Catching Up With Elaine Hughes, E. A. Hughes and Company

Few people have more knowledge or experience in the apparel/textile industry than Elaine Hughes who, after 25 years in executive positions, launched her own consulting firm in 1991. We caught up with her at MAGIC to get her take on current business.

So what’s your take?

It’s frightening.

Would you elaborate?

Yes. Just look at the numbers. If there’s any growth in major companies, it’s based on international expansion. The department store model here in the States is clearly antiquated. And the worst part is how men dress! Just look around MAGIC; look in the baccarat lounges at the casinos: All you see is poorly dressed men so you’ve got to wonder: what’s the point?

Any ideas or solutions?

Department stores used to take a more “garanimals” approach to the men’s business; they spelled it out for them; they made it easy for guys to figure out what to wear. Maybe they need to come up with an updated version of that…

What does your crystal ball say about our industry’s future?

I don’t know. I’m seeing some nice product out there but it’s like buying furniture and not having a house to put it in. We need stores to put the product in. We’re trusting our fashion futures to the vertical operators and their point of view is limited: it’s either trend-right for 22-year-olds (Abercrombie, etc) or else it’s totally non-descript (Lands End). What about fashion for the 35+ guy?

So why aren’t there stores to sell this kind of stuff?

Because nobody can afford it. The financial people are not interested in long-term investments and it takes awhile to build a successful business. Just ask Dick Hayne: Anthropologie was not built overnight…

There’s got to be a few more Dick Haynes out there…

You know, as a search person, I’m always asked where are the creative merchants. And what I say to department store execs is simple: you’ve killed them all! You must give them a little leeway and allow them to make mistakes. It’s possible to be a merchant and fiscally responsible at the same time but they’re not given a chance. Even when they come to Vegas, they spend most of the time locked in a room in meetings instead of walking the floors and seeking out new product.

Is the situation as dismal on the wholesale end?

Yes. Margin requirements make business prohibitive for many of the smaller manufacturers while the large companies, working on a different model, are not embracing newness. Which is why everything looks alike. You know back in the day, the men’s floor in a department store was a battleground but in a good way: Polo, Hilfiger, Nautica Liz, Perry, each had its own look and each had a reason for being. Today, there’s a lot more duplication.

Any solutions to that problem?

I’ll think about it when I’m back at my hotel getting my massage…

(For more with Elaine Hughes, see our June 2008 issue.)