macy’s. The Material Girl line with Madonna will be launching
at Hudson’s Bay in spring 2011, he said, after being introduced at Macy’s this fall.
“A total of $1.3 billion was paid for the brands [there are more than 20 now under the Iconix umbrella], and $900
million was recouped in revenues, and we have $12 billion in annual global sales,” Cole boasted.
He candidly admitted, “I’m not a good operator, sourcer or retailer, but I’m good at marketing. Think of your specialty,
of what you’re good at....Find something you love to do and have a passion for doing it.”
Cole is hoping the credit markets will open up further next year so he can make a few more deals in 2011 to add to
his portfolio of “iconic brands.”
Matthew Kaness, executive director of business development and strategy at Urban Outfitters, noted in the retail
panel discussion that stores and catalogues are moving away from optimizing the density of pages in the catalogue
and how it’s more about advertising. “Listen to the customer [because she] is telling you which direction she is going,”
he advised.
He noted after the presentation that Urban Outfitters is still eyeing possible store openings for its Leifsdottir concept,
but will see how that brand’s handbag collection is received when it launches in February before deciding what the
next move will be.
In addition, social media is playing a role in how the firm reaches out to its customer base. “Each concept has a
different strategy,” Kaness said, noting the Urban Outfitter customer, with its college-age demographic, is more into
blogging and music, while the Anthropologie shopper prefers surfing the Web. That suggests that on the social media
front, blogging and music would play a bigger role at the Urban site than at Anthropologie. He also reiterated the
company’s stance that it is always on the prowl for small acquisitions as a way of adding concepts to its portfolio
umbrella.
Paul Hurley, founder and ceo of online shopping site Ideeli, told attendees, “It really does matter who your venture
capitalists are. Getting the money is not the only thing. You need to have good people help you to think things
through and you have to have the right people on your board.”
Ben Fischman, ceo of Rue La La, advised the entrepreneurs, “Not all investors are the same. Getting to know the
partner leading the fund-raising is critical to any deal.” He also said it’s important to give up some equity and control
to build the company, but not when it comes to hiring senior members of one’s staff.
Daymond John, founder of FUBU and co-star of the ABC show “The Shark Tank,” was master of ceremonies
coordinating the four three-member panels that provided feedback to the 15 presenting firms seeking venture capital
funding. He told WWD that he’s now contemplating investing in industries outside of apparel because of the
inflationary costs — up to 30 percent and more — the industry has been hit with so far this year, due to rising labor
costs and higher prices for cotton.
His advice to entrepreneurs pitching to potential investors is that the pitches should be shortened. “If you keep the
presentation laser focused on just one segment, you would have a much better chance in gaining interest,” he
advised.
doc_468911198.pdf