Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Thursday, August 23, 2012

J. Crew Emphasizes Hospitality {well, how do you do}

"Thanks!" to Alyssa, who shared the following story from CBS (click here to read in its entirety) that talks about an upcoming episode focusing on J.Crew's Mickey Drexler:
J.Crew CEO Drexler emphasizes hospitality
The Associated Press
August 23, 2012

There's no ivory tower surrounding J.Crew CEO Millard "Mickey" Drexler.

He visits every office, store and distribution center, and makes an effort to meet every new employee, although he's always Mickey, not Mr. Drexler. He'll notice if light bulbs are too dim, or how long the water cooler has been broken. And it's up to him to remember his cousin's birthday, although one of his assistants jots down the note once he says it aloud and she'll gently remind him later.

There have to be some perks to being in charge of a company that has steadily gained style cred since Drexler took over in 2003. It's also expanded from its signature prepster khakis and T-shirts that launched 30 years ago as a catalog-only business to a high-design collection of casual and dressy clothes in bold colors and prints in 287 free-standing stores, including its Madewell label, and is available in 103 countries online.

Michelle Obama famously told comedian Jay Leno on his talk show during the 2008 presidential campaign that she would order J.Crew clothes online late at night.

J.Crew lands in China this fall with its first retail presence outside North America in Lane Crawford department stores.

The company even previews at the upcoming New York Fashion Week, sandwiched on the schedule between Tory Burch, Badgley Mischka and Vera Wang.

Under Drexler's leadership, J.Crew has carved out a place in the fashion hierarchy that's just between trendsetter and accessible, and he seems to like living in that space.

His name means something, and he can get a reservation at any restaurant he wants, but, he says, he'll judge that hot, hip eatery by how they treat people on his staff when they call for their own table. "I used to be not me, 'Mickey Drexler.' I was me, just regular Mickey Drexler, the rest of my life, and I remember that," he says.

It takes a little effort to keep up with Drexler, 68, who previously served as CEO of Gap Inc. and is a director at Apple. He jumps from topic to topic as if he's playing pingpong but never seems to take his eye off the ball.

He gives more than a cursory glance to an email blast about the brand's new ironless shirts for men. The pitch is good, although he personally isn't completely sold on the ironless shirt — he is, after all, in a slightly rumpled pinstripe button-down that is part of his daily uniform with dark-wash jeans and a navy single-breasted, double-vent Ludlow blazer — but, he rationalizes, it's what some customers want. And what customers want, he tries to deliver.

He's been known to personally respond to a letter from a shopper who has a problem or a suggestion. "People think it's special if we respond, but it shouldn't be that way. For us, it all starts at the store and with our customers."

It nags at him that a sales associate reported moms have complained about the scratchiness of some embellished shirts in the company's children's line.

Drexler seems to be honest and candid with his employees, sometimes resulting in criticism but more often he'll give a happy shout-out.

During a recent tour of a J.Crew store in the Union Square neighborhood of Manhattan, not far from company headquarters, the staff isn't surprised to see him. They tell him the new bridal salon in that location is doing well, better than J.Crew bridal was doing as a stand-alone shop on Madison Avenue.

When it comes to light that the Goldsign Jenny-style skinny jeans (with a $288 price tag) are popular with shoppers, he calls the office to congratulate the denim team. "Put me on the loudspeaker," Drexler says.

He makes regular announcements at headquarters, sort of like the principal of a school. "When you say something and a thousand people are hearing it, you hope you leave an impression. I'm also sort of advertising."

He adds, "I don't know who listens and hears me, but someone is." In reality, all the people within striking distance seem to have at least one ear trained on what Drexler is saying. In the open-space office, people respond to his questions without him even really asking.

They also keep him moving on schedule, nudging him to this meeting or that. Drexler often takes the long route there, just to pass by others' work spaces to check in on what they're working on or the daily buzz.

Having breakfast with investment bankers — like he did on this day — isn't his usual routine, but maintaining relationships with the business community is part of his job. Later, he was breaking bread with the company's 27 corporate interns.

"I gave them all an assignment yesterday. I said, 'If they had the power to make the department they're working in better, what would they do?'" Drexler says. "And I want individual answers, not a 'group.' I want people who are looking to do things better. ... I'm an agent of change all day long, and I want to meet other people like that."

This talk about interns leads Drexler back to his management training days at Bloomingdale's. He was in the program with the son of the CEO of Macy's. Meanwhile, Drexler and his new wife — to whom he's now been married 42 years — had just bought a couch from Macy's that left them cold.

