Category: Fashion

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  • Fashion franchises are a popular trend in Vietnam

    Fashion franchises are a popular trend in Vietnam

    At a one-day event held last week at the japan External Trade Organisation (JETRO) Office in Ho Chi Minh City, a group of more than 10 Japanese fashion giants introduced their wares to potential Vietnamese partners. These firms include Isato Design Works; In Design Lab; M-Trading, Inc; Kobe Leather Cloth Co., Ltd.; T-Three Co., Ltd; and Sachiyo Hayashi Beauty Laboratory Co.; Ltd. They all aim to open franchise stores in Vietnam in the future.

    This event was the first of its kind held by JETRO Office in Ho Chi Minh City, targeting Vietnamese companies which have already organised franchising deals or are interested in such deals in the future. In total, 30 Vietnamese firms attended.

    Maison Fashion Group and Imex Pan Pacific (IPP Group) are the most prominent Vietnamese firms to form franchise deals with international brands, but more look to be on the way.

    In recent years, Japanese firms have invested in many service-related projects in Ho Chi Minh City. This market is expected to develop even more in the future. “In addition, Vietnam is home to specific regulations on foreign investment and trading habits, thus penetrating this market via co-operative agreements with local partners is an optimal choice”, said Teramoto Ukai, a JETRO official.

    Japanese electronic products and consumer goods have long been famous in Vietnam for their quality. And now, Japanese firms want to tap into the local fashion market, which is growing at an annual rate of 10%-15%.

    Miniso, a leading Japanese lifestyle brand, is one of the latest firms to connect with Vietnamese market. In April 2016, Miniso signed a franchise deal with le Bao Minh Group.

    “Vietnam has growing consumer demands, thanks to rising incomes and [interest in] global trends. In addition, Vietnam is considered to be one of the 10 Asian retail markets with the fastest growth. The important thing is how to select brands and partners to cash in on the potential”, said Le Thi Ngoc Hai, chairwoman of Le Bao Minh Group.

    Miniso, which has been franchised successfully in the Republic of Korea, Malaysia, China, the Philippines, and Thailand, opened its first three stores in Hanoi in August 2016. It plans to have 13 stores in-country by the end of 2016, between Hanoi, Ho Chi Minh City, Danang, Nghe An, Can Tho, and Haiphong, Hai added.

    This franchising path follows a greater franchising trend in Asia. Along with the food and beverage sector, healthcare, education, and retail, fashion in Vietnam has attracted many famous global brands.

    The UL’s Monsoon Accessorize entered the Vietnamese market in 2009 after signing a franchise deal with Maison, and has since opened three stores nationwide. Spain’s Mango, which also has Maison as its franchise partner, opened its first local Mango store in 2004 and now has 10 stores in Ho Chi Minh City and Hanoi.

    In 2011, the UK’s Karen Millen entered Vietnam in partnership with Maison, and now has stores in Hanoi and Ho Chi Minh City. That same year, France’s Christian Louboutin entered the local market, with one store in Ho Chi Minh City.

    Singapore’s Charles & Keith and the UK’s Topshop also appeared in Vietnam via franchise deals. Charles & Keith now has seven stores in Vietnam after six years in the local market, while Topshop has one store in Ho Chi Minh City. In another case, IPP Group, owned by Jonathan Hanh Nguyen, has also been a favoured franchise partner for international fashion groups, including Italy’s Bulgari S.p.A., the US’s GPS Strategic Alliances with Gap and Banana Republic, and the UK’s Warehouse. They each have opened three stores in Vietnam.

    Zara, a famous Spanish clothing and accessories retailer, officially opened its first store in Vietnam in early September 2016. The opening was wildly successful- on its opening day, it chocked up around VND5.5 billion (US$251,000) in revenue.

    According to a source from Zara, it plans to open a chain of seven stores in Vietnam in the future, including two in Hanoi in 2017.

  • Bata: Shoemaker to the world

    Bata: Shoemaker to the world

    IT’S inevitable that the world’s first family in footwear, Bata, would partner with the Philippines’s premier retail family, the Sys of the SM Group.

    “First of all, their whole philosophy is business, their heritage coming from footwear. It’s particularly strong. Also, we have a friendship with the SM Group and the Sy family going on for some time. All these make them great partners, and we never hesitated. They were the only partner we were interested to work with in the Philippines,” Thomas Archer Bata said at the launch of the first Bata store in the Philippines, which can be found at the third floor of SM Megamall Building B.

