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Category: Fashion

Retail News Asia is committed to providing both local and global retailers with the latest Fashion news throughout the Asian market. This on a daily base.

  • Shanghai La Chapelle Fashion seeking profitability

    Shanghai La Chapelle Fashion seeking profitability

    Shanghai La Chapelle Fashion warns it will report an operating loss for last year, for the first time in its trading history.

    In an update to a profit warning issued last December, the company says total revenue dropped by about 2.5 per cent last year and costs accelerated.

    “Revenue from La Chapelle and Puella, which are our main women’s wear brands, is estimated to have decreased by approximately 11.94 per cent and 13.35 per cent year-on-year, respectively, and the growth in sales of the women’s wear brand Candie’s and that of children’s wear and men’s wear brands could not make up for the decrease in sales of La Chapelle and Puella,” the company said in a regulatory filing.

    With a slowdown in consumption growth and a decline in customer flow at physical stores, La Chapelle’s sales at brick-and-mortar stores in the second half of last year were lower than expected. As a result, revenue in the third and fourth quarters decreased by 7 per cent and 6 per cent, respectively, year on year.

    The company also reported a continuing decline in revenue from concessions at department stores. Last year, that revenue was estimated at about RMB4.893 billion (US$729 million), down 7 per cent, and department stores’ share of total sales fell from 50.4 per cent to 48 per cent year on year.

    In the second half of last year, the company closed down 179 loss-making and inefficient stores, and launched a joint-venture “franchise and trusteeship cooperation business model”. It ended the year with 9269 stores.

    The company estimates it will post a net loss attributable to shareholders of about RMB156 million, representing a decrease in net profit attributable to shareholders of the company of RMB654 million (US$23.256 million).

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  • Adidas Test to Sell Shoes Made of Ocean Plastic was So Successful

    Adidas Test to Sell Shoes Made of Ocean Plastic was So Successful

    Adidas has spent the last four years curbing ocean pollution by recycling plastic beach waste into shoes – and because their customers have been so eager for the product, the company is kicking it up a notch. Adidas produced more than five million pairs of recycled plastic waste shoes in 2018, and they plan to incorporate the waste into at least 11 million this year.

    The upcycled plastic waste is made into a yarn which has since become a key component of the upper material of Adidas footwear. In addition to shoes, the company has also used it to make the first ever football jerseys made from recycled materials.

    The sporting goods manufacturer first started making the shoes in collaboration with environmental group Parley for the Oceans back in 2015. They developed the slick kicks using plastic waste intercepted on beaches, such as the Maldives, before it can reach the oceans. The Parley shoes are recreated from editions of their UltraBoost shoe, and a new version of their Adidas Originals shoe.

    And, in 2016, Adidas stores stopped using plastic bags.

    “We also continue to improve our environmental performance during the manufacturing,” said Gil Steyaert, who is responsible for global operations. “This includes the use of sustainable materials, the reduction of CO2 emissions and waste prevention.

    “In 2018 alone, we saved more than 40 tons of plastic waste in our offices, retail stores, warehouses and distribution centers worldwide and replaced it with more sustainable solutions.”

    Additionally, Adidas is committed to using only recycled polyester in every product and application where a solution exists by 2024. As a founding member of the Better Cotton Initiative, Adidas meanwhile sources only sustainably produced cotton.

    Recently, Adidas signed the Climate Protection Charter for the Fashion Industry at the UN Climate Change Conference in Katowice, Poland—and agreed to reduce greenhouse gas emissions by 30% before 2030.

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  • Athleisure trend boosts Yue Yuen sales in 2018

    Athleisure trend boosts Yue Yuen sales in 2018

    Yue Yuen Industrial, the world’s largest manufacturer of athletic, athleisure, casual and outdoor footwear, boosted revenue by 6.3 per cent last year.

    Yue Yuen makes shoes for a raft of brands, including Geox, Levi’s, Rockport, Carters and Pony. Its subsidiary Pou Sheng operates a network of some 5500 directly operated stores and 3000+ sub-distributor stores, predominantly on the mainland.

