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Italian luxury house Etro China has opened a store in Shanghai’s Plaza 66 mall.
Covering more than 150 sqm, the store features both men’s and women’s clothing and accessories collections as well as the brand’s latest retail design concept, reports CPP-Luxury.
Founded in 1968, Etro is a family-owned fashion house with its headquarters in Milan. As well as China, it has outlets in Japan and South Korea.
AmorePacific Group’s yearly operating profit surpassed 1 trillion won in 2016 for the first time on diverse retail offerings in Korea and momentum in the global market.
The company’s operating profit rose 18.5 percent year on year, reaching 1.08 trillion won ($940 million). Its revenue also jumped 18.3 percent compared to the previous year, hitting 1.7 trillion won.
The group’s main affiliate of the same name that owns brands like Sulwhasoo and Laneige raked in 5.6 trillion won in 2016. The country’s No. 1 cosmetics company explained such growth was due to expanded channels of some of its high-end lines.
Sulwhasoo, the company’s luxury line that is popular among older women for its anti-aging products, opened a flagship store in affluent Cheongdam-dong last year. The company said the store played a pivotal role in building up the brand’s luxury image to Asian consumers.
The company’s global business also grew thanks to its so-called five champion brands: Sulwhasoo, Laneige, Mamonde, Innisfree and Etude House. Their sales in Asian countries soared 38 percent year-on-year to generate 1.6 trillion won.
Hera, another high-end brand under AmorePacific, entered the Chinese market last year for the first time with its fortified makeup line.
Sulwhasoo expanded its retail offerings in China by opening storefront and shops inside department stores.
AmorePacific’s sales performance in North America region also saw a boost. It grew 10 percent in 2016 compared to the previous year as the company opened Sulwhasoo and Laneige shops in Canada.
Its European sales saw a 4 percent year-on-year growth.
Sales of the group’s other affiliated brands that are not under AmorePacific, such as Innisfree and Etude House, also surged.
Innisfree, a nature-friendly brand that is in the lower price range, had a 30 percent year-on-year soar in revenue of 767.9 billion won. Its operating profit was 196.5 billion won, a 56 percent growth compared to the previous year. Innisfree focused on adding a cultural kick to its stores so consumers could better understand its brand. The company opened a shop with a cafe inside and a shop with a virtual-reality zone where consumers could experience Jeju Island with model Lee Min-ho.
Etude House’s operating profit skyrocketed 1,153 percent year-on-year in 2016 to 29.5 billion won.
Meanwhile, the group’s household product business performed poorly last year due to the massive recall of its toxic toothpaste line in September.
The recall cost the company an additional 10 billion won in the fourth quarter, following 35 billion won in the third quarter. The group’s operating profit in the fourth quarter tumbled 16.5 percent to 134.4 trillion won.
“In addition to the recall cost, the depressed domestic economy took toll on the company’s Q4 performance in Korea,” said a spokesperson.
The price of imported Korean cosmetics in China dropped by some 40 percent last year, Chinese customs data showed Thursday, for reasons industry watchers see as driven both politically and by the market.
Records from the Tianjin Entry-Exit Inspection and Quarantine Bureau indicated an average 40 percent drop in the price of cosmetics shipped in from South Korea. The volume of the imported shipments totaled 2,200 tons last year, down 46 percent from the year before.
The numbers translate to an average $11 per kilogram of imports, down from the previous $18.The monetary value of the imports reached $23 million, down 69 percent. The import volume, which had nearly doubled in 2015, fell back to the level of 2013, data indicated.
The two countries’ relations, persistently challenged by the differences in the way their governments deal with North Korea, have recently roiled over Seoul’s decision to host an advanced US missile defense system, known as THAAD, which Beijing argues is also aimed at China. Beijing has retaliated by imposing bans on Korean culture content and a number of import items, and restricting travel to South Korea.
In November last year, Chinese authorities prohibited imports of 19 South Korean cosmetics products, turning back 11 tons of them.
