21/06/2014 Talking Business with Linda Yueh

industry? The chief executive of the fashion house Oscar de la Renta

along with some up`and`coming Asian fashion designers now talk business

with Linda Yueh. Long time buyers of fashion, Asians are now entering the

business. How challenging is it to enter where Europeans and Americans

dominate? Here in Singapore I'm Linda Yueh and we are talking

business. A warm welcome to the programme.

When we hear about high fashion the associated with European and

American designers like Giorgio Armani and Ralph Lauren. Asian

designers are not among the billion`dollar fashion houses. Later

in the programme we hear about how the fashion scene is changing in

Asia. First, I got to speak at the head of Oscar de la Renta, one of

the top names in high fashion. Known for dressing first ladies from

Jackie Kennedy to Hillary Clinton, his designs are out of the reach of

most people. In the fashion business for half a century his gowns worn by

actresses and celebrities on the red carpet. It was only a decade ago the

firm branched out into retail and moved into locations

internationally. Designers such as Prada which are owned by large

conglomerates, Oscar de la Renta is still run by him and his family. I

caught up with the CEO of Oscar de la Renta, Alex bone and is the

son`in`law of Oscar de la Renta and has been instrumental in expanding

the business into more retail stores. `

it was an opportunity. I joined about ten years ago. I was very

surprised to learn how Eurocentric our business was. Oscar is somebody

who was known around the world and there was a great opportunity for

the international market. We thought there was a great opportunity to

push you the retail store strategy to show customers exactly what our

vision for the brand was. ` Percy. We're pleased with our results. What

about the Asian market. ` pursue. It is funny when you say the Asian

market, is becoming increasingly difficult to generalise. Each of the

markets is very different. What is important in Singapore is not the

same as what is important in career or mainland China. For example our

bridal business is very important in Korea and Singapore. We want use

places we strong to expand the brand that print. We will figure our where

we can do more business based on where our brand is well known.

Singapore is a place we have established a bridal business, have

some excellent ready to wear partners and hope to do more. You

are one of the few fashion houses which are not owned by

conglomerates, it is still family run. How much pressure does that put

on the business, because you are competing against some pretty deep

pockets when you look at some of the other conglomerates that own brands.

There are sometimes when I look at the advertising budget and the

ability to command real estate that some of the conglomerates can do,

that I'm a little envious of. By and large, we offer a proposition to

people that is a bit different than some of the bigger conglomerates,

and our family approach is something that not only applies to people who

are literally in our family but people who work with us. By and

large, our status as an Independent puts a tremendous amount of

advantage in terms of people, and we happy proceeding as a family in

business. If you were approached to be bought, surely would look at

that? At the end of the day we are capitalists, and the would listen to

what anyone has to say. We have no plans to do anything. You sell a

business when you're out of ideas and we have plenty of ideas. Going

back to those ideas, moving into retail, how hard is it to go from

designing for first ladies, and for high fashion, being sold at high

prices, to make that transition into the retail sector, where, how does

that differ in terms of the design and the pricing? I think as to the

design, you're probably better to ask Oscar. I think the challenges,

whether it is wholesale or retail, the United States markets around the

world, at the end of the day we're trying to come or skip 20 make sure

women look beautiful, and I'm trained to offer something that is

good value. ` Oscar is trying to. Trying to offer. Good value and

appropriate price for what the customer needs, how she want is to

look from life. ` wants to look for life.

