Category: Fashion

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  • Duty-free sales may hit all-time record this year

    Duty-free sales may hit all-time record this year

    Korea’s duty-free sales are likely to set a new annual record this year despite Chinese group tour traffic not having fully recovered.  According to the Korea Duty Free Shops Association, duty-free store operators made $1.44 billion in October, a 28.6 percent increase year on year. This takes Korea’s total duty-free revenue between January and October to $14.3 billion, surpassing 2017’s full-year revenue of $12.8 billion.

    “The local duty-free market was 14 trillion won [$12.4 billion] in size last year – some forecast this year will reach a new all-time record of 18 trillion won,” said a source at one of Korea’s largest duty-free store operators.

    The growth is meaningful considering that Chinese group tours are not fully back in the market.

    Industry watchers and analysts attribute the increase in duty-free sales this year to “daigongs,” or individual Chinese merchants that purchase Korean goods and resell them at home.

    Before Chinese group tours were banned in March 2017 after Korea’s deployment of the U.S. Terminal High-Altitude Area Defense antimissile system, they were a major source of revenue for local duty-free stores. As traveling to Korea for Chinese became more difficult, the reselling business began to grow.

    “Revenues are going up this year but we’re still waiting for group tours to come back,” said another source at one of top three duty-free companies.

    Sales increases are generally good news, but industry watchers warn that operating profits will not grow as fast as revenues. Attracting daigongs entails high marketing costs. New duty-free outlets opened in Seoul this year, which means competition to pull in daigongs may become more intense.

    Signs suggest restrictions on group tours from China are easing. Some online tour agencies have started marketing group tour packages to Korea on their websites. Last week, China’s largest online tour agency Ctrip posted Korean tour products on its website, but erased them the same day.

  • Korean cosmetics firms suffer losses in Q3

    Korean cosmetics firms suffer losses in Q3

    Korea’s mid-sized cosmetics companies suffered losses in the third quarter of this year as they struggled to reorganize their business structures in the face of tough competition at home, industry sources said Sunday. Able C&C, which operates budget cosmetics brand Missha, swung into the red in the July-September period, posting a net loss of 9.4 billion won ($8.3 million), it said.

    Its sales dropped 12.1 percent to 73.1 billion won and operating income swung to a loss of 13.2 billion won. The company said fierce competition in the country’s cosmetics industry, combined with its heavy investment in research and development of new products, led to the poor earnings results.

    Tonymoly reported a net loss of 3.5 billion won, with 800 million won in operating losses on a consolidated basis during the cited period, according to the company.

    Korea’s mid-sized beauty firms’ profitability deteriorated following a diplomatic row between Seoul and Beijing last year, which led to a sharp drop in the number of tourists coming to Korea. Industry watchers said the expansion of online and duty-free channels has hurt the mid-sized companies, which rely heavily on offline stores. Last month, Skinfood was placed under a Seoul court’s receivership after the company said that it is having temporary difficulty securing liquidity due to excessive debt.

    “We are making efforts to improve our profitability and strengthen our online business,” an official from Nature Republic said.

    Nature Republic reduced the number of its stores to 680 by the first half of this year from 770 in 2015. The company reported 58.8 billion won in sales and 300 million won in operating income in the third quarter of this year.

  • L Brands loss revealed, Victoria’s Secret faces challenge

    L Brands loss revealed, Victoria’s Secret faces challenge

    Lingerie brand Victoria’s Secret needs to reinvent itself, says retail analyst Neil Saunders, commenting in the wake of a US$42.8 million loss by its parent L Brands. “The brand is simply not connecting and resonating with consumers in the way that it once did. Its overt sexuality, its focus on airbrushed glamour, and its dark-and-moody stores are completely out of step with the mood of most modern consumers,” said Saunders, MD of GlobalData Retail.

    “However, this is not a new phenomenon, Victoria’s Secret has been out of kilter for a long period of time – and has seemingly done very little to bring itself back into line.”

    Sales at Victoria’s Secret have fallen in seven out of the last eight quarters, mainly due to its weak diffusion brand Pink, launched in 2002 and aimed at college-aged women.

    “In Pink, fashion errors in loungewear have driven a recent deceleration in performance,” the company admitted in its earnings statement.

    L Brands’ third-quarter results showed an increase in same-store sales of 4 per cent across the group, to $2.77 billion, but Victoria’s Secret store sales fell by 2 per cent.

    The top line was boosted by L Brands’ Bath & Body Works brand. But one-off costs from the closure of Henri Bendel, impairments at Victoria’s Secret and ongoing losses in the La Senza business drove the net loss.

    Saunders described the Victoria’s Secret performance as disappointing, “not only with the sales numbers but by the inertia within the business”.

    He said much of the brand’s failure to change came down to embedded attitudes within management.

    “The recent insensitive comments about transsexuals from chief marketing officer, Ed Razek, in a Vogue interview characterise the problems. Not only are such remarks bad for the brand’s image, but it also earned a sharp public rebuke from the CEO of more incisive rival ThirdLove which has been stealing share from Victoria’s Secret for some time.

    “In theory, the departure of Jan Singer as CEO should help herald in changes someone coming in will have fresh ideas about reviving the fortunes of Victoria’s Secret.”

    L Brands has appointed John Mehas from lifestyle brand Tory Burch as the new CEO of Victoria’s Secret. He will take up the role early next year.

