Sunday, February 24, 2008

Canadian designers learn to 'sell themselves'


Canadian fashion designers are beginning to establish themselves in a multibillion-dollar industry dominated by powerful European brands including Gucci, Prada, Chanel and Versace, according to experts.

"Canadians are developing a far bigger brand and respect from other countries around the world," says Robin Kay, president of the Fashion Design Council of Canada (FDCC). "No other country is as poised to become a success as we are right now."

But one of the biggest challenges Canadian designers must overcome before sewing up the international market is their own modesty, she adds.

"There seems to be this mindset that we shouldn't talk about ourselves because it might be seen as bragging or boasting. You have to sell yourself. It's not just good enough to be a talented designer. You have to be a strong business person when it comes to marketing as well," she says.

Kay is a former designer who built an empire with about 600 wholesale accounts after 25 years in the business. She realized a need for the Fashion Design Council after noticing no national organization looked after branding for the industry itself.

She founded Toronto's L'Oreal Fashion Week about seven years ago. With recent assistance from Toronto tourism officials, the event now draws 15,000 people twice a year, in the spring and in the fall. Last fall's festivities were held in a dramatic 30,000-sq.-ft. tent set up in the public square in front of Toronto City Hall.

Meanwhile, designers are spending late nights working on their fall '08 collections, which are scheduled to premiere next month in Toronto from March 17-22.

A walk along the sides of the catwalk at one fashion show revealed front-row seats were reserved for representatives from numerous European and U.S. fashion magazines. At the end of the runway were bleachers for dozens of photographers.

"Toronto isn't as big as New York or Los Angeles yet. You do business there, but most of the meetings are set up with buyers beforehand and they usually come to your hotel," said one designer, who asked not to be named. "You don't want to miss the shows and parties, though, because that's where the schmoozing comes in. It's where you do your initial networking. And the networking is crucial."

One of the biggest Canadian designers during last October's Toronto fashion week was Joe Mimran, with his Joe Fresh Style clothing line.

The fashion label, available exclusively at 70 Loblaws-operated Real Canadian Superstores, offers low-cost clothing in pastel colours. His wife, Kimberly Newport-Mimran, is behind the high-end Pink Tartan clothing brand.

Mimran is a former accountant with Coopers & Lybrand who is best known for starting the Club Monaco fashion brand in 1985 with his older brother Saul and designer Alfred Sung. The brand quickly grew from a single store to a 141-store retail chain in just over a decade. The chain was purchased in 1999 by Polo Ralph Lauren Corp. for US$52 million.

Kay says Toronto fashion week is important because in addition to established designers, it also provides a forum for young talent trying to get recognized.

"They need to get their sea legs here, and then go international to New York or other cities. You have to make some sort of a name for yourself here first or they won't even give you the time of day."

A September 2006 BusinessWeek magazine story provided a rare glimpse inside New York Fashion Week. To even get on the schedule, designers had to go through an extensive interview process and portfolio review. It said the cost of putting on a 15- to 20- minute show can add up to between US$50,000 and more than US$1 million.

Kay pointed out Canada has no shortage of aspiring young designers. About 2,500 fashion-design students graduate from schools across the country every year. During last fall's Toronto fashion week festivities, final contestants from Slice Network's reality series Project Runway Canada held their own fashion show.

The production company had audience members sign a confidentiality agreement stating they wouldn't reveal the winner until the show aired in December.

The final winner - Saskatoon's Evan Biddell - did not even have any formal design training before winning $100,000 to start his own design label, a professional photo shoot, and a cover and feature spread in Elle Canada magazine.

"They all graduate thinking it's easy to become rich and famous in this industry. The truth is it's a lot of hard work, and then you have to constantly keep working to stay on top," Kay says.

Like a lot of other industries, it also comes down to getting that first Milano Blahnik foot in the door with buyers.

As winter temperatures dropped this month, one designer was in tears as she made an announcement that sent a chill through the industry.

Toronto-based designer Linda Lundstrom declared bankruptcy after more than three decades on the international fashion scene.

Lundstrom was probably best known as the designer for LaParka, a layered coat that helped her create an empire valued in 1997 at $12.5 million, including about $4 million in U.S. retail accounts. She sold more than 140,000 coats in 129 signature colours that were never repeated from one season to the next, according to Toronto newspaper reports. But despite varying the product line with new designs and colours for 22 years, she could never come up with another hit to continue the success.

"When customers walk into our stores, all they want is the labels they recognize," says Barbara Atkin, vice-president of fashion direction for Holt Renfrew.

"Times are certainly changing, but it is a risk for most retailers bringing in an unknown name, because this business is about what sells. That makes it tough for the little guy just starting out."

Atkin says it becomes a classic Catch 22 situation for most retailers in the industry. Retailers will buy collections from established designers, but how does one become an established designer unless someone gives them their first big break?

"We generally haven't been that good at supporting our own designers here in Canada," says Atkin. "I think Canadians by nature seem to be very low-key in promoting themselves. They have to almost partner with the retailers and find ways to work closely with them."

She says successful designers need to have not just a good sense of design - but know the business of retailing. "They need to come to us with a brand strategy and know what margins are about and everything else. We tend to work with designers who can support multi-season deliveries so our inventory is constantly being refreshed. And they need good (financial) backers too because they might not get paid for those shipments for at least 90 days, either."

After more than 20 years at Holt Renfrew, Atkin is widely recognized as one of the most influential people in Canadian fashion. Elle Canada named her in the past as one of "Canada's Top 30 Power Women."

In 2002, Atkin surprised one young designer by showing up unannounced at his Calgary home late at night. She tapped on his basement window and asked if she could come in to see what he was working on.

Paul Hardy already knew Atkin from when he worked as a personal shopper at Holt Renfrew's Calgary store. He had been quietly doing sketches of dress designs in his spare time and worked out a deal with former clients: If they paid in advance, he would give it to them "wholesale price.?

Someone had been impressed by what they saw and passed the information along to Atkin, who decided to pay him a surprise visit herself.

"Paul Hardy is very talented. I realized that right from the beginning," said Atkin, who arranged for Hardy to show during the next Toronto fashion week. Afterward, she started buying his designs for Holt Renfrew customers.

But like starting any new business, Hardy says it still wasn't easy at first. His father worked for a major bank and was able to co-sign a loan. The rest of his startup capital came from using credit cards. "I paid for everything on one card, and then when I reached the limit on that I took out another credit card.

"Eventually, I was up to three credit cards. I had to sell samples at the end of the season to pay for next season," says Hardy. He now travels to international fashion capitals including Paris, Milan and New York. In the fall of 2005, he was asked to design a jewelry collection using only government certified diamonds from the Canadian Arctic. Later this year, Hardy will be featured in a glossy coffee table-book tentatively called Designers of the Americas. Last spring, a friend helped introduce him to actress Kate Hudson when he was in New York. She had heard about his designs and wanted to meet him. A weekend meeting at Hudson's home was quickly arranged. "We had a great conversation. We were all in her backyard. She ended up trying on some of my designs and bought a few pieces," Hardy says.

Right now, he's coping with the challenges of developing an international brand. Hardy says it would be more cost effective to produce his designs in Europe for his growing list of clients in that part of the world. But consistency and quality control are new potential issues.

"People see you in fashion magazines coming down the runway and they think you have it made. For me, it's still lots of hard work and the power of prayer. I'm very happy where I am right now though," Hardy says.

Source: businessedge.ca

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