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Sarah Riani

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Analysis: TransCanada's East Coast oil pipeline to change trade
dynamics
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Sabina Zawadzki and David Sheppard
August 5, 2013
. View gallery
TransCanada President and CEO Russ Girling (2nd L) announces the new
Energy East Pipeline during a news …
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day (bpd) pipeline, which will extend part of an old natural gas line,
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of Canada's total daily oil production. "In the short and medium term,
this isn't a project focused on exporting heavier Canadian oil to the
U.S. Gulf Coast," said Mark Routt, a senior energy consultant at KBC
in Houston, who has a number of clients interested in the project.
"The initial stage of this project will be primarily about sending
light sweet crude to Canadian refineries." That could effectively wipe
out Canada's need to import crude for its eastern refineries. They now
import around 700,000 bpd from North and West Africa and Latin America
because Canada's own supplies lie across a vast wilderness in the far
West. Africa and Latin America will have to find a new home for their
barrels by 2017 or 2018, if the pipeline is completed on time. The
twinning of the project with a plan to build and operate a new
deepwater export port in Saint John, New Brunswick will give oil
producers an outlet for the 400,000 bpd or so of leftover, after
Canada's eastern refineries consume their share. "The next stage would
be to potentially expand the project to ship light sweet crude to
refineries on the U.S. East Coast," Routt said. Several refineries on
the U.S. East Coast have shut down in recent years due to poor
economic performance. Access to Canadian sweet crude, cheaper than
European and African imports due to transportation costs and the lower
U.S. benchmark price, could support the plants that remain. BEYOND
CANADA Canadian oil producers have even further-reaching ambitions for
the pipeline, with some looking at the feasibility of exporting
barrels to Asia. TransCanada Chief Executive Russ Girling said oil
producers in Alberta were looking to reach markets as far away as
India. John Auers, senior vice president at refinery specialist
Turner, Mason & Co in Dallas, said that while it is an ambitious goal,
it could one day be possible for Canadian crude to compete with Middle
Eastern producers for market share in the Indian subcontinent. View
gallery ." TransCanada President and CEO Russ Girling announces the
new Energy East Pipeline during a news conf … "India has now
built up a fairly decent base of heavy crude capacity," said Auers.
"(TransCanada) can go all sort of ways." Sandy Fielden, analyst at
consultants RBN Energy in Austin, said the majority of Canada's heavy
crude exports from the line would still end up closer to home. "The
obvious competition will be with heavier Mexican and Venezuela crudes
into the U.S. Gulf Coast," he said. European refineries are a less
likely destination, Fielden added, as most are geared toward lighter
crudes such as Brent. CONSOLIDATED BENCHMARK Another outcome the East
Energy line might bring is the reinforcement of Brent crude oil as the
world's premier benchmark, analysts said, amid talk the grade is
losing relevance and could see a challenge from a rival exchange in
Asia, where demand is rising. "A preponderance of light sweet crude
moving East could consolidate Brent's benchmark's status," said Ed
Morse, managing director of commodity research at Citi. "Saudi Arabia
and Iran and other Middle East producers feeding into the European
market would be increasingly dependent on benchmarks defined in the
local Atlantic Basin markets." Morse said heavier barrels moving on
the pipeline could also eventually provide a new "sour" benchmark for
the region. Several analysts said the increased capacity of the Energy
East pipeline from an initial proposal of 800,000 bpd reflects
uncertainty over Canada's other grand pipeline projects. TransCanada's
