Russ: This is the BusinessMakers Show heard here and seen online at TheBusinessMakers.com. It's guest time on the show and I'm very pleased to have with me this morning designer, fashionista, retailer, E-Commerce expert none other than Chloe Dao. Chloe welcome to the BusinessMakers Show.

Chloe: Well good morning Russ. It's great to be here and thank you so much for inviting me.

Russ: You bet. Well let's start right here today in 2010. Tell us what your focus is today with your business.

Chloe: Today there's a lot of focuses actually. The key word for me right now is to diverse. I do my bridal line. I have my Dao Chloe Dao line and then I do my QVC line. Then I do electronic accessory line with Nuo and I'm even thinking about doing a lower price line. We're slowly going to that and we're trying to go back to wholesale also. A lot of things. I'm trying to - and I have my store.

Russ: Maybe it would have been easier for me to ask you what you're not focused on now. I forgot in the introduction to say QVC expert, too. Man, you've had quite a bit of success there, right?

Chloe: I wouldn't call myself an expert at QVC. Yes, I've been very lucky to be on QVC so far now for three years already. So very fortunate to be with QVC.

Russ: That's cool. That's cool. Somebody can't do any research on you without running into this Project Runway success. That had to play a huge role in what you've accomplished so far. Would that be right?

Chloe: Oh I mean it's almost an understatement actually. Project Runway has pretty much changed my career. I mean before I went on the show I would have my business for five years, my store and really that was my dream was to have my business and that's all I wanted, a little boutique. But now because of Project Runway I'm involved in all this other things that I spoke about mainly QVC and Nuo electronic accessory and a lot of other charity works and other things that I've done and it's really just based on - because of Project Runway.

Russ: Now if we have a listener or a viewer who doesn't know anything about Project Runway give them a little description of it.

Chloe: Project Runway is really - it's a competition to find the next great American designer and I won season two. It's - the beauty of that show is really that it's hosted by Heidi Klum. So she's a top model, supermodel. On the judging panel it's Nina Garcia, Michael Kors. So you have major fashion editors and then major designers and other guest judge are huge icon in industry. So you really are getting validated by the most prestigious, the most iconic people in the industry. So this is not any rinky-dink reality TV show.

Russ: Right. Now that you won, that was in 2006?

Chloe: 2006.

Russ: Okay. Now did you know those people before you actually -

Chloe: Oh yes, of course.

Russ: You did. All right. Did they know you?

Chloe: The judges or the contestants?

Russ: The judges.

Chloe: Oh no, no, no. They definitely did not know me. I was just a designer in Houston, Texas. I lived in New York for eight years and I work in the industry, of course. That's how I know of them. I mean they're big players in the industry, but of course, no, they did not know me.

Russ: Did you know the other contestants?

Chloe: Not at all. We were - the beauty of Project Runway is it's all unknown designers, all small designers or even just home sew-er, people that just graduated, people like me who's been in the industry for almost eight or nine years before I went on the show, teachers that are design teachers. So no. I mean we were all very unknown in the industry.

Russ: Okay, well I do want to talk about that eight or nine years before that in a second. But I'm so curious about Project Runway. I mean it must have been a big deal to be selected to be on the show, right?

Chloe: It is because there's thousands of people. They cast all over the United States. There were four city my years, New York, L.A., Chicago and Houston. So that's the only reason I tried out. I had a - I woke up that morning, made a dress and tried out like everybody else. Wait in line and I got lucky.

Russ: Now wait a minute. You didn't make the dress that morning when they put that -

Chloe: I sure did because I watched season one so I wanted to come in with kind of an advantage saying that, "I can do this competition. I made this dress this morning in a few hours. So you're going to be for sure that I can handle this competition because the competition is insane." You make a lot of clothes in 12 hours or less.

Russ: Right. So in the competition itself models actually modeled designs that you created.

Chloe: Yes.

Russ: How many different ones did you have to present to win?

Chloe: Gosh, I can't even remember. I think there's like 10 or 12 because we do it every day for a month. So maybe more than 10. Well yeah, at least 10 and 12 challenges.

