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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.

  • Manolo Blahnik Malaysia debuts in KL

    Manolo Blahnik Malaysia debuts in KL

    Women’s shoe retailer Manolo Blahnik Malaysia has launched its first store, in Pavilion KL.

    The 95 sqm store is part of an Asia expansion plan that includes the refurbishment of its Singapore store at Takashimaya, as well as the launch of a flagship store in Tokyo next year. The brand is partnering with retailer Bluebell Group on the projects.

    Founder Manolo Blahnik, who opened his first shop in Chelsea in London in 1973, was born in the Canary Islands to a Spanish mother and Czech father. He studied languages and art in Geneva before moving to Paris in 1965, where he became a set designer.

    On a visit to New York in 1970, he showed his theatre designs to Diana Vreeland, then editor-in-chief of American Vogue, who encouraged him to concentrate on his shoe designs.

    Blahnik learnt the art of making shoes by visiting factories, and by 1971 was in London making shoes.

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  • Veeko, Wanko and Colourmix parent finds Singapore tougher than HK

    Veeko, Wanko and Colourmix parent finds Singapore tougher than HK

    Hong Kong-headquartered fashion retailer Veeko – the Wanko and Colourmix parent – has found Singapore more challenging than its home market.

    For the six months to September 30, Veeko International Holdings recorded a turnover of

    HK$1.029 billion, down 3.5 per cent year-on-year.

    Its cosmetics business, the Colourmix and Morimor stores, sales were stable, down by just 0.1 per cent at $828 million, accounting for 80.5 per cent of the company’s business, compared with 77.6 per cent last year.

    That highlights the core of the company’s problem – its fashion stores, trading under the Veeko and Wanko brands – which recorded a 16.1 per cent decline in sales to $200.7 million.

    Sales in Singapore, where it closed one store and now has eight, plunged 23 per cent year-on-year.

    Yet in Hong Kong and Macau, where the overall decline in retail sales during the half year was nudging double digits, sales declined by a more modest 7.6 per cent and the gross profit margin rose marginally from 71.8 per cent to 72 per cent. It added three stores during the period, taking the network to 83.

    In Mainland China, fashion sales declined 14.3 per cent and it closed three stores, leaving a net 38.

    Colourmix holds its own

    Beauty is the powerhouse of the Veeko business. The company has 87 Colourmix stores – five more than at the same time last year – of which 82 are in Hong Kong, four in Macau and one in the mainland.  In August 2015, the group launched another cosmetics store brand Morimor, with seven now trading in Hong Kong. This brand is positioned as offering “high-quality trendy skin care and cosmetics products by integrating global premier skincare and beauty concepts, with diversified products covering skin care, fragrance, make-up, hairdressing, body care and cosmeceuticals and health food”.

    Veeko chairman Johnny Cheng Chung Man says the South Korean series of cosmetics and beauty products are very popular among young customers.

    “In addition, the professional beauty consultants offer customised personal services and consultations on skin care so that customers can enjoy the relaxed and pleasant experience of beauty services.”

    The gross profit margin of the cosmetics business for the period was 32.4 per cent, down 3.3 percentage points year-on-year. The cosmetics business for the period recorded a segment profit of HK$1.319 million, representing a significant decrease of 97.7 per cent.

    “As a result of the rapid growth in the cosmetics business experienced in the past consecutive years, a considerably high base has been accumulated. With the continuously weak retail market and overall consumption environment in Hong Kong as well as a drop in the number of visitors to Hong Kong during the period under review, it was necessary for the group to offer several promotional discounts and organise marketing activities to stimulate sales, which led to a reduction in gross profit margin and a significant decrease in segment profit as compared with the same period last year,” said Man.

    Looking forward

    Man says looking forward, the group expects the challenges faced by the retail business to continue.

    “The retail environment in Hong Kong is anticipated to remain severe while a cautious consumption sentiment prevails. The group will continue to enrich its product portfolio of cosmetics products, increase trendy beauty products with exclusive distributorship, conduct staff training on providing quality professional services, and strengthen its internal consolidation.”