    Pink CEO Denise Landman retired after the release of the L Brands half-year results and she was replaced on October 1 by former Bath & Body Works president for merchandising and product development, Amy Hauk.

    “Our new leaders are coming in with a fresh perspective and looking at everything … our marketing, brand positioning, internal talent, real estate portfolio and cost structure,” said CEO Leslie Wexner.

    Saunders said Bath & Body Works was a stark contrast to the core brand.

    “The company’s wholesome brand image and its focus on small indulgences are paying real dividends – especially in a consumer economy where shoppers have more money to treat themselves. Its strong range development which means assortments are constantly changing encourages regular visits to online and stores. It also means that the company is good at jumping on trends like aromatherapy-based scents and the ongoing popularity of candles. Second, good marketing and promotions help to drive volumes through the business,” said Saunders.

    “Both of these things stem from the fact that the BBW team is much more attuned to the market and consumer trends than is the case at Victoria’s Secret. Indeed, the cultures at the two divisions could not be more different, and we believe that Victoria’s Secret should take a leaf out of its sister brand’s playbook as it looks to reinvent itself.”

  • Promising market for luxury rental services raises

    Promising market for luxury rental services raises

    A growing community of Korean women primarily in their 20s to 40s prefer renting high-end goods from subscription services such as Series Eight, The Closet and Reebonz Korea. Asked why they chooses to rent their wardrobe, they said the introduction of luxury goods rental services helped her prioritize living expenses and limit unnecessary spending on personal shopping.

    By paying a monthly subscription fee of 79,000 won (US$70), Reebonz customers, for example, can rent up to two bags a month. Customers opting for pricier premium plans are given the option to rent a bag from the most expensive or popular brands for up to 10 days for prices ranging from 9,800 won to 19,800 won.

    “Subscription-based business models have not seen much success in the local market compared to other countries. But, because luxury goods’ prices are so high compared to the low purchasing power of Koreans in their 20s and 30s, the (subscription) services are expected to see substantial growth in South Korea,” said Choi Kang-sik, a professor of economics at Yonsei University.

    Choi said that with more women wanting to rent luxury goods, rental companies must better communicate with luxury brands in order to bring better products to the table.

    “The power of luxury brands will always see an upward trend. The difference, now, will be that consumer groups won’t be women visiting department stores. It will be the luxury rental companies who will be supplying the bags to the original customer base,” he said.

    Even though popular American designer rental services such as Bag Borrow or Steal and Rent the Runway launched a decade earlier, designer subscription services garnered attention from local consumers starting in 2016, according to Series Eight CEO Kim Tae-hyun.

    Kim, who co-founded Reebonz Korea with current chief Ha Dong-gu, left Reebonz to launch the startup Series Eight under the Value Art Architect Group last year.

    On the surface, the two companies share similar concepts with regards to lending customers a hand in renting high-end products.

    If Reebonz sticks to a subscription model, Series Eight and its six-member team envisions a shopping platform beyond just a rental service where women can rent high-end bags whenever and for however long they please.

    “We essentially did not want to give the idea of pressuring women to pick a bag every month just because they are paying a certain amount. The pressure in itself ruins the shopping experience,” Kim said.

    In order for a business to be successful on a subscription-based model, it needs to provide convenience, value for the money and personalized experiences. Consumers will cancel services that do not deliver unique, excellent personalized experiences, according to Choi.

    Park Sun-young, juggling being a mom and public relations director at an ad agency in Seoul, appreciates such unique value from subscription services. Unlike her younger colleagues who seem to have time to go shopping, Park would rather save money and time by renting her wardrobe online.

    “I think young women may feel it’s weird to rent designer clothing and carry handbags that are ultimately not theirs. But, look inside your closet. How many bags are just sitting on the shelf collecting dust?” Park posed.

    “Being a mom and having a job, the rental services make my shopping experience something I look forward to at the end of the night before I go to bed. Just scroll down, look through the catalogue and click order.”

  • Palace skate wear to make debut in Tokyo

    Palace skate wear to make debut in Tokyo

    Cult-classic skate brand Palace opened its first store in Tokyo, opting for the Japanese capital to debut its logo-ed fashion and apparel in the archipelago Asian nation.nThe British street label first announced the Tokyo location via Instagram, in a short teaser film featuring actor and comedian Jonah Hill, which was a similar store reveal stint used by Palace to unveil its New York store.

    Marking the new Shibuya district store, which took place November 3, the London brand has released a series of fashion items exclusively for the new location.

    The Tokyo capsule features pieces referencing Japan, including a Mount Fuji graphic hoodie.

    In the mix is also a limited-edition “P.A.L.A.C.E” branded leather card holder, luggage tag and passport cover, as well as “Made in Scotland, Designed in London” rainbow knitwear, in collaboration with fellow Briton Pringle of Scotland.

    Founded in London in 2009 by Levent Tanju and Gareth Skewis, Palace has in the last nine years garnered a cult-style following among skaters by toying with industry conventions.

    It is known for flipping 90s skate videos upside, promoting the kitschy side of the era’s VHS tapes, as well as its now globally recognised Palace logo, which features on oversized hoodies, sweaters and other streetwear pieces.

    It has been in collaboration with Adidas since 2015 and has also previously collaborated with Reebok and Oakley. Most recently, it has teased an upcoming collaboration with Ralph Lauren in Japan.