Russ: So does that mean every day you came in and designed something new?

Chloe: Yes.

Russ: Did you make it then too or did -

Chloe: Oh yeah. No, every day either we're making clothes till midnight or we're getting eliminated or you're getting where you're on stage and you get eliminated.

Russ: It sounds brutal.

Chloe: It's brutal. I call it the Navy Seal of fashion.

Russ: Right. [Laughs] Navy Seal. Talking with Chloe Dao, the founder of her own clothing line, retail line, her QVC success and as well her E-Commerce success. We're going to be back with more with Chloe after this. You're listening to the Businessmaker Show heard here and seen online at TheBusinessMakers.com.

[Commercial]

Russ: This is the BusinessMakers Show, heard here and seen online at TheBusinessMakers.com. Continuing on with Chloe Dao. Now Chloe, this Project Runway success was a huge success. There's a lot of people that think that that just sort of happened and you were always just sort of playing around on your own and you got out there and won but from my research you'd been doing a lot of hard work before then, right?

Chloe: Oh yes. I was 34 when I got on that show. So I was definitely a lot older already. I worked in the industry for eight year in New York City before I went - before I came down here. I have a degree in pattern making. I mean I work in the industry as a production manager, assistant designer, merchandiser. I'd pretty much done it all.

Russ: So as an overnight success you'd actually been preparing for quite some time.

Chloe: Yeah, a long time.

Russ: Okay. Well I find it interesting, your whole life. So let's go back to the very beginning. Tell us about the beginning of Chloe Dao.

Chloe: Well I was born in Laos. I came to the United States when I was eight years old and what really sparked my interest in fashion was really watching Elsa Klensch on CNN. It was the first show ever about fashion ever, ever.

Russ: How old were you then?

Chloe: I was pretty much 11 or 12 when I first saw the show.

Russ: Okay, so this is like three or four years after you had come.

Chloe: Yes.

Russ: Do you still remember living in Laos?

Chloe: I have no memory of Laos whatsoever. I don't know because it's traumatic or not. It's very strange. I have no memory of it.

Russ: Okay, but you remember being in the United States very early on and remember seeing this fashion show at 11 or 12.

Chloe: Mmm-hmm.

Russ: A little research I did kind of told me that your family which is quite large - you have like seven -

Chloe: I have seven sisters.

Russ: Seven sisters. That your parents wanted you all to be lawyers and engineers and that sort of thing.

Chloe: Yes. That's the traditional Asian dream because those are the safe career. Those are the career that they understand equates to success and money. I think for them to come over here they want us to have that security. I mean that's why we got over here in the United States but thank God for seven sister because they can do other things and I can do other things.

Russ: Right. Well I guess some of this design is kind of like engineering. I mean you're really paying attention to dimensions and that sort of thing.

Chloe: It sure is. Yes. It is engineering in my opinion.

Russ: Are your seven sisters headed down the path that your parents wanted them to go?

Chloe: None of us are doctors and lawyers [laughs].

Russ: All right.

Chloe: But they're happy.

Russ: So good. So good. So at 12 you decide, "Boy, that's what I want to do." So what did you do about it? Did you start actually designing?

Chloe: You know I really didn't start design - I was still trying to be a good daughter and just study hard. I was a major nerd but I loved fashion at the same time. I actually wanted to do but I never really - I made my own prom dress in high school, made my little clothes but really just thought that was just the backburner. I really won't ever be in fashion. What really changed me is I actually went to University of Houston to study business marketing because, "Okay, I'll be a fashion buyer. At least I can get it in that way."

Russ: Right, be in the industry.

Chloe: Yes, in the industry. But, Russ, what really changed my whole life is watching the movie Dead Poets' Society.

Russ: Dead Poets' Society.

Chloe: Yes.

Russ: Wow, to follow your dream. Don't waste your life.

