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Cover Story: Star StruckMany of today's retailers are striking deals with renowned fashion designers and celebrities for exclusive collections. Is this star strategy losing its luster or is there still opportunity for growth?

Source: License! Global


Fashion designer Roberto Cavalli will launch his new line at 200 select H&M stores in November.
What many believe began with Target and its partnerships with celebrated architect Michael Graves and renowned designer Isaac Mizrahi has now blossomed into a major retail phenomenon that has many retailers following Target's lead. Many retail chains are partnering with today's top-notch talent to bring affordable fashion to the masses, and this fall will mark the debut of several more collections.

Several fashion executives License! Global spoke with credit Target for pioneering this concept, which was later labeled "democratic design." To namedrop just a few, fashion icon Sarah Jessica Parker now brings affordable style to Steve & Barry's, and Kohl's will soon offer its Simply Vera (Wang) brand.

Then there's Gap, which stitched agreements with Doo-Ri, Thakoon, Rodarte, and Roland Mouret, and the recently revamped Payless, which partnered with alice + olivia and stylist Patricia Field. This fall, Brooks Brothers will introduce a high-end collection guest designed by avant-garde designer Thom Browne.


Designer Partnerships
To what can we attribute this peak in partnerships? "We're hearing more and more about designers entering these types of partnerships," says Roseanne Morrison, fashion director of fashion consultancy, The Doneger Group. "I think we'll see even more guest designers if these partnerships prove to be successful, and the trend will move into other areas." These partnerships also bring versatility to retail.

Credit must also be attributed to H&M, which emerged on the American fashion scene several years ago. The Stockholm-based retailer opened its first U.S. store on New York's Fifth Avenue. I can still recall the crowds of fashionistas who lined up outside, anxiously awaiting an opportunity to snap up H&M's stylish threads. I vividly recall the buzz that surrounded the launch, and how H&M managed to captivate the interest of Seventh Avenue's elite couture designers.

Founded in Sweden in 1947, H&M now has more than 1,400 stores in 28 countries and is synonymous with affordable, up-to-date fashion. The successful retailer, which is renowned for its designer/celebrity partnerships, has a VIP that list includes Madonna, Stella McCartney, and Karl Lagerfeld, among other luminaries. A collection by Roberto Cavalli will debut this November at 200 select doors.

Undoubtedly, today's retailers are interested in celebrity partnerships because consumers are so intrigued with them. This, in turn, generates a lot of publicity. "Manufacturers realized that word-of-mouth and celebrity endorsements are key to building their brands," says specialty retail consultant Patricia Pao of Pao Principle. "Increasingly, they are diverting monies from traditional advertising into these efforts."

Moving far beyond the apparel marketplace, this democratic design trend also impacted the home and hotel industries. Hip hotelier Ian Schrager is developing a chain of boutique hotels for Marriott International, and trend-conscious travelers can indulge in style at the elegant Vera Wang suite at Hawaii's Halekulani Hotel or the fashionable Bottega Veneta suite at the St. Regis.

Will opportunity continue to knock at the doors of these retailers or will the trend soon reach its peak? Doneger's Morrison believes it can only enhance business by bringing a certain design aesthetic to today's consumer. She considers Target an "innovator" and notes its early affiliation with Graves. "This brought design to the mass market and changed the way people think about it," she says.

"This trend has been going on for a while, but is definitely proliferating," says Deke Jamieson, senior vice president, marketing and licensing for Dollhouse, which recently partnered with Paris Hilton for an apparel collection.


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