own Keystone XL project, which would expand its ability to ship heavy
crude to Gulf Coast refineries by 830,000 bpd, is yet to get off the
ground after years of waiting for U.S. approval and has become a
target for environmental groups. Proposals for pipelines to the West
Coast, which would allow the country to ship oil to the lucrative
Asian market, are opposed by Canadian indigenous people, or First
Nations. "Now, there are a lot of moving parts, but if we assume there
are ongoing problems with getting approval for Keystone XL and
Enbridge's planned pipeline to the West Coast of Canada then you can
see why they've expanded this project," Fielden said. TransCanada said
one project does not replace the other and that it has long-term
commitments for Keystone XL, which has always been designed to carry
heavier crude from the tar sand fields. North America is adjusting its
infrastructure to the landscape that has been emerging in the oil
industry in the past five years with the advent of shale oil and gas
and the Canadian tar sands. Pipeline companies have spent billions of
dollars building new pipes or reversing the direction of old ones.
Turner, Mason's Auers thinks there is always a risk of over-building,
but believes the Energy East pipeline is a major stage in North
America's adjustment to its energy renaissance. "We look at North
America as a whole. If you export Canadian light crude that provides
room for U.S. light crude." (Reporting by Sabina Zawadzki and David
Sheppard in New York; Editing by Tiffany Wu and Leslie Gevirtz)
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comments
The Lineup: New job for Gene McCarthy; Moscow auctions billboards;
China's clothing, shoe buying reviving
Merrell-Go-Round.jpg
Merrell began in 1981 with the introduction of a hiking boot designed
by company founder Randy Merrell. Wolverine Worldwide now owns
Merrell.
(Merrell)
Print
Allan Brettman, The Oregonian
By
Allan Brettman, The Oregonian
The Oregonian
Email the author | Follow on Twitter
on August 22, 2013 at 3:35 PM, updated August 22, 2013 at 3:48 PM
View/Post Comments
Gene McCarthy, who worked two decades at Nike and was most recently
Under Armour's senior vice president of footwear, has been hired as
president of the Merrill Brand, Merrell parent Wolverine Worldwide
announced Thursday.
McCarthy joined Nike in August 1982, according to his LinkedIn
profile, leaving in June 2003 as director of sales and retail
marketing for Nike's The Jordan brand.
He held leadership roles at Reebok then The Timberland Co. before
joining Under Armour in August 2009. He left in February.
McCarthy holds a bachelor of science degree in marketing from Fordham
University.
From the news release, issued from Wolverine's Rockford, Mich.,
headquarters:
"Gene McCarthy is a visionary leader with a passion for brands and
consumers," said Blake W. Krueger, Chairman, CEO, and President of
Wolverine Worldwide. "Merrell has been and continues to be a leader in
the outdoor space and a jewel within the Wolverine portfolio – I
am thrilled to have Gene join the Merrell team as it continues its
drive to be the first billion-dollar-brand in our Company's history."
"Gene's global experience and successful track record in the athletic
and outdoor markets make him an excellent fit for the Merrell brand,"
said Jim Zwiers, President of the Performance Group. "We are excited
to welcome Gene to the team, and believe he is uniquely qualified to
lead the Merrell brand in its vision to be the world's favorite
outdoor brand, delivering growth through innovative products and a
fanatical connection to the consumer."
"It's an honor to join this industry-leading performance brand," said
McCarthy. "I have long admired Merrell's strong growth and broad
global appeal. I am excited to join this talented team to pursue the
significant opportunities that lie ahead as we capitalize on the
brand's compelling point of view and remarkable products."
Besides Merrell, Wolverine's brands include Sperry Top-Sider, Hush
Puppies, Saucony, Wolverine, Keds, Stride Rite, Sebago, Cushe, Chaco,
Bates, HYTEST, and Soft Style.