Industry officials say that the South Korea-China free trade agreement that took effect in December 2015 and China’s lowering of the consumption tax on cosmetics also pushed down the prices, with competition with global brands stiffening for South Korean companies.
Market watchers are predicting more price markdowns this year, as some of the Korean exporting companies already have made downward adjustments.
Amorepacific, South Korea’s biggest cosmetics firm, lowered the price on 327 products by between 3 and 30 percent in January.
“The cosmetics prices are becoming more transparent as online and direct shopping grow at a fast speed,” an industry official said. “It’s inevitable for foreign cosmetics companies to change their retail prices in China.”
Few shoppers at Swedish fast-fashion chain H&M notice the collection bin next to the cash counter, an inconspicuous receptacle for old and unwanted clothing. But this is slowly changing.
The retailer, with 12 bins spread across its 10 outlets in Singapore, collected 64 tonnes of unwanted garments last year – about three- fifths the weight of a blue whale. This is almost triple the amount collected in 2015 (22.71 tonnes) and more than five times that collected in 2014 (12.09 tonnes).
This year, H&M Singapore hopes to bag a record 88 tonnes, adding to the more than 40,000 tonnes of unwanted clothing it has amassed globally so far.
Everything collected is sold to the chain’s recycling partner, I:Collect (I:CO), for a fee, which is donated to H&M Foundation, a non-profit global organisation .
At I:CO’s processing plants in Germany, the United States and India, the clothing is sorted. About 55 per cent of it is resold in second- hand markets worldwide. The remainder is processed – chopped up into fabric shreds which are used as insulation material; or ground into finer fibres and made into cardboard and plastic tarp sheets; or spun with virgin cotton to create recycled yarn.
It is this yarn that H&M uses for its two eco-friendly clothing lines Close the Loop and Conscious, comprising products made of up to 20 per cent recycled materials.
The trend of more people donating their used clothes and more retailers accepting them seems to be growing.
American fashion brand Levi’s launched its recycling drive, where shoppers can drop off their unwanted garments and shoes, in 2015 nationwide in the US after a successful pilot programme in 2014.
Shoppers care more than just about how they look. They want to be part of a larger movement and they care about the social responsibility behind the brands they buy.
LECTURER SARAH LIM, who says the time is ripe for fashion retailers to position themselves as environmentally responsible and not just profit-driven
The North Face, which started collecting unwanted garments and footwear in 2013 in North America, expanded its collection drive to Germany and Canada last year. So far, it has collected 19.3 tonnes of unwanted clothing and footwear in the US alone.
Fashion retail chain Forever 21 started its recycling efforts in San Francisco, California, in 2014.
I:CO works with about 60 retail partners in 65 countries, including Levi’s, The North Face and Forever 21. H&M is its biggest partner.
But recycling is more than just about reducing the amount of clothes headed for the dumpster.
Mr Olle Blidholm, H&M’s environmental sustainability manager, says that, from a business perspective, it makes sense to take care of social and environmental issues.
“To do good business long term, you need to take into account social and environmental responsibility in a more active way. You have to plan your business in line with what the planet can cope with,” he says.
This comes as the global fashion industry cottons on to the environmental impact that the apparel industry has on the planet.
Cotton production is a huge water guzzler. According to non-governmental organisation World Wide Fund, 20,000 litres of water are needed to produce just 1kg of cotton, equivalent to a T-shirt and a pair of jeans.
A report in October, by management consulting firm McKinsey & Company, estimated that if 80 per cent of the population of emerging economies reached the same clothing-consumption level as that of the Western world by 2025, carbon dioxide emissions would increase by 77 per cent to 3,030 million metric tons, up from 1,714 million metric tons in 2015.
This increases the amount of greenhouse gases released into the atmosphere, one of the key drivers of global warming.
Singapore Polytechnic senior retail lecturer Sarah Lim says the time is ripe for fashion retailers to position themselves as environmentally responsible and not just profit- driven.