    For the year to December, the Group recorded revenue of US$9.695 billion, with gross profit up by 4 per cent to $2.446 billion. However, profit attributable to shareholders fell 40.9 per cent to $307.1 million, mainly due to operating deleverage within the manufacturing business, a reduction of the non-recurring gain for the year, and higher finance costs.

    Yue Yuen said revenue attributed to footwear manufacturing (including athletic shoes, casual/outdoor shoes and sports sandals) declined by 1.5 per cent to $5.39 billion, whereas the volume of shoes produced increased by 0.4 per cent to 326 million pairs. The average selling price decreased by 2 per cent to $16.53 per pair, compared with the previous year.

    The group’s athletic footwear category outperformed all other categories as a result of the global athleisure trend, accounting for 79.2 per cent of footwear manufacturing revenue last year. Casual and outdoor shoes accounted for 19.1 per cent of footwear manufacturing revenue.

    The group’s distribution sales are derived primarily from Pou Sheng, involving in retail operations for international sporting goods brands in the Greater China region. Last year, the revenue attributable to Pou Sheng grew by 23.3 per cent to $3.422 billion.

  • Myer axes 50 management staff and fresh marketing lead

    Myer axes 50 management staff and fresh marketing lead

    Myer has cut a further 50 positions from its store management and store support team, including group general manager of marketing Andrew Egan. The cuts are the second round of large scale lay-offs for the department store in the last eight months, with over 30 executive positions cut last August, in order to reduce costs and barriers between the business and its customers – bringing the total number of executives lost within the last year in the realm of 80.

    “We have to place the customer first, in every decision we make and every action we take,” a Myer spokesperson said.

    “From doing a thorough review of our entire store management structure and a further review of the store support office… as a result of this, a number of administrative and management roles will be leaving the business to align our structure more closely with our customers.”

    No customer facing team members have been affected by the cuts.

    According to the spokesperson, this will enable the business to operate in a more efficient manner, improving the financial performance and shareholder value delivered.

    Myer recently posted a rise in net profit for the first half FY19, increasing 3.1 per cent to $41.3 million, signalling that the brand’s customer-first turnaround strategy has some legs.

    The retailer improved store layouts over the half-year, and launched the ‘My Store’ marketing campaign, which chief executive John King said had been received well by customers.

    Despite this, Egan, who led the launch of the ‘My Store’ campaign, as well as the department store’s recent Christmas campaign, has been let go in this recent round of lay-offs.

    “We thank Andrew for his contribution to Myer and particularly to our marketing and advertising team,” the spokesperson said. “We wish him all the best for the future.”

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  • Asos’ US warehouse struggles to cope with demanding customers

    Asos’ US warehouse struggles to cope with demanding customers

    UK digital fashion store Asos said its new US warehouse struggled to cope with demand last quarter, hitting sales there and causing delayed shipments. Asos CEO Nick Beighton said the unexpected high demand in the Atlanta warehouse caused a significant short-term despatch backlog, which has now been cleared.

    “As our Atlanta warehouse went fully online, demand far exceeded our expectations,” Beighton said.

    “While very encouraging for the longer term, this caused a significant short-term despatch backlog which we have now cleared. These delayed shipments will be recognised in P3 and US trading is now regaining momentum.”

    The upsurge in US demand caused Asos to cancel marketing and promotions, Beighton said. These will now run in the second half of the financial year. The online fashion retailer posted a 13 per cent increase in group sales for the latest quarter with retail gross margin improving by 40bps.

    “We continued to outperform in the UK with sales growth of 14 per cent,” Beighton said.

    Sales in Europe were up 12 per cent, although, according to Beighton, France and Germany, the two largest markets, continue to be challenging.

    “Our ROW segment returned to good growth of 20 per cent after a disappointing Q1,” he said. “Our retail gross margin guidance for the year remains.”

    Beighton said Asos will be increasing investment in price and marketing in the second half, particularly in France and Germany.

    “Given the actions we are taking together with an improving US performance, we believe the group will deliver stronger growth in the second half,” he said.