Advertising: The city of Moscow recently held an auction for the
rights to display ads on 7,366 outdoor spaces. That represents 60
percent of the outdoor ad space, says this report in Russia Beyond the
Headlines. Of the five winning bidders, one of them represented a
sneaker company. Can you guess which one?
Retail: The consumer appetite in China for sports apparel and footwear
has been cooling since 2010. But the South China Morning Post reports
business is picking up.
This story says:
Local brands, including Anta, Li Ning, Xtep, and Peak, responded by
ramping-up efforts to clear old stock, close low-efficiency shops,
restore supply chains, and upgrade products and services to adapt to
consumers' needs. By the end of last year, the six major local brands
closed nearly 5,000 shops, more than 10 per cent of their total
outlets.
Now signs of recovery are emerging, evident in falling inventory
levels, lower discounts offered by retailers, and rising trade fair
orders. But the situation in some areas remains tough.

Kiwi returns: When a No. 12 NBA draft pick, 20-year-old Steven Adams
of the Oklahoma City Thunder, returns to his hometown in Wellington,
New Zealand, it is a big deal, reports the Press Display. Bringing
along Brooklyn Nets center Brook Lopez? Bigger deal.
Just Do It: In 1988, Dan Wieden came up with the catchphrase "Just Do
It." And 25 years later, the slogan still is effective, reports
Jeffrey Martin of USA Today.
-- Allan Brettman



View/Post Comments
Copyright 2013 OregonLive.com. All rights reserved. This material may
not be published, broadcast, rewritten or redistributed.
Inside Playbooks & Profits
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Marc Wiersum | Market Realist – 4 hours ago
RELATED QUOTES Symbol Price Change DIA 147.499 DXJ 44.191 EWJ 11.07
IVV 164.19 SPY 163.33
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is slowing to around 7.5% per annum. Wages are simply growing much
faster than the overall economy, which fuels inflation and real estate
bubbles when banks are willing lenders, as is apparently the case in
China. As a result of the growth in the cost base of Chinese
production, cost-sensitive manufacturers (such as clothing and textile
manufacturers) have begun to look to countries such as Vietnam to
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China may also experience increased pressure. As corporate earnings
margins come under pressure, corporations may have less cash flow to
service their debt. Chinese firms must increase productivity to
maintain margins through increased technological investment, cut
manufacturing costs such as labor, or grow sales. These cost pressures
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dollar could also mean an associated increase in cost for Chinese
exports vis-à-vis other currencies. Meanwhile, the free-floating
Japanese yen may continue to depreciate against the U.S. dollar,
providing pricing support to Japanese manufacturers relative to
Chinese manufacturers. Although China’s export machine focuses on
the lower end of labor-intensive manufacturing relative to Japan, an
ongoing trend in the growth of China’s cost base could at least
temper China’s plans to expand its manufacturing base into
increasingly capital-intensive technologies such as autos, aircraft,
or aerospace.
China maxing out on debt
As China migrates to a single-digit growth rate economy with higher
wages, attention is now turning to the banking sector’s ability to
manage ballooning debt. One study by CLSA analyst Francis Cheung notes
that total Chinese debt has doubled in the last four years, and could
rise from around 198% of GDP by the end of 2012 to 245% of GDP by
2015. The Fitch Ratings agency has signaled a warning on the growth
rate of Chinese debt. Gordon Chang notes in Forbes that the days of
credit-fueled growth may be facing a dramatic slowdown, as every
dollar in credit growth in 2007 was associated with 87 cents of
growth—whereas currently, every dollar of credit growth is
associated with a paltry 17 cents of growth. Given this dramatic
deceleration of the multiplier effect associated with debt growth, it
would appear that a very significant near-term deceleration of
economic growth is underway in China.
Outlook
Meanwhile, a weakening yen and relatively flat wage growth in Japan
have supported Japanese markets, as reflected in Wisdom Tree Japan
Hedged (DXJ) and the iShares MSCI Japan (EWJ) ETFs. Aggressive
monetary policy in the United States has supported the S&P 500, as
reflected in the State Street Global Advisors S&P 500 SDPR (SPY),
State Street Global Advisors Dow Jones SPDR (DIA), and Blackrock
iShares S&P 500 Index (IVV), which have been up nearly 17% over the
past year. Given China’s current financial challenges, both the U.S.
equity markets and the “Abenomics”-driven Japanese equity markets
may continue to outpace China’s iShares FTSE China 25 Index Fund
(FXI) and Korea’s iShares MSCI South Korea Capped Index Fund (EWY).
Continue to Part 2
Part 2 - Chinese exports will face more competition from Japan and
Korea
Part 3 - The delicate dance of the U.S. Fed and the Central Bank of
