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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:
SM Megamall
SM Makati
Robinsons Magnolia
Robinsons Place Manila
UPTown Bonifacio
U.P. Town Center
SM North EDSA
SM Fairview
SM City Clark
Marquee Mall Pampanga
SM City Seaside Cebu
Ayala Center Cebu
Centrio Mall Cagayan de Oro
EVIA Lifestyle Center
SM City Dasmarinas
Festival Mall
SM City Southmall
Robinsons Place Ilocos
Gateway Mall
SM City Iloilo
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.”
Kim Bum Ho, Deputy Executive Director of IIAC’s Commercial Marketing Group, said this morning that although Incheon Airport has planned to issue its T2 tender on schedule [in the first week of December], there could be a delay if the debate surrounding a change in e-commerce regulation – among a few other issues – continues.
Operators at South Korea’s Incheon International Airport (ICN) are currently not permitted to offer online duty free shopping due to regulation that stipulates that downtown DF operators alone command this privilege.
But Kim is all too aware of the increasing importance of e-commerce in South Korea, confirming that online sales growth continues to soar. “In South Korea the increased rate of online duty free shopping is now almost 50%-60% year-on-year…it’s so huge.”
Kim says that many local residents now prefer to only shop online. “So if you go to the downtown duty free store at this hour (evening in South Korea) you will only see Chinese people; no Koreans, no local people. Local people like to shop online. It’s such a big trend.”
In order to attract the most competitive bids (and retailers), Kim is trying to get the current e-commerce regulation for airport duty free operators changed…but it’s not been easy.
A large jewellery and watches counter at Incheon
“The duty free sales do not match the passenger growth rate unfortunately, but we think at this moment the duty free business has increased by 15% compared to last year,” says Kim.
“We are now talking…it is one of the issues we need to talk with the government about…So we are trying to [eliminate] the barriers to have e-commerce for airport duty free operators. I do think we can solve the problem for T2 operators…We have officially asked the Korean Customs office to permit the e-commerce business for airport duty free operators.”
Kim reveals that IIAC should find out if this is possible in two weeks time. In fact, he plans to write this into the terms of the T2 tender, if negotiations with the Korean Customs Service (KCS) go to plan.
TERMINAL 2 TERMS
“I think it will be determined in two weeks. It’s one of the conditions for the bidding. So yes we are planning to open the tender in early December, but we have to negotiate with the Korean Government Customs office before it opens…if it is takes longer we’ll need more weeks before we open. Anyway, our target date is early in December.”
Kim confirms that most local Korean operators such as Lotte, Shilla, Shinsegae, Hanwha and Doosan are interested in the Terminal 2 tender. Regarding the international operators he admits that two have already approached him, but he cannot reveal the company names at this stage.
T2 TO OPEN IN LATE 2017
Of course once the results have been announced, the retailers can begin to fit out the stores ready to commence trading in late 2017 when the new $5bn terminal opens.
“T2 will be opened late in 2017,” confirms Kim. “We spent almost $5bn on constructing it. It’s a totally new and unique place…we have centralised the duty free shops more…and it will be a more market and customer-oriented place. We can provide a good business environment.”
This year Incheon Airport says it has witnessed a very healthy increase in passengers of around 19%, however unfortunately duty free sales have not kept pace, as Kim concedes.
“The duty free sales do not match the passenger growth rate unfortunately, but we think at this moment the duty free business has increased by 15% compared to last year.”
Of course, Kim says that it’s difficult to make a direct comparison with last year, as the airport and the whole country suffered from the impact of MERS.
“It’s not best to compare directly with last year, but when we compare with two years ago (2014) we had about 10% increase in duty free sales.”
This year Incheon Airport says it has witnessed a very healthy increase in passengers of around 19%.
$2BN SALES TARGET STILL IN SIGHT
Kim also strongly believes that the airport can still achieve the $2bn sales total it predicted earlier this year. “We can hit $2bn again. Last year in 2015, we couldn’t because of the MERS…but this year in 2016 I think we can hit $2bn again.”
As the world’s biggest duty free market, many are interested to see what sort of sales South Korea can register in 2016. As reported, duty free sales rose +36% to $7.9bn in the first nine months of this year.
