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| Feature |
Fashioning Empires
Catherine Curan
03/01/2007
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Hansen has assembled a team and built a corporate structure.
She recruited Andreas Melbostad, a former design director at Donna Karan and
Calvin Klein, as creative director. She also moved the company’s headquarters
from a Seventh Avenue office spread over several floors to a Meatpacking
District studio where 24 employees, from the CEO to the sewing team, share an
open space. With Hansen and Melbostad now in place, Dell rarely visits the
office. Instead, she keeps in touch via email and phone.Fashion Houses Divided Both Burch and Cord began their businesses in their Manhattan
apartments, but soon realized they needed to create a real corporate
infrastructure. Burch received help from her ex-husband in setting up
manufacturing processes and an office in Asia—he had once run an apparel company
that produced goods in China. But she lacked a warehouse, or even a sense of how
much fabric to order; at one point she found herself surrounded by bolts of
fabric. Burch sought to recruit a president during her first year in
business, initially approaching DKNY’s Mary Wang. But in March 2005, after Wang
had opted to stay with Donna Karan, Burch hired Brigitte Kleine, former
president of the women’s collection at Michael Kors. Kleine helped Burch
assemble a five-person design team and manage growth. Kleine says she took the
leap from an established firm to a start-up because she saw real potential in
Burch and her brand. "She had been known for the tunic, but I was also impressed
when I saw the breadth of the collection," Kleine says. By hiring Kleine and building an infrastructure, Burch created
a platform for future growth. Her clothes are now sold in some 250 locations
across the U.S., as well as at Harvey Nichols in London and Dubai. Burch’s
designs debuted at four Bloomingdale’s locations last fall and were among the
best sellers in their department, according to Frank Doroff, senior executive
vice president of ready-to-wear. Kleine says the brand has sell-throughs (the
amount of merchandise sold at full price) of 60 percent and higher in an
industry where anything better than 50 percent is considered good. Burch owns
six freestanding stores and expects to open three each year over the next five
years. She now produces everything from swimwear and candles to shoes. Last
year, she sold 90,000 pairs of $195 ballet flats, adorned with her logo, within
three months of their launch. Not all of her plans are unfolding smoothly, however. After the
breakup of her marriage, she and her ex-husband are still trying to determine
his role in the firm. Cord also enjoyed rapid growth after spending less than
$100,000 to develop a few samples of Travels with Tiger accessories. She wooed
business by serving home-baked banana bread to leading retailers, including
Neiman Marcus president Burt Tanksy, who viewed the collection at her home.
Filling orders, however, required her to ship boxes of merchandise from her
doorman building. To avoid inconveniencing her neighbors, Cord hired a driver
and made deliveries in the middle of the night in an oversize van. When this approach became unbearable, she decided to partner
with leather house G-III, whose executives contacted her. In 2004, Cord signed a
long-term deal with the company, which is better known for low-budget football
jackets. "I was able to expand and grow," Cord says. "I never could have filled
those orders out of my house; I would have been thrown out."
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