    Man said the fashion retail business will continue to focus primarily on the Hong Kong and Macau market. “To cope with the stagnant retail environment as well as to meet constantly changing needs in the market, the group will continue to optimise product designs and improve customers’ shopping experience. As for the overseas markets, the group will continue its cautious control on its overseas stores portfolio. Underperforming stores will be closed down further to focus its business on profitable stores.”

    In Hong Kong, given the slowdown in the retail market and a decline in rental charges for stores located in prime districts, the enhanced bargaining power of the retailers will therefore help reduce the rental pressure for stores with expiring lease terms, he said.

    “As the group will close down certain stores with low profitability and open new stores in prime locations, additional rental saving will be expected in the near future.”

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  • Mitsui Outlet Park expansion starts

    Mitsui Outlet Park expansion starts

    Ground has been broken for the second phase of the Mitsui Outlet Park KLIA Sepang, claimed to be the largest factory-outlet shopping mall in Southeast Asia.

    On a 27,500 sqm site next to the current outlet near Kuala Lumpur International Airport, the double-storey extension will feature 60 shops and 500 parking lots to complement the existing 2100 bays, and is expected to open in January 2018. The present 24,000 sqm development has 130 shops.

    mitsui-sepang

    It will introduce more premiums brands in fashion, cosmetics, sportswear and accessories, with a diversification into entertainment and amusements.

    Tourism and Culture Ministry secretary-general Tan Sri Dr Ong Hong Peng officiated at the ground-breaking ceremony, which was attended by Mitsui Fudosan managing officer Osamu Obayashi.

    To complement phase one’s Paradise Village architectural concept, which features a Sunshine Square, Pier Walk, Beach Walk and Tropical Plaza concept, phase two introduces a new ambient experience with Sky Walk and River Walk themes. Sky Walk will have simulated clouds on its ceilings while River Walk will resemble a creek.

    Mitsui Outlet Park KLIA Sepang is a JV between Japanese real estate developer Mitsui Fudosan and Malaysia Airports Holdings. The outlet is managed by the JV company, MFMA Development. Free buses connect the development with the two airport terminals.

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  • Chow Tai Fook remains calm in the storm

    Chow Tai Fook remains calm in the storm

    A 23.5 per cent drop in revenue to HK$21.526 billion (US$2.775 billion) was recorded by Chow Tai Fook Jewellery Group for its latest six months.

    Its interim results for the period to September 30 show same-store sales in Hong Kong/Macau dropped by 25.7 per cent and in China by 20.9 per cent.

    Gross profit was down by 13.1 per cent to HK$6828 million from HK$7857 million in the first quarter.

    In its executive summary, the group says that in response to the rapid market changes and volatile macroeconomic environment across Greater China during the first half, it focussed on enhancing store productivity and efficiency.

    The group also capitalised on its vertically integrated business model and proprietary technology to introduce the Chow Tai Fook T Mark diamond brand in the first half, which it describes as “an important milestone in our heritage” that “revolutionised the current diamond-industry practice”.

    Despite revenue declining with the market slowdown in the first half, the group’s adjusted gross profit margin improved, mainly because of an enhanced product mix and an uplift in gross profit margin for gem-set jewellery and gold products.

    As at the end of September the group’s retail network comprised 2326 points of sales, and increase of seven. During the first half, 26 points of sale were opened in shopping malls while 19 were closed in department stores on the mainland.

    Also in the mainland the group promoted its premium diamond brand Hearts On Fire, opening two points of sale and 30 shop-in-shop/counter-in-shop outlets for a total of seven POS and 148 shop-in-shop/counter-in-shop.

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  • NBA legend Gary Payton to celebrate opening of NBA store in Cebu City

    NBA legend Gary Payton to celebrate opening of NBA store in Cebu City

    The National Basketball Association (NBA) announced Wednesday the fourth NBA Store in the Philippines will open Nov. 24 at the Ayala Center in Cebu City.