"Too big, too expensive, all wrong," Drexler describes. They tried to return it, or even exchange it, but they didn't get anywhere until Drexler tapped his relationship with the CEO's son.

Not long after that, the couch was gone, but they still had to pay a return charge, and Drexler says he still thinks about it. "Service drives a lot of my decisions," he says.

This month J.Crew relaunched its personal shopping program, renaming it Very Personal Stylist. It will be available at all stores with an emphasis on accommodation, whether that's body type, budget or time.

"I didn't like the name 'personal shopper.' That makes it sound like too much of a commodity and not personal enough," Drexler says.

He also hopes the new approach takes the sting out of asking for help. Right now, not enough people seek the expert fashion guidance they can get for free, Drexler says. Maybe it's because they think they'll be in for the hard sell or they'll end up with a look that's not really who they are, he muses, but everyone can use a second opinion and a little friendly advice.

Drexler asks a new sales associate — someone who's been on the job in the men's department for just two days — what style of jeans he should wear. "Vintage straight," the employee answers without hesitation.

Yes, he's in the fashion industry, but he's not a fashion guy. He relates more to the hospitality business, Drexler explains, which is why he uses a lot of food metaphors and compares J.Crew to a fine restaurant or hotel more than he does other retailers.

"The No. 1 thing is the product. The goods have to be good, but I care about how you feel about it," he says, noting that he doesn't believe any advertising — not the company's new ad strategy that broke in September fashion magazines or its 40 million catalogs a year — can compare with word of mouth.

"Treat others as you want to be treated," Drexler says. "Isn't that in the Bible or something?
Oh Mickey! I am on board with everything you said (like the product being good, treating customers well, etc.). For the most part I agree they provide excellent service (one of the many reasons I keep coming back to them). I only wished that it was consistently applied across the board at J.Crew.

What are your thoughts on the article? Any points you adamantly agree or disagree with? If you could make some suggestions to J.Crew, what would they be?

Tuesday, July 31, 2012

J.Crew Expanding in Hong Kong

Last year we heard about J.Crew's expansion plans to open in Hong Kong (refer to the "J.Crew Enters the Asian Fashion Market" and "J. Crew to Open Store in Hong Kong {oh yeah!}" posts).

"Thanks!" to Sabrina & Get Fresh who shared the following article from the Wall Street Journal (click here to read in its entirety) about J.Crew's overseas move:

J.Crew Plans to Expand in China, Hong Kong
By Jeffry Ng, Yun-Hee Kim, & Mariko Sanchanta
July 31, 2012

After withdrawing from Japan four years ago following a botched expansion, J.Crew Group Inc. now is wooing someone new in the region: the sophisticated Chinese consumer.

The U.S. clothing retailer, ...will dip its toe into Hong Kong and Beijing this autumn when it debuts its clothes at Lane Crawford—Asia's version of Barney's New York.

J.Crew is scouting stand-alone retail space in an upmarket Hong Kong mall, with plans to open next year and is looking at opening stores in mainland China, according to Chief Executive Mickey Drexler. The company, which is based in New York, also is looking at a possible return to Japan. Mr. Drexler was to fly to Tokyo on Tuesday for meetings and to scout out real estate.

J.Crew's move comes, however, when the once torrid China luxury market is starting to show signs of a slowdown.

It isn't clear whether the U.S. line will be well-received in China, where consumers favor luxury European brands and logos. The late entrance of U.S. retailers into China means they have to try harder to build brand recognition and loyalty.

"It is easy for a Chinese consumer to understand Gucci, 'It is expensive, so it must be good, and you must be someone if you have it.' How does a Chinese consumer understand the history and lifestyle that [a particular U.S. brand] represents?" said Franklin Yao, chief executive of consulting firm SmithStreetSolutions.

J.Crew this year started shipping online orders to more than a hundred countries as a way to test the markets. Hong Kong, Japan and Australia are now among J.Crew's top five international e-commerce markets.

Mr. Drexler, who ran Gap Inc. for much of the 1980s and '90s, said J.Crew is in no hurry to expand internationally and that he would wait to see its stores open in Hong Kong and London next year before considering his next steps. "We don't have a grand plan for opening X%," he said.

Building brand recognition in Asia, particularly in China, will be a challenge. J.Crew will have to compete with the dozens of midtier international clothing names already in the market. Pricing is an issue for new brands entering China, Mr. Yao said, especially with the advent of international shipping from e-commerce sites and the growth of Chinese travelers shopping abroad.

