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| Opportunities & Exposures: Design |
From Class to Mass
Robin Sayetta and Julie Turkel
11/01/2005
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The democratization of design is nothing new. Luxury designers have long
supported their core couture business with mass-appeal line extensions. Those
who can afford Chanel suits, for example, collect them; millions of other
consumers aspire to them, thanks in part to the interest generated in the brand
by Chanel’s $60 fragrances, which are available at any cosmetics counter.
What is new, however, is the retail landscape; the economics that once drove
couture business have been upended. Many high-end designers are going “mass” in
a strategic way—not by creating tchotchkes, but by finding a way to express
their brand in new and different ways to fund the pursuit of their true passion
in the collector markets. These designers are inspired by their ability to touch
the many along with the elite.
For some fashion aficionados, the notion of seeing an Isaac Mizrahi coat or a
Stella McCartney frock at a discount retailer makes them wonder why they spent
four figures on a couture piece in the first place. But many affluent consumers
now realize that the idea that only expensive merchandise qualifies as chic is
outmoded and pedestrian. There is a new fluidity between the luxury and mass
markets that reflects textbook capitalism. Just as the luxury sector has its
sights set on the lucrative mass market, staple goods are establishing a toehold
with the affluent. Barneys New York, for example, sells Levi’s children’s jeans
for $98 per pair.
In the commercial world, high-end designers can tap into this trend—while
attempting to maintain both their longtime couture devotees and luxury
reputations—by carefully managing their product extensions, creating the most
appropriate lines for their chosen distribution channels. We worked with
designer Jonathan Adler to create partnerships with manufacturers to develop
stationary, tableware, furniture, bedding and other products.
Jonathan’s loyal collectors remain content to spend hundreds of dollars on his
hand-thrown vases, even while Bed Bath & Beyond sells his inexpensive
melamine dinnerware and placemats. In his stores, customers admit to mixing his
exclusive vases and curios with his discount items. Recognizing that Jonathan’s
handmade ceramics, which debuted at Barneys in 1994, were the collectibles that
first put him on the international design stage, we determined not to license in
this category to maintain the high-end cachet of his pottery.
Image and Integrity
But while Jonathan’s furniture was selling well in his retail boutiques, the
realities of sourcing were making it difficult for him to keep up with demand.
So we facilitated a licensing partnership with an established manufacturer that
gives him creative license while managing manufacturing and distribution. In
this case, the quality seems to match the quantity. The manufacturers that place
large orders have more clout with better factories and can, therefore, deliver
higher-quality goods. Our licensing agreements allow us to approve or veto any
distribution outlet for the products, as well as each piece of marketing,
packaging and publicity associated with the deal. We carefully consider and
control every element of Jonathan’s image, which is the only way to maintain a
designer’s integrity.
Meanwhile, Jonathan continues to win design contracts ranging from the Parker
Hotel in Palm Springs to elite residences in Manhattan and Los Angeles. He is
also opening new boutiques in San Francisco and Chicago. His move into the mass
market seemingly has not detracted from his luxury image. Of course, not all
licensing programs are so successful; poor choices can hamper any brand. In
August, Wall Street analysts noted that while sales are up at Tiffany & Co.,
the world’s most successful jewelry chain, its stock has not performed as well
as other luxury brands, such as Richemont, which owns Cartier. Some analysts
blame Tiffany’s mass-market exposure.
Designers must avoid this type of overexposure, or risk sliding toward
irrelevance. While Frank Lloyd Wright’s designs, for example, can be found on
thousands of coffee mugs, some of his structures, such as the Ennis-Brown house
in Los Angeles, are falling into disrepair. Which would you rather own? The true
designer success stories are those that are managed in a strategic manner for
both affluent and mainstream consumers, for today’s revenues and tomorrow’s
legacy.Robin Sayetta and Julie Turkel are principals of Ripe Ideas, a
licens-
ing agency in New York.
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