Chloe: Exactly. It's Carpe Diem and the theme is got to be more, got to see more and got to do more. After I watched that movie literally a week later I drop out of U of H. I'm think in the middle of semester or at the end. I'm not sure. Then enroll in fashion design at Houston Community College. I pretty much - that movie changed my life to just it's okay to just follow your dream.

Russ: That is so cool. Wow. That is really neat.

Chloe: A movie.

Russ: So you went to fashion design at HCC and I know from there eventually you decided, "I guess I have to be in New York City to do this," right?

Chloe: That's also a fluke really. I mean I met a classmate at a party in the summer and she's like, "Do you want to go to New York just to see how it is?" I was supposed to go on just for a weekend and the weekend turned to eight years. I just went, "Mom, I'm not coming home."

Russ: So were you able to get employment? I guess in the beginning you didn't go up there and start your own business _______ _______ _______.

Chloe: Oh no, definitely not. I mean that's when - I was 20 years old when I went to New York for a vacation that turned into a whole eight years there and my goal - I just realized, "You know what? This is the city I need to be in." I got a part time job at Macy and then I enroll at FIT under the pattern making program, not even design because even -

Russ: Pattern making.

Chloe: Yes. I thought even back then I'm like, "I want my own boutique. I want my own business." What better way to really understand how to do things is to understand making things because pattern making I think is the key to really making the reality of a sketch into a real garment.

Russ: Okay. Now a couple other things I kept reading and I don't know much about fashion but I kept reading this and it seemed to make sense about you that somehow or another you seem to understand the dimensions of a woman's body very well. I don't know, maybe that came to you naturally or maybe the pattern making school taught you. Do you think that you do that better than other designers?

Chloe: I think I care more about that than other designers because I think being a woman I think you do care about it. Design there's always a balance of being super creative and making it sellable. I call that commerce versus creativity. A woman will only buy something that she looks beautiful and feel beautiful in it and a lot of it is is it flattering to her figure. For me my main goal is to make her look good versus me being super creative. It's like - yeah.

Russ: Well it's interesting you say it that way too because from what I also learned about you too is that you seem to encourage paying for young fashion designers to pay a lot of attention to the business side of the formula because it's fun to be an artist but if you're making something that doesn't sell it doesn't really work.

Chloe: Yeah. It's fun to be an artist if you're making a living. It's not fun to be a starving artist.

Russ: Right. So where do you think that came from in your DNA? How did you realize, "Wow, I've got to do something that they like"?

Chloe: Well you know what? I think working in the industry for eight year in New York and working with a small company with Melinda Ing and it's just she and I. I grew it with her to from a small literally $100,000.00 a year company to a $3 million a year company after I left. So I saw that at the end of the day it's business. It's all the cost, the overhead, the employee cost. I mean the advertising costs. I mean there's - it takes a lot of money to make clothes.

Russ: Right. So you have this location. You also offer your product online.

Chloe: Yes. We have an online Website.

Russ: What's the Web address?

Chloe: It's ChloeDao.com or just Lot8Online.com. Chloe Dao's easier.

Russ: You still do QVC?

Chloe: I do also have my own line for QVC and that's a whole completely different line. Then I do the Nuo Accessory line which is luggages, laptop cases, backpack and that Target.com E-bag. We're actually in Staples right now nationwide.

Russ: Oh my goodness.

Chloe: So yes, they do a lot. Then we just launched a wholesale line and then I also have the bridal line. Then I have the lower priced line.

Russ: Okay, wow. Really cool. Covering all the bases there for sure. I always wonder this about you. You clearly sprung onto the scene. People know about you worldwide and when it came time for you to open your retail you kind of brushed off Madison Avenue, New York and Rodeo Drive and chose Houston, Texas. Now I'm a fan of Houston, Texas but my God, it's not known as the fashion capital of the world. But you're doing quite well here.

Chloe: I've been very lucky. But you know, to be honest, when I came back here I was 28 to open my store and I have eight years in New York already and I did research for two years about the retail market here before I even decided to come down. The best thing about Houston, Texas is it's so open to young entrepreneur. Rent is reasonable. Ten years ago was definitely a hunger for fashion. Definitely the landscape has changed definitely. But you know, it was easy to just open a small business on your own and the city really gives you that opportunity.