"You need a more sophisticated consumer, someone who can make the distinction between spending $150 for a pair of pants compared with $80," said Torsten Stocker, the head of the consumer group at consulting firm Monitor Group. "These consumers are emerging in China, but it's not as obvious as it is in markets like Hong Kong or Singapore."

To address the challenge, J.Crew recently hired a head of international marketing from handbag maker Coach Inc., one of the most successful U.S. fashion names in Asia. ...

Mr. Drexler said he believes customers in Asia will be attracted to J.Crew's unique, high-quality apparel. "We offer an alternative that's not being offered in the marketplace today," Mr. Drexler said.

Unlike other U.S. retailers seeking international exposure to mitigate slowing growth at home, J.Crew has been expanding steadily. It plans to open 42 stores in North America this year, bringing its store count to around 400. "We're not here because we are running out of places to go in America. We have so much organic growth there," Mr. Drexler said.

...It was Mr. Drexler's decision to pull its shops out of Japan, at the time J.Crew's only market outside North America. "Tokyo reflected the same issues we had in America but trying to do something in America and fixing Tokyo at the same time was impossible," he said.

What J.Crew won't repeat is expanding abroad with local partners, a strategy that was unsuccessful in Japan. "We like control.…We have the capital to do it, and I don't want to visit a store where I have to discuss with…my partner what I like or don't like about my store." "I don't consider this a huge risk at all and if, in fact, we didn't succeed in Hong Kong, life goes on. We'll figure out alternatives," Mr. Drexler said.
It will be interesting to see how J.Crew translates its brand to a consumer base who may not be that familiar with the company. The other thing is what kind of prices will J.Crew be charging. (As international JCAs already know with J.Crew's current international e-commerce site, the initial price points are much higher than the counterpart in dollars.)

I am also interested in seeing what types of marketing their new head of international marketing (formerly from Coach) will pursue. I am guessing the Hello World is just the start (refer to the "J.Crew Styled around the World" post for more).

Lastly, I did not know that Hong Kong, Japan and Australia were part of J.Crew's top 5 international e-commerce markets. I am guessing Canada fills one of the two other slots. Maybe the U.K. is the other one?

Are you excited about J.Crew's move to Hong Kong? Do you think J.Crew can build & translate its brand in the international retail market?

Wednesday, June 13, 2012

J.Crew Enters the Asian Fashion Market

The following article is from Fashionista (click here to read in its entirety):
J.Crew To Make Its First Appearance In Asia, Continues Plan for World Domination
By Hayley Phelan
June 11, 2012

J.Crew is on a roll. After reporting a strong sales lift two weeks ago (profits nearly doubled over the last year), the retailer has another exciting announcement: Their wares will now be available in Hong Kong and China, thanks to a new collaboration with luxury retailer Lane Crawford.

According to a press release, a curated selection of J.Crew’s women’s and men’s ready-to-wear collection, as well as shoes, will be available at select Lane Crawford stores and online starting in October 2012.

“We are thrilled to be collaborating with J.Crew on this first-ever, unique multi-channel project,” Lane Crawford’s president Andrew Keith said.

The partnership is also a first for J.Crew. While the American brand has a similar relationship with Net-a-Porter, the collaboration with Lane Crawford marks the first time J.Crew’s clothes will be sold at brick-and-mortar stores outside North America. And J.Crew couldn’t be happier about it.

“We always want to work with the ‘best of the best,’ and Lane Crawford was at the top of our fantasy list,” J.Crew’s CEO Mickey Drexler said. “When it comes to editing and presenting collections with a creative and elevated point of view, no one does it better. We are beyond excited to partner with Lane Crawford to help introduce J.Crew to Asia.”

Of course, the collaboration with Lane Crawford is only the beginning. J.Crew has set its sights on becoming a household name all around the world. “One of the big priorities is building the global brand, in a disciplined, deliberate manner,” Stuart Haselden, J.Crew’s chief financial officer, told WWD. And with retail stores in Canada, an online store that distributes to 106 countries, and brick-and-mortar locations in the U.K. and Hong Kong expected to open soon, it’s safe to say the American retailer is well on its way to world domination.
Pretty exciting international expansion! (They are definitely moving quickly abroad in the past few years.) Curious if they will slow down a bit and concentrate in the international markets they have just entered, or move forward to include additional locations...

What are your thoughts on J.Crew's entrance to the Hong Kong market? What market should they pursue next?