It sounds like the design is still very much run by your father`in`law

Oscar. What about succession planning? We are blessed with a

great team. Oscar has many assistants, some of whom have worked

with him for many years. Some of whom are new. All of whom are

important to what Oscar does. He solicits the opinions of a broad

group of people as he approaches design. I don't think Oscar has any

plans to make big changes any time soon. We are blessed to have a team

that is very talented and let us keep doing what we are doing. Any

time you have a brand which is associated with the Sinai you must

have struck at some point, he would take on the mantle? ` group the

brand, you would have to stop it depends when Oscar decides he wants

to stop doing what he's doing. We will figure out the right way

forward. Fortunately, if that happened tomorrow, we have a great

group of people in our office who know very well how to design for our

customers around the world. What is it like working for your

father`in`law? I thought a lot about whether I wanted to work every day

with my wife and my wife's family. A lot of people asked me if I was

nuts. But I wasn't nuts. It has been a lot of fun. We have done a lot of

interesting things. We had lots of success. We have a lot of work to

do. I've enjoyed it immensely. I'm a big believer that businesses

ultimately an apprenticeship regardless of where you are. The

reason I decided to join the company was I didn't think I could pass up

the opportunity to work with Oscar. He is somebody, next year we will

celebrate 50th anniversary, and I think that one not only survives but

thrives in this business, by knowing what you are doing, and I wanted to

learn from Oscar. That has been a decision I haven't regretted. When I

speak with the designers in the creative industry, there were

sometimes attention based on what they do, based on passion and

creativity versus the business side. Coming from a financial background,

how have you managed that? You work with a lot of creative people. If

you say we need to bring the prices down on the stress, for this market

in this store, I want a different fabric, how do you reconcile that? `

this dress. I hear that a lot, so I suppose it must be the case at other

companies that the tension exists. It doesn't exist in our company.

Oscar has told me before, design without a commercial purpose is an

art project, we are not conducting an art project, it is a business.

There is a dialogue about how we arrive at the best result, balancing

the needs of what our customer wants in the commercial needs of our

business. Oscar is very much a business person. We approach things

that way. I wouldn't say that from time to time there are not some

disagreements but nevertheless we find the right way forward. Oscar

first and foremost is very much a business person. Finally, who is

your favourite designer that you would wear? I shop at Prost

Brothers, it is a little boring. ` Bros. We are considering getting

Singapore designers like these being into the men's

Singapore designers like these being shown in Singapore, are the reason

why it and soul are now among the top ten cities for Broshaute

couture. These Asian cities boast some of the highest growing luxury

in the market. `` shaute haute couture. Now find out how the Asian

fashion scene is changing, I caught up with elation designer ` Malaysia

and designer, and the boss of a Singapore fashion house that is

expanding globally. It has always been that Asia was the

place where you went to produce your fashion product, and got a good

price for it. Nobody expected answers and workmanship to come from

Asia. Now it is beginning to change because all of a sudden we are

hearing and seeing a lot of Asian talent and designers coming onto the

scene and beginning to make a mark in the West, where it was always the

other way round. Priscilla, you are one of those designers who is Asian,

what has made the change for you when you think about entering into

fashion. Are you daunted by the fact most of the big houses are

traditionally Western? No, it works in my favour. I'm thrilled by it. It

is now or never. The timeline to know belongs to Asia. I feel it

belongs to my generation. ` the time right now. I remember when I was

studying patter`making and dressmaking in London, and being in

a city like that, in the fashion capital like that, the kind of

competition, the energy, the pace of it, the majority of the industry, ``

surety, I could've chosen to stay there if I wanted to. Why did you

come back to Asia? This is the place to be, this is the place I felt I

could the movement I wanted to, I could make the changes I believe I

needed to, I felt the time was right. I don't think in Asia we have

had these levels of education, this amount of people who can understand

and speak English, who can travel, who can afford fashion. Who can

afford to appreciate fashion. Is that why you started the fashion

line you are expanding internationally? Part of the reason

the cornerstone of our business, is bringing brands in on franchising

them in south`east Asia. That will always be our business. We wanted to

have a business that was reaching out internationally, so we could

export to the world, and not just focus on south`east Asia. It has

been a real journey for us, we started many years ago, it is only

over the last couple of years we have gone out intentionally, to gain

exposure internationally in Europe and America. I'm sure Priscilla

shares all the experiences we have had as well, being an Asian brand.

