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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.

  • China growth boost for Estée Lauder

    China growth boost for Estée Lauder

    Momentum in China helped boost fourth-quarter performance for beauty products giant Estée Lauder.

    Overall net sales for the three months to the end of June were up 9 per cent year on year (11 per cent in constant currency) to US$2.89 billion for the group, while rising 5 per cent for the full year (7 per cent) to $11.82 billion.

    Sales benefitted from new products and double-digit growth in several markets, particularly China. The company also had double-digit gains in its travel retail, online and specialty multi-channels.

    Net earnings for the quarter were $229 million, compared with $94 million last year..

    For the year, the company’s net sales reached $11.82 billion, up 5 per cent (7 per cent excluding currency exchange impact). Incremental sales from the acquisitions of Becca and Too Faced contributed about two points of sales growth.

    In the Asia/Pacific, all markets recorded growth except Hong Kong. Higher sales in China reflected strong double-digit gains in most brands, with sharp contributions from Estée Lauder, La Mer and Mac.

    Sales benefitted, in part, from targeted expanded consumer reach and reflected double-digit online sales growth in every brand, including the launch of Mac on Tmall in China. Sales in department stores posted strong gains, while freestanding stores generated double-digit growth.

    Strong sales growth was generated in Japan, Korea and Taiwan. In Hong Kong, the company’s business continues to stabilise with a return to growth in the fourth quarter.

    There was strong growth in the region for sales of the Tom Ford, Jo Malone, La Mer and Mac brands.
    Operating income increased for Asia/Pacific, primarily because of increased sales in China, Japan, Korea and Taiwan. Results were more modest in Hong Kong and Indonesia.

    President/CEO Fabrizio Freda describes the quarter’s performance as “outstanding”, rounding out another year of strong net sales and earnings growth.

    “Our business accelerated in our online direct-to-consumer and retailer e-commerce sites, as well as in the travel retail and specialty multi-channels, and we built momentum in key geographies like China, aided by enhanced digital and social-media communications.

    “Additionally, we began to further improve our organisational efficiency and effectiveness through our Leading Beauty Forward initiative. Importantly, we delivered this performance in the face of external global volatility and one of the biggest moments of change in our industry.”

    Estée Lauder’s acquisitions of Becca and Too Faced performed ahead of plan, with incremental sales contributing about 3.5 points to sales growth.

    Sales growth was posted in most brands, and there were across-the-board sales gains in all geographic regions and product categories, except hair care.

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  • Crocs start expanding in India, opens store in Jaipur

    Crocs start expanding in India, opens store in Jaipur

    Crocs, the US footwear brand, as promised has started its retail expansion drive in India and opened a store at MGF Metropolitan Mall in the city of Jaipur.

    The store features a full line-up of the brand’s flats, loafers, sneakers, flip flops and its signature trademark clogs

    On the opening of the new store, CEO of Crocs India, Deepak Chhabra said the company wants to reach a customer looking for both comfort and style and opening in Jaipur is key as the city is an attraction for tourists.

    Crocs is expected to open more stores in the coming months across the country as the company had earlier said that it will open 50 standalone stores this calendar year to drive growth, especially in East and North-East part of the country.

    Chhabra in a statement earlier had said that the company is growing at over 35 per cent year-on-year and expects to double its India business within three years.

    The company globally sold 55 million pairs of shoes in 2016 while in India it sold 1.5 million pairs.

    At present, the company has 1,000 points of sales including over 35 exclusive stores. The brand’s new campaign Come as You Are with brand ambassadors John Cena, Drew Barrymore, Yoona and Henry Lau is celebrating the uniqueness of individuals and aims to inspire everyone to be comfortable in their own shoes.

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  • ‘Tiffany’ rings cost Costco $19.4m

    ‘Tiffany’ rings cost Costco $19.4m

    US wholesaler Costco is facing a $19.4m  bill for damages after jewellery chain Tiffany sued it for infringing its trademark by selling “Tiffany” engagement rings.
    The ruling by a US district judge is the latest twist in a long-running legal battle going back to 2013.

    Costco, which is to appeal against the decision, argues that “Tiffany” is now a generic term for the rings.

