Prudence N. Barnes, Contributor
Pulse CEO Kingsley Cooper chats with Suzette Smellie-Tomlinson at Pulse's 25th Anniversary Celebration and Christmas Party, held at Villa Ronai, Old Stony Hill Road on Friday, December 24, 2004. - WINSTON SILL/FREELANCE PHOTOGRAPHER
AFTER CONSOLIDATING its operations, diversifying its products beyond model management and introducing a slate of other cutting edge initiatives to build its brand and promote the regional fashion industry, Pulse Investments Limited is positioning itself to further take advantage of what it sees as still untapped potential in the regional and global fashion, and leisure industries, and to bring greater exposure to the Caribbean fashion industry.
In a show of confidence in the viability of Pulse Investments Limited itself and his optimism about the prospects for the future of the regional fashion industry, Kingsley Cooper, the Pulse chief executive officer said the company is preparing to re-list on the Jamaica Stock Exchange. The preparation to re-enter the equities market is in keeping with the company's commitment to its shareholders and to finance further growth and development, Mr. Cooper said.
Pulse Investment was previously listed on the Jamaica Stock Exchange but was de-listed four years ago for late financial reporting.
"It was during a period of re-organisation of the company against the background of the challenges relating to the high interest rate regime of the 90s and the resultant debt burden that had forced the need for re-organisation," Mr. Cooper said.
The re-organisation saw a number of steps aimed at enhancing the viability of the entity which included: "the consolidation of Pulse Investments Limited and the Pulse Entertainment Group; investment by the National Investment Bank of Jamaica (NIBJ) of $20.5 million in preference equity; interest concessions from creditor banks under the government's debt restructuring programme at the time, supported by a viable business plan which Pulse has been able to successfully implement," Mr. Cooper said.
Since then and in preparation for re-listing, Mr. Cooper said, the company has been "up-to-date with the submission of its audited financial statement to the JSE and the results have reflected an increasingly profitable operation".
The debt burden, close to $150 million at the time the re-organisation commenced, is now down to $12 million, Mr. Cooper said.
The company has also been diversifying its operations by undertaking new ventures which have not only served to boost the viability of Pulse Investments Limited, but which are having far-reaching impact on the Caribbean's fashion industry.
Caribbean Fashion Week which recently had its fifth staging was introduced by Pulse to give Caribbean designers a forum to showcase their designs and connect them with buyers from around the world. A $40 million fashion centre which has also been established at Pulse's headquarters on Trafalgar Road offers a permanent showroom for Caribbean designers, he added.
Pulse has also made its move into the media arena with Caribbean Fashion TV established three years ago and recently expanded with diverse content and audience penetration in more markets around the world. An interactive website and a "Virtual Pulse" to showcase products and conduct business on-line, are other media initiatives on which Pulse is embarking. "It is now possible, as a result of the technology to build a global brand without being physically everywhere, Cooper said.
Adding that once the website and the Virtual Pulse are up and running we can conduct business in any market in the world without having a physical office."
All its marketing tools will no doubt provide leverage for another of its far-reaching initiatives, the Caribbean Fashion Collectiv which "will seek to marry the creative talent of our designers with the strategic marketing and implementation skills of Pulse. It will mean funding, access to fabric and manufacturing (even if it means manufacturing outside of the Caribbean for competitiveness)."
Mr. Cooper disclosed that Pulse is expected "to invest around US$1 - US$1.5m initially in the Caribbean Fashion Collectiv and the first collections under this project will be for spring/summer 2007." "The success of the Caribbean Fashion Collectiv will mean guaranteed buyers and guaranteed business for the Caribbean designers and CFW will more rapidly achieve its objective of becoming a true centre for major business generation in the region," he said.
The company is also riding the wave of major successes with models under its management. Nadine Willis and Jaunel Mckenzie are among the latest of Pulse's protégés to enjoy international acclaim while Carla Campbell was recently voted one of the top four hottest supermodels by Esquire Magazine and chosen for the cover of the August 2005 issue of the Magazine.
On the leisure side of its operations, Mr. Cooper told the Financial Gleaner that Villa Ronai is being developed into an eco-friendly luxury spa with luxury suites, entertainment features such as a restaurant, and wine and jazz bars, to cater to a high end local and international clientele.
Mr. Cooper noted that despite obstacles in the international fashion industry: " we live in the period of the greatest ever promise for the Caribbean fashion industry, with an increasing realisation of its potential."
His optimism comes from the some positive changes he has witnessed over the last 25 years, some of which could arguably be credited to the pioneering efforts of Pulse itself.
Mr. Cooper cited trends such as greater brand recognition for regional designers at home and abroad, the increasing celebrity in the global fashion industry of Caribbean models, and intensified marketing activity in the form of Caribbean fashion events, media productions and technological advancement.
Caribbean designers are also making their mark, Mr. Cooper said, with designers such as Biggy, Cedella Marley and Jessica Ogden receiving critical attention on the international stage. Other designers such as Meiling, Claudia Pegus, Uzuri and Heather Jones are getting attention in major international press, which should lead to more commercial success, he said.
"Now Caribbean people are proud to wear Caribbean designs and the world is taking notice, and buying into what we have. No less an entity as Vogue is rating CFW as a hot new trend in world fashion. That is saying an awful lot. Through Fashion TV and others, CFW and, by extension, Caribbean designers, have reached every corner of the globe," he stated.
"The international fashion industry, including licensing for fragrances and manufacturing of brand name products, is worth hundreds of billion U.S. dollars," he said, adding that the Caribbean also has a viable market with more than 10 million tourists visiting each year. When that is added to more than 10 million residents, a substantial market worth at least US$200 million (a conservative $10 per visitor/resident per year) exists locally." In addition, he said, regionally the market for models consist of commercial advertising opportunities, conservatively estimated at US$20 million a year, noting that with developments in regional publishing, regional editorial opportunities will increase.
The impact of the fashion industry extends beyond model management, models and designers. It is a complex network comprising of designers, manufacturers; sales and marketing professionals; fabric and notion suppliers; graphic designers, magazines and catalogue producers, stylists, catalogue producers; photographers; models; model agencies; stylists; cosmetic producers and suppliers; advertising producers; show producers; buyers; showrooms; sponsors; advertisers and advertising agencies; magazines and other print media; printers; television and cable producers and providers, 'fashionistas' and other consumers, Cooper said.
While breaking into the major fashion markets of the world still poses a challenge, deriving even a fraction of the proceeds from those markets will be hugely profitable for the Caribbean.
See Part Two in next week's Financial Gleaner.
