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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.

  • Greater China and South Korea drive Massive Uniqlo sales

    Greater China and South Korea drive Massive Uniqlo sales

    Heavy discounting necessary to offload winter stock has hit Uniqlo sales. Parent Fast Retailing has struggled with a shortage of popular winter items in the past, and overcompensated last winter by ordering too much inventory ahead of what proved to be an unusually warm season.

    As a result, the Japanese retailer’s first-quarter profit took a hit which in turn impacted of first-half results issued yesterday.

    The company reported declines in both revenue and profit in the first half of the current financial year, with revenue totaling ¥491.3 billion, (US$4.397 billion) down 5 per cent from the previous corresponding period, and operating profit totaling ¥67.7 billion ($606 million), down 23.7 per cent from the previous year. Same-store sales fell 9 per cent, however online sales, which now account for 9.9 per cent of Uniqlo sales in Japan and 20 per cent in China, rose 30.3 per cent.

    The weak first quarter for Uniqlo sales was in part compensated for by a double-digit increase in sales and profit in China, which helped the brand turn in a better-than-expected rise in operating profit to ¥68 billion ($609 million) for the three months to February.

    The company said it now expects an operating profit of ¥260 billion for the financial year through August, compared to its previous forecast of  ¥270 billion in January. The revised outlook would still be a record high and represent a 10 per cent year-on-year rise.

    Uniqlo re-stated its medium-term vision of becoming the world’s number one apparel retailer.

    “In pursuit of this aim, we are focusing our efforts on expanding Uniqlo International and our GU casual fashion brand,” said Tadashi Yanai, chairman, president and CEO of Uniqlo. “We continue to increase Uniqlo store numbers in each country in which we operate, and open global flagship stores and large-format stores in major cities around the world to further develop Uniqlo as a global brand.”

    He said that within the company’s international division, Greater China and Southeast Asia are entering “a new stage of growth as key drivers of operational expansion”.

    Uniqlo Greater China generated double-digit growth in both revenue and profit in the first half of the year despite the dampening effect of the mild winter weather.

    “Within that region, our operation in Mainland China continued to report strong growth in revenue and profit of approximately 20 per cent year on year. Uniqlo South Korea also reported increases in both revenue and profit. Uniqlo Southeast Asia & Oceania generated significant rises in both revenue and profit thanks to strong increases in same-store sales in every single one of the region’s markets.

    Meanwhile, the company plans to open more GU stores in Japan, while expanding the brand’s international presence, primarily in Greater China and South Korea.

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  • Levi’s to opening 100 extra stores this year

    Levi’s to opening 100 extra stores this year

    San Francisco-based retailer Levi Strauss announced plans to open 100 new company-operated stores this year.

    The apparel maker, which launched on the US stock market last month, announced its plans for the store openings alongside a well-received debut batch of earnings as a public company.

    Company chief executive Chip Bergh told that most of the store openings would be in Europe and Asia, though mainline and outlet stores would open in the US as well.

    Levi’s posted a 7 per cent jump in net revenue to US$1.43 billion for the quarter ending February 24. The company produced a net income of US$147 million compared with the losses of US$19 million a year ago, when the results were hit with a tax-related charge.

    “We delivered our sixth consecutive quarter of double-digit constant-currency revenue growth,” Bergh said.

    “Growth was broad-based across all three regions and all channels, demonstrating that our strategies are working and our investments are paying off.”

    The 166-year-old brand operates 824 standalone stores, including 74 the retailer opened last year.

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  • LVMH global revenue rises 16%

    LVMH global revenue rises 16%

    LVMH global revenue rose 16 per cent in the first quarter of this year, with Asia and every other geographical market fuelling growth.

    Organic growth – excluding acquisitions – was 11 per cent higher than the same period last year.

    The fashion-and-leather-goods business saw organic sales rise 15 per cent.

    “Louis Vuitton continued its remarkable growth across all of its businesses. Its performance was exceptional, its creativity ever more striking and innovative, and its men’s and women’s Autumn-Winter fashion shows were universally acclaimed,” the company said in a statement.

    “The transformational upgrade of its distribution network continued with highly successful and iconic re-openings, including Florence, London’s Sloane Street, Monaco and Shanghai IFC. Christian Dior Couture performed exceptionally well across all its product categories and regions. At Celine, the new Men’s and Women’s ready-to-wear collections arrived in stores as the new concept starts to be rolled out. Fendi, Loewe and Berluti are growing fast. Loro Piana’s vicuna and shoe collections performed well. The other Maisons continued to progress.”