    But it has now been told it must call them “Tiffany-style” instead.

    The dispute centres on the sale of solitaire-style rings, comprising a diamond mounted on a single band with six prongs.

    Costco, which had sold 2,500 of them, put them on display with the label “Tiffany”, although they were not in fact made by the jeweller.

    An earlier court ruling in October 2016 ordered Costco to pay $5.5m in compensatory damages and $8.25m in punitive damages.

    But in a further court decision on Monday, the compensation was increased to $11.1m, while the amount of punitive damages still stands.

    Kate Swaine, a partner at law firm Gowling WLG, said: “This damages award may seem excessive given that only 2,500 products were sold, but if it can be argued that an infringement is blatant and where it relates to such a well-known brand, the claimant is entitled to seek punitive damages.

    “Brand owners will welcome this decision as an indication of the risk that third parties run in trying to make associations with famous brands.”

    The cheapest engagement ring on Tiffany’s US website currently costs $12,000 (£9,300) while customers can buy one from Costco’s website for only $380 (£295).

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  • Revenue down, profit up for Kappa licensee China Dongxiang

    Revenue down, profit up for Kappa licensee China Dongxiang

    While half-year revenue was down, profit rose for Kappa brand licensee China Dongxiang Group. The international sportswear company’s revenue for the six months to the end of June fell 3.7 per cent to RMB626 million (US$93.8 million) while profit attributable to equity holders rose 11.9 per cent to RMB536 million.

    Gross profit margin was up 1.1 points to 58.3 per cent.

    During the half, the group says it continued to adopt online and offline brand-marketing strategies.

    Meanwhile, Kappa co-operated with artists from various genres such as entertainment, music and arts in a pop-culture/sportswear collaboration embodying its brand philosophy. It initiated a tripartite co-operation with A.Four Labs by designer Kazuki Kuraishi and independent experimental music label Posh Isolation in Copenhagen to launch a cross-border collection.

    Kappa Kids continued with its active marketing campaign, including pop-up events with BTV Juvenile Dance Group in Beijing Chongwenmen and Beijing New Yansha Mall. Kappa Kids also sponsored TV program Super Surprise on Shandong Cable TV to boost brand awareness.

    At the end of June, the group had 1639 Kappa stores (including 328 Kappa Kids outlets).

    During the first half, the group rejigged its business in Japan. It changed most of the management team, as well as evolving its approach from simply selling to brand management.

    Meanwhile, the group started introducing the Japanese ski brand Phenix into China to capitalise on its hosting of the 2022 Winter Olympics. It is partnering with ski centres to open specialty stores at ski grounds.

    E-commerce development remained steady, says the group. In an online exclusive, it launched a Kappa x Pac-Man range in co-operation with the video game company. E-commerce sales for the six months surged by 25 per cent (e-commerce sales of childrenswear excluded).

    China Dongxiang owns all rights to the Kappa brand in China, Macau and Japan.

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  • Colette by Colette Hayman launches at Australia Fair

    Colette by Colette Hayman launches at Australia Fair

    Fashion accessories retailer, Colette by Colette Hayman, has opened its first store at Australia Fair on the Gold Coast.

    The retailer joins other new tenants at the  retail and lifestyle precinct, which is currently undergoing a $25 million redevelopment.

    Stage one of the project is expected to be completed by November. Australia Fair owner YFG Shopping Centres has engaged Hutchinson Builders to carry out the 13-month project, which includes a major expansion and makeover of Coles and an upgrade of the centre’s Scarborough Street facade.

    Australia Fair’s exterior is also getting a facelift, to create a contemporary facade for the retail, dining and entertainment complex, with the structure to feature lighting and fresh signage bearing the centre’s new branding.

    Other new tenants joining Australia Fair’s retail offering who have recently opened at the centre include, Ted Ross, U Grill, Joy Stylist and Green Valley Butcher. Brazilian restaurant and bar The Grill House, Vintage Grind, Stella Saigon Street Food, Chikar, Wrap and Roll and LiquorLand are also set to open their doors over the next few months, while several existing traders are relocating or undergoing a fresh fit-out.

    Meanwhile Colette’s opening adds to its over 160 stores worldwide.

