The Week of April 2nd in Review

 

By Paul Pannone

The past three weeks of newZ, dominated by the war waged against websites, has the wedding industry concerned with the growing path of ruin left by foreign sources who do not play by the rules and have no regard for the outcome. Decades of sending American manufacturing offshore and partnering with foreign countries empowered them to come back and haunt us. The devastation has reached epidemic proportions impeding on the strongest American manufacturers that are combining to take action.

The top eWedNewz story for the past month includes a list of suspected websites that sell knock-off dresses being read by the industry and consumers alike. eWedNewz coverage of the story warns consumers of impending trouble, as we dig deeper into horror stories sent to our attention.

From the wedding industry side manufacturers are organizing to wage war against a faceless enemy. The movement, led by Steve Lang, called out to fellow manufacturers to raise awareness and funding for the war against the growing problems.

So far in a little over a month, Lang has managed to raise nearly $300,000 dollars in hard cash and resource commitments and rally a fragmented industry. In an unprecedented move major media sources met in New York  to learn more about the campaign and what they could do to help.

Along the way Lang’s campaign is criticized by a very small part of the business, as he revealed the movement would continue beyond the limits of the dress business.

In an eWedNewz exclusive Steve Lang feels the Wedding Industry could be united to pool resources and create benefits beyond just fighting off shore foes.

As eWedNewz continues to service consumer demand for information, formal products in both men and women categories are helping celebrity brand products like the Situation, directing them towards the updated products. As the women finished up gown shopping for proms last month ongoing promotions involving tuxedos shows a renewed interest for the iconic look that suffered steep declines since 1999.

Also high in eWedNewz reader interest is online sale by manufacturers.  The Dessy Group story weighed heavy in the industry forcing its owner, Alan Dessy, to abandon his role as a hiding figurehead of the IBMA organization. A current poll shows voting readers frowning down on online sales and finally sending a clear message to manufacturers that try to justify their actions.

In the weeks ahead eWedNewz will unveil more information we’re fact-checking and, as always, are here to answer any and all questions you may have.

eWedNewz

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2012

Communication is Key when fighting the Enemy; Lang keeps the world updated

By Paul Pannone

Transparency and up-to-date information are the keys to success, as shown by the leadership of Steve Lang at Mon Cheri. Lang never skips a beat when it comes to grabbing a telephone, microphone or a keyboard to communicate with partners, staff and even reporters; answering any and all questions with total accuracy and openness, whether the news is good or bad. If the progress is good, he moves on. If the news isn’t so good, he stops and fixes the problem in real-time.

 

Companies outside the dress manufacturing business are pledging their support to Lang’s Campaign.

 

In an ongoing eWedNewz story, Steve Lang has risen to the top of the wedding gown business because of his ability to rally resources and skip over stupidity. Lang admitted his discomfort with the IBMA structure and inept nature: to talk for years while foreign intruders destroy the industry.

In his latest update to the business he writes:

Dear Industry Partners,

This is an update on what has happened recently

1. Meeting with Head of Legal at FedExTook place today at 11am Attended by me and attorney Craig Hilliard. FedEx has committed that as soon as we receive a court or a Customs ruling that these sites are breaking the law, within a day all these shippers will be closed off and their accounts closed. We expect the same cooperation from UPS and that meeting should take place this week. DHL and other common carriers will have to respond in kind.

2. Mr Hilliard will be in contact with US Customs and the courts to generate the protection we need to enforce the shippers and the pay sources such as Paypal, etc., to comply.

3. Stark and Stark will have a website set up by the meeting in Chicago that all parties will be able to utilize to help in this effort. It will update what is happening and be a clearing house for the effort.

4. A meeting has been set up for April 4 in my NY showroom for the press. Conde Nast,  For  the Bride, Bridal Guide, The Knot, Martha Stewart, Munalucci Bride , Hearst have been invited and most have already confirmed.Today I will invite other press as I did not have all emails of everyone at home last night.

Today BrideClick,  Wedding Wire and others will be invited.  I will help the press create uniform messages to put in the field in print and digitally to educate the consumer.  We will spread the work out to as many places as possible including news sources out side of our industry.  I will ask the press to use a consistent message and dedicate space to prom, bridals and other categories.I will bring a layout artist from my art department to help with concept sketches for ads.  I will add PR support through my PR agency.

5. Donations continue to come in from manufacturers, retailers and sales people.  Pleased about this.

6. Stark and Stark will also help with reaching out to political figures.  I suggest everyone contact their local representatives and congressmen as well informing them of the need for attention to this matter. It all helps as you never know who in congress is on a commission with customs officials.

7. I will continue this effort and will keep everyone informed.

Please make a point of attending the meeting at 11 am Monday of next week in Chicago. If you cannot attend the meeting, send someone please. It is on the eight floor , same as the show, and there will be signs.

Thanks,

Steve Lang

 

Lang’s campaign continues to take shape and grow at a faster pace than anyone could have imagined. Because of  his succinct actions Lang’s war chest grows daily, supported by some of the biggest wedding dress manufacturers in the country. Now, eWedNewz watches, as business entities that service the wedding and prom markets side with Lang.

 

David Knapp of Top 10 Prom responded to Lang’s campaign saying:

Steve,

Thank you for taking a leading position in this important matter and for helping to bring it to the forefront.  The events unfolding in our industry are following the exact pattern predicted in the Industry Review we had commissioned three years ago as part of our longer term planning for the Top 10 Prom group.  Unfortunately these are unfolding even faster than we had first thought which is VERY fast.  This does not bode well for many of the current prom and bridal vendors, especially those that have not focused on relationships with the brick and mortar stores.  The structure of the final outcome has already been set in motion and is unlikely to change very much, but which businesses are left standing within that structure is still very much undetermined.

As in other consumer driven industries that are already well ahead of us on this curve, the steps taken must be equally strong on two fronts.  It seems you are moving quickly on the first front which is more legal and political attacking the supply side.  This is an important front to take action on, but as you pointed out it is a game of whack-a-mole.  Legal processes as well as government protection and customs enforcement will likely take time and the vendors are certainly in the best position to work together doing so.

The second front is consumer education to attack the demand side.  This is an area that we can all likely work together very effectively.  Jane Fort, David Liu, Peter Grimes and others have taken a lead by offering to help with possible editorial and/or PSA ad space.  The Top 10 Prom publications and website reach several million girls across the country as well.  All book groups, all vendors, all retailers and all advertisers (magazines, websites, etc) should include a consistent professionally created PSA educational campaign.  This would be included on all print materials and advertising, mailers, websites, in-store materials from localized press releases to dressing room posters all the way down to information printed on each hangtag on every dress and more.  Doing so would make a major impact with quite literally hundreds of millions of impressions.

The consumer education should include strong why-not and what-can-go-wrong components to protect the consumer from the downsides of how they may be cheated, lose their money or ruin their own prom night.  The use of strong emotional testimonials is recommended.  This type of consistent marketing across all platforms at this rate of gross impressions would make a significant impact to the demand side through consumer education.

We started committing more space to this message in recent years and believe working together is in everyone’s best interest.  We would be glad to work with everyone in the industry, vendors, stores, groups and advertisers to help protect all of the vendors’s valuable tradenames and products, not just those in the Top 10 Prom group but everyone.  What is best for the industry as a whole is certainly best for our 100+ stores as well.  While a rising tide raises all boats, a falling tide hurts us all just as much.

Again, thank you for taking a leading position on this important topic.  There will be parts of this topic in which some affected parties will have opposing goals, but the areas where we share common goals are significant and those items should remain the focus to make real progress and will help the industry while protecting the consumer.  Top 10 Prom is in a strong position to dedicate our marketing resources to the consumer education front and stand ready to do so.

-dave knapp

Top 10 Prom

 

eWedNewz continues our investigation into this story, including allegations and suspicions that some of the manufacturers and personalities that have not stepped forward to support the move could be harboring and aiding foreign companies involved with websites that sell direct to consumers.

 

 

eWedNewz

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2012

Lang Reaches out to the IBMA Board; Dessy still Ducking

By Paul Pannone

An update over the weekend of an ongoing eWedNewz story details how Steve Lang plans to put a crimp in the flow of cheap, pirated off-shore goods flooding the American market and crippling US wedding dress manufacturers. eWedNewz continues our investigation into this groundbreaking story and how one man tries to unite an industry after years of neglect.

 

Scott Perham

Steve Lang told eWedNewz he’s getting good reaction and help from the Whales of the wedding dress business to help protect brides and grooms from unfavorable experiences.

 

The latest move by Lang sidesteps attempts by relatively unknown members of the IBMA that unsuccessfully tried to muddy the waters by making suggestions that, according to Lang, will not work. Lengthy discussions with Lang reveal how getting to the root of the problem is the only means of curing the troubles.

After several private attempts to rally the IBMA and other splintered groups, Lang sent out an open letter to the board of the organization including its president, inviting everyone to join in the fight, further detailing how he plans to approach the problem:

 

Dear Board,

Please allow me to give you a more complete update.

WE WANT TO GET CUSTOMS TO STOP THEM AT THE BORDER!!!

1. I have renewed my contact with customs and my previous relationship with the head of the enforcement department has pointed me in the direction of the new head in that area. I have not set the appointment date is yet, but I plan to have a meeting with him next week. I have been involved with these entities before and was able to get help. I’m hoping to see a repeat in this case.

What we are focusing on here is something called trade dress infringement-that is the legal term for copyright violations when it comes to clothing that do not have registrations such as embroideries or beading held by the owner. What is basically happening is these entities are riding on our coattails and using our images and then making copies.

Customs will not care about trade dress infringement unless it is a copyright issue where embroideries or beadngs  have been issued legitimate copyright protection in theUnited Statestrademark and copyright office.  The way this works is that you cannot copyright the functional nature of the garment-you can only copyright beading and embroidery as art. It is this copyright protection that one must seek and then  register withUnited States customs.

I understand the conversations about supplying samples of these dresses, but in my experience, and I have prosecuted several suits involving the same issue in this industry, the key point withUnited Statescustoms will be neither protection of legitimate copyright infringements, or more importantly, violation of federal law. What they will be most interested in, is the illegal actions to avoid duties. This they cannot ignore.

WE WILL CUT THEM OFF FROM TRANSPORT.

2. I will be in touch with the head of legal of FedEx-that appointment is set for noon on March 20. The head of legal at  UPS will be getting back to me the coming week as well. Once I have FedEx and UPS in hand I will then move on to the other common carriers.

I’ve made it very clear to my representative at FedEx and to my person UPS that they are basically violating federal law by aiding and abetting counterfeiters, violators of intellectual property, and most importantly, entities breaking United States customs rules and regulations. This obviously struck a nerve as the head of legal has made the appointment with me for Tuesday as opposed to some underling. This gentleman called back within an hour of my phone call to my representative. I take this is a very good sign that they too are concerned.

I’ve indicated to UPS that I will only speak to someone at a similar level in their organization.UPS, FedEx and all of these companies have internal oversight committees and procedures as they are all concerned about counterfeiting, illegal drugs, etc. that could negatively affect their company. They cannot possibly afford to hide their head in the sand with these issues.

WE WILL CUT OFF THEIR SOURCE OF FUNDS

3. We are in the process of reaching out to PayPal, Amex,  Visa, MasterCard, etc. regarding the same issues. Again, all of these entities have legal oversight facilities to make sure that they do not aid and abet criminals.

WE WILL EDUCATE THE CONSUMER

4. I’ve been in contact with all the major publications. Today the Knot committed a very significant program using the power of their reach for education of the consumer. I’m quite confident I will receive the same support from all media. In addition, the Knot has committed $5000 for the effort.

I am receiving checks from retailers, manufacturers, and even my sales reps. I am quite pleased about all phone calls and e-mails I have received from manufacturers pledging support. I will continue the effort to engender support across the industry. Many of the publications  broadcast my letter announcing the need for the industry to pull together and I get calls and e-mails nonstop.