    In selective retailing, organic revenue rose 8 per cent, with Sephora recording strong revenue growth and market share gains during the period.

    Online sales grew strongly and DFS grew “at a steady pace”.

    “The Gallerias of Hong Kong and Macao performed particularly well,” the company reported.

    Wine and spirits business sales rose a more modest 9 per cent in the quarter, however Hennessy cognac volumes increased by 11 per cent, driven largely by China and the US.

    In perfumes and cosmetics, organic revenue increased by 9 per cent in the quarter.

    Parfums Christian Dior had a standout quarter, helped by the launch of its new fragrance Joy.

    Louis Vuitton global revenue from watches and jewellery grew the slowest, at just 4 per cent, with watches lagging.

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  • Sandro Hong Kong Opening Festival Walk Maal Boutique

    Sandro Hong Kong Opening Festival Walk Maal Boutique

    Parisian fashion brand Sandro Hong Kong will open its Menswear and Womenswear boutique at Festival Walk Hong Kong this month.

    The 128sqm boutique features a contemporary design with a full limestone shopfront;  the boutique will showcase the most diverse range from the brand in an understated, sophisticated setting.

    The store’s interior is characterised by contrasts – as reflected in the simplicity of clean lines against strong graphic features as well as the use of different raw materials and texture such as wood and marble.

    For the Spring-Summer 2019 season, Sandro Homme will celebrate the streetwear spirit of the 1990s. The Sandro women’s look draws on contrasts from around the world and adopts duality as a fixed design feature.

    Sandro currently has more than 600 points of sales worldwide, including more than 180 in Asia.

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  • Michael Hill Sales Suffers

    Michael Hill Sales Suffers

    Jewellery retailer Michael Hill’s revised operating model is showing some encouraging signs, with sales falling at a slower rate in the March quarter compared to prior periods.

    Over the three months to March 31, 2019, total sales fell by 0.8 per cent to $117.5 million, and same-store sales fell by 1.5 per cent to $110 million.

    When compared to the 11 per cent decrease in same-store sales in Q1, and 2.9 per cent fall in Q2, Q3 suggests the jewellery retailer’s operations are stabilising.

    “We are particularly encouraged by the early results achieved from our new integrated customer-led retail operating model, which was introduced in March and saw some same store sales growth for the month,” Daniel Bracken, Michael Hill International chief executive,  said.

    The business indicated it would shift its business model toward a “more sophisticated and integrated” customer-led experience in February, in order to better personalise the shopping experience for its customers.

    “We have already seen the potential for the new integrated model to lift customer engagement and sales, as well as improve operational efficiencies,” Bracken said.

    “This is an exciting time for the company as we continue to deliver on our strategic initiatives and make fundamental improvements to the way we operate.”

    Michael Hill’s same-store sales in Australia fell 3.4 per cent in the quarter, with conditions remaining challenging for retailers, to $61.8 million – compared to the $64 million seen in the same period of 2018.

    While one store was opened during the period, three were closed. The retailer ending the period with 71 stores trading.

    In New Zealand, same-store sales fell 6.3 per cent to NZ$24.73 million ($23,42 million), with the end of March seeing an overall slowdown in consumer sentiment and spending in the region. One store was closed, leaving a total of 52 stores trading across New Zealand.

    E-commerce sales over the period contributed 2.9 per cent, or $12.5 million, of the business’s total sales over the nine-month period to March 31, 2019. This reflects a 53 per cent increase on the same nine-month period the previous year.

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  • Ted Baker Boost Store Network in China with JV

    Ted Baker Boost Store Network in China with JV

    Fashion brand Ted Baker has formed a joint venture to expand its network in Mainland China, Hong Kong and Macau.

    A new company will take over the three Ted Baker China stores already operating in Hong Kong and the six on the mainland. It will operate all Ted Baker future stores, concessions and online channels in the three geographical markets.

    Ted Baker will invest about RMB30 million (£3.4 million) in the new venture, which will be co-owned with Shanghai LongShang Trading Company (LS). LS will assign its rights under the JV to a newly incorporated Hong Kong investment vehicle to be wholly owned and formed by LongGoal Holdings and Infra-Apparel Group.

    Lindsay Page, acting CEO of Ted Baker, said the company is excited about the growth potential for the brand across China.