    The retailer announced it will have new collections dropping weekly and will feature handbags and jewellery.

    Ramon Otten, Australia Fair general manager, said the “highly anticipated” store opening would enhance the centre’s offering for shoppers, as upgrades to the ground floor continue to modernise the mall and its exterior.

    “We are delighted to welcome Colette by Colette Hayman to Australia Fair, and expect this internationally successful brand to be very popular with our young and fashion-conscious demographic,” Otten said.

    “Colette by Colette Hayman is known for fun, stylish and affordable handbags and accessories for all occasions, which we feel makes the brand a fresh and exciting addition to the expanding retail offering of our new-look centre,” he said.

    Otten added it was “gratifying” to see the centre’s transformation take place, with a view to opening ahead of the 2018 Commonwealth Games, held on the Gold Coast.

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  • German luxury watch “Nomos” to open in Hanwha Galleria Duty Free Shop

    German luxury watch “Nomos” to open in Hanwha Galleria Duty Free Shop

    Hanwha Galleria Duty Free Shop opened German luxury watch Nomos store on Aug 17. Hanwha Galleria Duty Free Shop was the first Korean Duty Free business to launch luxury brands such as Golden Goose, Stefano Ricci, LAUNER LONDON and Corneliani, and succeeded in launching Nomos.

    In addition, Hanwha Galleria Duty Free Shop strengthened luxury watch collection with IWC and  Jaeger-LeCoultre opening in June.

    Nomos is a watch house with an in-house movement with outstanding technology. It was ranked n.8 world’s best watch in 2014 by Chronos, a prestigious German watch magazine along with IWC, Rolex, Patek Philippe and Jaeger-LeCoultre.

    The product dial has the name ‘Glashütte’ which is a production names of the finest watches in Germany. It is a certificate given only to high-quality brands such as A.Lange & Söhne and Glashütte Original.

    In order to put Glashütte on the dial, more than 50 percent of all parts should be produced in this area. Nomos produces 75 ~ 95% of the movement directly.

    Especially, Nomos has a good reputation as a good quality watch with a reasonable price as it can be purchased from 2 million won.

    Customers can purchase Nomos only in Galleria Duty Free Shop in Korea, but there are already more than 20 stores in Japan. In addition, Metro, which is a popular model, gained explosive popularity after being introduced at the Basel Fair in March 2014.

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  • Premium outdoor brand ‘Gregory’ to open its first flagship store

    Premium outdoor brand ‘Gregory’ to open its first flagship store

    Under the unique brand philosophy of ‘Backpacks should be as easy to wear’, Gregory has opened the first flagship store in Sangsu dong, Seoul.

    Based on its ergonomic design and state-of-the-art technology, Gregory has been becoming a brand with a new category of ‘Outdoor Lifestyle Backpack’.

    Since Gregory offers a total of three product lines including functionality, lifestyle, and business line, the brand is widely loved by a wide range of customers from college students in twenties who pursue athletic lifestyle to office workers in thirties who place on functionality and quality.

    Gregory’s “Fit Jig” service is the best example of this brand identity. When choosing a backpack, it is important to consider a variety of factors such as gender, body size, amount of baggage, and purpose, and choose a product that provides a comfortable fit without feeling uncomfortable to the body.

    The Gregory Sangsu flagship store offers a service that recommends an optimal model based on your body size and usage, using a body meter.

    In addition, as it is the only flagship store in Korea, customers can try out the most various products. The Gregory flagship store also offers ‘Old Logo’ products, which are available only here.

    It sells a variety of products that can look at the history and identity of the brand from the vintage items with the old logo to the limited edition. Also from the August 25th, Gregory will show apparel products with its sensitivity.

    The Gregory Flagship Store also attracted visitors with a variety of cultural experience events.  In particular, it celebrated its opening in March last year, and its stores were decorated like galleries.

    Gregory’s early products, founded in 1977 in San Diego, USA, have provided a variety of information related to the brand’s history for 40 years. A Gregory official said, “The Gregory Flagship Store is a place where you can meet all of Gregory’s products that symbolize outdoor and lifestyle.”