“Shoppers care more than just about how they look. They want to be part of a larger movement and they care about the social responsibility behind the brands they buy,” she says, adding that by collecting old clothes, H&M lets customers participate in the greening process.
She adds: “This also helps the brand establish a green reputation, which helps to build loyalty among the millennials of tomorrow.”
According to a 2015 global report by research firm Nielsen, 72 per cent of Generation Z consumers – those aged between 15 and 20 – were willing to pay more for products and services from companies they viewed as committed to making a positive social and environmental impact.
This is up from 55 per cent the year before.
Over at H&M, the Conscious collection, launched in 2012, has been “well-received” here, according to the brand’s spokesman, who declined to disclose sales figures. The Close the Loop collection is not available in Singapore.
Mr Fredrik Famm, country manager for H&M South-east Asia, puts the popularity of its eco-lines down to reasonable pricing and the fact that the products are also fashionable.
Customers, he says, are also beginning to be more conscious and perceptive of the brands they consume.
“There’s an increase in awareness about sustainability and being socially responsible,” he says, adding that the conveniently placed garment-recycling bins at stores make it easy for people to go green.
For shopper Fabian Tan, H&M has given him an easy way to recycle his unwanted clothes.
The market researcher has been donating his unwanted garments to the retail chain since it started its collection drive in 2013.
The 29-year-old says he has donated about 150 items so far.
“A lot of people have the intention to do good and recycle, but when it becomes troublesome to do so, they don’t do it in the end.
“Retailers such as H&M make it easy for people to do the right thing.”
H&M will open online stores in five Asian markets this year.
The H&M Asia online stores will open in Hong Kong, Singapore, Macau, Taiwan and Malaysia. A sixth will open in Turkey.
And, as previously reported , H&M will open its first store in Vietnam later this year at a site yet to be revealed. Some 430 new stores will open worldwide, including the first in Kazakhstan, Colombia, Iceland and Georgia.
CEO Karl-Johan Persson confirmed the openings while announcing a 7 per cent increase in global sales for its financial year to November 30.
Last year, H&M opened online stores in 11 markets, along with a new 427 new brick-and-mortar stores worldwide.
“This means that H&M is now present in 64 markets of which 35 offer eCommerce. We welcomed more than 13,000 new colleagues which means there are now more than 161,000 colleagues in the group,” he said.
And this year, the company – which also operates the Cos, Monki, Weekday and Cheap Monday retail brands – will also reveal one or two more brands.
“In 2017 we are looking forward to delivering strong collections and customer experiences and launching one or two new brands. This, combined with the ongoing improvements and our investments in the omnichannel offering, the supply chain and advanced analytics make us positive towards our opportunities for reaching our newly rephrased growth target, both in 2017 and going forward,” Persson said.
Most new stores will carry the H&M banner, but 70 to 80 will be for other brands, including its H&M Home offer.
Global sales reached SEK 222,865 million (US$25.52 billion) in the financial year, however profits were eroded by a higher number of price markdowns and the higher US dollar which impacted on stock purchasing costs, falling from SEK 20,898 million ($2.39 billion) to 18,636 million ($2.13 billion).
Duty free shops in Korea have begun to invite internet celebrities from China, better known as “Wang Hong” there, to attract Chinese tourists during the upcoming holiday season.
The shops are seeking to break through Beijing’s economic retaliation against Seoul’s decision to deploy a U.S. Terminal High Altitude Area Defense (THAAD) battery here.
Last Wednesday, HDC Shilla invited four Chinese internet celebrities to HDC I’Park Mall and Shilla I’PARK Duty Free in Yongsan, central Seoul.
The online stars, who have millions of followers on social media such as Weibo, broadcast their shopping for two hours to China through their smartphones.
At toy store Toys & Hobby in I’Park Mall, the four introduced “kidult culture” in Korea, which has yet to be seen in China. They introduced Korea’s fashion and beauty brands as well at The Handsome and 3 Concept Eyes outlets in Shilla I’PARK Duty Free.
