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Category: Fashion

Retail News Asia is committed to providing both local and global retailers with the latest Fashion news throughout the Asian market. This on a daily base.

  • Under Armour opens office in Korea

    Under Armour opens office in Korea

    U.S. sports brand Under Armour said Thursday that it has opened an office in Korea to operate its business directly next year. So far, its clothes, shoes and sports equipment have been imported, marketed and sold through business partner Hyosung Galaxia.

    The company said it decided to bring its products directly to Korean consumers as the country’s sports and fitness market continues to grow.

    “Under Armour will strengthen its marketing, distribution and retail efforts, providing Korean consumers with the best brand and shopping experience,” said David Song, country manager of Under Armour Korea. “We will open our flagship store in southern Seoul in January. The brand will also continue to connect with athletes directly and promote sports, fitness and healthy living through its connected fitness platform, which is the world’s largest digital health and fitness community.”

    Song said driving deeper growth in Korea is a pivotal component of the firm’s comprehensive international growth strategy. “Through design, innovation and our Under Armour connected fitness platform, we look forward to forging long-term relationships directly with athletes at every level in the country.”

    Under Armour Korea plans to open premiere retail shops and carry out robust marketing campaigns to tell its unique brand story, as well as invest in the next generation of Korean athletes to exemplify its brand.

  • Michael Kors Celebrates Singapore Flagship with Kate Hudson

    Michael Kors Celebrates Singapore Flagship with Kate Hudson

    What’s Michael Kors up to these days? The designer has been visiting Asia, where he celebrated the opening of his Singapore Mandarin Gallery flagship store. While there, he was presented a dendobrium orchid genus from Kirk Wagner, US Ambassador to the Republic of Singapore, and Serene Tan, Singapore Tourism Board member, a unique honor.

    Past recipients include Elton John and The Duke and Duchess of Cambridge. The next day, he hosted a cocktail party to kick off the store opening, where guests like Kate Hudson, Marion Caunter, and Debra Henry joined, followed by a private dinner.

  • Grand Opening of the Second “Lukfook Jewellery” Shop in New York

    Grand Opening of the Second “Lukfook Jewellery” Shop in New York

    Luk Fook Holdings is pleased to announce that the Group opens its new retail shop in New York City. Located on first floor, New World Mall in Flushing, this new shop is the Group’s second retail shop in New York City after opening its first shop in Manhattan. To mark this occasion, the Group hosted a grand ribbon-cutting ceremony on 29 October. Officiating guests including Ms. Toby Ann Stavisky, the New York State Senator, Ms. Grace Meng, U.S. Congresswoman and Ms. Pauline Yeung, co-founder of the Group and winner of Miss Hong Kong Pageant, witnessed this significant moment together with many other guests.

    Mr. Wong Wai Sheung, Chairman and Chief Executive of the Group said, “Adhering to our corporate vision of “Brand of Hong Kong, Sparkling the World”, we have been actively expanding our retail network globally. Currently, the Group has over 1,460 shops in eight countries and regions. With the opening of the second shop in New York, the Group anticipates to further penetrate into the Chinese communities in the overseas market. We will continue to pursue high quality and innovation to enhance our brand competitiveness, and endeavour to provide quality jewellery products and professional services to customers all over the world, in order to build Lukfook as a premier jewellery brand for customers.”

    The Group has tapped into the North American market since 2003 and opened shops in Canada and the United States, laying the foundation for further overseas expansion. The new shop is located in New World Mall, which is one of the largest indoor Asian malls in the northeastern region of the United States. The mall features over 100 shops, offering jewellery, clothing, cosmetics, electronics, world cuisine and many more. With convenient location and easy accessibility, New World Mall is a popular shopping and entertainment hotspot for the Chinese in Flushing and Queens.

    Address: Space Nos. 112 – 116, First Floor, New World Mall, 136-20 Roosevelt Avenue, Flushing, New York, NY 11354, USA

  • Swedish retail giant H&M opens 18th Philippines Store in Centrio

    Swedish retail giant H&M opens 18th Philippines Store in Centrio

    Swedish retail giant H&M Hennes and Mauritz, Inc. has opened its 18th store in the Philippines at Ayala Centrio Mall in Cagayan de Oro City.

    H&M Country Manager for South East Asia Fredrik Famm leads the countdown for the ribbon cutting of their Centrio Store

    H&M Country Manager for South East Asia Fredrik Famm leads the countdown for the ribbon cutting of their Centrio Store

    Over a thousand excited shoppers queued as early as the day before to be the first to see only its second store in Mindanao after Davao.

    The crowd lines up to get a glimpse of the new store

    The crowd lines up to get a glimpse of the new store

    H&M Cagayan de Oro has more or less 1,500 square meters of store space and opens regularly from 10am-9pm.

