Wednesday, September 03, 2008

Money for Mom

Not just any Mom, but Michael Phelps Mom. Here's the scoop from the Wall Street Journal:

Olympic Mom Fits Bill for Chico's

Debbie Phelps Signs
Endorsement Deal
In 'Authentic' Trend
By JENNIFER SARANOW and RAY A. SMITH
September 3, 2008; Page B8

Chico's FAS plans to announce Wednesday that it has signed an endorsement deal with Debbie Phelps, who wore Chico's clothes in the stands at the Beijing Olympics as she cheered for her son Michael, who won eight gold medals.

[Debbie Phelps and Chicos]
Getty Images
Debbie Phelps, watching her son compete at the Beijing Olympics on Aug. 17, wore a jacket, tank and trousers from Chico's.

The arrangement reflects a broader attempt by mainstream fashion companies to capitalize on real people in the limelight who wear their clothes. The 57-year-old Ms. Phelps has long shopped at a Chico's store in Towson, Md., where she bought a number of the chain's outfits for her trip to Beijing. She will be paid a sum in the low six figures to appear for a year in Chico's marketing, including its catalog, and will be dressed by Chico's for public appearances, including a planned appearance on "The Oprah Winfrey Show" to be taped Wednesday.

The move toward "authentic" endorsers follows years of high-end fashion brands loaning or giving away clothes and jewelry to celebrities and socialites, in hopes that they would be photographed wearing the items. The trend initially focused on red-carpet events and parties. But in recent years, as celebrity magazines and other media have begun following stars everywhere, and the number of celebrities has exploded, makers of everyday clothes have joined the fray, both by giving away their wares and by touting a celebrity's choice of their label.

The deal with Ms. Phelps, a middle-school principal, takes the everyday trend a step further, because she isn't a celebrity herself. Still, she appeared on TV night after night, reacting emotionally to her son's victories. Executives at Chico's, which has been struggling with declining same-store sales, quickly noticed that she was wearing their clothes and got her permission to highlight her choices on their Web site in a section called the Debbie Phelps Collection. They also began talking to Ms. Phelps about an endorsement deal.

The move followed a news release in June by the White House|Black Market unit of Chico's FAS, touting the fact that Michelle Obama had announced on "The View" on Walt Disney's ABC that she was wearing a $148 print dress she had bought at one of its stores.

"We thought, 'Wow, these are real customers. Let's talk about it,'" says Chico's spokeswoman Jessica Wells. "To shoppers, to real women, they feel authentic."

James LaForce, principal of fashion public-relations firm LaForce + Stevens in New York, says he views the Phelps-Chico's arrangement as appropriate, but notes that brands can risk "looking like they're trying too hard" if they tout the choices of spouses, other family members or friends.

In this presidential election year, some men's labels are trying to promote the sartorial choices of the candidates and other public officials. Thomas Pink, Hart Schaffner Marx and Hickey Freeman have made it known that Joe Biden, Barack Obama and Dick Cheney, respectively, have bought or planned to wear their clothes.

But the brands also recognize that touting a male politician's choice of clothing can make them seem shallow or crass. A public-relations director at Hartmarx, which owns the Hart Schaffner Marx and Hickey Freeman labels, sent brief emails about Messrs. Obama's and Cheney's suit purchases to some members of the press, but Chief Executive Homi Patel says, "We would never publicize or exploit it." Thomas Pink spokesman Michael Bragg says he merely verified that Mr. Biden purchased a shirt and tie from the unit of LVMH Moët Hennessy Louis Vuitton. "It is tempting to put out a press release, but we respect our customers," he adds.

Ms. Phelps, who says she's been a Chico's customer for six years or so, and also wore the label during the 2004 Olympics, says she was surprised and flattered when Chico's called. "How great an honor it is to be able to represent a company that you believe in, that you really love," she says.

Hundreds of Chico's customers called and emailed the company's headquarters in Fort Myers, Fla., to say they had noticed Ms. Phelps was wearing the label in Beijing, the company says.

The deal comes as the women's apparel retailer, which last week reported an 83% drop in second-quarter profit, is attempting to refocus on its core baby-boomer customer after analysts say it tried to broaden its appeal to younger women.

"There has been some concern about some confusion over who the core Chico's customer is, and I think this answers that resoundingly," says Michele Cloutier, Chico's brand president. She says Chico's has seen an uptick in sales of items now listed in the Debbie Phelps Collection.

Ms. Phelps, now represented by her son's management company, appeared in a commercial for Johnson & Johnson during the closing ceremony, dressed in Chico's clothes, and has been approached about a book deal. Still, she says, "my endorsements, compared to my son's, we are in two different ballparks." Michael Phelps has received more than a million dollars in endorsements thus far.

Write to Jennifer Saranow at jennifer.saranow@wsj.com and Ray A. Smith at ray.smith@wsj.com

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