“The promotional video broadcast by the four celebrities will likely get more than 5 million views within a week,” an HDC Shilla official said.
The Shilla Duty Free also invited 15 Chinese internet celebrities to Korea to offer them a trip for five days and four nights from this Monday to Friday. The affiliate of Hotel Shilla plans to give them various experiences beyond shopping.
Traveling from Seoul to Jeju, the 15 will visit hidden local restaurants and a tangerine farm on the island. They will also enjoy make-up sessions, a tea ceremony and pop arts, according to The Shilla Duty Free.
An official said, “We expect more Chinese tourists, who are interested in beauty, food and experiences, to come to Korea.”
The duty free shops want the celebrities to attract more Chinese tourists to Korea during the Lunar New Year festival from Jan. 27 to Feb. 2, which is regarded as one of the most lucrative times of the year in the industry.
Last year, Lotte Duty Free and The Shilla Duty Free posted 10 per cent more in sales during the festival.
However, duty free shops this year are facing a gloomy outlook due to Beijing’s order to regulate group tours to Korea.
According to the Korea Duty Free Association, the number of foreign shoppers last November declined 17.8 per cent from a year earlier. The total sales of duty free shops also fell 8 per cent year-on-year, as sales to foreigners decreased 9.6 per cent.
Observers said the recent invitations of Chinese celebrities are targeting non-group tourists, who visit Korea individually without travel agencies and who can replace the group tours.
“The non-group tourists are not regulated by the Chinese authorities,” another HDC Shilla official said. “So, we want those tourists to visit Korea more, after watching promotional videos filmed by Chinese celebrities.”
The Shilla Duty Free also said the itinerary of celebrities was arranged to help non-group tourists who are considering visiting Korea.
Twenty French fashion labels are taking their business to China, through the ‘French Boutique’ launched by the French Federation of women’s ready-to-wear apparel (FFPAPF) on Alibaba’s Tmall Global website. Participating labels include Teddy Smith, IKKS, Ateliers de la Maille, Ollygan and Bensimon.
Labels Prêt pour Partir, Nathalie Chaize, Groupe Mado, Mât de Misaine, Urbahia, Daniel Faret, Zyga Lin’n Laundry, Les Petites Bombes, Lab Dip, Europann and Rica Lewis will also take part in the initiative. They will all be featured on a website that claims it draws 439 million active Chinese customers per year. The market is expected to grow even further, given that only 50% of Chinese consumers currently have internet access.
The online ’boutique’ will be launched next March, with the support of DEFI. The brands featured on ‘French Boutique’ will be assisted locally by the FFPAPF’s Chinese office, established at the end of 2015 in Hangzhou, also home to the Alibaba Group‘s headquarters.
FFPAPF President Pierre-François Le Louët underlined how the objective is to introduce a “French multi-brand” presence, presenting Chinese consumers with “the best that French ready-to-wear [labels] can offer.” “The FFPAPF has carried out research work to simplify logistics, and handling social media presence,” said Marion Bayle, Asia business representative for IKKS, which established a foothold in China five years ago through a local partner. The French label is planning to expand internationally, and the initiative is expected to allow IKKS to learn more about its Chinese customers through the information on consumer preferences yielded by the online presence.
Consumers are exposed to more than 3000 messages a day. The real question now is, what will make your brand stands out? As consumers only spend a few seconds in front of retailer shelf, are the in-store messages targeted properly and relevant? Hence, design solutions that boost the traffic and sales potential in retail environments are sorely needed.
As the expert in merchandising and in-store communication, HL Display Thailand has the most innovative design and ideal solutions to create a more desirable shopping experience and brand awareness that includes
Communicate the brand values and product benefits with Brandline™, the collection of shelf liners, highlighters and accessories, specifically designed to create highly effective on-shelf communication and segmentation. Extending the message areas with additional accessories such as lighting is also reinforcing brand awareness and instantly adding positive disruption visually.
https://www.youtube.com/watch?v=DUECYwjKfjA
Health and Beauty category for instance, is a category characterized by many new products introductions coupled to variety of pack sizes and shapes. State of the art message conveyer, cosmetic front rails, sample tester holder, lighting accessories are becoming a must have in store environment, and this is when Brandline™ becomes even more important than ever.
