Fashion Week by the Numbers

(page 2 of 2)

These days, the pair continue to invest in Fashion Week festivities (including two shows, on Sept. 10 and 11), and Duffy estimates costs at "less than a million [dollars]." For Duffy, it's well worth it, with one runway presentation neatly setting the tone and defining the brand image for the company—and the season ahead. "If you have [any] large-size business, you have to have a meeting and a presentation of some sort for your employees," says Duffy, adding that 600 of the 1,500 visitors to this year's show already work for the company, with some of them flying in from other parts of the world. In other words, above and beyond the publicity opportunities, the show provides a handy internal update, too.

The Movie About the Show

"[The show] gives tools to the merchandiser in China, to the buyer in Korea, to the display person in India—I can't even think of a more economical or easier way to go," says Duffy. Along with the actual costs of the runway production, the company also makes a documentary DVD of preparations to further help everyone from employees to buyers understand the brand.

But even smaller expenses can add up. Late-night meals needed to sustain the staff during long hours in the run-up to the event amounted to $1,800 for Tracy Reese; delivering the 2,000 invitations cost $3,200. Shoes and accessories for the models are another expense. Designers for Puig label Carolina Herrera commission about 50 pairs of custom-designed Manolo Blahnik high heels each season—a style-based decision that can easily tot up to more than $10,000.

Increasingly, designers have been looking for innovative ways to distribute and minimize their own costs. For designers, sponsorships are key. It's in part due to sponsorships from the likes of American Legacy Foundation and Sally Hansen cosmetics that Tracy Reese's Betheja says the cost for shows hasn't substantially increased since their first show in 2001. Through less formal partnerships, designers can get everything from free make-up to celebrity hairstylists to models wanting the chance to walk in a prominent designer's show.

Sponsorship Fatigue

And for even less financial commitment, other sponsors can include products in the sought-after gift bags given to guests in order to gain exposure. This year, Tracy Reese's only gift-bag cost was for the shopping bags printed with the label's logo—the value of the products inside totaled between $500 and $1,000.

This year's shindig sees the most sponsors yet. That has led to muttering and bubbling discontent, with lead sponsor Mercedes-Benz (DCX) leading the charge. Upset that its name is regularly cut from press coverage of the week (the official name is Mercedes-Benz Fashion Week New York), Geoff Day, Mercedes-Benz's director of communications and events, warns of potential disgruntlement from supportive brands unhappy to share the limelight with all and sundry. "There is some kind of sponsorship fatigue, because every event now comes with some kind of sponsor," he says.

There are seemingly even more sponsors outside the tents and shows themselves. And since many designers are reluctant to tack on another expense, the lavish after-parties are often sponsored by brands—from retailers to liquor or publishing companies. This season, Pablo Deechevarria, senior vice-president for marketing at Perry Ellis (PERY.O), said that throwing a party with Out magazine allowed him to minimize costs.

The Best Advertising

Sometimes the public relations fee for parties doesn't need to be accounted for, while celebrity guests can still do wonders for a label's bottom line. Confirmed guests for Marc Jacobs' after-party include Victoria Beckham, Sean Diddy Combs, and Winona Ryder. This kind of celebrity wattage often brings in even more sponsors—and attention. "If it was a cost I wouldn't do it," says Duffy of the upcoming soiree.

Then, of course, the editorial coverage a fashion week show receives can prove more lucrative than any other form of advertising. Even though it's difficult to quantify the exact value of a show, Perry Ellis' Deechevarria estimates that 700 print editorials featured the label since last season. That's enough publicity to have a major impact on sales and the company's bottom line. "Multiply 700 times $27,000, the average price of a magazine ad," he says. "That gives you an impression." As do the shows.

Dizik is a BusinessWeek.com project assistant.