WE MUST COME TOGETHER

5. There is a meeting at 11 AM on Monday, March 26 on the eighth floor inChicago. All interested manufacturers have been invited to attend. Counsel for the effort, Mr.CraigHilliard of Stark and Stark , will attend this meeting. He is flying in at his own cost as a show of good faith. This legal firm is one of the largest inCentral New Jerseyand has been very beneficial to my company. It was very nice of them to pick up the costs from his own pocket for this event.We all be forming an LLC that in turn will be represented by the law firm. All funds coming in the been made out to this firm and not Mon Cheri.  Mr. Hilliard will represent this new entity, and hopefully this will quell some of the concerns that the funds may be utilized outside of this effort. As I indicated, not one check has been written to my company; all has been made out to the law firm.

WHAT I PLAN TO DO PERSONALLY

6. In terms of my time and attention to this effort,  I have reorganized my own workflow at my company. I am delegated away many of my prime responsibilities to others so that I have adequate time to concentrate on this effort. In addition to my own financial contribution to the fund, I am dedicating a full-time employee here to work with me on this project. This is a senior manager with a significant package that will work full-time against these counterfeiters. In addition, I will utilize skills of our PR firm as needed and I will pay for that.It is apparent that the board is determining which way to proceed on this issue. I will be in the country for four more weeks until I depart forAsia. I will be inAsiafor a month.

I will continue this effort while I am away on multiple fronts. My office will continue to take instructions from me, I will continue to stay in contact with the parties I have spoken to or will speak to in the coming weeks, and I will keep the board informed.

In addition, I am trying to visit a total of 27 factories while I am inAsia. I will keep my eyes open, I will attempt to visit subcontractors, and I will report on what I see.Given time is tight, approach must be as follows-to get things moving as quickly as possible and to not be held back by delays, debates, or any other activity that prevents me from using next four weeks as productively as possible.

I welcome any input from anyone. If the board decides it is in their best interest to help offset some of the costs involved and to associate themselves with this effort, that would be wonderful. I have seen a tremendous outpouring of support from the industry and it is nice to see people coming together in an effort to get something accomplished.

WHAT THIS MEANS TO US ALL

This offshore situation has grown exponentially. There are over 250 of these sites operating today. It was a handful a year ago compared to what we have now. This is the greatest danger that has hit the industry since the advent of the box stores. Prices have risen in the lower prices shown on these websites looks like even a better value to the consumer. Many factories overseas have been forced to tap into the subcontractor element as their own factories cannot attract enough labor. The high cost of labor has also led good factories to seek out subcontractors. Not only has this affected quality and delivery, but it has helped spawn the problem we have.

Web operators approach these subcontractors offer them more money than they get for producing for major factories. It is an enticement that they cannot avoid taking a look at. It is the profit incentive. This new business model will continue to grow if not stopped.

I will keep you apprised as significant developments arise.

Sincerely,

Steve Lang

Lang informs eWedNewz he’s receiving coöperation and monetary assistance by some of the wedding industry’s biggest entities, including the Knot. In our latest discussions he told eWnZ;

“The whales of the industry see the importance of what we’re trying to accomplish and they’re responding.”

On the negative side, eWedNewz has obtained emails showing the disgust by some board members that say the president, Alan Dessy, remains silent, unwilling to respond to the overtures. Lang’s moves are even sparking some very politically correct members of the wedding dress business– Peter Grimes of Vows magazine– to offer some assistance to Lang’s campaign without a full-fledged mutiny against the IBMA board. Grimes also fell silent after a brief exchange over a week ago but is quietly offering up his help and actually doing something.

 

eWedNewz

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2012

Retailers Come Forth to say the IBMA Dropped the Ball while Hiding the Loot

 

By Paul Pannone

An ongoing eWedNewz investigation into the IBMA exposing wasted years of  doing nothing to fend off the growing aggression from China is getting reactions from around the wedding industry. Coverage of the story unveils a substantial amount of money, said held illegally in the organization’s coffers, was never deployed before the Chinese committed further damage to the market.

 

Patrick Kelly supports a move to get our government to put the clamps on China.

 

According to Nick Yeh of Impressions Bridal, too much time has passed and nothing was ever done to fight the culprits.

“They just sat and talked and wasted time when they could have been raising awareness to this issue,” he told eWedNewz this week.