China
Part 4 - China tightens monetary policy: Will this be a Japan 1990
redux?
Related Content Chinese exports will face more competition from
… Japanese equities: Can the “Abenomics” rally …
Will “Abenomics” bring real growth to Japan’s … Does
“Abenomics” mean a new era of yen deprec … Why we could see
a new trend in Japan’s exports … Why Japanese exports could
break out of a 5-year … Ireland ETF Quietly Outperforms Other
Developed … Chinese Banks Feel Strains After Long Credit Binge
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Tiffany's strong China sales offset tepid Americas business
Reuters – Tue, Aug 27, 2013 11:09 AM EDT
Related Content View Photo
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shopper carries bags from Tiffany & Co. jewelers along 5th Avenue in
New York City, April 4, 2013. REUTERS/Mike Segar
RELATED QUOTES Symbol Price Change TIF 77.25 -3.5700 1913.HK 73.70
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the latest quarter, leading the U.S. jeweler on Tuesday to raise its
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There were fears this summer that luxury spending in China might slow
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to report good sales there. Prada SpA ( 1913.HK ) and Coach Inc ( COH
) recently posted big gains in the world's fastest-growing market for
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same summer pullback by U.S. shoppers that dented sales at chains
ranging from Saks Inc (SKS.N) to Target Corp (TGT.N).
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Tiffany executives told analysts on a conference call that tourists'
purchases had helped business tick up at the Fifth Avenue flagship in
New York, which generates about one-eighth of sales. Elsewhere,
though, there was still reason to be prudent, they said.
"We are maintaining a cautious sales outlook for the Americas until we
see solid evidence of an upturn," Chief Financial Officer Patrick
McGuiness said.
Shares of Tiffany rose 0.1 percent to $81.75 in morning trading.
An Ipsos poll conducted for Reuters earlier this month found 35
percent of Americans planned to spend less on jewelry in the 2013
holiday season, while only 5 percent expected to spend more.
Tiffany said it still expected net sales worldwide to increase by a
mid-single-digit percentage rate for the year, including the effect of
the strong dollar.
The company has struggled to find the right mix of the expensive
jewelry for which it is known and the more-affordable silver items,
typically less than $500, that generate 25 percent of sales and
comprise its most profitable category.
Still, the pickup in business outside the Americas, where Tiffany is
focusing its expansion, reassured Wall Street that the jeweler's
growth prospects remain good, Yarbrough said.
Sales in Asia outside Japan now account for about 22 percent of
overall revenue, compared with 11 percent five years ago.
SALES MISS
The company, famed for its robin's egg blue boxes, said global sales
rose 4.4 percent to $925.9 million in the second quarter, below the
$941.4 million analysts were expecting, according to Thomson Reuters
I/B/E/S. (Graphic: http://link.reuters.com/gup62v )
Sales growth would have been 8 percent if not for the strong U.S.
dollar, which reduces the value of goods sold overseas.
Same-store sales climbed 5 percent, in line with estimates. Excluding
currency fluctuations, they were up 7 percent in Europe and 8 percent
in Japan.
Despite strong demand for high-end jewelry in Japan, overall sales
there fell 14 percent because of the weak yen.
Second-quarter net income rose to $106.8 million, or 83 cents per
share, from $91.8 million, or 72 cents per share, a year earlier.
Per-share profit beat the average Wall Street estimate by 9 cents,
helped by lower pressure from diamond and gold costs.
Tiffany said price increases in some categories had not deterred
shoppers.
The company now expects a profit of $3.50 to $3.60 per share for the
full fiscal year, up 7 cents from its previous forecast range.
Last year, Tiffany's shares came under attack after it repeatedly
lowered its forecasts.
(Reporting by Phil Wahba in New York; Editing by Lisa Von Ahn and John
Wallace)
Related Content Tiffany's strong China sales offset tepid America's
… Tiffany 2Q profit rises, helped by China grow … Zale
posts first full-year profit since 2008, … Williams-Sonoma
2nd-qtr profit up on strong s … Target blames Canada and
cautious shoppers as … Wal-Mart sales disappoint as U.S.
shoppers curb … Deere profit jumps; concerns over farm-belt s
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Summer camp puts poetry in motion
GETTING CREATIVE IN WORCESTER
Jason Henry Simon-Bierenbaum, 24, of Somerville gathers his thoughts
Thursday at summer poetry camp in Worcester. (T&G Staff/TOM RETTIG)
By Alli Knothe TELEGRAM & GAZETTE STAFF
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WORCESTER — The topic of the morning was superpowers, and that
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The two budding poets were among about 20 teenagers in Worcester
Thursday honing their poetry.