Kim gave us his updated forecast this morning: “I think the duty free business can hit about $9bn or $10bn in South Korea this year, so there is amazing growth actually.”
However, Kim also admits that for the last few months – maybe even as early as April this year – the growth in the number of Chinese inbound visitors has decreased, for which Kim says ‘there are many reasons’.
CHINESE INBOUND GROWTH SLOWS
One of these could be the new luxury goods import tax introduced by the Chinese Government earlier this year in a bid to protect home-grown businesses. Of course political tension could also be a factor.
[There were earlier concerns that the South Korean Government’s plan to plug into the US’ Terminal High-Altitude Air Defence (THAAD) system by the end of 2017 might cause a drop off in Chinese visitors, considering Beijing’s stiff opposition to the deployment].
LOTTE WILL BID AGGRESIVELY
“Duty free operators, including Lotte and Shilla are worrying about the Chinese changes…they spend less and they visit less.”
Kim believes this is more of a problem for the downtown duty free business and maintains that ‘the airport business is very stable compared to the downtown business’.
“Incheon is the gateway to South Korea and almost all the Chinese visitors have to come through Incheon Airport. It’s the national gateway…so it’s very stable, though their spending per passenger is now decreasing.”
German fashion house Hugo Boss says it will not return to growth until 2018 as it launches a turnaround that includes eliminating brands, slowing down store expansion and selling more online.
CEO Mark Langer says 2017 will be a transition year as it reorganises its struggling wholesale unit that sells to US department stores. Already the company has cut €65 million (US$68.86 million) in costs.
With Hugo Boss shares losing more than a third of their value in the past year, Langer’s recovery plan involves making more affordable clothing, in a move away from a declining luxury market. It will produce clothes only under the Hugo and Boss brands, narrowing its focus to casualwear and business attire. The Boss Orange and Boss Green labels will be folded into the Boss brand, and Hugo’s entry-level prices will be about 30 per cent lower than the Boss.
Womenswear, which accounts for about 11 per cent of revenue, will become a lower priority with Boss withdrawing from New York’s fashion shows next year. There will also be more focus on casual clothes and shoes.
Price tags will be adjusted internationally to close gaps caused by currency fluctuations, with prices in Asia coming down by about 15 per cent while European prices rise slightly.
Langer predicts that wholesale revenue via department stores in the US will decline by at least 10 per cent next year, with that business hit lately by high-level discounting to lure shoppers.
American lingerie brand Victoria’s Secret opened its first South-east Asian flagship store – a head-turning pink glass confection – at Mandarin Gallery yesterday.
First in the queue of about 100 shoppers were mother-and-daughter duo Mandy Lo, an office administrator in her 40s, and Hazel Goh, 19, a student.
While they had been waiting for only 30 minutes, the arrival of the flagship was a long time coming for Ms Goh, a loyal customer since she was 13. She had been ordering the label’s lingerie, fragrances and accessories online for several years.
She and her mother bought $500 worth of underwear, bras and a windbreaker, amid thumping music, flashing video screens, oversized chandeliers and elaborate table displays of lingerie-clad mannequins.
She says the store met most of her expectations. “It’s pretty awesome. I was expecting everything, but I couldn’t find certain designs of bras and underwear that I wanted, but the Pink range here is better than online.”
The Victoria’s Secret Pink range is a line of underwear, clothes and accessories targeted at women in their late teens and early 20s.
Another excited shopper was Australian tourist Jane Fitzgerild, 46. The chef had walked past Mandarin Gallery on Thursday and noticed the store.
She returned yesterday with her husband to buy bras. She says: “I’ve never been to any of the brand’s flagships. I’m a big fan and I like its quality and assortment of products.”
Opening the 12,000 sq ft duplex store in Orchard Road, amid a weak retail market, may seem like a risk, but Singapore Polytechnic senior retail lecturer Sarah Lim thinks this is a savvy move by retail group Valiram, which distributes the brand here.
Ms Lim says: “Victoria’s Secret is differentiated from other lingerie brands such as La Senza and Triumph because of its glamorous image. For consumers, it is a good move because, now, they can shop from the brand’s full range. The store also adds excitement to the retail scene.”