For further information, Bangkok based HL Display Thailand can be directly contacted during office hour at +66 2276 2445 with the attention to Mr. Thanasun Sakchuenyod, or e-mail to thanasun.sakchuenyod@hl-display.com or info.asia@hl-display.com. Visit the company website at www.hl-display.com/asia
The Korean duty free market surged by 33.5% year-on-year in 2016 to KW12.2 trillion (US$10.5 billion), according to new figures from Korea Customs Service.
The results reflect a strong bounce-back from the MERS-ravaged 2015, allied to booming Chinese visitor numbers last year.
Chinese arrivals for 2016 rose +34.8% to 8,067,722, according to Korea Tourism Organization figures published today, a 46.8% share of total visitors. Japanese arrivals also rose sharply, up +25% to 2,297,893, a 13.3% share of total arrivals. Korean departures rose +15.9% in the year to 22,383,190
Duty free sales to foreigners (dominated by the Chinese followed by Japanese) rose +44.1% to KW8.8 trillion (US$7.5 billion)
Cosmetics, driven by booming sales of skincare (particularly Korean brands), accounted for 51.2% of turnover. Here are the leading categories:
Lotte Duty Free stretched its lead as the dominant force, racking up a +26% increase in sales to KW5.973 trillion (US$5.1 billion), a stunning performance given that the retailer had to close down its Lotte World Tower Duty Free store in late June.
Lotte’s nearest rival, The Shilla Duty Free, posted a +31.5% increase year-on-year to KW3.405 trillion (US$2.9 billion). Its Seoul flagship generated revenues of KW1.739 trillion (US$1.49 billion) while its Incheon International Airport stores posted sales of KW0.697 trillion (US$596.7 million)
Fast-rising Shinsegae Duty Free posted sales of KW0.9608 trillion (US$822.4 million). Its new store in Myeong-dong, Seoul, which only opened on 1 May, generated sales of KW0.349 trillion (US$298.7 million). Its downtown Busan store (relocated in March to Centum City) posted revenues of KW0.336 trillion (US$287.8 million). Dongwha Duty Free in Seoul posted sales of KW0.3547 trillion (US$306 million)
Of the recent sector newcomers HDC Shilla generated sales of KW0.3971 trillion (US$340 million); Galleria 63 Duty Free reached KW0.224 trillion (US$191.7 million), Doota Duty Dree KW0.111 trillion (US$95 million) and SM (Hana Tour) KW0.056 trillion (US$47.9 million).
Hong Kong is known to be a melting pot of activities, yet there’s one pastime in particular that locals and visitors alike always gravitate toward: shopping. The big malls like Pacific Place and Times Square definitely give shopaholics a run for their money, yet in such a dense megalopolis with so many shops to choose from, sometimes the hidden gems are exactly that – hidden. To help you cut through the noise and find your go-to place, here are Forbes’ choices for the five best shops for men in Hong Kong.
The Monocle Shop
Through collaboration with other niche brands, Monocle offers one-of-a-kind travel items, apparel and other assorted items in their small shop on Wan Chai’s hip St. Francis Yard. Given that Monocle is a magazine and travel guide first, the shop also sells souvenirs and city-specific memorabilia like their iconic city guides, available for New York City, Hong Kong, Copenhagen and many more. If you’re extra curious, poke your head into the back part of the shop, their Hong Kong editorial team’s office space.
1-4 St. Francis Yard, Wan Chai, Hong Kong, +852 2804 2323, monocle.com
The Armoury
If you’re looking for classic, ready-to-wear menswear, The Armoury is the place to go. The owners’ tastefully-curated collection hails from all around the world, and that global appeal has played a major role in the impeccable reputation that The Armoury holds today. Parisian Gentleman sums up their offering perfectly: “Mark Cho, Alan See and Jake Grantham continue to offer a tastefully curated selection from some of the best brands out there, which include the likes of Ring Jacket, Carmina, St Crispin’s, Orazio Luciano, Drake’s and of course, the Florentine Master Tailor Antonio Liverano featured in the Gianluca Migliarotti movie, I Colori di Antonio.”