    Palace currently operates locations in London and, since spring 2017, New York’s SoHo neighbourhood.

    Palace Tokyo’s official address is 2F & 3F, 5-9-20 Jingumae, Shibuya-ku in Tokyo, Japan.

  • Global luxury goods sales drop: Bain

    Global luxury goods sales drop: Bain

    New data from Bain & Company shows global luxury goods sales will struggle to maintain growth, as the US-Sino trade war and other geopolitical events impact on consumer confidence.

    In June, Bain said the personal luxury goods market was “on a tear” this year and would grow by between 6 per cent and 8 per cent at constant exchange rates to reach €276-281 billion. It said the market could reach €390 billion globally in sales by 2025.

    But now, Bain has released a more tepid projection of €260 billion and a growth rate of 5 per cent this year.

    It has pared back its 2025 projection of personal luxury goods sales to €320-365 billion, slashing €35 to €70 billion off its forecast in just five months.

    And it cautioned that even this figure may be under threat saying “socio-political issues, commercial policies, and potential short-term soft recessions could make this road to growth a bumpy one in the short term”.

    The Bain & Company Luxury Study was released in Milan in collaboration with Fondazione Altagamma, the Italian luxury goods manufacturers’ industry foundation.

    In June, Bain said Mainland China is expected to account for the lion’s share of growth this year. “We forecast this market to grow by 20-22 per cent … Brands are learning how to cater to local consumers, often young and heavily influenced by social media.”

    China kept close to its projections, rising 20 per cent, albeit with the year still not over.

    “Chinese consumers are leading the positive growth trend around the world. Between 2015 and this year, their purchases in Mainland China contributed twice as much growth as their spending abroad. Their share of global spending has continued to rise (now estimated at 33 per cent of global luxury spend, up from 32 per cent in last year), while the share of Mainland China has also risen to 9 per cent (up from 8 per cent in last year). In Mainland China, luxury sales grew 18 per cent at current exchange rates to €23 billion (20 per cent at constant exchange rates), driven by rising demand rather than by price increases,” the report said.

    Claudia D’Arpizio, a Bain partner and lead author of the study, said luxury purchases in Japan softened slightly this year, pushing brands to find new solutions to bring consumers back to stores. However, retail sales still grew at 3 per cent at current exchange rates to €22 billion. “Increased consumption from tourists in Japan is prompting brands to rethink their distribution models.”

    Across the rest of Asia retail sales grew 7 per cent at current exchange rates to €39 billion, due to dynamic growth in South Korea, driven by strong local consumption. Brisk growth in other Asian countries – Singapore, Thailand and Taiwan – also contributed while Hong Kong and Macau benefitted from Chinese purchases.

    Europe lagged in 2018 due to a strong Euro that impacted tourists’ purchasing power. Local consumption was positive overall, despite mixed country performance, helping to boost retail sales 1 per cent at current exchange rates to €84 billion.

    The Americas grew 5 per cent at current exchange rates to €80 billion. “A positive US economy boosted disposable income and overall luxury spending from locals, even as brands remained wary of continued economic prosperity,” the report said. “However, the strong dollar impacted tourists’ spending from Asia and Latin America. Canada and Mexico were strong players in the region, while political uncertainties derailed Brazil’s performance.”

    In other areas, there was nil growth, holding at €12 billion, mainly due to stagnation in Middle East brought on by a recent government spending restriction.

    Luxury online

    The retail channel grew 4 per cent this year, with three-quarters coming from like-for-like sales growth. Wholesale channels grew at only 1 per cent, brought down by high-end department stores still trying to recover, and a slow-down among specialty stores facing tough competition from online.

    Luxury shopping online continued to accelerate this year compared with physical channels, growing 22 per cent versus 2017 to €27 billion.  The US market made up close to half of online sales – 44 per cent– but Asia is emerging as the new growth engine for luxury online, slightly ahead of Europe. Accessories remained the top category sold online, ahead of apparel; beauty and hard luxury (jewellery and watches) were both on the rise.

    Brands are catching up to other online players, comprising 31 per cent of sales, compared to e-tailers (39 per cent) and retailers (30 per cent).

    “New technologies are at once enriching the online and mobile shopping experiences, while potentially putting role of physical channels at risk,” said Federica Levato, a Bain partner and co-author of the study.

    “The luxury store-opening path is slowing down, leading to channel consolidation in the future. Brands must therefore rethink their physical channels and evolve their role from point-of-sale to point-of-touch, and use new technology to enhance customers’ in-store experiences.”

    Luxury consumers getting younger

    The report concluded that younger generations are becoming increasingly more important luxury brands. This year, Generations Y and Z contributed 100 per cent of the total luxury market growth, compared with 85 per cent last year. Bain predicts Generation Z, which today comprises just 2 per cent of the market will account for 10 per cent of it in 2025.

  • China’s 300-billion Daigou business: What’s next after the government crackdown?

    China’s 300-billion Daigou business: What’s next after the government crackdown?

    As aftershocks of the clampdown on Daigous continue to reverberate through the luxury shopping community in China, e-commerce platforms are rising to fill the gap.

    The launch of China’s new e-commerce law, coupled with the 928 Daigou crackdown at the Pudong International Airport in Shanghai, has stirred up uncertainty in the global luxury industry.

    In fact, LVMH share prices reportedly fell in early October due to fears of a slowdown in Chinese spending.

