Thomas Tait | Source: Mother Blog

A London Design Maverick as a Pragmatist (On the Runway)
“Thomas Tait was in New York last week for London Showrooms, a presentation of young British fashion talent. Actually, Mr. Tait is Canadian, educated at a technical school in Montreal. In 2010, he completed the master’s program in women’s wear at Central Saint Martins in London, whereupon he joined that distinguished race known as the Young Fashion Designer.”

Urban Outfitters Losing Investors With Failing Fashions (Bloomberg)
“‘Bizarre’ and ‘lackluster’ fashions at its namesake stores may be why Urban, which also operates Anthropologie and Free People, is losing investors’ confidence, said Pamela Quintiliano, a New York-based analyst at Oppenheimer & Co. The shares have slid 27 percent this year, the biggest drop among U.S. specialty apparel retailers except for Aeropostale Inc.”

Gap bets on discounts to draw holiday shoppers (Reuters)
“Gap Inc said it plans to “compete aggressively” on discounts to attract shoppers in the crucial holiday season as the no. 1 U.S. clothes retailer continues to look for ways wrestle back market share from its peers. The retailer, which competes with more affordable and fashionable foreign players like Zara owner Inditex, Uniqlo parent Fast Retailing and Hennes & Mauritz , is trying to keep pace with fashion trends by revamping its stores and merchandise, but without much success so far.”

Nordstrom eyes Vancouver for expansion (Vancouver Sun)
“Nordstrom’s interest in its northern neighbour mirrors that of several major U.S. retailers lately… The big retail chains are looking for good opportunities and right now there aren’t a lot of good opportunities in the United States, so Canada is a natural place to look, and B.C. in particular because the economic performance here has been pretty good.”

There’s No Business Like Shoe Business (WSJ)
“Ms. Skovgaard’s designs are more rebellious than reserved, more dangerous than dainty, and since launching her eponymous collection in 2007, she has gained recognition across the fashion industry… In 2010, Ms. Skovgaard won accessory designer of the year at the Elle Style Awards, and most recently, she took the title of accessory designer of the year at the 2011 Dansk Fashion Awards, one of Denmark’s most prestigious industry prizes.”

While almost all other designers I have spoken to are nervously reporting order cancellations and declining or flat sales, Skovgaard’s shoes have chalked up triple-digit increases for Spring/Summer 2009.

Of course, part of this growth can be explained by the rapid growth of the luxury shoe category — it’s a case of  ‘the rising tide raises all boats. ‘ And, according to a recent report by Bain & Company, shoes will continue to be the fastest growing luxury segment of all; more than handbags, apparel, watches, jewelry and fragrances.

However, Camilla’s enviable success can mostly be attributed to perseverance, an incredible work-ethic, great design and pragmatism about merchandising and pricing her collection for the downturn. In our second CEO Talk, we caught up with Camilla to learn the secrets of her success.

BoF: Briefly, tell us about how your sales have gone for S/S 2009. In which markets are you experiencing the best results?

For Spring/Summer 2009, our US orders are up 300% and UK and International orders are up 200%. We now have over 50 stockists worldwide.

CS shoes have a had a couple of fake starts (due to manufacturing/delivery issues) so I’m thrilled to finally witness a nice spurt forward. It’s just odd that it happens at a time when the market is supposed to be at its worst.

BoF: So, what’s your secret? To what do you attribute your recent growth spurt during these tough economic times?

It comes down to two good sales agents and a favourable price point compared to the competition. Also, SS08 had a very high sell-through in stores (AW08 had just delivered when we began taking orders for SS09 take orders). Word seemed to spread quickly with some buyers.

Product-wise, when there is a recession, people want something special that they consider an investment – not too classic and not too trendy – and CS shoes fall right in between. For example, my cut-out ‘biker’ sandal continues to get orders in its 3rd season. Escapism probably also plays a role – after winter you want colour – and if there’s an economic crisis you want to be cheered up, especially if you’re spending money!

In the end, I want CS shoes to be more about a feeling and style rather than short-lived trends. Goods age too darn quickly if they are too trendy, which is why I admire brands like Rick Owens and Bottega Veneta.

BoF: How have you managed to keep your pricing so competitive while upholding the quality of manufacturing?

Trial and error! I initially produced for 2 years in Italy and it was, for me at least, rife with set-backs due to failed deliveries one way or the other. There’s a sense that most of the factories there are struggling and are not in a position to provide the kind of support newer brands need. I could not see a future for me there unless I was owned by a major luxury group, which would guarantee timely delivery and high-quality production.

So, I moved production to China a year ago, after having had a few tests done. I had the exact same shoe done in China and Italy for comparison and agents could not tell the difference. Italy may have a certain sensibility that China is yet to feel, between the lines on some levels, but they have already taken over several other areas and the gap is closing. By the way, I still use Italian materials all way through and ship these out to China. The leather companies in Italy are still good to work with.

Admittedly, the first factory I had in China wasn’t the right partner for CS shoes, but they were my entry into the country and I learned a lot. CS shoes are now finally with the right partner starting with SS09. It was my first China factory that actually called them and recommended me as they thought I was talented and they liked my organized paperwork.

The sample collection I received from them was the best one I’ve received to date, including those from Italy, with regards to finish, consistency, and packaging. Best of all, they were on time! I can’t wait to get the deliveries out to the stores at the end of January 2009.

As for quality and price, while the factory has its own Quality Control managers, I still go before delivery time myself to check as many boxes as possible. From next season onwards, CS shoes will have its own QC person in the factory. Finally, prices are kept more realistic once you are able to meet the required minimums at the factory.

That said, when working with China for manufacturing, you surely have yourself another full time job with shipping related matters alone.

BoF: The luxury shoe segment has been experiencing significant growth in recent years, displacing the bag as the statement accessory. Do you think this will continue?

I think it will continue for a good while. There’s a generation shift underway with new designers and style identities. Contrary to any other garment, shoes actually affect how you feel and walk.

Furthermore, particularly in times of recession, the fact shoes retail at around half the price of statement bags makes it a little easier to swing the credit card.

BoF: Finally, what advice do you have to offer to other emerging fashion businesses as we enter this period of economic contraction?

Plan ahead. Face all the things you don’t want to face but which nonetheless will be crucial for a successful final outcome.

Offer different price points in your collection, and make sure it is well-balanced and merchandised by providing combinations of units/wearability (day/going out). For example, if you do platform shoes then it’s probably not wise to do 80% of collection on platforms.

Also, decide if you want editorial acclaim or if you actually want to make money. Striking a balance between the two is, needless to say, the ideal.

This interview is part of an ongoing series of discussions with fashion entrepreneurs and business leaders as they combat the economic downturn. Previous interviews are listed below:

• Natalie Massenet, Chairman and Founder, Net-a-Porter
• Susan Lyne, Chief Executive Officer, Gilt Groupe
• Priya Kishore, Founder and Creative Director, Bombay Electric
• Alex Bolen, Chief Executive Officer, Oscar de la Renta