    Ambassador; Bubblegummers; and Valtina Prima Ballerina

    The Bata Shoe Co., which is the biggest in the world, originated in Zlin, in what is now the Czech Republic, on September 21, 1894. It was founded by Tomás Bat’a. His son, Thomas J., propelled the company to greater profitability after suffering losses in World War II. The grandson, Thomas George, is currently in the management board with his sisters Christine, Monica and Rosemarie. Thomas Archer (who will be referred to as Mr. Bata from hereon in the article), the chief marketing officer, belongs to the fourth generation of cousins who add vigor and vitality to the company.

    Bata has 5,000 retail outlets in 70 countries. In Senegal, Rhodesia and Zimbabwe, Bata became the local name for shoes when in the 1950s, the company conquered the African continent. “Opportunities abound, everyone barefoot,” came one cable from a salesman to headquarters.

    It has a strong presence in Asia, particularly India. It also opened a factory in Thailand in the 1970s. But Bata’s entry into the Philippines came only recently. “To be completely honest, it’s because of legal reasons and legal complications related to our trademark here,” Mr. Bata bared. “It took many, many years to resolve. Fortunately, with the help of SM, we managed to resolve it and we’re back.”

    Mr. Bata, who strikes me as a mix of actors Chris O’Dowd and Aidan Quinn, is quite optimistic about his family’s prospects in the country. “We think our model and our proposal is very interesting. We think it’s fairly unique in the market today. We’re going to tread cautiously. We’re opening [between eight and 15 Bata stores in SM malls in Metro Manila], communicate and try to build our consumer base, teach people about our products. From there, we’ll see where we’re going to go.”

    The Bata business of “responsible capitalism” is guided by a “Moral Testament” left behind by its founder: The company should not be treated as a source of private wealth but, rather, as a public trust, a means of improving living standards within the community and providing customers with good value for their money.

    Bata prices curiously end in the digit 9. “Back over a hundred years ago, it was partially a marketing tactic to make the prices look even more affordable. It has been in our heritage and our blood ever since we started, and it’s just to emphasize the value [of our product],” Mr. Bata explained.

    The company has an “insistence on focusing on the local market not only as a matter of structure and strategy but, rather, as an essential aspect of the Bata brand and philosophy. Shoes always followed culture and climate.” Thus, the Weinbrenner sandals will be a hit for their tropical, outdoorsy appeal, in tune with the penchant of Filipinos who love flip-flops.

    By some quirk, towns with the company’s factories have the Bata name: Batanagar in India, Bataville in France, Bata-Kolonie in Switzerland, Batadorp in the Netherlands, Batapur in Pakistan, Borovo-Bata in Croatia and Batawa in Canada, a play on the capital Ottawa. If a factory were to be built here, it would most likely be in Batangas.

    “Never say never. You know, we have to see what opportunities come up. If we see the opportunity to produce shoes in the Philippines, it could happen,” Mr. Bata said of the possibility of Filipinos becoming “Batamen”, who are of every race, creed and nationality. A lot of the materials to produce the shoes come from Brazil. Italy is the source for premium products. Raw materials also come a little bit from China and India. These are the four main areas where Bata gets its materials from, depending on the shoes that you’re looking for.

    “We are very environment-friendly. Our factories on a yearly basis are audited for their sustainability. We manufacture our own shoes. We actually issue a Sustainability Report every year about the progress we’re making on reducing waste. We’re very lucky in so much, as our founder over a hundred years ago believed in sustainability, in producing as little waste as possible, and that exists till today. We always use environment-friendly materials, suppliers, recyclable papers in our boxes, to make as little negative impact on the environment as we can,” Mr. Bata assured.

    Bata has three creative teams, with the biggest one based in Italy. One is in Toronto, Canada and another in Singapore. “In the Philippines 50 percent of the products come from Italy, 30 percent from Singapore, 20 percent from Canada. Not all brands are here,” Mr. Bata said. “We’re bringing primarily Bata and a little bit of our other brands for the moment. We’re still very much in the learning stage for us, to see what the Filipino consumer likes the most before we commit to specific product ranges.”

    Are they open to designer collaborations? “Yes, absolutely. We’re interested to do that. We’re actually talking to potential partners in the Philippines to work on some collaborative projects.”

    What about celebrity endorsers? “It’s a possibility. We’ll see. We believe the best kind of endorsement is user experience and word-of-mouth. So we tend to focus on ‘loyalizing’ people who come to buy with us more than anything else. I won’t rule it out but for the time being, it’s not on the agenda.”