    Earlier this month, Luxury Society attended the live seminar “Reinterpreting the 300-billion Daigou market” hosted by Tencent media.

    During a debate, luxury e-commerce platform OFashion’s CEO Xiao Yu and N5 Venture Capital’s founder Xiao Yiwei shared their insights on how luxury buying will likely evolve in the post-Daigou era.

    According to Xiao Yu, the estimated Chinese luxury spending in 2018 is 600 billion RMB and Daigou purchases account for half of that, making it an estimated 300-billion industry.

    Without Daigou, what is the next best alternative for Chinese consumers looking to buy authentic luxury goods at lower prices?

    First, let’s revisit the 928 daigou crackdown in Shanghai’s Pudong airport and take a look at how China’s 300-billion Daigou industry is in danger.

    What Happened During The 928 Daigou Crackdown

    September 28 2018 marked an important date in the history of Chinese luxury consumption.

    In Shanghai Pudong airport, all passengers returning from Seoul were stopped by Chinese customs for baggage inspection.

    Seoul has been a classic shopping destination for Daigous to obtain global brands at a discount. More than 100 passengers from same Seoul-Shanghai flight were found guilty of illegal imports.

    It was every Daigou’s living nightmare.

    One of them relayed the unfolding events through WeChat text messages. Screenshots of this message thread eventually made its way online.

    The messages read,

    “In the line to pay my fine”

    “I was live streaming in duty free shop during the day, but live streaming fine payment during the night (face palm emoji)”

     

    Source: Sohu, A Daigou’s WeChat record of 928 crackdown got popular online.

    Whether as a full-time profession or simply a hobby, the Daigou business is one based on relationships.

    In fact, the first clients of most Daigous are generally from his or her own social network.

    Since Daigous operate in a legal gray area and rely solely on private transactions, customers often have a hard time verifying the authenticity of their purchases.

    Needless to say, seeking redress in the case of fraud is difficult or near impossible.

    Within the last decade or so, Daigous have become rather ubiquitous.

    Chinese netizens often joke on social media that “everyone has a Daigou friend on his/her WeChat”, or “Daigou is our generation’s best marketing guru”.

    Rumors of Daigous making a minimum of $100k USD a year and buying houses while still in college flood the internet, making the Daigou profession both a mysterious and highly coveted one in China.

    On September 28, however, this all came to a screeching halt.

    Within a night, the image of Daigous as self-made businessmen was reduced to that of illegal importers.

    Chinese Luxury Consumers Have Changed

    The Daigou business flourished in China largely because of strong domestic demand for global luxury products. This demand is quickly changing.

    During the seminar, OFashion’s CEO Xiao Yu offered his observations on shifting consumer tastes by analyzing the purchase data of its platform’s 3 million active buyers.

    Here are our major takeaways.

    1. Chinese Consumers Love Buying “Hits”

    The biggest difference between luxury consumers from China and those from mature markets is that Chinese consumers prefer mainstream “hit” items, while mature market consumers also buy a brand’s long-tail (niche) products.

    2. Entry-Level Luxury Sells Best

    Out of all the luxury product categories, entry-level items with a price range of 2000-5000RMB (430-730USD) exhibit the strongest sales performance.

    3. Consumer Tastes Have Diversified

    While Chinese consumers concentrated their research on highly famous luxury brands in the past, they are now much more receptive to niche brands.

    Bestselling product styles have also shifted from traditional classics like the Salvatore Ferragamo ballet flat, to streetwear brands.

    Additionally, Chinese consumers are now searching more about domestic brands compared to four years ago, when most searches were about established global brands.

    4. The Lipstick Effect Doesn’t Quite Apply In China

    Considered an entry-level luxury product, lipsticks have been selling like hot cakes in the Chinese market recently.

    While the “lipstick effect” – a global economic theory that postulates the correlation between beauty product sales and economic downturns – may hold true in many markets, industry professionals have stressed that it might not necessarily be the case in China.

    While China might be in the midst of a lipstick craze, experts have noted that lifestyle brands that are inspiring, soulful, and fun, can still rise to the top of the market quickly.

    How Platforms Can Rise To The Challenge

    Now with the individual Daigou business in danger, it’s time for luxury cross-border platforms to shine.

    As the live seminar’s two speakers noted, inefficiency is still a huge pain point in the cross-border industry.

    That said, cross-border solutions aiming to improve efficiency would likely to grow fast.

    As the luxury buying business faces tightening controls by regulators, consumers are turning to professional buyers, reliable platforms, or buyer’s platforms — a combination of the former two.

    Besides established luxury e-commerce platforms such as Tmall Global, JD’s Toplife, Secoo and VIP, platforms that specialize in serving professional buyers are booming, too.

    Tmall Global’s Luxury Direct has turned buyers into consultants and made fashion-consulting service a selling point.

    The platform’s “About” page reads, “Our buying team takes orders straight from fashion weeks and selects products from brand official showrooms all across Europe.”

    OFashion’s app “Buyer Box”, an app targeting professional buyers, has even a CRM (Client Relationship Management) system for users to personalize a client’s order.

    Source: Tmall Luxury Direct’s page
    Source: OFashion’s BuyerBox app

     

    The rise of these cross-border buying/selling platforms come at a welcome time and provide consumers with more choices.

    But the degree to which they will be able to overcome logistical issues eventually gain traction in the market remains to be seen.