Some traveled from as far as New Hampshire and Boston to attend the
weeklong (re)Vision: Liberate and Imagination, a youth performance
poetry summer camp at a former factory on Harlow Street.


Hosted by the Worcester Think Tank and operated by Mass Literary
Education and Performance Collective, the camp has students spending
this week writing, reading and improving their poetry.


Trinity, a soft-spoken 13-year-old with wavy hair and blue bands on
her braces, said she thinks of poetry as an extension of her music.


"It can be hard to get people's attention," and poetry is just another
way to express herself outside of playing the piano and the drums, the
Worcester resident said.


Trinity has been a poet for about a year, and is going into ninth
grade. She found out about the program through her poetry coach and
science teacher, James Kobialka, at the University Park Campus School.


The fee was $25 per student and about half the students received
grants or donations, said Alex Charalambides, a poet, the director of
Mass LEAP and co-founder of Louder than a Bomb, a Massachusetts youth
poetry festival held each spring.


The camp was partially sponsored by the Worcester County Poetry
Association, the Massachusetts Teachers Association and the North
Brookfield Teachers Association. It was first held last year in
Roxbury, with support from Youth on Board and the Massachusetts Poetry
Outreach Project, the fiscal agent for Mass LEAP.


Organizers are hopeful the event will be expanded next summer so that
it will be held in two or three communities across the state.


"It is one of the most powerful things they can do," said Mr.
Kobialka, who helped organize the camp.


He said the students are able to use poetry as a way to hone their
communication skills in a non-violent manner.


In addition to the Mass LEAP instructors, Poetry Slam veteran and
former coordinator for the Louder Than a Bomb Festival Robbie Q.
Telfer and National Poetry Slam champion Regie Gibson helped out at
the camp.


"When you share with other people it has a tendency to get people
together," said Tiffany Walker, 18, who traveled from Peabody. She has
been a poet for five years, and this fall will study liberal arts at
North Shore Community College.


Mr. Hicks-Courant, 19, of Watertown, will be a sophomore at the
Massachusetts College of Liberal Arts. He has been a poet since he was
about 10 and started "slamming" when he was 17.


"Slamming is competitive performance poetry," he said. Only about half
of slamming is the poem itself, and the other half is how it is
portrayed on stage.


This is Mr. Hicks-Courant's last year to be a participant in the camp,
and he said he is "grateful to Mass LEAP" for putting it on. He plans
to continue to write and perform poetry and to one day become a high
school English teacher.


"I use it as a catharsis," he said of the art, describing it as a type
of emotional outlet for anything in his life.