Russ: That's great. That's really great. Talking to Chloe Dao, the founder of her own line of clothes and her retail outlet. We'll be back with more with Chloe after this. You're listening to the BusinessMakers Show heard here and seen online at TheBusinessMakers.com.

[Commercial]

Russ: This is the BusinessMakers Show heard here and seen online at TheBusinessMakers.com. Continuing on with Chloe Dao. Now Chloe, we've been standing amongst these mannequins with some of your real cool designs.

Chloe: Thank you.

Russ: I want to hear a little bit about some of them specifically this one here. I've been eyeing it and I know it would look great on my wife.

Chloe: Hot wife.

Russ: Yes. My wife. It's really cool. Tell us about it.

Chloe: Thank you. This whole collection is my Fall 2010 Collection and this particular dress is actually my favorite dress. I'm glad you picked this out. It's called Dominique and it really showcase what I think is beautiful on a woman which is the beautiful shape. I love the texture of this but the key element to this dress is this elastic weaving that we did over here. It's subtle but not subtle at the same time. So this is pretty much what I do, classic but very sensual but ladylike at the same time.

Russ: That almost seems like - it's almost like asking you like you ask a songwriter how did the idea pop in your mind because the fabric seems so unique and then every dimension on it you're responsible for and then putting it together. Do you have these visions at night or something and dreams or how do you come up with the ideas?

Chloe: You know I love that you said at night because I actually design best when I'm actually closing my eye. It's like maybe 30, 40 minutes before I wake up I lay in bed and I close my eye and that's when actually I design my best when there's complete silence. There's no phone yet, no assistant, no - a lot of people not bother me.

Russ: Do you have to get up and sketch it real quick or you'll forget or does it just stick in your mind?

Chloe: It actually sticks in my mind. When something is good thank god it stays there but as I'm getting older I have to get up and sketch it.

Russ: Now from a business perspective let's say that this became very popular. How many of these might you sell?

Chloe: You know what's our most popular pieces is this dress called Nikki and we can sell like 100 to 200. I mean we sell dresses that we keep cutting and keep cutting and we didn't realize how many pieces we already cut. But the beauty of what I do here too sometimes like this dresses I only had enough fabric for four dresses. So this is truly a very limited edition.

Russ: Wow, I would say so. All right so let's say I walked in today and said, "Yeah, I'm going to buy that for my wife." How much would I pay for it?

Chloe: I think this one is $358.00.

Russ: Okay. That's really cool.

Chloe: Thank you.

Russ: Well I really have enjoyed hearing your story and having you tell your story, too. Let's imagine for a second and you know that the BusinessMakers audience is business people and mostly focused and being entrepreneurs. Let's imagine there's an aspiring young entrepreneur that's totally impressed with what you're accomplished. What kind of general advice would you give him or her?

Chloe: Well you know for me it's a lot of combination of things. First and foremost is you make sure you have to love what you do because being an entrepreneur as you know sometimes you just don't make it. Sometimes you're going to have problems where it just seems like you can never overcome it, but if you love it you have the strength to overcome it. The other thing is research. Make sure what you want to do has not been done already. I think most important for me is to - if you make a mistake and it keeps not doing it right change it because sometimes stubbornness will kill you. I think that's the key is to learn to change and adapt.

Russ: Okay, very interesting. Before I let you go, too, share with us what's your sort of long term vision for Chloe Dao? I mean what would major success be like five years from now?

Chloe: I think major success would be for me is having more location and really having my stuff in the wholesale. I think once it expand in other stores around the world and around - I think that to me is real success in my opinion.

Russ: Okay, great. Well Chloe I really appreciate you sharing your story with us.

Chloe: Thank you so much.

Russ: That's Chloe Dao, the founder of her own line of clothing and her own retail operation. It's just really been a pleasure.

Chloe: It's been great.

Russ: This is the BusinessMakers Show heard here and seen online at TheBusinessMakers.com.