    NBA Legend and Hall of Famer Gary Payton will be on hand to meet and interact with fans at the store opening, which will celebrate the league’s first NBA Store in the Visayas region. To commemorate the occasion, the first 300 customers that purchase an item will receive an NBA gift.

    Located on the fourth level of the Ayala Center in 452 square meters of retail space and managed by International Athletic Trading Company, Inc. (IATC), the new NBA Store will offer a wide selection of authentic NBA products from all 30 teams, including official jerseys, footwear, performance gear, lifestyle apparel, and non-apparel merchandise including basketballs, toys, collectibles, and more.

    The store will also offer personalized jerseys and will feature interactive elements including NBA 2K video game players where fans test their gaming skills and compete against each other, a Pop-a-Shot machine and a dedicated section for NBA memorabilia.

    “We had envisioned expanding the NBA footprint across the country and to have now reached the Visayas region is a milestone for us,” said IATC President and CEO Melvin Lloyd Lim.

    “We could not be more excited to open the first NBA Store in the second most populous metropolitan area in the Philippines after Metro Manila.”

    “The NBA and IATC are committed to bringing the NBA experience closer to all Filipinos nationwide,” said NBA Philippines Managing Director Carlo Singson. “The NBA Store in Cebu is the first outside of Metro Manila and is strategically positioned as a premier shopping destination for NBA fans within Central and Southern Philippines, offering an extensive range of authentic NBA products.”

    The NBA Store at the Ayala Center will carry products from brands including 2K Sports, adidas, Enterbay, Mitchell & Ness, New Era, Nike, Panini, Spalding, Spec Seats, Stance, and Under Armour. The regular store hours are 10 am – 9 pm (Sunday-Thursday) and 10 am – 10 pm (Friday-Saturday).

    On Nov. 22, Payton will also conduct a meet-and-greet with fans at the NBA Store in Glorietta 3 at 6 pm before visiting the NBA Store in Cebu City’s Ayala Center on Nov. 24 at 6 pm.

    The flagship NBA Store in the Philippines in Glorietta 3 opened in 2014, followed by the store in Mega Fashion Hall in 2015 and the store in TriNoma in 2016.

    For all the latest news and updates on the NBA, visit www.nba.com and follow the NBA on Facebook , Twitter  and Instagram.

     

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  • H&M celebrates Black Friday with up to 70% off

    H&M celebrates Black Friday with up to 70% off

    Outside of traditional holidays like Christmas, Valentine’s and Mother’s Day, perhaps the most awaited day of the year in the United States, especially for shoppers and bargain hunters, is Black Friday, which is celebrated after Thanksgiving.

    After feasting on turkey with their families, Americans then head out to the nearest shopping center to get the best deals and bargains of the year, as most brands go on sale. And by sale, we mean really BIG discounts on a whole range of items.

    Black Friday is considered the starting point for the holiday shopping season, as Americans buy Christmas presents for their loved ones.

    As an early Christmas treat to shoppers and bargain hunters, international clothing company H&M is bringing the Black Friday frenzy to the Philippines for the first time this year!

    On November 25 to 27, H&M stores in the Philippines will be offering discounts on its new collection, with over 150,000 items sold at 50% to 70% off. Black Friday will be celebrated in the following H&M branches nationwide:

    1. SM Megamall
    2. SM Makati
    3. Robinsons Magnolia
    4. Robinsons Place Manila
    5. UPTown Bonifacio
    6. U.P. Town Center
    7. SM North EDSA
    8. SM Fairview
    9. SM City Clark
    10. Marquee Mall Pampanga
    11. SM City Seaside Cebu
    12. Ayala Center Cebu
    13. Centrio Mall Cagayan de Oro
    14. EVIA Lifestyle Center
    15. SM City Dasmarinas
    16. Festival Mall
    17. SM City Southmall
    18. Robinsons Place Ilocos
    19. Gateway Mall
    20. SM City Iloilo
    21. Abreeza Mall Davao

    All concepts — ladies, men’s, divided, kids, and home — will be part of this promo. Here are some of the items that will be offered at a discount:

  • Luk Fook plans to double jewelry stores in China

    Luk Fook plans to double jewelry stores in China

    Hong Kong-based jeweler Luk Fook is pushing ahead with its expansion into mainland China by doubling its stores there even as competitors are moving at a slower pace amid tepid demand for luxury goods.

