Israel's Place in the Sun

By Barbara Rudolph

When SPORTS ILLUSTRATED's annual swimsuit issue hit the newsstands in February, 19.5 million readers were captivated by the come-hither pose of Czech-born Model Paulina Porizkova, whose sea-green bikini accentuated all the right curves. Armin and Leah Gottlieb, however, had eyes only for her $50 lace-andLycra swimsuit, which was manufactured by their Israeli company, Gottex, a privately held family firm (1984 sales: $40 million) that is the leading exporter of fashion swimwear to the U.S.

With headquarters in a five-story concrete-and-glass building in the industrial sector of Tel Aviv, Gottex controls some 65% of the Israeli swimwear market. Worldwide, it sells more than a million premium-priced pieces a year, from brightly colored suits ($48 to $240) to coordinated cover-ups such as shorts, oversize shirts and tunics ($16 to $250). Gottex's stylish products can be found on beaches in 63 countries, including Jordan and Lebanon where they appear without the "Made in Israel" label. They cover some celebrated bodies, from Diana, Princess of Wales, and Spain's Queen Sofia to Elizabeth Taylor and Brooke Shields. Once when Henry Kissinger was in Jerusalem negotiating peace between the Arabs and Israel, his wife Nancy was given a special showing of Gottex products at the King David Hotel. She bought ten suits.

Armin, 72, and Leah, 67, are refugees from Hungary. When World War II broke out, he was running a raincoat factory and she was preparing to study chemistry. He was eventually shipped off to a labor camp, while she lived in Budapest in hiding. In 1949 they arrived in a transit camp east of Tel Aviv with two small daughters and $100. At first the Gottliebs tried to resume their trade, but they soon discovered that selling raincoats in dry, sunny Israel did not have much future. With $65,000 borrowed from Armin's brother in the U.S., the Gottliebs in 1955 bought thousands of yards of Lastex and transformed it into bathing suits.

In the swimwear business, manufacturers often survive about as long as a sand castle on the beach. Gottex, though, has made money for the past 15 years, and in 1984 it earned $4 million before taxes. It has prospered with a simple formula: sell sexy bathing suits and stake out the fashion end of the market.

The sexy Gottex style comes from the use of a high proportion (20%) of Lycra in the suits, which gives them a tighter fit. Says Leah Gottlieb: "I make clothes for people who are comfortable in their bodies." While the company sells its products in Israel in a wide range of outlets, in the U.S. it caters to the chic crowd in such stores as Neiman-Marcus, I Magnin and Saks Fifth Avenue. Says Kal Ruttenstein, Bloomingdale's vice president of fashion: "They're very innovative and take trends from ready-to-wear collections to their swimwear line."

Despite the rapid growth of the business, Gottex remains very much a family endeavor. Armin still watches over the company finances; Daughter Judith Gottfried, 40, works as president; her sister Miriam Ruzow, 43, runs the American division. Most of the kudos for Gottex's success, though, goes to the deceptively frail-looking Leah Gottlieb, who is known affectionately in Israel as Lady Leah. She roams the world looking for new styles and materials and personally approves every fabric and design before it is printed at workshops at Lake Como, Italy. She often dreams up new ideas while watching the sun rise outside her Tel Aviv rooftop apartment. Last year's Olympics led to a motif of stars and stripes, while the TV show The Love Boat inspired a cruisewear line with a nautical look.

This summer's Gottex swimsuits feature neon colors and geometric designs. The company will also try to sell some suits with floral patterns. "They were a flop last year, but we think now is the right time," says a company spokesman. One promising suit: a flattering black-and-white-checked one-piece style with a plunging yellow neckline ($66). Bloomingdale's New York City store has sold more than 4,000 of them so far this year.

Gottex is tinkering a bit with its formula for success this season by selling a new U.S.-made line, Viewpoint, at modest prices. The suits, which Gottex hopes will appeal especially to young women, retail at an average price of $38. The new Gottex line faces direct competition from Jantzen, Catalina, Cole and other established mass-market manufacturers.

The Gottliebs are moving beyond bathing suits. In 1982 the company name was licensed to Fieldcrest for use on sheets and towels. In Israel, the Gottex label already appears on eyeglass frames. The firm is planning a line of clothes for tennis, golf, skiing and squash. And, in a salute to its past, Gottex now makes plastic rain capes.

With reporting by Georgia Harbison/New York and Marlin Levin/Jerusalem