Singapore is the first Asian territory, apart from the Middle East, to have the full assortment.
The brand was founded in 1977 by the late Roy Raymond after he felt embarrassed purchasing lingerie for his wife in a department store.
In 1982, Victoria’s Secret was acquired by American fashion retailer L Brands, which made US$12.7 billion (S$18.11 billion) in sales last year, up from US$11.5 billion the previous year.
There are more than 1,600 Victoria’s Secret stores worldwide.
The brand is most famous for its high-octane annual Victoria’s Secret Fashion Show, which started in 1995 and features supermodels such as Adriana Lima and Alessandra Ambrosio and also top performers, including American pop stars Taylor Swift and Rihanna.
Similar to the stores in the United States, the Singapore flagship sells the full assortment, including the Victoria Sport and Victoria’s Secret Pink lines. This is a fuller spectrum than the fragrances, accessories and women’s underwear now offered at the brand’s seven stores in Singapore, including outlets at 313@Somerset and Wisma Atria.
Prices range from $19 for a lipgloss to about $800 for a silk robe from the Victoria’s Secret Designer collection. New designs will be available every two to six weeks.
At the flagship, there are 12 bra specialists, who advise customers on the product lines and styles, and know how to do bra measurements.
In each of the 24 luxurious fitting rooms is a call button, should shoppers need help from a specialist.
Ms Ema Negara, assistant vice- president of Victoria’s Secret store operations in Singapore, says having specialists who can empathise with customers is important.
According to her, about 90 per cent of women take bras in the wrong size to the fitting room and some walk out upset.
She says: “Our motto is to make women feel sexy, sophisticated and forever young.”
The 130-piece Treasure Collection includes silver pendants and earrings with cubic zirconia, diamonds and pearls, with each piece presented in a transparent sealed box. Prices range from US$49 to US$499.
F.I.N.E Managing Director Ari Johansson said: “Jewellery is the most profitable category per cubic centimetre in retail, and we’ve developed a unique brand and a range of jewellery that inspires the wearer.
“We also created a product that travel retailers can stock and manage more efficiently. Our extensive experience in manufacturing, logistics and training is reflective in the way we innovate in this space, be it in the box, on the box or out of the box.”
Johansson will address the conference and trade fair on ‘Three ways to improve jewellery sales in duty free’.
Burberry is cutting between 15 and 20 percent of its product lines in a quest to focus on its newest ranges as it battles to attract shoppers in a volatile luxury goods market. The U.K. luxury-goods maker reported a 24 percent drop in first-half profit that met analysts’ estimates, but failed to match rivals that reported better-than-expected results.
While luxury brands have been struggling with slowing growth in Asia, a drop in tourist spending in Europe following a series of deadly attacks and competition from fast-fashion chains, Burberry has been hit particularly hard. Its adjusted pretax profit fell 4 percent to 146 million pounds ($182 million) in the six months through September, in stark contrast with contrast with those of LVMH, Kering SA and Hermes International SCA, which all beat estimates in their latest reporting periods.
The company had already announced a 4 percent drop in half-year sales to 1.16 billion pounds last month as weak demand in some overseas markets offset a surge in sales in its British home as tourists took advantage of a lower pound.
The brand, which recently removed longstanding creative director Christopher Bailey from his additional role of chief executive offer, bringing in Marco Gobbetti, the former CEO of Céline to hand the business/operational side of the brand. Additionally, Burberry announced in February that it plans move away from the traditional model of presenting seasonal ranges months ahead of their appearance in store, in favor of two collections a year that would be available in shops immediately.
Finance chief Carol Fairweather said on Wednesday the company was cutting back on product lines ahead of the key Christmas trading period and would give greater prominence to its newest products, such as the bridle bag that was a top seller from its September runway show. “We are delighted with everything we have in place for (the) festive (season),” she said in a statement.
Shares in Burberry, along with other luxury groups such as LVMH, fell on Wednesday after Donald Trump’s victory in the U.S. presidential election added to uncertainty over prospects for the global economy, analysts said. Burberry makes about 20 percent of its sales in the United States.
