FEATURE ARTICLE
NATORI´S ENIGMA
- A Woman Should Have
On the Cover
The Natori Company competes in the international market
by transforming the Natori line into global brands.
...one old love she
can imagine going back to and one who reminds her how
far she has come
...enough money within
her control to move out and rent a place of her own even
if she never wants to or needs to
...something perfect
to wear if her date of her dreams wants to see her in
an hour
...a youth she's content
to leave behind
...a past juicy enough
that she's looking forward to retelling it in her old
age
...a set of screwdrivers,
a cordless drill, and a black lace bra...
~ Author Unknown
~
Once upon a time in
1977, there lived a Filipina in New York who saw her Asian
heritage and womanhood to be the best assets she ever
had. With samples of Philippine-made cotton-embroidered
shirts on her hands and a pocketful of guts, she knocked
on the snobbish doors of Bloomingdales, where an interested
buyer suggested that she consider turning them into nightshirts.
Such one magical suggestion
was all it took for Josie Cruz Natori to begin The Natori
Company, a multi-million dollar empire built around the
creation of exquisitely designed lingerie, selling in
over 40 countries and employing a thousand people.
Twenty-four years after,
the phenomenal founder and CEO who found her global niche
in intimate apparel is now a celebrated face gracing hundreds
of success-story books, fashion cum lifestyle magazines,
and newspapers all over the world. The Natori Couture
has a track record of clever ad campaigns. No wonder you
would most likely see a Natori ad along the fashion pages
where Versace, DKNY, Yves St. Laurent, among others in
the similar category also appear.
These days, Natori
has every good reason to pursue her favorite pastimes,
which include shopping, sleeping, shiatsu massage, and
most of all, playing the piano (she is a concert-level
classical pianist) - a passion that her family and close
friends are most aware of, especially when some 2,500
of them once saw her perform a private recital at New
York's Carnegie Hall, together with an 85-member Orchestra
of St. Luke's on her 50th birthday in 1997.
That year also marked
her 25th wedding anniversary and 20 years since founding
The Natori Company in East 34th Street in Manhattan. Such
lifelong dream allegedly cost some US$500,000 to come
true, and should we add "only" after citing
that The Natori Company earns an estimated US$50 million
annually? Moreover, the year 1998 was likewise remarkable
as Natori ranked #11th in Crain's New York Business Top
lists after achieving US$80 million in revenues.
Such overall achievements
landed Natori in the ranks of the most widely recognized
and awarded internationally. An inspiring symbol of success
to women in the Philippines, former President Corazon
Aquino presented her with a Galleon Award in 1998, the
same year that Natori was also chosen as the New York
City Partnership's Business Woman of the Year and when
she also served as a Delegate to the White House Conference
on Small Business during US President Bill Clinton's administration.
Most recently, she received the Ellis Island Medal of
Honor. The honors have continued to accumulate.
And as she continues
to live happily ever after with her family in her homes
in New York and Paris, Launch Asia grabs this rare opportunity
to catch Natori in Manila for a visit to the annual Manila
F.A.M.E. International, a cross-cultural gathering and
showcase of a large pool of designers' talents from various
product categories.
This time, it looks
like her sights are set on home furnishings. "I've
been asked by a couple of friends here (in Manila) to
do things for the home furnishings," she hints. "It
interests me a lot and I think the Philippines has a great
advantage in that so I just might consider. I'm also trying
to see what materials we can use for accessories although
they're (Natori accessories) being made in Italy. I'm
bringing my design team from Italy so they would see it."
In this exclusive interview,
Natori shows up in a chic designer suit whose color matches
her well-polished fingernails. Her signature look - sleek
and sharply angled bob hair - complements her Filipina
features as her favorite photograph would show. Every
inch a fashion icon, firing up a conversation becomes
fairly easy as the petite lady flashes a friendly smile
that enhanced her bright red lipstick. It is apparent,
as you listen to her, that her breathtaking urbane sophistication
has not been able to erase her genuine warmth and pleasant
demeanor that is distinctly Filipina.
