Time published a very interesting article today about the influence that Sasha & Malia Obama will have on how companies will cater to children in the next four, maybe eight years. The article focuses on the press that J.Crew has received from the girls wearing the CrewCuts collection from J.Crew throughout the Inaugural festivities.
Some highlights from the article:
- The pieces that Michelle, Sasha and Malia wore were specifically designed for them.
- The Obamas paid for all the clothes.
- Analysts predict growth in sales for CrewCuts.
- Sasha and Malia Obama will have branding power in the next four years.
Can First Daughters Sasha and Malia Give J. Crew a Lift?
by Sean GregoryAs Barack Obama’s phenomenally poised, incredible adorable daughters smiled and waved for the cameras at the Inauguration, J. Crew got a spot on the world’s biggest showroom floor. The preppy, upscale retailer was quite happy to spread the word on Tuesday that Malia Obama, 10, and her sister Sasha, 7 (or Radiance and Rosebud in Secret Service parlance), were all decked out in J. Crew’s children’s line, called Crewcuts, for the big event. Malia wore a deep periwinkle blue coat as her dad was being sworn in, while Sasha went for an orange and pink combo. The fashionistas raved about the color schemes. “We are honored to be part of such a momentous occasion in both history and fashion,” said Jenna Lyons, J. Crew’s creative director.
In fact, J. Crew scored the clothing coup throughout the Inaugural festivities. The girls wore J. Crew coats at Sunday’s star-studded “We Are One” concert, which was broadcast on HBO. The next night at the Kid Inaugural Concert, where the Obama gals and military families rocked out to Miley Cyrus and the Jonas Brothers, Michelle donned an olive J. Crew cardigan over a blue J. Crew skirt and top. The First Lady also wore green J. Crew gloves to the Inauguration. The company says the pieces were designed specifically for the new First Family, though J. Crew “may” roll them out for the fall ‘09 collection. (Of course it will.) The Obamas paid for all the clothes, J. Crew insists, and did not guarantee they’d wear the company’s outfits for the inaugural events. J. Crew found out about their fashion choices along with the rest of the world.
What can Inaugural buzz do for J. Crew’s bottom line? Compared to most retailers, the company has stayed strong through the economic downturn. “J. Crew continues to be one of the few retailers offering differentiated and unique merchandise to customers,” analyst Christine Chen wrote in a January research report for Needham and Company. CEO Mickey Drexler, the ex-Gap chief, has jump-started the brand by revamping the quality of the merchandise. But J. Crew has not been unscathed — profits fell 6% through the first three quarters of fiscal ‘08. “It’s a huge deal,” says Marshal Cohen, retail analyst for the NPD Group, of the inaugural exposure. “This is something you get once in a lifetime. J. Crew will take this and run with it.” Betty Chen, an equity analyst at Wedbush Morgan Securities, predicts an immediate bump in J. Crew’s children’s clothing sales. She points to Michelle Obama’s late-October appearance on Jay Leno. On the heels of news reports that Sarah Palin hoarded a $150,000 wardrobe budget, Leno jokingly asked Michelle if she paid “60, 70 thousand for that outfit.” Obama bragged: “Actually, this is a J. Crew ensemble.” Chen says sales of that yellow ensemble spiked.
Though it may cause the First Parents some unease, their daughters have tremendous star power. And it’s only going to grow. “We are going to want to know what they eat, read, watch and wear,” says Cohen. “They can influence an entire generation.” But the whole phenomenon puts a company like J. Crew in a tricky spot. Yes, it needs to leverage the family’s affinity for the J. Crew brand. But will consumers think it’s exploiting these young girls? J. Crew is so sensitive about this perception that it would not make a marketing executive available to discuss the benefits of the Obamas. “It’s a very delicate relationship,” a spokesperson said.
So don’t expect a J. Crew commercial featuring clips of Malia on Sasha on the Capitol steps. But the retailer won’t just sit on this news. Cohen suggests a word-of-mouth guerrilla marketing campaign—for example, start a Facebook group promoting the girls in J. Crew, and ask users to sign up as fans. “They have to practice the subtle art of selling,” says Cohen. “Go out and create a buzz, and just have others do it for you.” Chen says J. Crew will most likely send an e-mail to customers in their database—about 22 million strong, according to Chen—highlighting the clothes worn by the First Daughters. But it won’t show a picture of the girls, which could be viewed as too exploitive. The company used a similar tactic with Michelle Obama’s outfit on Leno. “I think you can do that in a very tasteful manner,” Chen says. “I think it would be perfectly fine.”
No matter how J. Crew plays it, the company won’t be the only one seeking the First Daughters’ approval. “This is just the beginning of four to eight years of marketing opportunities,” says Cohen. “The First Lady’s staff will be inundated with all kinds of products, offerings and gifts for the girls. Keeping up with them will be a full time job.” Right now, J. Crew is the lucky leader. That coat looked pretty cute on Rosebud, and plenty of kids will want to match her style.
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