Kohl's signs Fuentes to spice things up - Regatta Ltd - Kohl's Corp

DSN Retailing Today, Feb 23, 2004 by Emily Scardino, Regatta

MENOMONEE FALLS, WIS. -- Celebrity brands are in the spotlight, Hispanic brands are muy caliente and Kohl's has scored two for the price of one with its new Daisy Fuentes fashion line. This exclusive apparel offering, licensed and manufactured by Regatta USA, is rolling out to 182 stores in approximately 20 markets next month, and will also be available on kohls.com.

"Daisy Fuentes has strong name recognition among Kohl's female shoppers, and our research shows that she attracting boomers appeals to a broad cross-section of and their Kohl's shoppers," said Kevin Mansell, Kohl's president. He added that the new line "reinforces our ongoing effort to meet the needs of our customers."

In particular, it meets the needs of its more style-conscious consumers by filling a void in Kohl's assortment for a young, fashionable missy brand. While the retailer has successfully been juniors-sized daughters to its apparel departments, it is going after the customers in the middle by rounding out assortments. True, Kohl's already carries Jones New York owned Nine and Co. and Liz Claiborne-owned Axcess, other lines that offer this customer casual and career wear. However, Fuentes' celebrity as a model, as well as her "official" credibility as a fashionista as a former host MTV's "House of Fashion/Style" and WE's "Style World" indicate a new level of fashion for the basics-oriented retailer.

"My new line consists of modern options that make looking stylish simple," said Fuentes, who took an active role in designing the line.

Though Kohl's will be the sole purveyor of the line, it was actually the manufacturer, Regatta, which first thought Fuentes would be a perfect fit.

"We are very excited to be working with Kohl's on this program, which we've been working on since last February," said Haim Dabah, president of Regatta. "We identified [Fuentes] as a fashion expert, with the opportunity to gain crossover customers without just focusing on the Hispanic market--her crossover appeal was key." He pointed out that "she started as a DJ on MTV in English, not in Spanish."

After working directly with Fuentes on the line, which Dabah terms, "modern, day-into-evening glamour," Regatta approached Kohl's, which was receptive to the partnership.

The initial launch will be housed on four racks, according to Dabah, and will be "key-item driven" in terms of replenishment. The range of sportswear, specifically targeted to a "sweet spot" of 20- to 40-year-old women, will include a variety of tops and bottoms. The line will not encompass plus sizes in its inception.

To help differentiate the product offering, Dabah is using "very expensive and luxurious fabrics," including a back-to-school shipment of 100% cashmere knitwear.

While maintaining a quality aesthetic, the items will come in at what Mansell terms "affordable price points." Dabah placed them at $44 for an SKU termed the Metro Pant and an Essential Tank, with built-in shelf bra support, at $16--both within Kohl's core price range.

Though all parties involved stressed that Fuentes has crossover appeal, the initial launch is limited to more urban and Hispanic markets. This was the same strategy used by Kmart when launching its Latina-oriented Thalia brand, and likewise, Sears with Lucy Pereda. It may help Kohl's better compete in fashion-conscious California, where the chain is rapidly expanding. Based on consumer reaction, the Fuentes line could end up being a coup for Kohl's.