    “Over recent years we have invested in introducing the Ted Baker brand to Chinese customers, and we are confident that the creation of this JV will build on this platform and deliver meaningful long-term growth. In LongGoal and Infra-Apparel, we have extremely capable partners that bring local market expertise to our brand and already well-established design, buying and merchandising skillset.”

    Page said the brand firmly believes China has the long-term potential to become one of the largest single global territories for the Ted Baker brand.

    The Ted Baker China JV will have six directors, evenly split between Ted Baker and the JV Partner. The JV is expected to break-even in the 2021/22 financial year.

    In a statement, Ted Baker said LongGoal and Infra have a wealth of experience in digital marketing, e-commerce operations and building successful joint ventures in China.

    Infra-red has expanded the Golfino brand to 60 stores across China during the last five years and has strong digital-marketing and e-commerce operations experience.

    LongGoal is the current distributor of Gant, operating more than 165 directly owned and 25 sub-franchised locations in China, along with 44 directly owned and franchised Bebe stores.

    The new joint venture will be focusing on expanding the Ted Baker brand into tier 2 and 3 Chinese cities.

    Chen Xiaoling, chairwoman of LongGoal, said Ted Baker’s global lifestyle appeal has resonated well in China, and the company is confident in its ability to grow it further and faster.

    “In more than 20 years, LongGoal has amassed an infrastructure and presence in more than 65 cities, which presents a strong, compelling and proven platform that Ted Baker China can leverage. The transformational JV we’ve forged brings together a leading brand, strong management team and unparalleled opportunity to expand Ted Baker into cities that desire its fresh vision of style,” she said.

    Jing Yin, co-founder and chairwoman of Infra, described Ted Baker as an amazing brand that her company has admired for a long time.

    “[Ted Baker] has already demonstrated its relevance and appeal in the Chinese market. Our knowledge and experience in building fashion brands through stores, concessions and online should prove invaluable to Ted Baker and we look forward to working together.”

    The new venture is condition on approval from Chinese regulatory authorities.

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  • Uniqlo Opening New Store in New South Wales

    Uniqlo Opening New Store in New South Wales

    Japanese global apparel retailer Uniqlo will open its sixth store in New South Wales tomorrow at Westfield Hornsby.

    The new store, Uniqlo’s 17th in Australia, will feature a full line-up of the retailer’s LifeWear apparel for men, women, kids and babies.

    Uniqlo said the new store underlines the brand’s commitment to growing Australia as a key market in the Asia Pacific region.

    “The opening of our sixth site in New South Wales at Westfield Hornsby demonstrates our commitment to extending our LifeWear message to all Australians by offering exemplary customer service and high quality products at an affordable price,” said Kensuke Suwa, chief operating officer for Uniqlo Australia.

    The doors to the new store will open to consumers at 10am after an official ribbon cutting ceremony and Japanese drumming celebration.

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  • Shiseido and AS Watson co-create skincare Beauty Line

    Shiseido and AS Watson co-create skincare Beauty Line

    Global cosmetics company Shiseido and AS Watson, the health & beauty retailer, have collaborated to co-create an exclusive derma skincare range under the “D Program” brand.

    The new Urban Damage Care range has been successfully launched in Thailand and Taiwan and will soon be launched in other Asian markets with Watsons stores.

    The collaboration is in response to a 24-per-cent growth in the derma skincare category in Asia since 2014. As more women are looking for effective derma skincare products, the online search for related topics grew by 117 per cent compared to last year.

    “AS Watson is the largest health and beauty retailer in the world that acts with speed, innovation and vision making them the perfect retailer to bring Urban Damage Care to the high street,” said Shiseido president and CEO Masahiko Uotani.

    “With AS Watson’s extensive distribution network and customer insight of the derma cosmetics category and Shiseido’s expertise in R&D and innovation, this has enabled us to co-create a range that supports our core values of putting the customers’ needs first while ensuring that it is accessible to customers.”

    The project kicked off with customer survey on a selected panel of Watsons members after Watson’s COO Malina Ngai visited Shiseido headquarters in Tokyo 18 months ago.

    “Combined with Shiseido’s 40 years of sensitive skin research and product development technology, we collaborated to develop the range that we believe will be best suitable for modern Asian females to improve their skin to defend against urban pollution,” she said.

    Following positive feedback from customers, “D Program” will be launched in China on 11 April.

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  • Tokyu Hands Singapore to open at Jewel Changi

    Tokyu Hands Singapore to open at Jewel Changi

    Tokyu Hands Singapore will open its fourth store – at Jewel Changi – next week.