Yeh, a manufacturer, says he supports a new campaigned announced by Steve Lang. Yeh added he supports any effort in the industry to help retailers, including any actions by the IBMA. Retailers reading the story are coming forward to support statements they agree with and express their feelings on what they don’t. Retailer, Patrick Kelly, responded to the story saying;

“I agree with Nick, the IBMA should get with our government and attempt to put the clamps on China. Will it be effective? That remains to be seen. It seems a conflict of interest to me. Why should the chairman stir up trouble with China? China is manufacturing the member’s product. If you want to be a leader at the IBMA’s level, start manufacturing your product here in the US. Then China loses it’s power over us. Then China loses the designers to copy from. Jim Hjelm does it, why can’t the IBMA? Also, I feel strongly that wholesalers should never be in the retail business, again a tragic conflict of interest. An issue I do not agree with Nick on.”

On Facebook,  Retailer, Bailey Judith Rieglhaupt of The Bridal Secret said she supports Lang’s efforts and feels he’s always been a strong supporter of the wedding dress industry. Bailey watches the story and how IBMA responds to eWedNewz questioning about how they handle their finances and the $250,000 dollars in their possession.

Bailey asked eWedNewz of the status; we were glad to say Peter Grimes, treasurer of the IBMA, responded. But when eWedNewz asked where the money is and what the plans to deploy the money included he fell silent.

Repeated attempts to reach Alan Dessy, president of the organization, remain ignored.

 

 

eWedNewz

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2012

The New IBMA Lives– but for how long

 

By Paul Pannone

After months of hard work and dedication the International Bridal Manufacturers Association (IBMA) prepares to relaunch their organization to unite and solidify a very fragmented wedding dress business. Rising cost of production, varied pricing, new competition and a difficult business environment have all been significant factors for the increased struggles of the wedding dress business and the reason leaders in the industry have come together to revitalize the organization.

 

Alan Dessy (third in from the right), president of IBMA, has not responded to a request to answer questions about the organization. 

 

 

THE IBMA IS REBORN!

The International Bridal Manufacturers Association (IBMA) has been reestablished with a new board and a new charter. We are building momentum… tackling issues, developing programs and setting our sights on providing REAL benefits for our members!

Specific committees have been established, the Association website bridalmanufacturers.com has been revamped, and a new request for proposal system has been created to invite resources to pitch products and services to the association. Our new Request for Proposal approach is already working. Currently we have advertising and market proposals from For the Bride, Conde Nast, The Knot, Bridal Guide, WeddingWire.com, Wedding Audience, and Dallas Market. We expect many more proposals, open for participation by all members in time for next market season.

 

Board of Directors

Alan Dessy, Dessy Designs President

Paula Varsalona, Paula Varsalona, Vice President

Claudine Hamm, Alyce Designs, Secretary

Peter Grimes, Vows Magazine, Treasurer

James Elias, Demetrios

Eric Greco,Jordan Fashions

Kevin Lu,Casablanca Bridal

Ed Rene, Touch Ups by Benjamin Walk

Larry Warshaw, Justin Alexander; Market Chair

Ty Yeh, Private Label by G

Kyle Yin, Jasmine Bridal; Fashion Piracy Chair

http://www.bridalmanufacturers.com/

Annual dues are $300, must be paid in advance, and cannot be prorated during the calendar year. Dues must be paid in full before participation. In addition to special member-only advertising and promotional programs, paid members are invited to attend annual general membership meetings coordinated by the board of directors.

Members will also periodically receive proposals previewed by the board from various media companies including print and online publishers, as well as those from other business resources. These opportunities are structured to offer substantial savings on products or services, and are offered exclusively to the IBMA as a group.

The next meeting of the general members is scheduled for Friday April 13th, 2012.  Members who pay their dues before January 1st, 2011 will not be charged the food/beverage fee of $50.

 

Critics of the group say they’re skeptical about  some of the group members using the collaboration to better their own place within the industry and to negotiate better rates with advertisers and bridal shows. Also an issue involving several hundreds of thousands of dollars collected as non-profit funds remains unanswered.

A request to president , Alan Dessy, was not yet acknowledged but several members of the organization asked that an open mind be kept and to consier to the efforts of others within the organization.

eWedNewz plans to continue watching the progress of the group and press for answers.

 

 

eWedNewz

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2011