The 12 hopefuls all meet up in New York and are given their first assignment: Innovation. Taken to a place where they are said to get their materials, the designers are shocked to see it is a grocery store.
Back in the workroom, Austin Scarlett is confused about how to make a dress out of his many corn husks. Mario Cadenas, on the other hand, quickly makes a dress out of a shower curtain and is finished in 10 minutes. At judging, Austin's creativity pays off as he is the winner of the competition, and Daniel Franco is the first designer sent home.