    Set to open on the 17th, the Japanese homewares retailer’s newest store in the city will feature new corners offering a selection of products based upon the trading patterns of Tokyu Hands Singapore’s existing stores.

    Each corner will feature a mix of Japanese designs considered “cool” in Singapore.

    A new section Straight up Health will feature pelvis-correction products, with actual devices available for customers to try on.

    “Travel’s Best” is a new corner which provides a collection of products aimed at travellers, along with outdoor accessories. The area offers products designed to make travelling more enjoyable.

    The Tokyu Hands Singapore store opening will feature a Japanese calligraphy performance and workshop by Malik Bin Mazlan, and a Kokuyo Exhibition, introducing Kokuyo products for a limited time.

    The retailer’s already popular Love Writing corner is being expanded with a collection of writing instruments, notebooks with superior-quality paper, and a curated range of other stationery items.

    The Tokyu Hands Singapore Jewel Changi store’s design focuses on the Japanese concept of Kodawaru, which the company says is used to “express careful pursuit, cultivation, approaches, and sensitivity to things one likes”.

    Tokyu Hands Singapore has three other stores: in Jurong East, on Orchard Road and at Suntec City.

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  • H&M tries its luck in billion dollar 2nd Hand Clothing Market

    H&M tries its luck in billion dollar 2nd Hand Clothing Market

    Fast-fashion brand H&M is testing its fortunes in the fast-growing used-clothing market.

    The Swedish brand has commenced sales of second-hand clothing in response to consumer concerns about the environmental impact of the fashion industry.

    H&M’s head of sustainability Anna Gedda says the program is being piloted in Sweden with a view to a more substantial rollout in future.

    “It comes back to the whole circular vision,” she said. “It just makes great sense to look into this business. We see this as a growing part of the industry, with great opportunities both for consumers and not least for the environmental impact, and how we can drastically reduce that by extending the life of the products.”

    The used-clothing market is expected to reach US$51 billion, double its current size, within the next five years.
    Last year, a BBC documentary portrayed fashion as one of the world’s most polluting industries.

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  • Uniqlo hunts personnel for first Vietnam store

    Uniqlo hunts personnel for first Vietnam store

    According to advertisements on Jobstreet.com, a recruitment website, the Japanese corporation is looking for managerial and store level candidates urgently for its first store in Ho Chi Minh City.

    The plan to open its first outlet this fall had also been mentioned in the annual report of Fast Retailing, Uniqlo’s parent company.

    Accordingly, Uniqlo registered a domestic company, under the form of a two-member limited company, in Vietnam last October. Fast Retailing owns 75 percent of the joint venture, while diversified conglomerate Mitsubishi holds the remaining stake.

    The company has a charter capital of $8.8 million, with all of its registered legal representatives: chairman, general director and chief executives being Japanese individuals.

    This is part of Uniqlo’s plan to expand its brand globally. Apart from Vietnam, Uniqlo also expects to open its first stores in Denmark, Italy and India this year. Uniqlo’s arrival will intensify competition between foreign brands like Zara and H&M in Vietnam.

    According to German research firm Statista, Vietnam’s fashion revenue will grow 22.5 percent a year in the 2017-2022 period, reaching $988 million yearly by 2022.

    Vietnam’s revenue from the fashion segment amounted to $486 million in 2017 and $557 million in 2018, and is projected to reach $661 million this year.

    Uniqlo aims to have around 400 outlets in Southeast Asia and Oceania by 2022, generating $2.71 billion in revenue. The brand currently has 827 stores in Japan and 1,241 international stores.

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  • Prada Chongqing store has Italian Design Elements

    Prada Chongqing store has Italian Design Elements

    Fashion label Prada has opened a new outlet in Chinese Chongqing at the popular MixC department store.

    The 600sqm Prada Chongqing space stocks a selection of both women’s and men’s collections spanning ready to wear, leather items, shoes and accessories.

    The store’s design features spiral metal blades in gold and silver set against black marble and large windows to maximise natural light. The interior, inspired by Prada’s historic Galleria store in Milan, prominently features green Aver marble and chequered black and white marble flooring.

    The Prada Chongqing store’s velvet seating is a tribute to classic Milanese design of the 1950s and attempts an elegant and refined environment.

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  • Burberry Shanghai Closes Flagship Store

    Burberry Shanghai Closes Flagship Store

    he Burberry Shanghai flagship store has been shuttered as the British luxury-goods retailer looks to reduce costs.