  • Why you should adopt more diverse influencers?

    Why you should adopt more diverse influencers?

    Diversity, or lack thereof, is at the forefront of fashion industry discussions, with runways and advertising campaigns constantly—and rightly—scrutinised. Less has been said about diversity among prominent influencers, the new drivers of sales who are celebrated for their authenticity and ability to connect with customers.

    Thin, light-skinned women aren’t the only clothing shoppers, so why are so many of them the go-to for brands as they put together campaigns?

    Now several influencers, and a handful of talent agencies that represent them, are leading the charge to shake up the staid and stale landscape.

    They’re creating their own campaigns to highlight opportunities and content possibilities—along with #YouBelongNow, there are the hashtags #SupersizeTheLook and #ChicAtAnyAge — putting together initiatives to encourage and celebrate new voices in a greater range of ethnicities, sizes, and ages.

    The problem, many say, stems from the fact that the people organising the campaigns are not thinking about diversity when it comes to casting. It’s a continuation of the narrow view of beauty historically depicted in advertising, contends Jennifer Jean-Pierre Maull, a Haitian-American blogger and photographer from Washington, D.C with almost 16,000 followers on Instagram. “We need to change what we consider beautiful, we need to change what we consider marketable,” she said.

    Consider trendy online retailer Revolve: known for its influencer trips to far-flung corners of the globe, documented glamorously and exhaustively for its 2.6 million Instagram followers.

    Last January, as its squad took to the beach in Thailand, the attention turned from glowing to heated over the lack of diversity in its ranks. A shot of more than a dozen light-skinned swimsuit-clad slender women garnered more than 700 comments. A commenter tagged the picture #RevolveSoWhite.

    Revolve, which recently filed for an IPO and generated sales of $400 million last year, has never been a brand to highlight diversity, but whether or not that has had an effect on its sales is unclear.

    Revolve’s earned media value (EMV) dropped during the controversy to the brand’s lowest for the year, at $83.8 million. That cannot be solely attributed to the controversy, however, but “to the natural ebb and flow of events and campaigns.” And the dip was temporary: Revolve’s EMV bounced back to more than $140 million in each of the subsequent two quarters.

    In the firestorm, Valerie Eguavoen saw an opportunity.

    As the moment drew headlines, the North Carolina-based blogger and social justice advocate seized the chance to launch a new Instagram handle, @YouBelongNow, designed to celebrate people of all ethnicities, religions, sexualities and clothing sizes.

    “There are so many women who I could have seen on that trip, who belong in this space,” she said. “We have to get rid of this narrative that we don’t exist or it’s hard to find us.”

    Jean-Pierre Maull has kept tabs on what talent agencies she booked gigs with and which ones she hasn’t. In the latter camp was Fohr, based in New York and co-founded by James Nord. Over the summer, Nord addressed the Revolve controversy in a YouTube video, calling the retailer out for its practices while also suggesting it could be intimidating for brands to reach out to new influencers. Jean-Pierre Maull penned her response in a lengthy blog post. “Our POC (people of colour) community is not an alien force,” she wrote. “It is not hard to send a POC blogger the same pitch email that you send to others.”

    She emailed Nord, requesting to talk with him, one of many ongoing discussions Nord has had in recent months. “I leaned on this group of amazing women who did call me out,” he said.

    “Sometimes we just need to open up the conversation instead of just being angry,” Jean-Pierre Maull said. “Those in power must be self aware enough to see where they may be lacking or not doing enough.”

    One result of the chats Nord has had is a new mentoring program, called Freshman Class, to promote underrepresented influencers. More than 1,600 influencers applied, and 85 finalists were chosen. The ten winners include Alysse Dalessandro, queer plus-size fashion blogger; Ali Hemsley, a fashion influencer with a focus on chronic illness and mental health; and Destin Grayson, a menswear blogger. The winners will be flown to New York for three days of educational and networking opportunities.

    Nord hopes to help newer and lesser-known influencers build a network that can serve as sounding board, to discuss opportunities and pay rates.

    Jean-Pierre Maull said she was worried the initiative would seem like “someone need to swoop in and save” POC bloggers.

    The result, she says, has been anything but; it’s helping establish even more of a sense of community.

    “There is no lack of diversity in influencers, there is a lack of diversity in influencer campaigns,” Nord said.

    Relatability is a crucial part of influencer effectiveness, which is all the more reason why influencer campaigns should feature a more diverse range.

    Old Navy, a division of Gap Inc., looks for a range of sizes and family compositions in its influencer casting, then features them as models in its social feeds and digital marketing.

    “We’re looking for someone who people can see themselves in,” said Liat Weingarten, Old Navy’s vice president of brand communications.

    So far this year, Old Navy’s top two performing social posts featuring people (not just product), based on number of likes, comments and shares, are diverse group shots of influencers.

    One, highlighting dresses from its #SizeYES campaign, received more than 11,000 likes and more than a hundred comments. “My first thought when I saw this was: love this beautiful, diverse group of models!” wrote one commenter. “More of this, please!”

    And then there’s Revolve competitor Fashion Nova, which uses its Instagram account to highlight women of all ethnicities and sizes in its barely-there clothing.

    Its influencer hashtag, #NovaBabe, drove $54.1 million in earned media value from the second half of last year through the first half of this year.

