10/06/2008

Bringing On the Buzz

At most levels of apparel and accessories retailing in these days of a tumultuous economy, the buzz is about selling buzz…exclusively.

Continuing declines in retail sales in July and August, coupled with badly battered Wall Street, the expectation of more retail bankruptcies if holiday sales are as poor as expected, and a crunch among mall developers, are forcing apparel retailers to increasingly focus on one area they hope will differentiate them from their competitors: exclusive celebrity licenses, including direct-to-retail and traditional agreements as well as through exclusive SKUs and/or promotions.

Among the offerings:
• Kohl’s has its Avril Lavigne line as well as a promotional push offering exclusive t-shirts featuring rocker Lenny Kravitz.
• JCPenney is teamed with Disney for an extensive High School Musical merchandise push fueled by an exclusive promotion.
• Dillard’s offers its Bootheel Trading/Sheryl Crow denim line.
• Macy’s is the lead retail channel for Jessica Simpson’s rapidly expanding line of footwear, apparel and accessories.
• Saks is using exclusive licensed designer offerings as part of an online effort to attract younger buyers.

Kohl’s is looking to establish a funky image this fall, enlisting rocker Lenny Kravitz and Levi’s to spotlight t-shirts that beat the drum for his latest CD, It’s Time For A Love Revolution.

Meanwhile, Avril Lavigne’s Abbey Dawn junior clothing collection – “a lot of hot pinks and blacks and stars and purple and zebra,” the singer says – goes on sale at Kohl’s in prices ranging from $24 to $48.

The Lavigne line stems from an arrangement with Los Angeles apparel maker Jerry Leigh Inc., which formed a partnership with Lavigne’s management group, Nettwerk Management; the partnership serves as licensor for the artist, according to Jerry Leigh’s Melissa Moskowitz.

On the west coast, Dillard’s launched Sheryl Crow’s Bootheel Trading label earlier this summer – a collection the company advertises as capturing a blend of “vintage American rock-‘n’ roll chic and authentic denim stylings for the mainstream.”

One licensing consultant compares these scenarios to the past migration of fragrance licensing “from brands to fashion designers to celebrities…Retailers have to move in that direction if they’re looking for opportunities.”

But another industry veteran warns that exclusivity can be a double-edged sword. “It’s a benefit in that you have merchandise that no one else can carry…The downside is, you better make sure you choose your product line carefully.”

When the “exclusive” is for particular SKUs or a particular line, that can also sometimes limit the amount of press and promotional activities. Think about the various Martha Stewart “exclusives.”

Disney is working with JCPenney to maximize the latter’s efforts to merchandise a High School Musical array of apparel, cosmetics, games and electronics to tweens and teens by launching its “JCPenney Best Seat in the House ‘High School Musical 3’ Sweepstakes.” The winner gets a red-carpet screening of the film, scheduled to open Oct. 24.

While not breaking out licensed merchandise, Penney’s Kate Parkhouse tells us “exclusive and designer brands make up nearly 50% of our annual sales.”

At Saks, the online presence of upscale licensed designer apparel is a targeted approach to attract younger buyers, and not traditional customers of Saks Fifth Ave. stores.

Of course not every celebrity or designer line works as intended.

As recently as April, Wet Seal of Foothill Ranch, California, debuted a new collection of tops designed by Ashlee Simpson.

The apparel was released in conjunction with Simpson’s third CD. “You’ll see a lot more cross promotions with the entertainment industry.” Wet Seal CEO Ed Thomas said during a conference call with analysts at the time.

It was just about that time that Simpson announced that she was pregnant. Whether for that or other reasons, a couple months later, the line and Simpson’s name had disappeared from Wet Seal stores and its website.