    It is the fourth Burberry location within Mainland China to be shuttered within the last eight months as part of a global restructuring effort, representing a conspicuous and somewhat puzzling drawing back from a key luxury market.

    The closure of the 1000sqm flagship means that half of Shanghai’s Burberry outlets have now vanished, after the brand’s K11 mall store disappeared last August and its Westgate Mall and Hongqiao airport halted operations a month ago.

    The closures were prompted by poor demand for Burberry products in Asian markets, and are part of the firm’s global strategy to cut back on underperforming retail locations.

    Representatives of the brand have pushed back on speculation that the closures signal an all-out withdrawal from China.

    “China is a hugely important market for Burberry and we are fully committed to growing our business there. We are making some of our biggest investments in Shanghai where we recently refreshed our flagship store at Kerry Centre and we will open two new stores at IFC Mall and IAPM Mall in the coming months. This strengthens our presence in Shanghai, a key luxury shopping destination, and we are excited to welcome our customers to these new locations.” said a company spokesperson.

    “Burberry is not so much closing down as relocating to new stores,” said JLL’s head of retail for China Ellen Wei, noting that Burberry plans to open two more strategically located stores in Shanghai shortly.

    Burberry bought out its Chinese franchises in 2010 for £70 million (US$91.4 million at current rates) in response to the country’s burgeoning taste for luxury products.

    The Burberry Shanghai flagship was located in the L’Avenue shopping centre in Gubei.

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  • Sephora opening New Zealand Flagship Store

    Sephora opening New Zealand Flagship Store

    Sephora is looking to fill a number of retail roles in Auckland, suggesting the beauty retailer is looking to open its first bricks-and-mortar store in New Zealand in the near future.

    Listings for assistant store manager, category coordinator, stockroom manager, supervisor, beauty and studio artists and retail assistants have been uploaded to job site Seek over the last month, claiming the retailer is opening its first New Zealand flagship store this year.

    The most recent listing notes that job seekers should be available and flexible to attend a recruitment event between May 7 and 8, pointing to a relatively quick opening window.

    The store will likely be located on Queen Street, Auckland, and is currently being fit out for the brand’s arrival. An internal elevator, lightning fixtures and elaborate signage are among the changes being made to the site.

    Sephora has been contacted for confirmation, but has not yet responded.

  • Roots Canada To Open First Hong Kong Store

    Roots Canada To Open First Hong Kong Store

    Premium outdoor lifestyle brand Roots Canada has opened its first Hong Kong store this month, at Harbour City.

    The store was opened with Fung Retailing’s Branded Lifestyle Group, its Asian retail partner.

    Roots Canada’s brick-and-mortar debut in the territory coincided with the launch of an online store with Zalora Hong Kong.

    “Opening a store at the largest and most diverse shopping mall in Hong Kong is an important first step in what has the potential to be a multi-store market for Roots,” said Jim Gabel, president and CEO of Roots Canada.

    “Further, with an online store on Zalora, customers can go beyond the physical location to connect with our brand anytime and from anywhere in Hong Kong. Our expansion into Hong Kong is a testament to the continued success of our longstanding partnership with Branded Lifestyle Group.”

    The new Roots retail space brings together “cabin comforts and city conveniences” to create a space that feels like home, the company said in a statement. The store showcases Roots’ character and heritage by immersing shoppers in the more than 40 years of the brand’s stories and products.

    The brand’s collection is curated into four main areas in store, each telling a different Roots story, including a Cooper Beaver Collection that pays tribute to Roots iconic logo the Cooper Beaver, Roots Original Salt & Pepper Sweats, handcrafted leather, as well as seasonally relevant products that embody Roots unique comfortable cabin-meets-city style.

    “Leveraging our strong network and local resources, we are excited to bring the world-renowned Roots brand to Hong Kong,” said Sunny Wong, CEO of Branded Lifestyle Group.

    “The leisure-and-lifestyle-apparel trend continues to gain momentum in Asia, and we believe Roots focus on comfort and style is a perfect fit for the Hong Kong market.”

    Starting from a small cabin in Algonquin Park, Canada, in 1973, Roots has grown to become a global brand with 114 corporate retail stores in Canada, seven corporate retail stores in the US, 117 partner-operated stores in Taiwan, 37 in China and a global e-commerce platform.

    Branded Lifestyle Holdings represents five brands: Hang Ten, H:Connect, Arnold Palmer, Hunter and now Roots. It owns or franchises more than 1000 retail outlets across Greater China, South Korea, Southeast Asia and the Middle East.

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