William T. Dillard 3rd implored innerwear executives last week to stay the course with three fundamentals to survive a troubled economy: "product, presentation and people."
Dillard, vice president and general merchandise manager of cosmetics, accessories and intimate apparel at Dillard's Inc., said during a period of soft consumer spending retailers and vendors need to be "innovative more than ever before.
"Consumers are older, but want to look and feel younger, more complex, and diversity is increasing with minorities making up 33 percent of the nation," Dillard told about 100 executives Wednesday at the Union League Club in Manhattan. "You've got to get inside [consumers'] heads and understand what motivates them. The world is getting smaller, but also getting more complex. But in the midst of rapid change, some things don't change — the market, people, product, presentation and price. But price is not the model a department store should emphasize. The retail is in the detail."
His presentation, "Dillard's and the Changing Retail Landscape," was sponsored by the Intimate Apparel Council, a division of the American Apparel & Footwear Association.
Referring to what he described as a case study in consumer buying patterns of intimate apparel, Dillard said, "less than 40 percent of consumers are influenced by price. It's all about the product."
"Customers value their time, and two-thirds are motivated by exciting product and great service; price is really off the consumer's radar," said Dillard, noting that the store's intimate apparel business increased 22.3 percent in the last three years because of "fresh product and enthusiastic sales service." He added that the intimates category at Dillard's, mainly comprising bras, has grown 30 percent in the last five years. Sales of bras priced more than $30 jumped from 30 to 57 percent.
Dillard, 37, joined the family-owned retail chain in 1993 in the Phoenix regional division and later moved to Hong Kong to source private brand merchandise. His retail experience includes selling, buying, area sales management, product development and merchandising.
Dillard's investors, led by Barington Capital Group LP and Clinton Group Inc., have pressured the retailer to improve shareholder value. Last month, Dillard's reached an agreement with the activist shareholder groups on new members of its board, avoiding a proxy battle.The company also has said it is committed to closing underperforming stores and rationalizing real estate in an effort to cut costs.
Regarding the chain's intimates' business, Dillard said the store implemented a new strategy: upgrading product offering, reducing assortments from 180 to 103 styles and simplifying innerwear departments with an "intimate environment" of customized fixtures and furnishings, wider aisles and larger dressing rooms in 45 doors, and photos of Dillard's 45 certified professional bra fitters displayed within departments.
"We see ourselves as curators of a museum," he said. "[The customer] comes to us for an edited assortment and trendy merchandise. It starts with breaking down the business by classification and without duplication. We were able to add more fashion with less clutter. Our large-size business [full-figure and full-busted bras] is about 50 percent of our [total intimates] business."
He noted that the shopping experience in the intimates department is enhanced by color-coded information tags that identify specific product that coordinates with fixtures.
"Shoppers can spend less time trying to find something and more time shopping," he said.
Dillard would not disclose the names or styles of top-selling "million-dollar bras," but said, "In 2002, seven bras generated over $1 million in sales annually. Today, 21 bras each produce $1 million or more in sales annually. Of these 21 bras, two produce over $2 million, one over $3 million and one over $4 million annually."
He predicted that a new bra by Spanx called Bra-llelujah will become a $5 million item at Dillard's.
Addressing personalized service, Dillard said the company is diligent about the expertise of its bra-fit specialists.
"Some people just slap on a tape measure to try and think they're certified fitters," he said. "Ours is a rigorous program that takes six months with written tests....We do blitzes with a new store with five fitters. They do a lot of event planning, $15,000 to $20,000 events. We're really investing in this program and seeing results."
As part of a retail analysis, Dillard singled out Oklahoma City as a key example of how fashion and upscale brands have bolstered business."In 2007, the population of Oklahoma City was about 1.3 million with [median] household income of $43,000," he said. "From 2002 to 2007, intimate apparel business grew from $5 million to $6.1 million, about a 22 percent increase. Foundations [bras, shapers, corsetry] grew from $2.2 million to $3.1 million. Better bras grew from $1.3 million to $1.9 million. Sleepwear remained flat," although he noted Natori sleepwear has been "good."
Best-selling foundation, daywear and sleepwear brands include Wacoal, Princesse Tam Tam, Le Mystère, Fantasie, Spanx, Chantelle, Eileen West, Hanro, Hanky Panky, OnGossamer, Natori, Elle Macpherson Intimates, Jasmine and Ginger, along with private label Cabernet.
"I think there's lots of legs left here," Dillard said. "We're just scratching the surface."
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye