NEW YORK — The fashion business must embrace constant change and develop talent in order to thrive, industry leaders said during a symposium at the Fashion Institute of Technology here.
“Be open to change,” Paul Charron, chairman and chief executive officer of Liz Claiborne Inc., told about 300 students and industry insiders last Thursday. “What works today is unlikely to work tomorrow.”
The symposium was among the events that marked the naming of FIT’s School of Business and Technology in honor of Jay Baker, retired president of Kohl’s, and his wife, Patty. The couple donated $10 million to FIT, the single largest gift in the college’s history.
In addition to Charron, speakers included Roger Farah, president and chief operating officer of Polo Ralph Lauren; Burt Tansky, chairman and ceo of the Neiman Marcus Group, and R. Lawrence Montgomery, chairman and ceo of Kohl’s. Jane Werner, professor of fashion merchandising management at FIT, hosted the event.
“Change is continuing at an ever-changing rate,” Charron said. “So, as a leader of a fashion organization, I must recognize those things I can’t control — fuel prices, the inflation rate, hurricanes, department store consolidations — all things I have no control of. Instead, you must concentrate on what you can control, like understanding the consumer, having the right product, proper organizational development, changing technology.”
“When you get close to the consumer, good things always happen,” he said.
Liz Claiborne spends a great deal of energy on consumer research, which helps company executives make decisions on placing their brands and offering value and trend-right merchandise, Charron said. The company has prepared for the future by keeping up with technology and adding new machinery. A good leader, Charron said, understands the need to employ the right talent and to adopt different management skills for different people.
“Without the best people, you cannot exist,” he said.
Farah followed Charron’s comments by speaking of the need to develop talent within a company.
“It’s important to create a culture that recognizes performance,” he said.
For Polo Ralph Lauren, this is especially important since it employs about 15,000 people in 65 countries, Farah said. Sales and profits doubled in the past five years, something that couldn’t have been done without the right team. Farah said in the next five years, the company will become more aware of shorter lead times, consolidation at retail and the ever-changing global consumer. One of Polo Ralph Lauren’s biggest challenges will be hiring U.S. talent to take on international business and the development of creative talent, he said.
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On the issue of talent, Montgomery said: “We’ve got to find a way to excite and recruit college students into our industry. We have to find meaningful ways to get involved with career centers and change curriculums. If we can do that, we can develop our own talent.”
Montgomery said a key challenge is the perception of college students that they can’t make enough money in the retail industry. He said with some changes, greater talents from colleges will want to enter the industry, and will, in turn, secure the future of retail.
Tansky, who also recognizes the need for change in this industry, said Neiman Marcus has, in some ways, stayed the same over the past 100 years. The retailer relies on providing quality and luxury merchandise and offering service, particularly now to Baby Boomers at the height of their spending power.
“The more things change, the more they stay the same,” he said. “The key is to find that nice balance of the past and the future.”
Tansky said the company will expand its Web site offerings and grow with technology.
“Our Web site gives the same experience as in-store, and there are women who want fashion and can’t find it in their home towns,” he said. “A suburban woman may see a Marc Jacobs handbag on ‘Oprah.’ Now she can go online and buy it on our site.”