    Has the company learned that “bata” here means “child”? “Yes, I’ve heard that.” So is there a possibility to have a Bata Children’s Program here? “Very high probability. We actually intend to do that. It’s a big part of our legacy and it’s very important for our family. We have our own schools and, specifically, we focus on the education of young girls. So we’re actually planning and discussing this with SM, how we can roll this, especially in the rural communities in the Philippines.”

    Thomas J. Bata would often wear a different type of shoe on each foot as a way of constantly testing their products. At the launch, his grandson Thomas Archer wore a pair of leather brogues. “These are Bata shoes from our factory in India, in Calcutta. Very comfortable. It’s from the Ambassador line but not yet available in the Philippines, but they will be in a few weeks’ time,” Mr. Bata said with delight.

    Did you also learn how to make shoes? “Yes, I did. My holidays as a child were going to factories, making shoes and visiting stores. I’m lucky I grew up with shoes. I like shoes. Not everybody who grew up in the shoe business actually likes them!”

  • Global SPA brands draw fire for using ‘Sea of Japan’

    Global SPA brands draw fire for using ‘Sea of Japan’

    ZARA, H&M, GAP, Forever 21, MANGO and other SPA brands here have come under fire for using a Google Map that refers to the East Sea as the “Sea of Japan,” and Dokdo as “Liancourt Rocks.”

    Critics say ZARA Retail Korea is using an online map which shows Japanese place names in the Korean language. The map has been provided for customers to search for locations of ZARA stores.

    The company declined to clarify its own opinion to the media, saying the Korean branch should follow the global policies of ZARA headquarter in Spain.

    The company’s response angered Korean customers, who have already been irritated by the chief of ZARA Korea making statements ridiculing the candlelit rally participants.

    However, The Korea Times found out that other Korean branches of SPA are using the same map as ZARA, which may enrage Korean customers even more.

    On the map, Sea of Japan is shown as East Sea in parentheses, only if a user zooms in on the map. Moreover, Dokdo is shown as Liancourt Rocks, even if the user zooms in.

    At the bottom of the map three firms are credited ― Google, SK Telecom and Zenrin. They are headquartered in the U.S., Korea and Japan, respectively. Zenrin is a Japan-based map publisher.

    An SK Telecom official said that “It seems Google received detailed data of streets and buildings from our T map and received overall geographical data from Zenrin.”

    Google currently offers online maps following cultural and historical emotions of each country. After a series of disputes, the map’s Korean version (maps.google.co.kr) shows Dokdo and East Sea as they are in Korea.

    Most global firms are using different versions in each country as well. However, global SPA brands have used the Zenrin-based global version.

    UNIQLO alone could avoid the controversies as it is using Naver Map on its official website of its Korean branch, even though the brand is headquartered in Japan.

    Meanwhile, ZARA Korea seems to face a larger boycott of its products because of the map matter.

    The company chief Lee Bong-jin has come under criticism after he said during a public lecture, “When you took to the streets (to protest), 49 million people who didn’t join the rally were doing something for themselves. Your future will be shaped based upon what you do now,” referring to the mass anti-Park rally in Seoul. His statements have gone viral as one of the lecture attendants posted his words on social media.

    “My intention was, that in this chaotic situation, we should be more dedicated to what we are supposed to do ― studying for students and working for workers,” Lee apologized. However, Korean customers likened his apology to the warning about the 1919 Independence Movement made by a infamous pro-Japanese collaborator Lee Wan-yong.

    Customers have begun an online boycott against ZARA and some of them sent emails of complaints to its headquarters Inditex Group, in Spain.

  • Decathlon China building biggest flagship yet

    Decathlon China building biggest flagship yet

    French sports goods retailer Decathlon will open its first two-story flagship in Luoyang as it expands its Greater China footprint.

    When complete, it will be the sports retailer’s second store in the city, located in the province of Henan – and its largest store yet in China.

    The new Decathlon China store will be located at the intersection of Huashan Road and Hangong Road in Xigong district. It boasts 13,000 sqm of retail floor space and include a playground for children.

    Decathlon, which opened its first two stores in Singapore this year as part of a new Asia-wide focus, is a full-line sports supplies retailer which also designs, manufactures and wholesales products. It has more than 1300 stores in 32 countries and plans to have 220 stores trading in 100 Chinese cities by the end of this year.

  • L’Occitane International profit jumps

    L’Occitane International profit jumps

    French skincare brand L’Occitane International’s interim net profit has jumped 33.9 per cent for its latest six months.