    “Consequently we remain confident that we will meet guidance for the full year.”$

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  • Pandora asked to fix refund policies

    Pandora asked to fix refund policies

    Jewellery retailer Pandora has been told by the consumer watchdog to amend its refund and warranty policies in Australia following complaints from some of their customers.

    The Australian Competition and Consumer Commission said they have received complaints from customers who were told by Pandora sales staff that they do not offer refunds to faulty products and that its own warranty policy applies instead of the protections afforded to consumers under Australian Consumer Law (ACL).

    According to ACCC Commissioner Sarah Court, the jewellery retailer acknowledged they may have misled customers about their legal rights.

    “Pandora has acknowledged that it may have misled customers about their consumer guarantee rights to refunds when there was a major fault with their product,” Court said. “They also have admitted that by doing so they likely breached the Australian Consumer Law.”

    Court said consumer rights to a repair, replacement or refund cannot be excluded, restricted or modified by a business’ warranty policy.

    “If consumers have purchased a product that has a major fault, they can request a full refund from their place of purchase,” she said.

    The ACCC has accepted a court-enforceable undertaking from Pandora to review its consumer rights policies and staff training after Pandora acknowledged it is likely to have contravened the ACL by making misleading representations to consumers about their consumer guarantee rights.

    The ACCC’s investigation showed that Pandora’s website contained confusing or inaccurate information on consumer guarantee rights under the ACL.

    It also noted that information on Pandora’s website about its product warranty failed to include mandatory text that states that consumers are entitled to a replacement or repair, and in some cases a refund, if their goods are faulty.

    The ACCC said Pandora has undertaken to arrange for an external review of its policies and procedures relating to exchanges, repairs and refunds, to ensure customer claims for refunds and other remedies are dealt with appropriately and in accordance with the ACL.

    “Pandora will also conduct a review of its ACL compliance program and improve its staff training and complaints handling systems,” Court said.

  • Second UNIQLO and alexander wang Collaboration Collection to Feature New AIRism Fabric

    Second UNIQLO and alexander wang Collaboration Collection to Feature New AIRism Fabric

    UNIQLO, the Japanese global apparel retailer, announces that it will begin rolling out a Spring/Summer 2019 collaboration collection with alexanderwang from Friday, April 12. The full collection will be available online and at Orchard Central Global Flagship Store, while selected items will be available in all stores. This second partnership with alexanderwang builds on the LifeWear commitment to making life better, bringing together the exceptional functionality of UNIQLO’s innovative AIRism fabric with alexanderwang’s sleek styling.

    Speaking ahead of the launch, Alexander Wang said, “Working with UNIQLO on the second season of the collaboration felt like there was a mutual understanding of not only aesthetics but of each other’s work ethic. It was easier coming together this time round to accomplish a similar goal from various touch-points. Innovation has always been at the forefront of our design and creative process, and functionality serves a huge purpose in the way our customers and I dress. Therefore, through the influence of innovation, technology and functionality, this special AIRism collection was born.”

    Keeping women comfortably stylish

    The collection adds new value to LifeWear by combining the year-round comfort of functional AIRism apparel with the signature alexanderwang look. Five of the 11 women’s items employ the sheerest-ever AIRism fabric, developed to feel like a “second skin.” During summer, women can enjoy camisoles and slips featuring a fabric so smooth, light and comfortable that they almost forget they are wearing them. Another fabric used in the women’s collection is a proprietary, new, seamless type of AIRism that is designed for both indoor and outdoor use. This new AIRism fabric is supportive but not constrictive, and is a perfect material for bras and even shorts to maintain comfort.

    First-ever cotton blend AIRism for men

    Men’s items include T-shirts and tank tops that incorporate a new fabric comprising a premium cotton finish and an AIRism interior. The fabric feels smooth and comfortable and is sufficiently thick so these innerwear items can also serve as regular outerwear. The men’s boxer briefs also use this fabric to enhance comfort on hot summer days. As seen in the previous season, the waistband is also adorned with the collaboration logo that wearers could casually show.