    The company, a smaller rival to Chow Tai Fook Jewellery Group, one of the world’s largest listed jewelry chain, said on Thursday it “still had room” to increase its mainland outlets to 2,000-3,000, up from 1,400 currently, without giving a timeframe for the expansion.

    “We are only in about 300 Chinese cities comparing with 500 cities of our rivals,” said Luk Fook Executive Director Shirley Wong Hau-yeung, adding that the group would focus its expansion in quality shopping malls in second- and lower-tier cities.

    The jeweler is also looking to boost its revenue contribution from the mainland, which now accounts for over half of its total — a three-year goal it set two years ago. “We actually met our target early,” said Chairman and Chief Executive Wong Wai-sheung. “Having 80-90% of revenue from China is probable.”

    Chairman Wong’s upbeat remarks comes at a time when Luk Fook is seeking to diversify from a struggling home market where luxury retail has been hit hard by a dwindling number of deep-pocketed mainland visitors to Hong Kong.

    First-half net profit fell 7.4% on the year to its lowest level since 2010 at only $429 million Hong Kong dollars ($55.3 million) between April and September. Revenue dived 21.5% to HK$5.47 billion, dragged lower by a 32.3% sales plunge in stores that had been open for over a year in Hong Kong and Macau, while its mainland sales saw a slightly less severe decline of 23.7% from a year ago.

    The group added 27 shops to its network of 1,455 outlets globally, including 24 in China and the rest in Macau, New York and Seoul in the same period. “A further depreciation of the Chinese yuan will prompt more mainlanders to spend at home and boost local consumption,” said Chief Financial Officer Kathy Chan So-kuen, justifying the group’s strategy in mainland China.

    Meanwhile, rival Chow Tai Fook would be “selective” when entering mainland China, said Managing Director Kent Wong Siu-kei on Tuesday. The Hong Kong-listed jeweler added only 11 shops on the mainland — many of them in shopping malls — between April and September, bringing the total to 2,100 in the country.

    Chow Tai Fook’s more cautious approach followed a decade of aggressive expansion into the mainland market that hurt its profitability as the country’s economic slowdown and anti-corruption drive dampened appetite for luxury goods. With about half of its turnover from the mainland, the group reported its lowest first-half profit since its 2011 listing — just HK$1.22 billion, a fall of 21.5% from a year ago.

    With competition from e-commerce players such as Alibaba Group Holding and JD.com, the group would continue to close loss-making outlets in department stores and hopefully turn its shops into logistics centers for handling e-commerce orders in a bid to find better use for its ailing assets.

  • Fashion reseller Banananina joins e-commerce race

    Fashion reseller Banananina joins e-commerce race

    Jakarta branded fashion reseller Banananina has moved into eCommerce in a bid to reach potential customers outside the Indonesian capital.

    The company, which launched in 2009 through now-defunct eCommerce site Multiply, offers apparel, bags, shoes, accessories and beauty products. Its new website will also offer men’s products for the first time.

    Founder Fitri Maya Safira says the new sales channel is expected to grow daily transactions from 30 to 70 items.

    Banananina claims its luxury goods all have original guarantees as they come from licensed suppliers. Online buyers will be given a return guarantee, particularly for shoes.

    Fitri says her company’s customers live as far apart as Aceh, Bandung,  Biak, Jayapura, Makassar, Surabaya and Timika.

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  • Headwinds will cramp luxury retail sector

    Headwinds will cramp luxury retail sector

    The luxury retail sector will grow next year – but at a disappointingly slow rate, according to the latest data from Euromonitor.