    Earnings for the period to September 30 climbed to €25.99 million (US$27.5 million) from €19.41 million year-on-year, while net sales edged up by 1.3 per cent to €551.7 million.

    Emerging economies Brazil, China and Russia were singled out as the top performing markets for the Provence-based company.

    “We are seeing accelerating store traffic in China and a tremendous growth in our sales on the Tmall market platform,” says L’Occitane Asia-Pacific president Andre Hoffmann.

    The mainland has become the company’s second-largest market after the US in terms of the number of outlets. Eight locations were launched in China in the first nine months of the year – the largest number across the brand’s nine major markets.

    Total sales from the mainland gained 5.4 per cent to €50.8 million from a year ago, accounting for 9.2 per cent of L’Occitane’s net revenue.

    More shops were opened in Japan and South Korea, but in Hong Kong sales plunged by as much as 11.2 per cent.

    Same-store sales overall fell 2.5 per cent, which the company blames on global economic political uncertainties. However, more positive signs included a strong performance on Tmall, as well as in the Black Friday sale, says CFO Thomas Levilion.

    L’Occitane eCommerce business grew by 6.8 per cent during the first half, making up 10 per cent of global retail sales.

  • Bonia to close more stores

    Bonia to close more stores

    Malaysian fashion retailer Bonia will close more of its loss-making outlets next year.

    But despite weak earnings, the boutique brand known for its leather goods and footwear plans to increase its advertising and promotional spending.

    Pretax profit fell nearly RM26.7 million (US$6 million) for its latest financial to June 30 to RM45.93 million. Bonia cites the slowing economy in Malaysia and Singapore as the core reason.

    About 10 Bonia outlets have been closed internationally this year, and group MD Albert Chiang says the group is undertaking “prudent measures” and being selective about store openings.

    Bonia owns the Bonia, Carlo Rimo and Sembonia brands and has a presence in Cambodia, Indonesia, Malaysia, Myanmar, Singapore and Vietnam.

    The group also owns distribution rights to Braun Buffel, Jeep, Pierre Cardin, Santa Barbara Polo and Racquet Club.

  • China’s Shang Xia reveals five-year travel retail plans

    China’s Shang Xia reveals five-year travel retail plans

    Chinese lifestyle, home and fashion brand backed by Hermès, Shang Xia has confirmed that it has big ambitions for the travel retail channel and hopes to open new standalone boutiques at Beijing, Heathrow and Hong Kong international airports in the next five years.

    Tina Priscilla Tam, the brand’s Vice President, Travel Retail and Wholesale Business for Asia Pacific told TRBusiness that she believes that travel retail is the ideal channel to communicate the brand’s message to travellers ‘who value and appreciate the beauty of the culture’.

    “Shang Xia’s strives to preserve China’s fading traditions of craftsmanship and re-evaluates the tradition in the context of contemporary lifestyles,” says Tam. “China’s great heritage of technical ingenuity shimmers with potential.

    “Wooden furniture; bamboo woven on porcelain; cashmere felt; eggshell porcelain…These remarkable materials are transformed by the CEO and creative designer – Qionger Jiang. Her inspiration embodies both beauty and utility.

    BRIDGING EAST AND WEST

    “’As above, so below’; the translation of Shang Xia is simple, but profound. It speaks of heritage and construction; of intangible bridges, which link tradition and the present; east and west; art and lifestyle; human and nature.”

    Shang Xia has confirmed that it has big ambitions for the travel retail channel.

    Tam believes that Hong Kong Airport is a perfect location for the brand to open a standalone boutique. “Hong Kong is one of the most popular destinations for international tourists,” identifies Tam.

    “A place where ‘east meets west’, reflecting the cultural mix of the territory’s Chinese roots with influence of foreign cultures. A good standpoint for the brand to transmit the message of beautiful Chinese heritage and tradition to the world.”

    Shang-Xia-Hongqiao-Airport

    Shang Xia boutique at Hongqiao Airport.

    Shang-Xia-Shanghai-flagship

    The flagship Shang Xia store in Shanghai.

    London Heathrow is also on the wish list. “Travel retail is a window to the world. With the dynamics of the channel, it is true that some brands consider it as a sixth continent.

    “They have regular travellers who enjoy discovering new and inspired ideas and culture.”

    GLOBAL APPEAL?

    The brand is keen to relay that just because it was born in China, does not mean that it only appeals to one market, but can appeal to those of all nationalities ‘inspired by the preservation of beauty’.