To her management team
and staff in Manila, Natori is still the same "hands-on"
and "motherly-kind-of-workaholic" Mrs. Natori
who remains fluent in speaking Tagalog. "I like to
be very hands-on," she confirms. "I started
by doing everything myself from the very beginning. I'm
probably not the best in delegating although I'm getting
better. I have a president now and she really runs the
day-to-day stuff, but I still can't get my hands off."
When it comes to decision-making, the self-confessed classic
entrepreneur trusts her funny bone, although she also
listens to her staff's suggestions. "I think that's
in my nature. I like how my husband calls it - work is
a vacation. I choose to make (what I do) hectic. I don't
like to sit still."
Unlike most success
stories we usually hear, however, Natori's resume has
always been one of the best one could ever see to begin
with. A fast-paced climber at Wall Street's corporate
ladder, she was the first woman vice president of Merrill
Lynch in the 1970s. She's married to Ken Natori, a third-generation
Japanese American investment banker at Smith Barney Harris
Upham, who would later become The Natori Company's chairman,
and whom she met in a blind date. "I'm a gambler
at heart. I take risks, " she smiles. That's the
same explanation behind the astonishing turnaround in
her odyssey from a very prestigious career in Wall Street
to the exciting but uncertain world of entrepreneurship.
By 1976, the year her
son Kenneth, Jr. was born, Natori began to feel unchallenged
by investment banking anymore and started to adhere to
her entrepreneurial calling - an inclination that's been
as natural as brushing her teeth as she used to be surrounded
by entrepreneurial role models back home. "I've seen
it from my father, my mother, and my grandmother. That's
not anything strange to me," says the eldest of six
children of Mr. and Mrs. Felipe F. Cruz, the Philippines'
noted construction magnate. Her grandmother also ran a
number of businesses herself, including pharmacies, coconut
and sisal plantations. "I think it's an asset for
me because not all Asian women have that cultural background.
I think in the Philippines we've always had strong women.
They always have the purse. Although the men brings the
salary, it's the women who makes the decisions."
She knew there's got
to be something more. So after some time spent window-shopping
for possibilities that included a burger joint franchise,
a car wash, and even a fertilizer company, Natori concluded
that if she were to run a business, it had to be one that
would satisfy both her deal-making skills and aesthetic
side. "I wanted something that I can relate to,"
she says. The business of fashion is pretty much what
she means.
Cashing in on distinguished
Philippine hand-works that range from exquisite appliqués
to intricate embroidery detailing to all-over beading,
Natori explored not only lingerie, but also everything
from moderately priced sleepwear and daywear to haute
couture eveningwear and "at-home" wear. She
also diversified into slippers, sachets, and evening bags.
In 1993 she introduced an upscale costume jewelry collection
under a worldwide licensing agreement. In 1994 she launched
The Natori shoe collection and began a collection of fragrance,
bath, and boudoir products licensed by Avon Products,
Inc.
Natori on NATORI
What's in a name? How
does one spot a NATORI from others? Natori seeks to differentiate
itself from another by transforming its name into global
brands, much like Versace and DKNY probably. This lets
the NATORI brand sell higher margin, private label items,
protects it from price wars and gives it more leverage
with its suppliers.
In her own words, Natori
sees her product lines as feminine, sensual, exotic, elegant
yet maintaining the ease-ness, - something you can immediately
see from far away. "Visually, people can see the
richness of the fabric and colors, the luxury and detail
aspects. When you see the handbag we've just launched,
it's like a work of art. Every Natori item has an East-meets-West
feeling," she explains while showing me samples of
her line-up of new designs from her 2001 catalogue. Her
hallmark - embroidery and appliqué work of the
Philippines, remains integral in Natori's designs, translated
into a collection that now includes three distinctive
lingerie lines: Natori Black Label, Natori White Label
and the contemporary and moderately priced Josie.
The idea now is to
explore other product lines. "We just launched in
another company a line called "Cruz" that represents
the more affordable Natori line. It will start with a
lingerie first and then the apparel. It will be available
first in New York stores and then we'll take it from there,"
she disclosed.
