Robert D'Loren is the CEO of Xcel Brands, a company that owns the Isaac Mizrahi name and has an interest in Liz Claiborne New York. Yesterday, we told you how the company is championing an omnichannel marketing strategy. Today, we'll continue the conversation — and explore how the company stays in tune with consumer demand.

One thing of paramount importance is color forecasting. For a holding company for two top clothing lines, as well as a jewelry line, forecasting what demand will be in terms of color and style is critically important.

No one would be crazy enough to make big investments in a thought or whim about what might be popular in two years, D'Loren said. Rather, companies have to keep their fingers on the pulse of future trends and monitor places from which they evolve.

The Great Pyramid of Art

Creative types often refer to pyramids, divided into layers. The one that fuels D'Loren's imagination has art at the top, followed by music, film, technology and architecture. More recently, he's added two new layers at the bottom — fashion and social media.

D'Loren said he was introduced to the great “pyramid of art” at the offices of Peter Max, the German-born American illustrator and graphic artist. Max rose to fame in the late 1960s for his use of psychedelic shapes and color palettes, like the one shown in this post.

D'Loren said he worked closely with Max for a time. It was a beneficial relationship, he recalled, prompting him to share the story of the great Lucite pyramid in the artist's office.

I can't locate an image of this pyramid, so you'll have to use your imaginations. According to D'Loren, it stood on or near Max's desk.

Standing about three-feet tall, it encapsulated the hierarchy of art and the concept of trendsetting. The message that it represented still resonates today, especially with the extension to fashion and social media, he explained.

What does that pyramid have to do with color forecasting and fashion trends? Let me explain.

What a lot of designers do now (bearing in mind that all fashion and product brands have creative directors and people who are constantly looking for trends) is send trend-spotters into various cultural centers …  Paris, Milan, Tokyo. The idea is to look at what is hot in art.

For example, Robert Lichtenstein's work stole the show in Paris last year. What trickled down into fashion from those works were his color palettes.

Fashion designers take their cues from art, D'Loren explained. Then they look at the next layers on the pyramid: music and film, because that is where other visual cues emerge. Architecture, the next layer, supplies many cues in terms of graphics, prints and patterns.

In essence, the clothes and colors you wear today reflect the hottest recent trends in art, music, film, technology and so forth.

But Wait A Minute…

Call me a skeptic, but I had some doubts about the whole thing. So I shared then with D'Loren.

Do the curators in major museums or art and cultural centers truly know what they are doing when they choose "hot trends" to promote? Or are they simply making it up as they go along to fit their own preconceptions of art and what the prevailing trends ought to be?

D’Loren countered, again, with his own "mental model" of how the fashion and accessories world works. Namely, in his world, the art curators are the de facto "trend setters," and designers take their cues from art curators.