    Shang-Xia-Taiwan-3

    The brand offers cross-category merchandise from homeware, to clothing and jewellery.

    The brand already boasts boutiques in Paris, Shanghai and Beijing (domestic). “Apart from the above locations, Shang Xia has a partnership in Taiwan where it has already opened two shop-in-shop concept stores in August [with the Shankong group],” says Tam. “The next step will be Hong Kong in January 2017.

    “We focus not only on destinations for Chinese travellers. We review destinations and partners who understand the brand and share the same core values.”

    The brand will open a new standalone store at Beijing Airport’s Terminal 2 in Q2 2017, building on its success Hongqiao Airport.

    TRUST IN TRAVEL RETAIL

    “The successful story gives us the confidence and trust in travel retail; a channel that allows us to share the values of the brand to a wider population and other nationalities,” adds Tam.

    Shang-Xia-Taiwan

    Shang Xia ‘Art Haus’ boutique in Taipei, Taiwan.

    “We believe Beijing Airport T2 is the next important step for us to open in the capital city’s main travel gateway. Of course, we will explore other Chinese airports.”

    The Beijing store will carry Ready to Wear, costume jewellery, tea-ware, and home ware. Although the company doesn’t currently merchandise these categories in separate boutiques it is open to new concepts.

    “We are not limiting ourselves and we are happy to explore new concepts to better serve our customers.”

  • Tiffany progress more technical than strategic

    Tiffany progress more technical than strategic

    Following on from a very weak second quarter, it is pleasing to see Tiffany nudge back into growth on a total sales basis.

    The 1 per cent uplift is modest, but it is far better than the string of poor numbers the company has been posting for well over a year. That said, the figures do not show that all the problems at Tiffany have been resolved. Indeed, part of the increase is attributable to the very easy comparatives from the prior year; and part is down to the strength of the yen against the dollar, which aided performance in Japan. These are rather technical gains, and are not growth produced by a sound underlying strategy.

    That Tiffany still has issues is demonstrated by the Americas figures, where sales declined by 2 per cent on both a total and comparable basis. This comes off the back of a 7 per cent and 9 per cent decline in total and same store sales in the prior year.

    Notably, the impact of the strong dollar on sales to tourists at Tiffany’s flagship stores now seems to have dissipated and annualised out; if anything, the company noted that tourist sales were relatively strong over the quarter.

    This dynamic means the blame for the dip comes, primarily, from domestic demand. Here, Conlumino’s data shows that Tiffany continues to suffer from a decline in both the number of American consumers who consider it for jewellery purchases as well as the proportion who end up buying from it. In a category like jewellery, where purchases are relatively infrequent, not being firmly on the consumer radar is an issue as it gives Tiffany little opportunity to recapture ‘lost’ spending.

    There is an argument to be made that as US department stores see customer traffic weaken, Tiffany should be picking up some trade – at least for mid to higher end purchases. However, this does not seem to be happening. Instead, consumers are migrating to more contemporary premium brands, as well as to custom and direct-to market-players like Blue Nile – which was recently acquired by Bain Capital.

    These represent the new growth spots of consumer demand in jewellery – spots to which Tiffany, with its ‘old world’ image do not have immediate and ready access.

    Thankfully for Tiffany, its weak performance in the US was not replicated elsewhere this quarter. Sales in Asia-Pacific rose by 4 per cent, after a better performance in China. However, comparable sales in the region are still in decline, not helped by continued slides in Hong Kong and Australia. Japan also saw some strong uplifts, with a 13 per cent increase in total sales. However, these were a function of the strong yen and once this impact is removed sales dipped by 4 per cent on a constant currency basis.

    While sales in Japan benefitted from a favorable exchange rate, Europe had no such tailwind. The depreciation of sterling and the euro saw sales decline by 10 per cent on a total basis and by 14 per cent on a same-store basis. Even so, underlying demand in the region – like in the US – remains soft.

    Tiffany has a lot more work to do before it gets into sustainable growth.

  • Japan home to seventh NikeLab flagship

    Japan home to seventh NikeLab flagship

    Japan is to be home to the seventh NikeLab flagship, a premium sub-branch of the sports-shoe brand launched in 2014.

    The other flagship locations are in New York, London, Paris, Milan, Shanghai and Hong Kong.

    Opening this week, Tokyo’s NikeLab MA5 offers a retail experience with a thematic focus on uniting nature and technology, as well as exploring sustainable materials. The store aims to engage the senses with directional sound systems both inside and outside, plus an exclusive scent and soft track-flooring material made using Nike Grind, a palette of recycled and regenerated materials.