    As tough global trading environments continue to prevail – social and political unrest in Asia Pacific, economic slowdown in Latin America, and conflict in Eastern Europe will conspire to restrain growth in both key emerging and developed markets, the research house says.

    “Indeed, the market continues to face headwinds from major luxury goods markets, such as France and Hong Kong, as well as other large emerging markets, such as Russia and Brazil, while instability in the Middle East continues to cloud the horizon.”

    Whilst 2017 will not be a stellar year for the global industry overall, “we will see some tailwinds, with markets such as India and Mexico in a much stronger position,” Euromonitor concluded.

    “At the same time, luxury brands and retailers continue to seek ways to harness social media and tap into the psyche of the digital consumer, as connectivity continues to drive new opportunities in digital innovation and growth in the omnichannel continues to reach new frontiers.

    Divergence remains a key theme across the luxury markets for the year ahead with strong regional disparities in Asia Pacific appearing strong with 5 per cent growth, a marked difference to 2015, with a regional growth of just 1 per cent, reflecting the significant economic slowdown in China.

    The developed regions of Western Europe and North America were significantly weaker, with both regions showing a slight downturn in 2016 with a weak Eurozone continuing to hold back regional performance and the added concerns over terrorist attacks, as well as the more recent Brexit vote, have also dampened sales. In the next five years, the US is predicted to lose its top spot in the ranking to China.

    However, the disappointing data for the developed regions should not obscure the importance of these high-value luxury goods markets. These regions remain amongst the most powerful in the world and together account for over half of all luxury goods sales in 2016.

    Watch Fflur Roberts, head of luxury goods with Euromonitor International, share more about the luxury sector.

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  • DFS Group Unveals Exclusive Pre-Launch of Bulgari Jewelry Collection in Stores Worldwide

    DFS Group Unveals Exclusive Pre-Launch of Bulgari Jewelry Collection in Stores Worldwide

    DFS Group, the world’s leading luxury travel retailer, is excited to announce the pre-launch of an exclusive BVLGARI-BVLGARI collection by Italian luxury jewelry brand Bulgari, which will be available only at DFS and T Galleria by DFS stores beginning this holiday season until October 2017. The specially created, one-of-a-kind jewelry collection includes necklaces and bracelets with signature double-sided pendants – one side featuring a Carnelian stone and the other side a Mother of Pearl. With the two contrasting sides, the pendants offer travelers a piece they can interchange according to mood, outfit or occasion.

    “We are honored to work with our long-standing partner Bulgari to present our customers with an exclusive set of one of their most iconic jewelry designs,” said Christophe Chaix, Senior Vice President Fashion, Watches, Jewelry and Accessories, DFS Group. “In the coming holiday season, we look forward to exciting our customers with a jewelry set that strongly resonates with their preferences, while elevating their gifting experience with something only DFS can offer.”

    The BVLGARI-BVLGARI collection, an emblematic favorite for over four decades, became the ambassador of Bulgari’s tradition of luxury, quality and the finest Italian design. This particular exclusive rendition of the BVLGARI-BVLGARI collection aims to excite and attract customers seeking a limited edition for the holiday season.

    The Carnelian in red on one side of the pendant symbolizes happiness and joy and is always the most popular color among Chinese shoppers. In Western culture, this color resembles an iconic Christmas color reminiscent of holly berries. On the flipside, the Mother of Pearl, symbolizing purity with a hint of feminine glamour, is one of the four imperial colors classic to the brand that magnifies the ever modern style of the BVLGARI-BVLGARI collection.

    The exclusive BVLGARI-BVLGARI line is now available at all DFS Bulgari boutiques worldwide, except in Abu Dhabi.

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  • Dire Bonmarche sales reflect poor product offer

    Dire Bonmarche sales reflect poor product offer

    A dire H1 performance from Bonmarche, on its first update with Helen Connolly at the helm, with sales falling by £3.9 million on the year, despite the opening of net six new stores and concessions.