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  • Two L(I)PS, Secret of the Spotless with UNDERCOVER

    Two L(I)PS, Secret of the Spotless with UNDERCOVER

    Just like the skin on our face and body is prone to blemishes and scars, so too, is the skin on the vulva. However, blemishes on the vulva are less openly discussed, which may make it seem like a minor, uncommon issue when in fact, they are. Blemishes are usually
    stubborn dark spots caused by a variety of reasons, such as acne scars, ingrown hair and even ageing of the skin. Unfortunately, many women are unaware of how to treat them. Having cared for over four million bushes and vulvas with STRIP, Spa Esprit Group maven Cynthia Chua has been privy to the multitude of vulva woes of women. And this is what led to the creation of TWO L(I)PS, a collection of intimate care products for the vulva.

    After the successful launch of Blackout, the world’s first activated charcoal sheet mask for the vulva, TWO L(I)PS offers a new product to give your precious part even more T.L.C. Introducing: Undercover, an anti-blemish cream that promises to reduce the appearance of blemishes that can mar clear skin on the vulva.

    MISSION: CLEAN STATE

    The key active ingredient in Undercover is Palmitoyl Hexapeptide-36 (Peptide-36 or P-36). It seeks out and targets blemishes by preventing the production of excess melanin and pigmentation, while also preventing inflammation, leaving skin even-toned.

    Its three-prong battle plan works by:

    • Inhibiting melanogenesis, which is the process of melanin production and distribution in the skin, causing pigmentation and blemishes;
    • Inhibiting the excess production of tyrosinase, which is the enzyme that stimulates melanogenesis and is key in the production of pigments in the skin (what gives skin its colour);
    • Inhibiting inflammatory cytokines, which is ultraviolet-induced inflammation in the skin cells, reducing the occurrence of blemishes.

    More importantly, Undercover is gynaecologically and dermatologically tested, and is made without petrochemicals, parabens and sulphates, making it safe and gentle to be used on the delicate skin of the vulva. Best bit? You can even use it on any part of the body.

    Just one pump daily before bedtime is all you need. The result is lightened blemishes and even- toned skin in just three to four weeks. Say goodbye to pesky blemishes and hello to clear, even-toned skin, be it up top or down below.

    *A study of 33 women over a two-week trial found that the product did not cause any adverse reactions, making it safe to use.

    CONTINUE THE LOVIN’

    The launch of Blackout in 2018 was just a sneak peek of what was to come by TWO L(I)PS. In 2019, the vulva care brand has also rolled out two new products along with Undercover that can be used not only on the vulva, but on the body and face as well:

    • Diamond – Brightens dull skin
    • Pout – Hydrates and plumps skin

    Be sure to look out for them as you continue to #LoveYourVulvaMore with TWO L(I)PS!

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  • Greater China delivers record sales numbers for Tiffany & Co

    Greater China delivers record sales numbers for Tiffany & Co

    Tiffany & Co has reported worldwide net sales rose by 7 per cent to a record US$4.4 billion last year, fuelled by solid growth across almost every Aian market.

    In Asia-Pacific, total net sales increased 13 per cent to $1.2 billion for the full year, with Greater China leading the charge. However, sales slipped 1 per cent to $316 million in the fourth quarter, largely due to a slowing of spending in Mainland China.

    Comparable sales rose 5 per cent during the full year and fell 3 per cent in the fourth quarter. In Japan, total net sales increased 8 per cent to $643 million in the full year and 3 per cent to $196 million in the fourth quarter. Comparable sales increased by 7 per cent and 3 per cent, respectively.

    The company’s net earnings for the full year benefited from a lower effective tax rate, rising to $586 million. 75 per diluted share.

    CEO Alessandro Bogliolo said softer trends in the second half of the year reflected, in part, what the company believes were external challenges and uncertainties.

    “Most important, we are still in the early stages of a journey to achieve long-term sales, margin and earnings growth for this legendary brand, and are making progress across our key strategic priorities. I continue to strongly believe that Tiffany has vast global growth opportunities and we look forward to realising our full potential in the future.”

