From USA-ITA OFF THE CUFF April 2012 (Volume 3, Issue 4)
On March 19th, we mixed advocacy and fashion in New York when the U.S. Department of Commerce Under Secretary of International Trade Francisco Sanchez toured Ralph Lauren Corporation to learn about sourcing strategies before joining a number of USA-ITA sourcing executives for lunch.
The day kicked off at the Ralph Lauren Corporation headquarters on Madison Avenue. Maureen Gray, Vice President of International Trade and USA-ITA’s Chair, along with Don Baum, Senior Vice President of Global Sourcing and Manufacturing, organized a tour for Under Secretary Sanchez and Deputy Assistant Secretary for Textiles & Apparel Kim Glas to better understand how a company like Ralph Lauren Corporation makes sourcing decisions. As Under Secretary Sanchez later quipped, the Ralph Lauren team did an excellent job of “weaving” advocacy into a fascinating presentation.
After viewing some yet-to-be-released holiday looks, Mary Ellen Coyne, President of the Women’s Blue Label, gave an overview of the production process from design sketches to sourcing to production and marketing. (Ralph Lauren Blue Label, the high-end bridge label sold in department stores like Saks Fifth Avenue, has really beautiful, bohemian looks featuring South American hemp crochets, and you can check it out here.)
Under Secretary of International Trade Francisco Sanchez (center) and Deputy Assistant Secretary of Textiles & Apparel Kim Glas (second from left) tour Ralph Lauren to learn about the company's sourcing process. L to R: SVP Production Michael Cottell, Glas, SVP Production Charles Sherman, Sanchez, EVP Jacki Nemerov, Women's Blue Label President Mary Ellen Coyne, and EVP Men's Design & Chief Merchandising Officer David Rosenberg.
After hearing from David Rosenberg, Executive Vice President of Men’s Design and Chief Merchandising Officer for Ralph Lauren, EVPJacki Nemerov and SVPs of Production Michael Cottell and Charles Sherman talked more in depth about how the company makes sourcing decisions. Under Secretary Sanchez was clearly awed to see about two dozen different pairs of jeans, from Black Label to $89 everyday jeans, with completely different locations for fabrics, trims, and production depending on the needs of the particular product and targeted customer. While we won’t divulge any of the iconic American brand’s secrets, we will say that Under Secretary Sanchez definitely came away from the tour with a greater understanding of how and why companies make sourcing decisions—and the importance of having flexible, liberal trade laws.
Following the tour, Squire Sanders in Rockefeller Center hosted an informal lunch roundtable for the Commerce officials and USA-ITA sourcing executive members from American Eagle Outfitters, Golden Touch Imports, JCPenney Purchasing Co., New York & Company, PVH, and of course, Ralph Lauren. The discussion built upon the previous discussion with Under Secretary Sanchez at the MAGIC Sourcing in the Americas Summit last August, and he expressed a strong interest in learning more about how our industry works and how trade laws can help companies create jobs and other economic opportunities.
L to R: Sonja Chapman of Golden Touch Imports, Maureen Gray of Ralph Lauren Corporation, Donna Arloro of PVH, and Maristella Iacobello of PVH talk with Under Secretary Sanchez and Deputy Assistant Secretary Kim Glas
While the conversation was off-the-record, USA-ITA members expressed concerns about issues including the Trans-Pacific Partnership (TPP) and the need for a liberal, flexible Rule of Origin, as well as the need to quickly extend and renew the African Growth & Opportunity Act (AGOA), the necessity of extending the Nicaragua TPL, and finding a solution to Argentina’s import restrictions, among others. Under Secretary Sanchez did say that he would address these issues with his colleagues, particularly at the Office of the U.S. Trade Representative, and welcomed further comments and discussion from the industry.
Under Secretary Francisco Sanchez and Deputy Assistant Secretary Kim Glas listen to USA-ITA members.
Our industry has many important issues on the horizon—and there’s no doubt a lot of work to do—but we’re confident that by mixing fashion and advocacy, we’ve come a long way in building relationships with the critical policymakers and helped them to understand the complexities of our industry.
For more photos of the event, check out our Flickr photostream!