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  • Sephora Malaysia to open at Genting Highlands

    Sephora Malaysia to open at Genting Highlands

    Sephora Malaysia will open its 19th store at the Sky Avenue mall, in Genting Highlands on September 1.

    The beauty retailer will feature up to 100 international brands including Dr. Jart+, Fresh, Kat Von D, Marc Jacobs Beauty, Tarte.

    Product categories range from makeup, skincare, devices and haircare through to fragrances.

    Opening day promotions will be available for early bird customers, including gift vouchers from RM50 to RM100, Sephora mini backpacks and other giveaways. There will be live music in-store.

  • Revenue rise puts Yue Yuen on good footing

    Revenue rise puts Yue Yuen on good footing

    Revenue growth of 3.9 per cent saw first-half revenue hit US$4.4 billion for Yue Yuen Industrial (Holdings).

    Profit attributable to the owners of the group grew by 4 per cent year on year to $258.5 million for the six months to the end of June.

    Ye Yuen’s main business categories are making and selling footwear products plus the retail and distribution of sportswear and apparel products, including leasing large-scale commercial spaces to retailers and distributors. It is the largest manufacturer of athletic and casual/outdoor footwear for international brand companies, and runs one of the largest footwear and apparel retail networks. It also provides sport services across Greater China, which continues to be a key growth market for major international sporting and lifestyle brands.

    Its footwear manufacturing revenue recorded a mild decline of 0.7 per cent to $2.9 billion during the first half, with sales volumes dropping 1.6 per cent. However, the group’s manufacturing gross profit grew from $607.9 million to $622.9 million with a gross profit margin of 20.8 per cent.

    Vietnam, Indonesia and China continued to be the group’s main production locations by volume, representing 46, 35 and 17 per cent of total shoe production respectively.

    Athletic shoes accounted for 46.6 per cent of revenue, followed by casual/outdoor shoes at 12.8 per cent. Athletic shoes were also the main manufacturing category, accounting for 77.1 per cent of revenue, followed by casual/outdoor shoes at 21.2 per cent.

    The group’s retail business grew by 15 per cent to $1.4 billion. The group’s main retail subsidiary, Pou Sheng, derives sales primarily from retail omni-channels and a sport services platform covering major cities in Greater China.

    At June 30, the group had 5464 directly run counters/stores and 3036 stores run by sub-distributors in Greater China. It had about about 360,000 employees globally.

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  • Giordano International recovers from early fall

    Giordano International recovers from early fall

    In a turnaround from a 1.6 per cent drop in the first quarter, apparel retailer Giordano International recorded a 3.4 per cent rise in half-year group sales to HK$2.6 billion (US$334.8 million).

    Gross profit increased by 3.8 per cent and gross margin improved by 0.2 points.

    Comparable store gross profit (CSGP) rose by 6.6 per cent though comparable store sales (CSS) reached only 4.6 per cent growth. The company says the increase was primarily because of a better pricing/merchandising mix, but the figures were dampened by the early lunar new year shortening sales of winter merchandise.

    Group gross profit edged up 3.8 per cent to $1.566 billion, primarily because of non-performing stores being closed in the past few years. Group gross margin was up by 0.2 points to 59.8 per cent, mainly because of depreciation of the renminbi as most products were sourced from China. Giordano says sourcing from Bangladesh and Vietnam will help maintain or improve future gross margin.

    While China’s total sales fell, operating profit grew by 5 per cent, mainly because of improved profit from e-commerce, gross margin improvement and control of running expenses.

    E-commerce sales surged 26.6 per cent, contributing to 16.2 per cent of China brand sales (12.7 per cent for the same period last year). The company attributes the increase to improved merchandise mix and logistics.

    Strong growth

    Regional operating profit recorded strong double-digit growth, particularly for Indonesia, Malaysia and Singapore. This was generally attributable to improved gross margin and expense
    control.

    Early Ramadan and improved merchandise assortment benefited both Indonesia and Malaysia. The operating profit of Malaysia grew by 47.2 per cent and that of Indonesia by 37.1 per cent.

    In Singapore, operating profit was up 35.1 per cent, mainly because of gross margin increasing by 2.1 points to 62.6 per cent despite a stagnant economy and low tourist traffic.