Pedder Building Unit 307 (3/F), 12 Pedder Street, Central, +852 2804 6991, www.thearmoury.com
Landmark Central B47, 15 Queen’s Road Central, Central, +852 2810 4990, www.thearmoury.com
Delstore
Considered underrated by many, Delstore stocks difficult-to-find pieces from timeless brands, and is definitely a must-visit for any guy passing through Hong Kong. South China Morning Post says: “Owned by Hong Kong native Derrick Leung, the two-storey boutique offers stylish yet inconspicuous men’s outfits and accessories that have way more staying power than those slavishly following seasonal trends. A true champion of locally curated style, Delstore is a hidden treasure for Hong Kong’s male style mavens.”
3 Schooner St, Wan Chai, +852 2528 1770, delstore.co
HOLA Classic
For a high-quality yet budget-friendly tailoring, HOLA Classic is the place to go. Thanks to its location in Causeway Bay’s underbelly, So Kon Po, HOLA can offer its modern vintage suits at significantly lower prices than other tailors in Hong Kong (theirs start at $1,980 HKD, which is $255 USD). HOLA also offers quite a selection of eccentric ties and “happy” socks, plus their own line of shoes.
11A Caroline Hill Road, Causeway Bay, +852 2870 0245, facebook.com/holaclassic.
kapok
Certainly one of the quirkiest lifestyle shops in Hong Kong, kapok specializes in creative and authentic pieces from places like Denmark and France, widely known for the enduring quality of their craftsmanship. With one store next to the Monocle shop on St. Francis Yard and the other around the corner on the tucked-away Sun Street, expect to find a wide array of sweaters, messenger bags, tough-to-find magazines, notebooks, and a lot more. Expect to while away thirty or sixty minutes just browsing, chatting with the knowledgeable staff or jamming to the ever-changing Soundcloud mixes that fill the place with an upbeat, enduring energy.
3 Sun Street, Wan Chai, +852 2520 0114, ka-pok.com
5 St Francis Yard, Wan Chai, +852 2520 0114, ka-pok.com
Of course, if you can’t find what you need at these shops, you can always look online to sites like AliExpress, which stocks a seemingly-endless variety of clothing, shoes and accessories. Amazon also ships to Hong Kong, though for some items you may need to use a package forwarder to get them all the way here.
As Andrew Keith says, “Hong Kong is a city filled with amazing contradictions.” Fortunately, its size and its offering of great shops for men is not one of them. Wherever you choose to go, whether it’s a megamall, a boutique or just online, I hope these five shops open up your eyes to some of Hong Kong’s more unique options.
India is witnessing a ‘historic opportunity’ to take over China in the apparel, leather and footwear sectors but it is being outrun by its neighbouring East Asian economies, the Survey has said.
The survey touched upon India’s declining share in global cattle population and exports of cattle hides. The Survey said that limited availability of cattle for slaughter in India is leading to a loss of potential comparative advantage due to underutilisation of the abundantly available natural resource“ for the leather sector.
The Survey added that in spite of significantly lower wages than China, countries such as Bangladesh, Vietnam and Myanmar have outpaced India in these sectors. “The window of opportunity is narrowing and India needs to act fast if it is to regain competitiveness and market share in these sectors,” the Survey said.
The monthly wages for semi-skilled workers in India ranges between $81 and $119, while in China its $250-300. India’s wage costs are even less compared with Vietnam and Indonesia but challenges of logistics, labour regulations, tax and tariff policy have put India at a disadvantage in a global scenario.
These difficulties have led to several Indian firms choosing to relocate to Bangladesh, Vietnam, Myanmar and Ethiopia. All of these factors have brought India’s share in global exports of apparel, footwear and leather to less than 5%, falling behind countries such as Bangladesh and Vietnam.