    Mentions for @fashionnovacurve, the account for its plus-size line, generated $61.5 million in EMV.

    Followers are watching what brands are doing closely, too, said Scout the City blogger Sai De Silva.

    “When I go to events, I feel like there’s no one like me,” said Silva, whose followers have asked why she was the only woman of colour or woman with curly hair at a party “I live in New York City, how could there not be one other Puerto Rican [influencer]?”

    Influencers are finding that being proactive is the only way to move the conversation forward.

    Max Stein, founder and chief executive of agency Brigade Talent, said some of his clients will ask who else is participating before agreeing to a campaign, in the context of making sure a brand or company aligns on values—not just aesthetic. “It’s important to them that [diversity] is a value of the brand that they choose to partner with,” he said.

    However, not all brands are responsive in the way an influencer might want them to be.

    “There is sometimes a lack of cultural awareness and cultural sensitivities,” said Jaia Thomas, co-founder of The Presley Group, a management agency promoting diversity within the influencer space.

    Thomas, an entertainment lawyer, pointed to the time one of her African American clients was asked to do a post about watermelon. “There’s a long history of racial tropes and stereotypes associated with African-Americans, an affinity for watermelon being one of them,” Thomas said. “It’s important for there to be African-Americans in the room when creating social media campaigns so they can quickly and easily identify these stereotypes and ensure companies steer clear of them.”

    So, when will brands wise up? The enthusiasm that comes with a highly-engaged, targeted follower base is a big selling point in today’s noisy marketing field.

    “I don’t have a million followers,” said Katie Sturino, the force behind the handle and site The 12-ish Style. “What I do have is an audience that believes in what I’m saying and believe that if I’m showing them something, I like it.”

    Sturino’s best-performing content comes from two popular hashtags on her own account, both calling attention to sizing deficits within the industry. She recreates stars’ ensembles in #SupersizetheLook, with photographs of herself in similar outfits, performing 77 percent better than her average posts.

    Sturino also started the #MakeMySize hashtag, pairing pictures of herself in garments that are too small with captions asking brands to make a broader range of sizes, performing 65 percent better than her average posts.

    Sturino wishes more brands would take the time to find new personalities, and involve those newcomers earlier in the product-development process. “You pay them to wear the clothes, why don’t you pay them for their opinions, too?” she said.

  • Xtep Sports opens sportswear store in India

    Xtep Sports opens sportswear store in India

    Hong Kong-headquartered Xtep Sports has opened its first Indian flagship store, in Bengaluru. The Xtep group, which specialises in footwear and sportswear, currently has 6035 stores in 31 Mainland China provinces as well as in Vietnam, Nepal, Saudi Arabia and Spain. The company was founded by Ding Shui Po, now its CEO, in 1999 as an original equipment manufacturers for global sports brands. It launched its own label in 2002.

    The company is reportedly planning to open five stores in India by the end of this year and will also sell through local online marketplaces.

  • Tencent closed to buy sports firm Amer

    Tencent closed to buy sports firm Amer

    Social media conglomerate Tencent Holdings is believed to be close to joining a Chinese investment group bidding to acquire Finnish sports goods firm Amer. The consortium, spearheaded by Anta Sports Products, would see Tencent participating as one of a few minority investors under the proposal. Its involvement would serve to boost considerably Amer’s brands in the Chinese market.

    In a statement made two months ago, Anta spoke of joining with local buyout company FountainVest Partners to offer a potential €40 (US$45.60) per share for Amer, a target value of around €4.7 billion ($5.3 billion). The consortium has sought at least €3.5 billion ($3.99 billion) in loans. Anta has a market value of about $11.6 billion.

    The acquisition agreement could potentially be complete within several weeks.

  • J.Crew’s CEO Jim Brett is leaving the firm

    J.Crew’s CEO Jim Brett is leaving the firm

    J.Crew chief executive Jim Brett is exiting the company, the retailer said, and a committee of four executives will step in to manage operations until a replacement is found. The statement said the decision had been mutual between Brett and the board of directors.

    “Returning J.Crew to its iconic status required reinventing the brand to reflect the America of today with a more expansive, more inclusive fashion concept,” said Brett. “However, despite the recent brand relaunch already showing positive results, the board and I were unable to bridge our beliefs on how to continue to evolve all aspects of the company.”

    Brett will be replaced by four executives: chief operating officer Michael Nicholson, chief experience officer Adam Brotman, chief administrative officer Lynda Markoe and Libby Wadle, president of the Madewell brand.

    Brett joined the specialty retailer in July 2017, at a time when the company was struggling with looming debt payments and declining consumer sentiment toward the brand. Over the next year and a half, he overhauled the executive team, bringing in former colleagues from West Elm — where he was CEO — and URBN — where he worked at both Anthropologie and Urban Outfitters — to revamp the brand identity and restructure the business. In 2017, the company was able to bide a bit more time to implement a turnaround, negotiating with creditors to push back the maturity of $566.5 million in debt from 2019 to 2021.

    He lowered prices, launched new brands and tried to reposition J.Crew as an inclusivity-driven, one-for-all label not so tied down by its preppy heritage, especially as it had most recently been interpreted by agenda-setting designer Jenna Lyons.

    In a sharply worded email sent to senior staffers in July 2018, he dismissed Lyons’ work, which turned polarising near the end of her tenure, while laying out his own priorities.