    The entrance of NIKELAB MA5 featuring the Holiday 2016 ACG collection, which has advanced weather protection, seamless integration with past and future ACG apparel and adaptable elements like interior strap systems and adjustable collars.

    The entrance of NIKELAB MA5 featuring the Holiday 2016 ACG collection, which has advanced weather protection, seamless integration with past and future ACG apparel and adaptable elements like interior strap systems and adjustable collars.

    Display benches made with Nike Grind, a palette of premium recycled and regenerated materials.

    Display benches made with Nike Grind, a palette of premium recycled and regenerated materials.

    Digitally-powered fitting rooms featuring tatami mat floors and locally sourced wood walls.

    Digitally-powered fitting rooms featuring tatami mat floors and locally sourced wood walls.

    Display cubes made with locally sourced wood for the NikeLab Gyakusou LunarEpic Flyknit.

    Display cubes made with locally sourced wood for the NikeLab Gyakusou LunarEpic Flyknit.

    Also, Nike designers have been working with long-term engineering partner Arthur Huang, the founder of design firm Miniwiz, to incorporate Japanese culture and traditions into the store. Tatami-mat floors pair with walls of locally sourced wood in the digitally powered fitting rooms. The same timber is used on modular display cubes alongside Nike Grind display benches.

  • Tory Burch Malaysia opens second KL store

    Tory Burch Malaysia opens second KL store

    Fashion brand Tory Burch Malaysia has opened its second store following the success of its inaugural boutique at Pavilion Kuala Lumpur.

    On the ground floor of The Gardens Mall Kuala Lumpur, the store has a facade distinguished by a green awning and brass accents, signature design elements for the American brand. Inside there is a mix of furnishings in a vibrant palette including seafoam silk drapes, blue embroidered pillows and a teal mohair banquette.

    tory-burch-pavilion-kuala-lumpur

    Oak-panelled walls, travertine basketweave floors and white gesso chandeliers set the tone for the boutique. The brand’s signature Reva ballet shoes and high-end handbags are displayed on brass étagères, and there are dedicated spaces for scarves and eyewear.

    The Tory Burch collection includes ready-to-wear, watches, accessories and shoes.
    To mark the opening, a round, navy-blue python bag made from authentic snakeskin is available exclusively from the boutique.

  • Grana pop-up for Fashion Walk

    Grana pop-up for Fashion Walk

    Online fashion disruptor Grana will open a new pop-up store at Fashion Walk on December 9.

    The new Grana pop-up will be different to its Fitting Room by Grana store in Sheung Wan. The Causeway Bay store will target millennials with what founder Luke Grana describes as a “more personal brand experience” enticing customers to ‘see, feel and try’ before making their purchases in-store for later delivery.

    Described as “The Soft Spot – #granaworld experience”, the three key elements to the store are:

    • The See Wall, a gallery displaying how Grana’s luxury garments are made straight from the original source to the final construction of its Winter Collection & #ShowMeWhere images.
    • A Feel Bar, a sensory experience with different types of soft fabrics and textures;
    • A Try Space where shoppers can find the right fit and fabric offline before buying online.

    The eCommerce retailer has partnered with design and architecture brand Alt-254, to renovate its new 1668 sqft showroom to build the Grana experience and bring the online-to-offline concept to Fashion Walk. Grana will use the showroom space to introduce new fabric origin stories as a creative way to engage fashion conscious consumers on the story behind its new collections over the next four months.

    The new Grana pop-up on Paterson Street, is the brand’s sixth in Hong Kong.

    “With the increasing demand from consumers for quality basics in Hong Kong, the new showroom space is an opportunity for us to create a different retail experience for shoppers to have the Grana experience, learn about our minimalist collection, unique fabric stories and honest pricing model,” said Luke Grana

    “I’m very grateful for the support from Hang Lung Properties to pop-up in such an iconic location”, he said.

    Grana is a direct-to-consumer eCommerce fashion brand designing wardrobe essentials in-house, using the finest fabrics from around the world. Grana offers global shipping directly to 12 countries within two days.

    Headquartered in Hong Kong, Grana was founded by Luke Grana and Pieter Paul Wittgen in October 2014. To date, the startup has raised US$16 million in funding from 500 Startups, Alibaba’s Hong Kong Entrepreneurs Fund, Golden Gate Ventures and MindWorks Ventures.

