Heading into the hot seat during a global downturn isn't always easy, but if there are any stylised butterflies in James Greenfield's stomach as he spearheads a revival of Kenzo, he isn't letting it show.
The Italian-born 43-year-old, who was named CEO of the fashion label last month, is upbeat about his appointment – perhaps necessarily so. "Now's a good time," he says, "there are a lot of opportunities ahead.
"The standard PR line perhaps, but even as many retailers are forced to shut shop or are rescued by overseas investors, Greenfield is overseeing a worldwide expansion and brand repositioning for Kenzo, opening new stores and renovates existing ones.
The fashion label was founded by Japanese designer Kenzo Takada in 1970. In 1993, it was sold to luxury goods major LVMH; Takada retired in 1999. Antonio Marras was hired as Creative Director for womenswear in 2003, taking over total stewardship of the brand last year. Backed by Greenfield, he has revitalised the label, offering a "consistency in our global projections as a brand", as Greenfield describes it, and is relaunching home and jewellery lines.
"I can talk of growth and stability in other markets, but in fashion, innovation in design is the primary purpose of the product," says Greenfield. "And increasingly important is how people buy, how they interface with the brand."
Marras also rolled out a new store concept for Kenzo, which is described as "ushering in the rebirth of the brand". The label's Middle Eastern flagship boutique at The Dubai Mall, which opened this week, is a fine example of this new identity. Inspired by the art nouveau movement of the early 20th century with Parisian-style moulded interiors, the 4,840 sq ft black-and-white retail space is the label's largest outside the historic Place des Victoires shop in Paris
"Nowadays nobody cares about display – they care about emotions, that the culture of the brand resonates with the consumer," Greenfield tells Emirates Business, explaining the new concept.
The idea is to knit the various Kenzo lines into a cohesive family, so fashion for men, women and children finds a place alongside accessories and interiors products.
"The brands that will succeed are those that increase market share and are more relevant to consumers – branding is important, but content is more important," he says.
The Gulf will see two more new stores opening soon: on The Pearl Qatar in May and in Jeddah's Le Chateau outdoor mall in June. A Kuwait store has already been renovated. Three more boutiques will open in 2009, with new stores in Latin America but relocations in Asia.
Relocations in particular are vital to boosting business, says Greenfield, offering the example of the new, 5,400 sq ft store opened on the Avenue George V in Paris last September. The new two-level boutique is just off the famous Avenue des Champs-Élysées yet only 200 metres away from its previous location.
Returns have been phenomenal," he says. Sales were up 35 per cent from September to December last year, as compared to the same period at the old location in 2007. At the time of opening, fashion insiders estimated that the outlet would generate €10 million (Dh48.86m) annually.
"A lot of our focus this year will be on perimeter growth. Brands that achieve their goals are those with the most relevant locations," he says.
Much of Kenzo's new geography is fuelled by its strategy of expansion through partnerships, such as the one with Rivoli in the UAE.
"Operating through local partners, which we do everywhere worldwide except in France, has allowed us to renovate 100 stores since we began the process in 2007. That would not have been possible if the expenditure was coming from us exclusively. The partnership model has been critical in the relaunch of the brand," he says.
Greenfield describes the mood among Kenzo's retail partners as prudent, but says they recognise the many opportunities around. "The changing prices of real estate are highly beneficial for the P&L of our partners, and people are now making less emotional, more rational decisions," he says.
Like the rest of the industry, Kenzo needs its new stores to generate new growth. LVMH described fourth-quarter underlying revenue growth as "about flat". Chief Executive Bernard Arnault told media that January was "not a bad month" with sales rising, but would not give figures. The group is expected to announce first-quarter results next week.
For 2008, LVMH posted an operating profit of €3.63 billion, up from €3.56bn in 2007, on sales of €17.19bn, up four per cent. In light of the global financial crisis, LVMH said it will continue to apply strong financial discipline in managing its businesses.
At Kenzo, Greenfield acknowledges that the outlook for growth is bleak, describing the first three months of the year as "slightly above flat, maybe one per cent", but believes that the effect of all the perimeter growth should help maintain the brand's objectives in 2009. "There's potential for growth with the new stores, but we're focused on the long-term. We want to be prudent." Markets that continue to perform well include the Middle East, Western Europe and China, he says.
Other focus areas that take the brand "from a one-dimensional story to a three-dimensional one", as Greenfield puts it, include watches and jewellery, a market the brand diversified into last year, and homes – a segment it has re-entered with renewed vigour. The accessories are being created in association with French jewellery and watches supplier GL Group, and are aimed at the seasonal market, and the coup de coeur or emotional buyer. They will soon be available in the UAE.
The home line is being readied for its first major outing at this month's no-nonsense Milan furniture fair.
Kenzo will also finally enter the online marketplace in the second half of this year. Greenfield admits to an uneven internet strategy that has "proceeded in jumps", but after its refreshingly simple website was well received by consumers, the challenge has been to get the online shop right. "It will be a window into our product selection, but more importantly, the web is a window into CRM on a global scale," he says.
Customer relationship management is a subject he returns to again and again, describing it as one of the key areas, next to sales and brand management, that he has concerned himself with since becoming CEO. He has spent four years with Kenzo, after moving from Givenchy in 2005 to be vice-president of communications for women's ready-to-wear and licences. He was promoted to general director for Kenzo last September, then named CEO.
Much of his career has been in fashion and beauty; from early beginnings sourcing materials for US companies in Italy to a marketing stint at L'Oreal, before settling into a merchandising role at French department store Printemps, which probably explains his passion for the way retail works. "It isn't just about buying brands," he says of that job, "it's about giving meaning to a space so as to generate traffic to the area. And then you do it all again from scratch and start with a white piece of paper once more in six months' time!"
With an attitude like that, it's no wonder he's happy to take the reins in a recession: if there's one thing fashion teaches us, it is that everything changes.
Lifestyle
CVKenzo CEO James Greenfield is married with two sons and lives in Paris.
CARS: Greenfield has two: A Land Rover Discovery for the week and a 1971 Fiat 500. "It's the most amazing car because people see cars as obstacles, but this one is a smile generator," he says of the Fiat. "And yes, a 1973 BMW R75, which is a mix between a tractor and a motorcycle."
WATCH: He's wearing Jaeger LeCoultre today.
HOLIDAY SPOT: The wilderness – "Anywhere that allows me to be free of my mobile phone." But don't CEOs need to be in touch all the time? "There's always standby," he says.
MUSIC: Jazz from the 1950s to the 1970s; Duke Ellington, Ella Fitzgerald, Miles Davis.
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