    “PRETTY always sells. A glen plaid jacket with a graphic tee and camouflage pants is anything BUT pretty,” he said. “The new feminist fashion movement is enjoying the POWER of femininity (see latest Dior shows) vs. the last feminist movement which was about women finding power in dressing like men. Femininity is critical — pretty is critical — femininity is powerful. These things are in starch [sic] contrast to Jenna’s masculine, sexual and overtly aggressive J. Crew.”

    While Lyons’ vision had stopped resonating with consumers, Brett’s fix was viewed by some analysts as a watering down of the product. There were too many changes at once — from the introduction of a bare-bones loyalty programme to changes in fabric suppliers to the implementation of a marketplace — all with varying impact. He also continued to discount heavily, something many of J.Crew’s competitors are trying to move away from. Talk of a decline in morale also permeated Brett’s run, with multiple corporate-level employees leaving, including one of Brett’s own hires, chief marketing officer Vanessa Holden, who recently announced her departure.

    In the second quarter of 2018, the group — which also includes Madewell — reported that same-store sales rose 1 percent from a year earlier after 15 straight quarters of decline. Star performer Madewell, which drives about a fifth of sales, saw comps jump 28 percent. Total sales at the company were $588 million, up 3 percent from the same quarter in 2017. The company still experienced a net loss of $6 million, compared to a $19 million loss during the same period last year.

    Whether the company has managed to keep up the momentum will be revealed imminently, as third-quarter earnings are expected to be released this month. The period was marked by J.Crew’s official September relaunch, including the rollout of its #meetmycrew marketing campaign. Just this past week, J. Crew launched another brand, Nevereven, which is also being sold at multi-brand retailers such as Fred Segal in Los Angeles.

    But talk of the company giving up more of its corporate office space to Facebook and Instagram — which occupies the same building — and news of a “for rent” sign in the window its popular men’s concept shop, the Liquor Store, indicates that the J.Crew is still in cost-cutting mode.

  • Hugo Boss growth relies on Asia sales

    Hugo Boss growth relies on Asia sales

    German fashion retailer Hugo Boss sees Asia as a cornerstone of its growth strategy, saying while it already enjoys above-average growth in the region, there is potential for more. In a briefing to investors in London, the company’s managing board said it expects Asia will account for 20 per cent of its global sales by 2022, up one third from the current 15 per cent.

    “The board is convinced the group still has considerable growth potential particularly in Asia. Sales in the region are expected to increase on average at a double-digit percentage rate per year by 2022, with China playing a key role,” the company said in a statement.

    “In addition to the optimisation and expansion of the local retail network, the online business, also in cooperation with various multi-brand platforms, should contribute to above-average sales growth in particular.”

    Globally, Hugo Boss will focus on personalisation and speed to boost brand desirability between now and 2022. The company plans to increase currency-adjusted sales by between 5 per cent and 7 per cent annually for the next four years and grow its operating margin to 15 per cent. Operating profit will grow “significantly faster than sales,” the company said.

    “We have set ourselves high targets for the coming years”, said CEO Mark Langer.

    “We want to grow faster than the market, and expect our operating profit to develop significantly better than our sales. The successful realignment of our brands Boss and Hugo has laid the foundation for this. We will further increase the personalisation of our offerings in the future and speed up central processes in the course of further developing our strategy. Our overall aim is clear: We want to be the most desirable premium fashion and lifestyle brand globally.”

    Personalisation will be developed by adopting a more individualised customer approach, a personalised product range, “a unique shopping experience” and by building on its extensive experience in made-to-measure clothing.
    On the speed front, Hugo Boss plans to make its business processes “considerably more agile”.

    “This will enable the company to react to customer needs and to new market trends even more quickly and flexibly in the future. The existing skills of Hugo Boss in product design and development, our modern logistics and IT infrastructure and the use of digital showrooms will be the key levers,” the company said.

    It also plans to quadruple its own online sales by 2022.

  • Gentle Monster opens second store in Singapore

    Gentle Monster opens second store in Singapore

    South Korean eyewear brand Gentle Monster has opened a second store in Singapore at Marina Bay Sands. The launch, coming more than a year since the opening of Gentle Monster’s first store in Southeast Asia at Ion Orchard, is part of the brand’s “13” project. According to the brand, the project is “based on a story of an extreme ecological change the Earth would have to endure in the future due to a tilt of its axis, caused by the Moon being pushed farther away from planet Earth.”

    The concept serves as a metaphor to describe modern-day people who seem “obsessed and overwhelmed by the invalid information they receive daily.”

    To celebrate the opening of the new location, Gentle Monster has teamed up with fashion blogger Yoyo Cao to come up with a special edition of the brand’s popular Cobalt sunglasses model. The limited edition eyewear features a trendy tear drop-shaped frame along with details such as a twisted bridge and an inner template engraved with the word “Yoyokulala”.

    The Gentle Monster x Yoyokulala eyewear will retail at S$368.

    Find out the interior of the store below (5 images) :

  • High tech Nike NYC store opens

    High tech Nike NYC store opens

    Nike opened its newest Nike House of Innovation overnight, a 68,000sqft, six-storey store on Fifth Avenue.

    Nike NYC is described by the sportswear brand as a cross-category premium store, “the pinnacle expression of modern retail, representing the best of Nike global product, experiences and sport innovation”.