  • Luk Fook announces interim results

    Luk Fook announces interim results

    The Board of Directors of Luk Fook Limited announced the unaudited consolidated interim results of the company and its subsidiaries for the six months ended 30 September 2016.

    During the Period under review, the Group’s revenue dropped 21.5 percent to HK$5,469,124,000. The continuing weak retail sentiment, together with the relatively high gold price and a relatively high base due to the small scale gold rush in certain months last year, resulted in gold sales falling more than expected.

    Overall gross margin improved by 5.3 p.p. to 28.0% as a result of relatively high gold price and higher gem-set jewellery sales mix. Gross profit therefore decreased by only 3.0 percent to HK$1.5 billion.

    Operating profit decreased by 6.0% to HK$558 million. Profit attributable to equity holders amounted to HK$429 million, a decrease of 7.4 percent. The Group’s overall gross margin significantly improved by 5.3 p.p. to 28.0 percent, as it concentrated on sales mix of gem-set jewellery products driven by a slowdown in demand for gold products and the improved gross margin of gold products as a result of the gold price rise.

    Mr. Wong Wai Sheung, Chairman and Chief Executive of Lukfook Group said, “During the Period under review, the slowdown in economic growth in Mainland China, the changes to the Individual Visit Scheme and the growing popularity of other tourist destinations as a result of currency devaluation, Mainland tourists tended to stay shorter period of time. Consumption expenditure per capita continued to fall with the poor macro-economic conditions and decreased spending power of consumers. ”

    The retail business continued to be the primary revenue source for the Group with its revenue declined year-on-year by 27 percent to HK$4,028,721,000, accounting for 73.7 percent (2015: 79.3 percent) of the Group’s total revenue. With a much improved gross margin, segmental profit in the retail business dropped by 6.7% only to HK$338,921,000 (2015: HK$363,235,000), representing 55.8% (2015: 53.9%) of the total.

    The overall same store sales growth of the Group was down 31.5 percent.

    The Hong Kong market remained to be the key source of revenue for the Group, which the revenue generated decreased by 28.6 percent to HK$3,003,443,000, contributing approximately 54.9 percent (2015: 60.4 percent) of the Group’s total revenue. The Group’s revenue generated from the Macau market decreased by 27.7 percent to HK$665,528,000. Revenue from the Mainland China market decreased by 2.7 percent to HK$1,722,787,000, and accounted for 31.5 percent (2015: 25.4 percent) of the Group’s total revenue.

    During the Period under review, the Group added a net total of 27 Lukfook shops worldwide of which 24 new stores were opened in Mainland China. This raises the global network of Lukfook shops to 1,455. Mr. Wong Wai Sheung, Chairman and Chief Executive of the Group said, “Looking ahead, the Group will maintain its pragmatic and prudent strategies, proactive response to challenges, thereby strengthening our leading position in the jewellery retail market.”

  • New York milestones for Japanese jeweller Tasaki

    New York milestones for Japanese jeweller Tasaki

    Japanese luxury jewellery Tasaki plans to open its first US standalone store in New York City next year.

    It will also be the retailer’s first directly run store in the US.

    tasaki

    Tasaki also has a directly run store in London, plus an outlet at Hong Kong’s Lee Garden. The brand is already available at Barneys New York and Dover Street Market in New York City, Ikram in Chicago, The Webster in Miami and Capitol in North Carolina.

    Founded in 1954, Tasaki began producing and selling pearls domestically before opening a design office in 1962 to create other jewellery designs. In 2009, the company hired New York City-based designer Thakoon Panichgul as creative director.

    Tasaki jewellery is available in nine countries including China, Japan, Korea, Malaysia and Taiwan.

  • Moiselle International losses mount

    Moiselle International losses mount

    Fashion group Moiselle International has strengthened its margins but still posted a loss in the last half year.

    While its loss of about HK$35 million (US$4.5 million) was about 10 per cent more than its loss of about HK$32 million for the same period last year, Moiselle International had a healthier gross profit margin of 79 per cent, up from 76 per cent.

    Revenue declined 18 per cent to $132 million, its unaudited interim results to the end of September show.

    Moiselle says it was hit hard by the harsh operating environment as it derived about 55 per cent of its revenue from Hong Kong and 18 per cent from China. Its retail sales in Hong Kong were affected by the fall in the number of mainland tourists as well as exorbitant rents. In China, the economic slowdown dampened the consumer sentiment.

    The remaining 27 per cent of the revenue was made up by sales in Macau, Singapore and Taiwan.