People don't actually expect any brand from Asia. As you said, it

works to our advantage because people are a bit surprised, they sit

suddenly we shake things up. You up and say while,

suddenly we shake things up. You could throw out words like

authentic, and people realise this is what the Asian voice of fashion

is. Especially brands like ours who have originated continued to base

ourselves here, in a city like Singapore. Clearly one of the hubs

in Asia. I think it is an interesting dynamic that we bring to

the table. How is your brand received? As you are expanding

overseas. It is a crowded field full of European and American brands. It

is very crowded. People have the expectation of Asian brands at this

level. If you're not high end or en masse, but when they look at our

brand, and yours as well, and they look at the prices we are pitching

at, they are as in the surprised. They don't look at us and say this

is an Asian brand, they look at it and they say this is a brand, and

can it compete with everyone else? Then the judge you for what you put

out and the quality and the look and fashion content, and the price. That

is the only way you can really be, the only way you can really work in

this industry. They want to understand a little bit

why there hasn't been a billion`dollar fashion houses out of

Asia. For instance why don't we see a lot of Asian haute couture like

you have in Europe with the big Italian fashion houses. Or the big

American ones like Rafter ran or Calvin Klein? It is closely related

to the history of the consumption of fashion. ` Ralph Lauren. For the

longest time in Asia fashion, the term fashion didn't really exist the

way it does in the Western world for a long time. It was just clothing.

Closing was more or less seen as a necessity. Even when it was worn as

regalia for ceremonial occasions. ` clothing. For special occasions. You

only really dressed up when you needed to. Whether it was religious,

or ceremonial, or you were going to a different phase of your life. Is

it because Asia is moving more into the middle class, there is more

income and more consumption of luxury, which is in the sense

propelling Asians to think differently about fashion. And

therefore, could begin to see high fashion starting to arise from this

region. Really the question should've been, why haven't seen

these companies developing in Asia yet? I think I personally feel, it

is just a matter of time. You have ceremony people from this part of

the world who are travelling and going to school overseas, and they

are blending their Asian cultures with what they learn from Europe and

America and South America. All of a sudden they think what will happen

is, you won't have is specifically Asian kind of fashion. But the

Asians will be able to put out fashion that is more international.

Because the world has become their playground, they are travelling

everywhere. We don't have to be pigeonholed. They will start getting

smart, it is just a matter of time. We have always been at the back`end

of producing, manufacturing for everyone, everyone else takes the

credit. It is only a matter of time until a generation realises I have

all these resources and materials in my backyard, I just need to get my

act together. It is happening. Asians buying fashion and luxury is

really fast`growing, the fastest markets are actually in Asia. Tell

me a little bit about the brands you are bringing into this region. Why

bring them here, Asians could travel internationally and buy them. What

kind of business model is it to bring in the brands and sell them?

We principally franchise high end and lifestyle brands in south`east

Asia, we have been in this business for decades. Very importantly,

Asians have a voracious appetite for fashion and for the latest trends.

That doesn't mean they spend unwisely or indiscriminately. They

are very informed about what they want. It used to be that before they

would walk into the store, and look around, then buy something. Now they

are buying it before it gets to the store. It is on hold for them. With

the Internet, travelling, magazines, all the different things that come

into being in the last ten or 15 years, people here and everywhere

else in the world I'm sure, very well educated in what is important.

What is most desirable. Given there are a lot of brands in Asia, how

competitive is it for a designer like you? Extremely. For the work I

do, we are trying to carve out our own little niche of contemporary

Asian womenswear. A term that I plucked out of nowhere. It sounds

good. Hopefully it makes sense. Exactly what Douglas says, Asia

today, they don't need to buy here, with the Internet, accessibility to

fashion, there is no end to it. With social media, you know everything

the moment it comes out. I think it makes the playing field a lot more

interesting. You know you always have to be two steps ahead. When you

are an Asian brand name you can communicate to the Asians

themselves, I know what is happening, I can stay on top of it,

and I can offer you a perspective no one else can. Then you are on a

different level altogether. It is fascinating. I feel it is a really

exciting time to be doing fashion in Asia right now. I wouldn't want to

be in any different decade at all. What is the biggest fashion trend in

Asia? Priscilla, you first. I am not fashionable at all. I think you

bring your own interpretation of fashion, in a very Asian way that is

quite unique. It is very rare to actually see that.

that was Priscilla and Douglas, Asian designers are keen to get

their piece of the billion`dollar fashion industry. They will be going

up against established houses like Oscar de la Renta who are seeking to

expand in fast`growing international markets. That is all we have time

for. Check out our website and me on Twitter. Join us next time for more

talking business with me Linda Yueh. It has been a cracking day across

the British Isles with widespread