    “Nike NYC is designed to be a dynamic store environment, that is just as personal and responsive as digital,” said Heidi O’Neill, Nike Direct president. “This premium destination gives consumers an authentic, immersive and human connection to the Nike Brand.”

    The store is packed with technology, interactive experiential features and zones for both professional athletes and amateurs.

    Nike NYC uses the Nike App to create digitally connected journeys for consumers to discover, learn about and find the products they want quickly and easily. New and expanded Nike App in-store features include Shop the Look, Instant Checkout and updated functionalities with Scan to Try which the company says will give consumers greater opportunity to shop in-store displays, checkout in-store or request to try-on items throughout the store.

    The store is planned as something of a testbed for Nike’s digital service offerings which will “continue to evolve … giving NikePlus members even more choice in their shopping journey”.

    “Powered by digital commerce data and inspired by Nike’s newest retail concept, Nike Live, the ground floor of Nike NYC features the new Speed Shop – offering on-the-go access to the products local members know and love most,” the company said.

    Consumers can shop these curated New York City favourites alongside seasonal picks, visit the Nike Sneaker Bar or reserve items in the Nike App and pick them up in the Speed Shop digital lockers.

    On the fifth-floor is the Nike Expert Studio – the company’s first dedicated floor to provide even more personal service to NikePlus members, including bookable sessions with Nike Experts and the Nike by You Studio, offering members-only exclusive seasonal products, one-on-one styling sessions and even create personalised products.

    Nike NYC features separate product floors for men, women and kids. On the fourth floor is the Nike Sneaker Lab, billed as home to the largest concentration of seasonally current Nike footwear anywhere in the world.

    The entrance to the store – dubbed the Nike Arena – showcases the most immersive seasonal and sport-inspired storytelling moments from the brand.

    The store’s exterior features slumped and carved glass designed to “reflect and create motion that mirrors the movement of athletes”, elevates the Nike Swoosh logo and reflects “the iconic aesthetic of Nike Air”.

    Technology at Nike NYC

    Here’s a quick rundown of the new and existing technology featuring in the new flagship:

    Shop the Look: By scanning a QR code on an in-store mannequin, consumers can browse every single item on the mannequin, check to see if their size is available in-store or online and see available colours. Then with just a tap, they can request for select products to be sent to a fitting room of their choice or receive the items from a store athlete at a designated pick-up spot.

    Nike Instant Checkout: Using Nike Scan, NikePlus members can skip the line and easily checkout from within their Nike App using stored or new payment methods. Members can scan the product(s) of their choice, check out like a traditional Nike App purchase and receive their payment receipt within the app. Nike Instant Checkout stations are positioned throughout Nike NYC so that shoppers can fold and bag products if they choose before leaving the store.

    Nike Scan to Try: While this technology was released earlier this year it has now been refined and expanded. After discovering any product in the store and scanning the item to learn more, shoppers can now simply tap “request to try-on” for various items. Requested products can then be collected at designated pick-up areas in Nike NYC, or they can be reserved to a fitting room location of the consumer’s choice.

    Nike Reserve: Using the Nike App, NikePlus members can reserve product at home to pick up in store. They can shop the product they want in the Nike App and then complete their purchase with an in-store athlete or with Nike Instant Checkout.

    Retail Home: When entering Nike NYC, members will gain access to an array of new features and content via their Nike App homepage.

    NikePlus Unlocks: NikePlus Member Unlocks are delivered through the Nike App to reward the best of Nike product, to deliver immersive brand experiences, to award activity achievements and to share partner rewards with members. Member Unlocks can be given directly from a Nike Expert in-store or targeted to consumers based on their sport and style interests. Select Member Unlocks may also be delivered to consumers outside of Nike NYC, which they can redeem in-store with an athlete.

    Product Concierge: If a product is unavailable in Nike NYC, an in-store staff member can search inventory across the entire marketplace – online or offline in Nike-owned stores, as well as its reseller network. If found, and available to ship or reserve, customers can have the item held at a local store or have it delivered. This service will be exclusively available on the fifth floor Nike Expert Studio Service Desk.

  • The Longines Masters of Hong Kong is back

    The Longines Masters of Hong Kong is back

    Anticipation is building as the countdown to the new Season of the Longines Masters Series enters its final stage. The new season of the international Show Jumping Series will start in Paris, home to the European leg of the Grand Slam Indoor of Show Jumping, on November 29 – December 2, 2018 before it continues its journey across continents to Hong Kong on February 15 – 17, 2019, at AsiaWorld Expo and New York on April 25 – 28, 2019.

    Together with Title Partner and Official Timekeeper Longines and hosted by Founding Partner the Hong Kong Jockey Club, EEM held a Press Conference in Hong Kong this week to kick off the seventh edition of the Longines Masters of Hong Kong, alongside its official partners.

    The Longines Masters of Hong Kong attracts each year the best Show Jumping horses and riders on the planet for three days in six competitions, created course designed by Frank Rothenberger, for a total prize money of US$ 680,620.

    For the first time, show jumping riders from Asia will compete in a world class event alongside the international stars of the sport.

    An array of exhibitors will be present from the likes of Longines who will present time pieces at their boutique.

    A dedicated equestrian corner will bring together the likes of Kingsland, Fieldstone, Horse Pilot and Equict.

    Hermès Sellier will invite visitors to experience the brands historic equestrian goods.

    Technology and art will also be featured with the Maserati Simulation Driving Experience