Being labour intensive, apparel and leather sectors have been provided subsidy by government for increasing employment but a lot more needs to be done if India wants to create more jobs and opportunities for exports and growth.
The Survey said the government needs to take up a number of labour reforms to overcome the obstacles of employment generation and also bring in the Goods and Services Tax (GST) for tax rationalisation.
Noting that all economic growth take-off in East Asia has had a direct correlation with the clothing and footwear exports, the Survey said India has underperformed in these sectors.
At a GDP growth rate of 7-10% in East Asian economies, the average annual growth of apparel exports was between 20% and 50%, while it was more than 25% in case of leather. For India, this figure has been 12.7% and 5.4% respectively, showing a huge untapped potential.
Luxottica Global Channels, part of Luxottica Group, and DFS Group, the world’s leading luxury travel retailer, have joined forces in a worldwide exclusive launch of the new Prada Cinéma sunglasses collection.
The limited-edition range has been available only at selected DFS airport and T Galleria by DFS stores since November 2016, an exclusivity that runs until February. It is supported by a 360-degree omni-channel marketing campaign.
The campaign utilises both offline and online platforms, including social media, to engage with customers before, as and after they shop, with further digital amplification provided on DFS’s website and e-mail newsletter.
The online reach is designed to drive traffic in-store, where shoppers are presented with a number of high-profile activations from Prada. Key locations include DFS stores at Hong Kong International Airport and T Gallerias in downtown Hong Kong.
To provide additional shopper engagement, the campaign also offers Prada-branded boxes of chocolate from Marchesi, one of Milan’s most famous confectionery shops, as a gift-with-purchase.
Eyeing expansion: Luxottica has powerful ambitions to expand the eyewear category to 4% of global travel retail sales, even working with rival suppliers in a collaborative programme called VISION 2020 (Pictured: The new Prada Cinéma sunglasses)
Luxottica Head of Global Channels Francis Gros commented: “Digital communication in travel retail is a hot topic, and offers undeniable and incremental opportunities to build brands and enhance retail performance.
“The Prada Cinéma campaign showcases how a special new product can be strategically amplified to connect with travelling consumers, beyond the physical stores, on targeted platforms. DFS continues to deliver innovative ways to engage with customers and have been very supportive of the Sunglasses VISION 2020 [a pioneering collaborative category growth plan from six leading sunglasses suppliers -Ed]. We seek to make travel retail the expert channel for sunglasses, growing the category to be worth over 4% of total travel retail sales.”
DFS Group Director Merchandising Sunglasses, Fashion Watches and Jewellery Jason Blejwas commented: “We are thrilled to extend our long-standing partnership with Luxottica to bring the Prada Cinéma collection first to DFS stores, and to celebrate this exciting moment with our customers both in-store and online. We’re confident that both the product and experience will make for a memorable moment for travellers visiting DFS.”
The deal with V-Grass represents the biggest cross-border merger and acquisition agreement in Korea’s fashion industry.
E-Land Group said proceeds from the sale will help the company reduce its debt level to 240 percent by the first quarter from the current level, which is above 300 percent.
The final price is lower than the previously reported range of 1 trillion won. “After we adjusted our position on the operation of E-Land’s women’s wear unit in China, we finally agreed on the deal,” said a source at E-Land familiar with the deal.
The company said that since Teenie Weenie’s book value stands at 120 billion won, it would obtain a profit worth 750 billion won through the sale.
However, it will still own 10 percent of the fashion brand’s shares for three years to “maintain a stable partnership” with the Chinese company. “The reason why E-Land keeps a 10 percent stake is that both companies need to cooperate on production and business and generate synergy after the deal,” E-Land said in a statement.
The board of directors at V-Grass passed the takeover agenda on Tuesday, and the shareholders are expected to cast a vote on Feb. 10.
Following the decision, the Chinese retailer is expected to pay the price for sale on Feb. 20.