    During the year, Tiffany opened 10 company-operated stores, closed four and relocated 10. As at the end of January, the company operated 321 stores (124 in the Americas, 90 in Asia-Pacific, 55 in Japan, 47 in Europe, and five in the UAE). There was a net gain of three in Asia.

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  • Gucci invests 10 Million in diversity programs

    Gucci invests 10 Million in diversity programs

    Luxury apparel retailer Gucci has invested US$10 million into a diversity program to foster inclusion within the firm.

    The Gucci Changemakers scheme responds to public outcry over a black turtleneck jumper released by the brand with a mouth slit highlighted by thick red lips, resembling blackface makeup.
    Gucci promptly pulled the controversial item from sale and issued an apology.

    “Gucci deeply apologises for the offence caused by the wool balaclava jumper,” said the brand in a press statement. “We consider diversity to be a fundamental value to be fully upheld, respected, and at the forefront of every decision we make.”

    The Gucci Changemakers program, launched internally last year, is reing ramped up in the wake of the scandal. It will involve the recruitment of a global director for diversity and inclusion and a training scheme to bolster cultural awareness amongst all 18,000 global staff, as well as an internal exchange program that will bring five staff from diverse backgrounds to work in its creative studio in Rome. The scheme will also provide paid leave for employees to volunteer at various social programs.

    Further initiatives will provide scholarships for fashion students in North America and make funds available to benefit communities in several North American cities and in the Asia-Pacific region.

    “I believe in dialogue, building bridges and taking quick action,” said Gucci CEO Marco Bizzarri. “This is why we started working immediately on the long-term infrastructure at Gucci to address our shortcomings.

    “And now through our Changemakers program, we will invest important resources to unify and strengthen our communities across North America, with a focus on programs that will impact youth and the African-American community.”

  • Hermes Thailand opens new Concept store in Phuket

    Hermes Thailand opens new Concept store in Phuket

    Hermes Thailand has opened a store in Phuket, within the Central Phuket Floresta mall.

    The 172sqm outlet, Hermes’ first in the country outside of the capital, Bangkok, signals the brand’s increasing confidence in the market and willingness to expand in the territory. It also attests to the emerging importance of Phuket’s burgeoning population and popularity with both Thai and foreign tourists.

    Hermes Thailand Phuket 1The store was designed by French architectural firm RDAI to fit with the mall’s main entryway with an exterior and an interior facade, admitting daylight from outside filtered by a bamboo claustra and featuring lacquered metal on the inside. The store’s lighting uses the Grecques lights designed for the brand in 1925.

    Featuring a range of curated local materials, the new Hermes Thailand store blends contemporary architecture with Thai cultural elements, with colours that reflect the sunny coastal location.

  • Dunhill New York Finally opens Hudson Yards store

    Dunhill New York Finally opens Hudson Yards store

    Dunhill New York has opened a store in the city’s new Hudson Yards development.

    The 2600sqft outlet showcases the brand’s British luxury menswear against a backdrop of modern retail design – a contemporary space combining bronzed brass and walnut, together with leather and metal details, all recognisable codes of the house.

    dunhill Hudson Yards 2

    dunhill Hudson Yards 3

    “Dunhill has traded in New York City for decades, from Rockefeller Centre to Madison Avenue,” said CEO Andrew Maag. “Hudson Yards is the next wave of retail and we are thrilled to be there from the start. We are part of the fabric of the city and we keep moving with it.”

    dunhill Hudson Yards 5

    The grey marble storefront takes inspiration from the facade of the brand’s 1950s South Rodeo Drive store. White wood panelling frames collections by creative director Mark Weston. Walnut burl cabinets, housing men’s accessories, are inspired by the original furniture from London’s Duke Street and Paris’ Rue de la Paix stores. Fluted metal details recall the textures and finishes of the Rollagas lighters.

    dunhill Hudson Yards 6

    The new Dunhill New York City store will retail a curated selection of luxury pieces, as well as ready-to-wear, leather goods and fine accessories.

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  • PVH to buy back Tommy Hilfiger licence in five major Asian markets

    PVH to buy back Tommy Hilfiger licence in five major Asian markets

    The US-listed fashion brand owner has entered into a definitive agreement to reacquire the license from Dickson Concepts, along with some related leases and retail assets. Terms of the transaction were not disclosed, but the deal is expected to be settled in the second quarter of this year.