    In Thailand, operating profit was virtually the same.

    South Korea (a 48.5 per cent JV with an independent management team) reported a net profit increase of 28.8 per cent through better cost control, the closure of non-performing stores and enhancement in gross margin.

    Worldwide, there were 16 fewer Giordano stores at the end of June, mainly because of 33 non-performing stores being closed in India, where the group is restructuring the business. This trimmed the network to 2371 stores in more than 30 countries, including 1243 standalone stores. Most are in China (where stores expanded from 896 to 913, all in the franchise network), South Korea, Southeast Asia and the Middle East.

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  • Longines opens new Kuala Lumpur store

    Longines opens new Kuala Lumpur store

    Longines has opened a new store in Kuala Lumpur, as the Swiss luxury firm looks to bolster its standalone store count in Malaysia.

    Located the capital’s prestigious Suria KLCC mall, the Longines store covers 75-square-metres and adopts the style codes seen in boutiques around the world.

    Upon entering the boutique, shoppers face a floor-to-ceiling poster of Longines ambassador, Kate Winslet, while the main wall panel projects a large video screen, offering an insight into Longines’ 185-year long history.

    Store features include lacquered wood panelling with the firm’s winged hourglass logo, as well as burnished leather, polished marble and selected fixtures and furnishings “that create a calm inviting environment,” said the brand in a statement.

    An exclusive VIP area allows customers to shop in comfort and privacy, while finding out more about the brand and specific collections, it said.

    The Suria KlCC store stocks the iconic watchmaker’s latest collections for both men and women.  There’s a dedicated space for The Longines Equestrian Collection, a tribute to Longines’ involvement in equestrian sports and its commitment to its female customers, inspired by the equine world.

    The new store also has a small display of nine pocket watches from the 19th century, taken from the Longines Museum located at the company’s headquarters in Saint-Imier, Switzerland. The new boutique is the first in Southeast Asia to feature the valuable archive pieces, said Longines.

    Finally, the boutique has a large range of Longines collections including Longines DolceVita, The Longines Master Collection, Conquest Classic as well as Heritage models, which are on freestanding displays for easy access.

    The new store follows Longines’ recent store opening in Macau in February this year. Longines forms part of the Swatch Group fold, which also boasts luxury brands such as Breguet, Omega, Hamilton and Calvin Klein watches.

  • Nike’s opens new three-level flagship in the Sydney CBD

    Nike’s opens new three-level flagship in the Sydney CBD

    Retail Prodigy Group will open the doors to a three-level Nike flagship store at George Street in the Sydney CBD on Thursday morning.

    The new flagship is the first high street store for the brand in Sydney, situated in a heritage building that has been modernised for the new store. The ground floor is dedicated to men’s training and running, sportswear, the Jordan Brand and basketball in the basement. The first floor has been designated for womenswear, in the running, training and sportswear categories, plus a specialised bra fitting service and pant hemming.

    With a focus on running products, the store will feature Nike+ Trial Zones; an immersive space that features a Nike+ Run treadmill dedicated to trialling running footwear.

    In a Nike Australia first, the store also features sneaker cleaning and protection services.

    Brant Hirst, Nike marketing director told us that the vast amount of construction works currently underway in the Sydney CBD had not been a concern in the development of the new George Street location.

    “The heritage facade and multiple levels of the building provided the perfect canvas for a premium shopping experience for our customers,” he said.

    “Having a high street store in an emerging shopping precinct was also a major drawcard of the space.”

    Despite several commentators continuing to forecast the demise of bricks and mortar retailing, Hirst said the new flagship would be “powered by immersive product experiences” and in-store experts.

    “This store centres around elevating every athlete’s potential and offering customers personalised experiences, whether they’re training for a marathon, or want the latest in sports style.”

    When asked if we could expect to see more larger flagships in other locations across Australia and New Zealand, Hirst said that Nike was “always looking at ways to innovate and offer premium shopping experiences for our customers.”

    Nike also recently confirmed it is launching a pilot program to sell sneakers on Amazon, in a move to combat counterfeiters and unsolicited third-party sales conducted online.