    Like-for-like Bonmarche sales declined even further than its revised forecast in September.

    As a result, operating profit fell 62.8 per cent  to £2 million. While external factors such as unseasonal weather and BHS’s extensive closing down sale have taken their toll, the fault ultimately lies with Bonmarche and its lack of a compelling product offer.

    Bonmarche has an opportunity to become the go-to destination for 50+ females, especially given that BHS is no longer trading; however it must act quickly as competition will grow as more players target this lucrative segment, with the likes of JD Williams and Matalan holding potential. With mature shoppers feeling and dressing younger, Bonmarche has its work cut out to sufficiently modernise the brand and increase its relevance among shoppers.

    While the value specialist has made efforts to revamp its offer, and continues to reduce its focus on more traditional product, it has not gone far enough. Introducing more contemporary designs and cuts, and injecting more fashionability and style into its proposition will be key to building appeal among the mature customer base and shaking off its old-fashioned brand image.

    However, as shoppers’ discretionary spend comes under further pressure in 2017, Bonmarche’s value proposition makes it well placed to benefit from consumers trading down. Alongside more weather-appropriate and youthful ranges, Bonmarche needs to showcase its value for money offer, focus on full price sales and drive incremental purchases if it is to get back on track.

  • Last Hanoi Parkson to close its doors

    Last Hanoi Parkson to close its doors

    The last Hanoi Parkson department store has been closed after eight years of trading.

    In an announcement to customers released on November 19, the company said the center “will be moved” on December 15.

    The 11,000 sqm department store located in Viet Tower in the city’s CBD was once expected to become the busiest shopping avenue in Hanoi. However, during eight years, the customer flow has been little.

    Another Hanoi Parkson in the Keangnam area was closed due to a dispute between the retailer and the building owner. All retailers had to move out of the building overnight. Former Parkson CEO Toh Peng Koon once said Vietnam was the toughest market for the company and poor sales was the main reason for that closure.

    In Ho Chi Minh City, Parkson Paragon was closed in May of this year, just five years into a 19-year lease.

    So within two years, Parkson Vietnam has closed three stores and now has none left in the capital.

    The Malaysian department store operator first came to Vietnam in 2005, opening in Saigon Tourist Plaza in Ho Chi Minh City.

    Positioning in middle market, Parkson expected to dominate the retail market in Vietnam. In fact, it brought many international brands to Vietnam such Porsche Design, Sub Jeans, and was considered a shopping icon in the city. However, it quickly faced difficulties when consumer trends changed and other retail giants from Japan, Korea and Vietnam joined the market.

    The most recent arrival is luxury Japanese department store brand Takashimaya.

    Parkson Vietnam now has seven stores in Vietnam – five in HCMC, one in Hai Phong, and one in Danang.

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  • GEOX Launches Women’s Footwear Collection Autumn/Winter 2016-2017

    GEOX Launches Women’s Footwear Collection Autumn/Winter 2016-2017

    A breath of air is a source of life – a line where well-being starts and a symbol of sublime beauty and perfect function. Research and technology are stalwart companions in what Geox does.

    Geox’s “cool comfort” range fuses creativity, lightness and flexibility – be it for urban days, classical events, sporty afternoons or glamorous evenings.

    With the upcoming Winter season, the traditional qualities of breathability, thermo-regulation and water-tightness are bonded into Geox’s vanguard membrane and soles — further enhanced by the German TÜV SÜD FOOTWEAR MARK: that vouches for a rigorous control procedure on quality during production. The aim is to ensure harmful substances are not released during production. A mark of quality assurance is only right given Geox’s unflagging attention to standards and commitment towards society and the environment.

    One of these models is Sfinge, engineered with a hive of spaces which exalts its springiness, grip and cushioning sole. Featuring 3D breathable technology and Inner Breathing Lining, it caters for a female desire for finesse with its eclectic mix of leather, suede and patent finishes, available in both total black version and in a colour-block version featuring cornflower blue, pillarbox red and metallic gold.