For someone born and
raised in a conservative country such as the Philippines
until she attended college at Manhattanville College in
New York at age 17, it seems odd to pair the phrases "Filipina"
and "lingerie titan".
The paradox is probably
explained by the fact that Natori played a significant
role in revolutionizing the concept of lingerie. Her product
lines Natori, Eve Stillman, and Josie are all based on
a vision that challenges pre-conceived fashion norms by
offering lingerie "so beautifully functional it can
be worn as regular clothing." In that sense, you
no longer see underwear as something you'd rather buy
discreetly behind back-corner stalls if not a pornographic
item. "I think I understand how women want to feel,"
she says. "They are very independent and they want
to feel feminine."
Conquering
the Globe
"Everything in
life connects." Natori's personal philosophy that
originally came from her piano teacher a long time ago
has an impact in the way she does business. "It's
a philosophy for me that everything happens for a reason.
Even the bad things in life - they're meant to be. Something
good comes out of something. That's why I don't regret
things and I don't look back." The world is not a
big planet for Natori, long before the Internet era confirmed
it for her.
In the United States,
Natori is sold at major retailers and specialty stores,
including Bloomingdales - Bergdorf Goodman, Neiman Marcus,
Nordstrom, Saks Fifth Avenue, and Macy's. It also sells
in Japan, in the Philippines. She's currently looking
for a partner in England. Moreover, Natori has faced ferocious
battles with France, the country that supposedly defined
lingerie, by also putting up her own boutique there. "I've
got to adopt something," she stresses. "Natori
is not American. It's not Filipino or European. It has
to have a global appeal."
" A market-smart
global retailer, Natori imparts the challenge of marketing
her products that depend on what markets she's in. "You
have to rely on people who know best in that country.
You really have to have appropriate partners in each country.
That's really one of our strategies to find the right
partners to penetrate. I do believe that the biggest market
is in the States but there are also a lot of opportunities
elsewhere. We're not as penetrated in Europe 'cause its
impossible to do it all by yourself in other parts of
the world so you have to have partners. Rustan's is our
partner in the Philippines. They have the exclusive franchise
here."
The typical licensing
deal nets Natori a royalty of between 5 to 10 percent
of the retail price of the items, according to the book
"Self-Made Americans" by Margery Mandell. "Natori
comes up with the design, and the manufacturer takes care
of the rest, including marketing," reports Mandell.
Making a Difference
"For one thing,
I don't ever sit around to think about success,"
Natori says when I asked what success has taught her.
"I don't feel a success yet. I think it depends on
your definition of success. If you mean have I achieve
things? Yes. Building a fashion house and all that. But
success to me ultimately means something different. It's
doing what you've wanted to do and for me, what I really
want is making a difference in people's lives. That means
the ability of making major contributions to society.
So I see this business as a means to an end. I think there's
more to do to make a major impact to society."
When she opened her
first NATORI boutique in Manila in 1995, she also used
the country's premiere Filipina models like Tweety de
Leon, Apples Aberin, Patty Betita, and Angel Aquino among
others.
"The Philippines
have such creative talents that are just not maximized,"
she quips. "What we don't see here is the 'brand'.
We need to see more from local retailers and not just
the foreign brands. It's tougher in the apparel industry
'cause we don't have one here yet, although the talents
are here. But in terms of giftware and home furnishings
I think that designers have been much progressive. But
I'd like to see some things made by designers themselves
and not just by exporters."
CLICKING THE
RIGHT BUTTONS
Creating products that
have global appeal but with a distinctive quality.
Using 'GloCal' strategy.
NATORI standardizes certain elements while 85 percent
of its production is done in the Philippines.
Marketing depends on
what country and markets NATORI is in.
Finding appropriate
partners who are established retailers in the US, in Europe
(Paris and England), and in Asia in order to penetrate
globally.
HIGHLIGHTS:
Natori seeks to differentiate
itself from another by transforming its name into global
brands. This lets the NATORI brand sell higher margin,
private label items, protects it from price wars, and
gives it more leverage with its suppliers.
"Everything in
life connects." Natori's personal philosophy that
originally came from her piano teacher a long time ago
has an impact in the way she does business.
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