The Nanjing-based company captured Chinese consumers’ shifting purchase behaviors in favor of more premium brands. But since the sale price is higher than its market capitalization, the company will pay with debt.
On E-Land’s end, the sale is its latest effort to restore financial liquidity. The group had sold three properties in Mapo District, western Seoul, and Gangnam District, southern Seoul, last year, a move that brought in 250 billion won.
The company will push forward to secure cash through sales of other properties. By the first quarter, it will sell 200 billion won worth of real estate and then 500 billion won later this year.
The fashion group also plans to take E-Land Retail public in a capital-raising effort by the first half of this year, a move that E-Land believes will reduce its debt level to 200 percent.
E-Land has been accumulating more debt as some of its brands like New Balance have lost traction among young consumers.
Other analysts believe the group is excessively focused on physical expansion, increasing the number of brick-and-mortar stores even though more are turning to online and mobile shopping.
Faced with headwinds, E-Land Group companies saw their credit ratings downgraded in December by the Korea Investors Service.
There are 1,300 Teenie Weenie stores in China. Last year, the brand earned 421.8 billion won in sales while generating 112 billion won in operating profit and 86.3 billion won in net profit.
V-Grass was established in 1997 and specializes in high-end women’s fashion.
Two burglars smashed the window of a luxury goods shop in the IFC mall in Central and fled with 40 watches in front of a security guard during a Lunar New Year’s Day raid.
In a drama that lasted for barely two minutes, one of the pair broke open the glass door of Montblanc with a sledgehammer at about 11.40pm on Saturday, when the shop had been closed for the whole day.
The duo, said to be non-Chinese and wearing surgical masks and knitted caps, defied the guard and smashed three glass showcases inside, sweeping the watches into a bag and ran.
At one point, they attempted to intimidate the guard by threatening him with the sledgehammer.
At a taxi stand outside, the pair got into a car driven by a third man and sped off.
Police said the Germany-based chain, which specialises in several lines of products including watches, writing instruments and jewellery, had confirmed that about 40 watches valued at a total of HK$1 million were snatched.
Central district crime squad was investigating
A sledgehammer has been used in previous burglaries in the city. In September, a group of five or more burglars stole about HK$2 million worth of handbags and watches from the Chanel store at Lee Garden One on Hysan Avenue – one of Hong Kong’s prime retail strips in Causeway Bay, in just 80 seconds.
Italian eyewear specialist Safilo Group has signed an exclusive distribution agreement in South Korea with Seeone, a respected local commercial eyewear operator.
The new partnership is effective from 1 February. However, Safilo’s Korean duty free business will continue to be managed through the group’s global travel retail organisation and its local agents.
Safilo said the distribution deal is in line with the company’s plans to change its local affiliate business model in Korea where it aims to further develop its brand portfolio.
Seeone stated it would ensure a “seamless transition and smooth continuation of customer service to all optical retailers for all Safilo brands, including supply of products and after sales service”.
Safilo Group CEO Luisa Delgado said: “We welcome Seeone to Safilo’s worldwide partner network, where our over 50 exclusive partners across the world contribute their unique commercial capabilities and local market leadership to Safilo’s growth strategy, serving the local retailers on our behalf.
“Seeone brings an excellent track record of service and understanding of the Korean customers trade dynamics. We share a mutual belief in growing optical brands through quality distribution and operations, and relevant product design.
“South Korea has for Safilo a strategic global importance, as a domestic market, design trend setter for Asia and worldwide, and as an important Asian tourist destination. We are therefore committed to building an effective business in Korea for the longer term,” Delgado concluded.
Seeone CEO Sungjoo Ko commented: “This partnership is important for us. Safilo’s brand portfolio covers all market segments, with high quality eyewear. Their products are innovative and they have a history of leading craftsmanship and product design. With them, we see important growth opportunities that will strengthen our business in Korea.
“Safilo is the world’s second global eyewear leader. We will represent them with rigour and quality in Korea’s independent optical channel.”