    Fall/Winter features ankle boots customised with special embossed details which add dimension to the black leather. Waterproof, lightweight, easy to slip on and comfortable, these shoes have a modern and pared-back look. The rubber soles include the Amphibiox technology which keeps wet weather conditions at bay: the breathable and waterproof inner membrane protects both sole and upper, stopping water from getting inside the shoes whilst ensuring amazing breathability – meaning your feet stay warm, dry and breathe naturally.

    Walking shoes couldn’t get better than this whether to tackle old- town cobblestones or moss-covered boulders. Nebula continues to amaze as it slips into new skins crossing boundaries and seasons on a carpet of clouds: the fabric and suede, both smooth and with quilt-stitching, feature a colour palette spanning from light dusty pink, teal and grey all designed to match the original colour contrast of the soles. Boasting Geox outstanding patents in one shoe, Nebula fuses the Inner Breathing System, Net Breathing System and an inner EVA sole with strategically placed soft rubber inlays to ensure added grip and stability. Easy to slip on and with elastic laces, its natural heat-balancing properties, lightness, flexibility and cushioning effect fuse effortlessly with the hi-tech design.

    One hot comeback is the good old moccasin, revisited in a modern-chic version, available in a wide range including pearly patent leather, brushed leather or crocodile print models as well as a preppy style with metal horsebits. Geox’s iconic loafers for men and women are crafted in the softest black and burgundy leather, with an ultralight, flexible rubber sole, these loafers combine the practicality of breathability with an upbeat urban feel.

    Last, the spotlight turns on a fashion-statement collection which includes boots, ankle boots, pumps, ballerina flats with tapered toes — all capturing the essence of the latest trends on the pret-a-porter catwalks. For the more sophisticated versions, the material mixture, such as smooth and laminated leather, creates eye-catching patterns of black & gold, lit up with small metallic buckle details. Fitted with inner memory foam soles, they are super soft, lightweight and flexible, specially designed for formal daytime looks or more glamorous evening engagements.

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  • Abercrombie & Fitch to shut Hong Kong store in wake of economic downturn

    Abercrombie & Fitch to shut Hong Kong store in wake of economic downturn

    US fashion chain Abercrombie & Fitch will close its four-storey ­flagship store in Central as early as next year amid the economic downturn and a slump in shoppers from the mainland.

    The 25,600 sq ft store on ­Pedder Street opened in 2011, paying HK$7 million in rent per month, double that of previous tenant Shanghai Tang.

    It has initiated an early exit ­before its lease expires in 2019.

    “The company exercised a lease kick-out option for its A&F flagship store in Hong Kong,” the retailer said on Friday. It claimed the move was “part of the ­company’s ongoing strategic review” and “was expected to drive economic benefit over time”.

    The closure of the store should be “substantially complete” by the end of the second quarter of fiscal year 2017.

    The move would trigger a “lease termination charge” of ­approximately US$16 million in the next quarter, it said.

    There would be no Abercrombie & Fitch branded store in the city after, but the company intended to add five stores on the mainland by the end of January.

    Comparable sales of the brand fell 14 per cent between August and October compared with the same period last year.

    It did not ­reveal its sales performance in Hong Kong.

    The city’s retail sales slumped 9.6 per cent in the first nine months of the year.

    Helen Mak, senior director and head of retail services at ­researcher Knight Frank, said Hong Kong was gradually losing its appeal to mainland tourists as a prime shopping destination after 10 years of high retail growth.

    Earlier this month, US fast-fashion brand Forever 21 said it would close its flagship store in the heart of the Causeway Bay shopping district late next year.

    Helen Mak, senior director and head of retail services at researcher Knight Frank, said many retailers had expanded aggressively a few years ago when the Chinese economy was strong and shoppers poured into the city.

    A&F had made aggressive expansions in the city a few years ago when the Chinese economy was still strong and mainland shoppers tourists poured into city to buy luxury goods.