    PVH Corp, which also counts Calvin Klein, Van Heusen, Izod, Arrow, Warner’s, Olga and Geoffrey Beene in its portfolio, said the deal is in line with the company’s strategy of gaining more direct control over its brands, including through the acquisition of licensed businesses. The transaction is intended to allow the company to capitalise on the significant growth opportunity in the region.

    “This transaction demonstrates our commitment to making strategic investments to support the long term growth of PVH and our Tommy Hilfiger business, while leveraging our well-established infrastructure, our leadership expertise and strong brand momentum across both our Tommy Hilfiger and Calvin Klein businesses in the region,” said Emanuel Chirico, PVH Corp’s chairman and CEO.

    Daniel Grieder, Tommy Hilfiger Global CEO, said after taking back the Tommy Hilfiger licence, the company will execute “a more fully integrated strategy for the Greater China market in coordination with our directly operated Mainland China business”.

    “This transaction should allow us to further realise the growth opportunities that exist for the Tommy Hilfiger brand by enabling the introduction of a wider range of product lines, and offering consumers a more immersive and elevated brand experience. Building on our strong existing regional foundation, we plan to accelerate the growth of the Tommy Hilfiger business and invest further in driving the expansion of the brand.”

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  • Nike sees steap growth numbers in Asia

    Nike sees steap growth numbers in Asia

    Sportswear retailer Nike has grown net income to US$1.1 billion over its third quarter, with the group’s consumer-direct  approach delivering growth across all four of its geographic regions.

    Revenues increased 7 per cent to $9.6 billion, up 11 per cent. The Nike brand contributed $9.1 billion of this, while footwear brand Converse brought $463 million – down 2 per cent compared to the prior corresponding period.

    “In Q3, our team once again drove strong, healthy growth across Nike’s complete portfolio,” Nike chairman, president and CEO Mark Parker said.

    “Our business momentum is being accelerated by our ability to scale innovation at a faster pace and expand new digital consumer experiences around the world.”

    In Asia-Pacific, the group saw footwear sales increase 3 per cent to $909 million, while apparel sales grew 6 per cent to $340 million.

    However, sales in the equipment category fell 8 per cent over the period, to $58 million.

    Greater China, saw equipment sales stay flat at $29 million, but experienced a strong 21 per cent growth in apparel sales to $444 million, and footwear sales 19 per cent above the prior period at $1.11 billion.

    The group’s gross margin increased over the period to 45.1 per cent, driven by higher selling prices, favourable changes in foreign currency exchange rates and growth in Nike Direct.

    Additionally, the group’s effective tax rate was 14.7 per cent, compared to 179.5 per cent during the same period last year, which included one-time charges related to the enactment of the US Tax Cuts and Jobs Act, which drove a $921 million loss.

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  • Tommy Hilfiger in social entrepreneurs shout out

    Tommy Hilfiger in social entrepreneurs shout out

    Fashion brand Tommy Hilfiger is seeking applications from social entrepreneurs for the second year of its Fashion Frontier Challenge.

    Tommy Hilfiger’s global program aims to support entrepreneurial start-up and scale-up stage businesses developing solutions that promote inclusive and positive change in fashion.

    “The first chapter of this global initiative was an inspiring journey that put a spotlight on incredible ideas that could change the lives of people through a more positive and inclusive fashion landscape,” said Tommy Hilfiger.

    “Through the Tommy Hilfiger Fashion Frontier Challenge, we continue to mentor and support social entrepreneurs who are putting their heart and soul into addressing issues they strongly believe in. This celebrates the entrepreneurial spirit and determined optimism at the heart of our brand DNA.”

    Interested businesses are invited to submit project proposals that focus on inclusive fashion. Over a multi-stage four-month process, applicants will be narrowed down to six finalists, who will be invited to develop their project plans with the support of a team of dedicated Tommy Hilfiger subject-matter experts at the Campus of the Future in Amsterdam, the Netherlands.

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