    In a call with analysts, Nike CEO Mark Parker said that Amazon would carry “a limited Nike product assortment” of footwear, apparel, and accessories, and that the sports brand was seeking to improve its presence on the e-commerce site while also protect its brand reputation.

    Meanwhile, the race is on within sports retailing in Australia.

    British retailer, JD Sports currently has three stores trading in Australia at Melbourne Central, Pacific Fair on the Gold Coast and Parramatta in Sydney’s western suburbs. Two further stores will open soon at Miranda in Sydney and Highpoint in Melbourne.

    The Lancashire-based company has more than 1,200 stores under a portfolio of sports fashion and outdoor brands throughout the United Kingdom and Europe.

    Decathlon, the French retailer, has established an Australian online sales platform and expects to open its first store in the Sydney suburb of Tempe in October.

    The retailer has more than 1,000 stores in almost 30 countries and has notionally set a target of 100 stores for the Australian market.

    More recently, Super Retail Group decided to discontinue Amart Sports and convert its 65 stores into Rebel Sport as part of a consolidation strategy designed to defend against the entry of Amazon, Decathlon and JD Sports.

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  • Brazilian Flip Flops Brand Enters Suzhou Jiuguang

    Brazilian Flip Flops Brand Enters Suzhou Jiuguang

    Brazil’s well-known flip flops brand Ipanema opened a new store in Jiuguang Department Store, Suzhou, which is reportedly Ipanema’s seventh store in the city.

    Established in 2001, Ipanema provides four major series of products, including women’s products, men’s products, children’s products, and brand-partnered products; and its product lines cover flip flops, sandals, and slippers.

    The company started expanding into international markets in 2003 and over the following ten years, Ipanema became a popular high-end sandals brand in over 90 countries with its unique designs and comfortable products.

    Ipanema’s sandals are mainly made from PVC materials and processed with a special soft rubber compound technology.

    At the same time, 99% of its materials are claimed to be recyclable, which meets the environmental standard of developed countries. The brand will launch new products each season and about 400 new products are available annually.

    Ipanema’s manufacturer is the large sandals maker Grendene. Grendene was founded in Farroupilha in 1971 and it currently has 13 large factories and over 30,000 employees.

    The company is a large group enterprise which integrates material production, abrasives development, design, and brand management.

    At present, Ipanema products are well received in countries like United States, France, Italy, Spain, the Netherlands, Portugal, India, Germany, Ireland, Switzerland, the United Kingdom, Paraguay, and Mexico.

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  • Giorgio Armani brings made-to-measure service to Hong Kong

    Giorgio Armani brings made-to-measure service to Hong Kong

    Since its launch, Giorgio Armani’s made-to-measure service has captivated a lot of customers.

    It also has a celebrity following, including Leonardo DiCaprio, Paolo Sorrentino, Christian Bale, Tom Cruise, Will Smith and George Clooney.

    Made-to-measure suits combine the spirit of Armani with the premium quality of craftsmanship.

    “To qualify as a true bespoke, or hand-made garment, there are certain elements you need to deliver,” Giorgio Armani says.

    The customer is able to select from a number silhouettes, and choose the material, the lining, the lapel the style of buttons and pocket combinations.

    Specialised tailors from Italy will provide the exclusive made-to-measure service in Hong Kong at Giorgio Armani’s Central store from September 22 to 23 and at Giorgio Armani’s Canton Road store on September 24. Appointments are necessary.

  • Esprit Holdings expects profit to more than double

    Esprit Holdings expects profit to more than double

    Fashion group Esprit Holdings expects to more than double its net profit for its financial year to the end of June, it has announced in a profit estimate for The Stock Exchange of Hong Kong.

    In a preliminary review of its unaudited consolidated management accounts, the company expects a net profit in the range of about HK$50 million (US$6 million) to $80 million, compared to the previous year’s $21 million.

    Company secretary Florence Ng Wai Yin says the overall development is attributable to two main factors:

    (i) an improvement of the financial performance of the group’s underlying business (excluding exceptional items), estimated to be about $370 million to $400 million; and

    (ii) less favourable taxation credit, which has been reduced to roughly between $156 million to $186 million compared to last year’s $606 million.

    The company expects to release its final results announcement next month.

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