    “Many retailers were optimistic about the market outlook at that time … But they may not be able to afford it now,” Mak said.

    Tourism spending by Chinese visitors has fuelled the boom in Hong Kong’s retail and commercial property sectors in recent years.

    Coach, another premier US brand, also closed its four-storey main store in Central last year amid weak retail sentiment.

    “Hong Kong is not too special a place for shopping in Asia. Many mainland shoppers now choose to go to elsewhere in the region, such as Japan, South Korea, Taiwan, etc,” she said.

    Last but not least, the yuan depreciation has also hit retail businesses, as a declining yuan makes Hong Kong goods more expensive for mainland shoppers, Mak said.

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  • Global Brands Group sales among best in class

    Global Brands Group sales among best in class

    Global Brands Group sales rose 15 per cent in the second half year.

    That’s a figure CEO Bruce Rockowitz believes puts the Hong Kong brand licensee and manager second only to Under Armour in business performance in the current lacklustre global economy.

    Sales soared 49 per cent in women’s and men’s apparel, its gross margin stretching from 39.9 per cent to 41. 7 per cent.

    It’s biggest category – childrenswear – recorded a 10.3 per cent sales increase and an improvement in gross margin from 34.8 per cent to 36.3 per cent. Footwear and accessories sales rose 3.4 per cent and its brand management business, its smallest division at present, improved by 52.8 per cent. That business will benefit from a significant boost when the company launches its first Katy Perry-branded products, a footwear range, in early 2017, targeting consumers in the US and Europe.

    “We’ve had a very strong year in relation to the market,” said CEO Bruce Rockowitz at a results presentation in Hong Kong late Thursday. “We’re two years into the spin-off [from Li & Fung Group] and we’ve done a lot of heavy lifting. Our top line is exceptional compared to the market.

    The momentum we have so far is in spite of the market and in spite of the [US] election which put a lot of uncertainty out there.

    “Our revenue is up 15 per cent , driven by organic growth, and with no acquisitions.”

    Hong Kong will underperform

    Rockowitz says Asia remains a small market for the group, which is developing it with David Beckham and the Spyder brand and in the children’s sector.

    “Asia remains promising given an expanding middle class, despite China’s growth rate slowing.

    “Hong Kong is different to the rest of the world because we are tied to China and tourists from China to here. I think the Hong Kong market will still be underperforming for the rest of the [fiscal] year.”

    He said high rents were affordable when business is good – “which it is not right now”.

    Within Asia, Korea is performing strongly.

    “Korea is a place where you can develop great design and great DNA of brands.”

    Spyder is performing well there, with GBG expecting to have 100 stores trading by the end of March.

    Global Brands Group now holds licenses of varying terms but up to 30 years in its core categories. In kidswear, its brands include Disney, Calvin Klein, Tommy Hilfiger, Under Armour and Nautica. In men’s and women’s fashion Spyder, Juicy Couture, Jones New York, Joe’s Jeans, Buffalo Jeans and David Beckham. In footwear, Calvin Klein, Cole Haan, Michael Kors, Kate Spade and GBG’s own brands including Aquatalia and Frye.  It’s fast-growing brand management group formed a joint venture with Creative Artists Agency in July propelling it instantly into the world’s largest company in the space. Brands include Katy Perry, David Beckham and Jennifer Lopez.

    High hopes for Katy Perry

    Rockowitz believes securing the Katy Perry brand management will bring huge benefits to GBG, suggesting US$20 million in sales in the first year of the partnership. Perry has 100 million followers on Twitter and is revered across the northern hemisphere and Asia. The company will launch the footwear collection in February-March 2017 after revealing it to the trade last August.

    It will be distributed to leading US and European retailers initially, with Asian consumers having to buy it online or wait until two or three seasons ahead before their regional launch.

    “Neither of us want to grow too fast and get it wrong. The products are in line with Katy’s image. Retailers are excited, but consumers haven’t seen it yet.”

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