    To cope with the difficult market, the group rationalised its retail network, introduced stringent cost-control measures, continued cost-effective sales and marketing initiatives such as adopting an online-to-offline business model, introduced exclusive services for high-end customers with a VIP club, and introduced products of a wider price range to broaden its customer base and cater for young Hong Kong customers.

    Meanwhile, the group stepped up its multi-brand strategy by launching fashionable loungewear under a new brand, promoted in the group’s two fashion shows in Hong Kong and Beijing.

    Hong Kong sales fell 18 per cent year-on-year to about $72.3 million. The group continued to negotiate for lower rents for shop spaces, opened shops at prime locations with reasonable rents and closed down underperforming outlets.

    Online initiatives

    Sales in China fell by 31 per cent to about $23.4 million. The group closed some shops and relocated others. It also stepped up its initiatives in eCommerce, such as opening an online store under the Moiselle brand at Tmall this month.

    To reinforce its online marketing efforts, the group worked with key opinion leaders on social media such as WeChat and Weibo.

    China’s measures to advocate frugality spilled over into Macau’s retail market. The group continued to run five shops at the Venetian Macao Resort Hotel and opened a store at the Parisian Macao Hotel. It had two concept stores and four other outlets in the city which generated a combined revenue of about $17.97 million, or about 14 per cent of the group’s revenue.

    Taiwan’s 20 retail stores generated about $13.7 million, about 10 per cent of the group’s total revenue. It opened three more outlets and counters during the half-year.

    Operations in Singapore

    In Singapore, sales fell 22 per cent to about $4.14 million. The group has retained seven stores there.

    At the end of September, the group had 84 stores and counters in China (first- and
    second-tier cities), Hong Kong, Macau, Singapore and Taiwan, down from 90 at the end of March.

  • Good time for Samsonite

    Good time for Samsonite

    Buoyed by its Tumi acquisition, Samsonite sales soared in the last quarter in every market, even in its weakest link, Asia.

    The world’s largest luggage maker and retailer achieved a net sales boost of 22.8 per cent in the three months to September 30. Its strongest performance was the US where net sales increased by 22.7 per cent to US$765.3 million.

    In Asia, sales rose 13.4 per cent – although excluding figures for Tumi, acquired on August 1 and contributing to two months of sales, only by 3.7 per cent.

    North America sales rose 39.1 per cent, or by 9.8 per cent excluding Tumi, and in Europe by 16.5 per cent, or 9.4 per cent excluding Tumi. And in Latin America it was ahead by 26.2 per cent including and excluding Tumi.

    CEO Ramesh Tainwala said there is no doubt that the global trading environment continued to be challenging, yet despite the headwinds, all of Samsonite’s regions delivered positive constant currency net sales growth during the third quarter of 2016.

    “It is especially encouraging to see organic sales growth picking up in both the US and China, our two largest markets, while Europe and Latin America have maintained their growth momentum.”

    Gross profit increased by 26.5 per cent year-on-year to $419.8 million and gross profit margin increased to 54.9 per cent, from 53.2 per cent.

    On the negative side, operating profit decreased by 16.4 per cent year-on-year to US$71.7 million for the quarter, largely due to acquisition costs. Excluding those, operating profit increased by 23.7 per cent.

    Asia performance

    After a relatively lacklustre first half, both China and India saw net sales growth improve to 8.1 per cent year-on-year in the third quarter of 2016. Net sales in Hong Kong (including Macau) increased by 73.6 per cent, driven primarily by the addition of the Tumi brand. Excluding Tumi, net sales in Hong Kong (including Macau) decreased by 11.5 per cent. The decline was driven primarily by fewer Chinese shoppers visiting from the mainland.

    Japan and Australia continued to record strong year-on-year net sales growth of 29.7 per cent and 13 per cent, respectively. Excluding Tumi, net sales in Japan increased by 7.4 per cent. Also, the group continued to penetrate the emerging markets within the region with notable net sales growth in Thailand and Indonesia of 7.6 per cent and 3.1 per cent, respectively, year-on-year. Net sales in South Korea were up slightly year-on-year on a constant currency basis due to weak consumer sentiment.

    Growth by brand

    Globally, excluding Tumi, sales were driven by the Samsonite (up 10.2 per cent) and Kamiliant (up 576.1 per cent). Other brands including Hartmann (up 58.8 per cent), Lipault (up 342.8 per cent) and Gregory (up 20.4 per cent) also experienced solid net sales growth. The increase was partially offset by an 11.3 per cent decrease in net sales of the American Tourister brand.