The students will perform their works at 6:30 p.m. Saturday at the
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          Police release
new info about Tiffany's burglary suspects
Six suspects used white Chevrolet Trailblazer SUV as getaway car
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Police have released new surveillance photos and suspect vehicle
descriptions related to a brazen robbery at Tiffany & Co. in Walnut
Creek earlier this month.
The robbers used a stolen truck to force open the doors of the
high-end jewelry store, located at 1119 S. Main St., around 5:45 a.m.
on Aug. 15, according to police.
The thieves made off with jewelry and fled in a getaway car.
This week police released security camera photos from a nearby
downtown Walnut Creek parking lot a short time before the robbery.
The images show six suspects meeting in the parking lot and some
removing the license plates from a white Chevrolet Trailblazer SUV
used as the getaway car after the robbery, police said.
The security footage also shows the truck used to force open the doors
of the jewelry store and abandoned there, as well as a newer looking
black Cadillac sedan and what appears to be a dark Chevrolet Tahoe
SUV, according to police.
Police described the driver of the Trailblazer as a Hispanic man in
his early to mid 20s of average height and medium build who was
wearing a dark hoodie and a baseball hat on the morning of the
robbery.
A suspect linked to the stolen pickup truck is described as a white or
Hispanic man who is about 5 feet 6 inches to 5 feet 9 inches tall with
a slim build who was also wearing a dark hoodie and a baseball hat,
police said.
Another suspect associated with the truck is also described as a white
or Hispanic man wearing a hoodie and baseball hat, with a medium build
and standing about 6 feet tall, according to police.
Anyone with information about this crime is asked to call police at
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By Gaurav Ghose, Financial Features Editor
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Related Links
Fashion feng shui your way to success
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Lucia Csobonyei, a certified personal image consultant at Dubai-based
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from all over the world and that all kind of wallets can find their
target,” says Kabir. “If you really are budget conscious, they are
many stores and brands where you can shop. Dressing well will depend
on your ability to pick the right items for you, that is what will
make the whole difference.”
Rana Saab, a Dubai-based certified image consultant and celebrity
stylist who offers her services online at ranasaab.com, seconds
Kabir’s opinion.
“Dubai is a cosmopolitan city with a high sense of fashion and an
abundance of retail outlets from the grand malls to the small
tailoring shops, which makes it easy and accessible for people to
invest in professional wardrobes,” Saab says.
Shopping festivals at different times of the year with stores offering
discounts is a good time to pick up your necessary items.
“So keeping an eye open for that great deal is worth it,” Kabir
says. “But be careful not to buy something not needed just because
it is on sale.”
Outlet stores such as the Dubai Outlet Mall offer choices at a
relatively reasonable price.
“The Outlet Mall is good especially for office looks because it is
not so much seasonal,” Maatouk says. “It offers a variety of
clothes with a classic look like for women, jackets, pencil skirts,
straight cut dress and for men, classic suits.”
Outlet stores also make brands more affordable.
Check out online stores too
Realising that online buying has picked up in the last two years,
Maatouk is about to launch her own online store in the next two weeks.
“Online is now getting more and more important,” Maatouk says.
“The prices of things like Ralph Laurens and many other names you
find online are many times much lower than you would find in a
store.”
It’s not about brands, more about fit
While you might well get great bargains on big brands and pick them
up, it is wise to keep in mind brands don’t matter when it comes to
smart dressing for office. A quick run to the tailor can get you the
corporate look at a lower price and in a fit and style you want.
“Great access to professional tailoring also makes a major
difference here,” Al Shaikh says. “People can always buy brands
[here] but more importantly, can kit themselves out with well-tailored
suits.”
It’s always a good idea to opt for made to measure, Maatouk says.
“Rather than buying a white shirt for Dh1,000 there are places which
offer four made-to-measure shirts for Dh1,200,” she says. “This is
also true for men’s suits: you can get them done for a couple of
thousands.”
Csobonyei adds: “It is possible to create basic wardrobe even for
Dh3,000 by choosing low cost brands There is always a solution to
fulfil customers requirements and meet the budget.”
Rather than chasing brands, Kabir says, “what matters the most is
buying items that fit you and enhance your colouring and shape.” She
even puts the cost of a basic wardrobe for women with resorting to
brandnames at less than Dh3,000.
Mix and match items
It’s how you put your attire together, matching different colours,
for different occasions as well as for seasons.
Csobonyei says that while a lot of people are seen wearing expensive,
branded clothes what she misses is a sense for mixing and matching
individual pieces to create a harmonised look.
“Practice with mixing and matching individual pieces can always
create a new outfit even if the parts are repeating,” she adds.
The skill lies in how you mix the items, Maatouk says.
“You can buy a suit for Dh600 and depending on which blouse you pick
for it, you can make it look like you are wearing a dress of couple of
thousand dirhams, but it is not. There are choices available out there
that may be within your budget.”
Build up your wardrobe over time
This pertains more to the fresh graduates, who can afford the bare
minimum before they receive their first paycheck. You don’t have to
have three suits at first go.
“If you start from scratch or if it is your first job, allocate a
monthly budget to building your wardrobe, you can do miracles with
small amounts,” Kabir says. “Doing it over time helps you try out
and realise the missing items that you need to build up more outfits
with the items you have. So, you will invest in a clever way.”
The first purchase, say for a woman, should include at least one suit
that can be dry-cleaned on the weekend and a couple of blouses,
Maatouk suggests. Men can manage with just one suit as along as he has
different shirts to pair it with along with two ties and a good pair
of black shoes and a briefcase.
Gradually in a month or two women can buy a new dress, add a skirt and
a formal blouse, and another pair of shoes. Men can buy a few more
shirts, a couple of more ties and another pair of shoes.
Knot Standard’s Al Shaikh says a professional wardrobe for men can
cost anywhere between $1,000 and tens of thousands. Ideally, he says,
a professional wardrobe should include at least three custom-made
suits, half a dozen shirts of high quality cotton, half a dozen ties
and other accessories such as cufflinks and suspenders. “Begin with
a basic palette — say navy and gun metal grey suits — and then
build out from there to include a glen plaid or Prince of Wales check
or for the more fashion forward, a brown or pinstripe suit,” he
says.
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Comments (1)
Added 14:41 August 4, 2013
No mention of the abaya at workplace? Disturbing to know that several
women lost their jobs due to their choice of attire, in a Sharia
state.
Anonymous, Dubai, United Arab Emirates
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