    It carries a full assortment of H&M products including ladies, men’s, kids, shoes, accessories and lingerie, and also has complete sports, denim and underwear departments for both men and ladies.

    Ed Montalvan and other media are given a quick tour of the store prior to its 27 Oct opening by AList Dir Cybill Guynn (RMB, NPN)

    Ed Montalvan and other media are given a quick tour of the store prior to its 27 Oct opening by AList Dir Cybill Guynn (RMB, NPN)

    Alert environment-conscious shoppers will find an array of Conscious and sustainably-produced products, and will be delighted to avail of the option to donate used clothes for a discount voucher they can use for their next purchase under H& M’s Garment Collecting Program..

    Fredrik Famm, H&M Country Manager for South East Asia, sees a lot of potential in his assigned region, especially the Philippines.

    Fredrik Famm, H& M Country Manager for South East Asia, fields queries from the media with Danreb Mejia, H&M Head for Communications & Press

    Fredrik Famm, H& M Country Manager for South East Asia, fields queries from the media with Danreb Mejia, H&M Head for Communications & Press

    “By the end of the year we will have around 20 stores in the Philippines,” Famm said an exclusive media interview prior to the 27 October Centrio store opening. “We have big plans for the coming years given the country’s growing population, growing middle class, growing disposable income, and growing fashion interest.”

    “We’ve been in the Philippines for exactly two years since October 2014,” he said. “It’s been an amazing journey, we’ve been very well received, so we now have 18 stores in the country, it’s been a very quick expansion, and Filipino customers have embraced us in an amazing way.”

    The country’s robust economy has obviously been the driver for the store’s fast expansion.

    “We see a lot of potential in the Philippines, there is a lot of fashion interest, we see that segment is growing very quickly, and we see we have something to offer that is not yet fully present in the market,” Famm said. “We offer fashion, quality and price, and our products are made in a sustainable way. We think we can manage this mix better than most of our competitors.”

    H&M Centrio offers the same fashion at the same price you find in H&M stores all over the world

    H&M Centrio offers the same fashion at the same price you find in H&M stores all over the world

    H&M has sold out collections and there have been long queues whenever they open a new store. Apparently, fashion conscious Pinoys who’ve been abroad have been delighted to find the same merchandise at the same prices in H&M’s Philippine stores.

    “The fashion you see in Cagayan de Oro is the same that you can see in London, Paris, New York,” Famm stressed. We believe fashion is global and everything travels fast these days via internet and social media. We want customers to have the same experience when they enter our store in Cagayan de Oro as what they experience when they enter a store in Europe or US.”

    Thus, the chain has experienced sold out collections and long lines whenever they have opened a new store in the Philippines.

    Centro Mall Manager Natalie Mae Crisostomo (left) with Veronika Spanikova , H&M Construction Manager for South East Asia & Joy Tan, Construction Project Manager for H&M Philippines (photo by Mike Banos, NPN)

    Centro Mall Manager Natalie Mae Crisostomo (left) with Veronika Spanikova , H&M Construction Manager for South East Asia & Joy Tan, Construction Project Manager for H&M Philippines.

    “We want Cagayan de Oro customers to be able to find the same fashion in bigger cities in Europe and the US. We have the same collections everywhere and we build our stores the same way,” he added.

    Providing fashion for every age group at affordable prices has endeared the store to fashion conscious Pinoys eager to make their own individual fashion statements.

    “We believe customers are looking for the same fashion all over the world. Looking at the diversity that we have, everyone must be able to dress their own personality,” Famm said.

    “Every day you have new fashion arriving in the store, and that’s what makes us extremely competitive.  We want customers to find something new every time they visit us so customers should be able to come back every week and find something interesting.”

    Pinoy shoppers who’ve shopped in H&M stores all over the world will be further delighted to know they’re paying the same prices for the same merchandise they’ve been buying aboard.

    Souvenir shot with Danreb Mejia, H&M Head for Communications & Press

    Souvenir shot with Danreb Mejia, H&M Head for Communications & Press

    “We aim to have the same prices all over the world except for local differences due to customs duties, taxes, logistics, or exchange rates, but more or less we have the same price levels especially within the Philippines,” Famm assures.

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  • Rising price of gold leaves hefty dent in jeweller Luk Fook’s sales

    Rising price of gold leaves hefty dent in jeweller Luk Fook’s sales

    Surging gold prices, and a mini gold rush in 2015 have been blamed by leading Hong Kong jewellery retailer Luk Fook Holdings for a sharp fall in sales during its second quarter.

    The retailer which operates over 1,400 retail outlets in mainland China, Hong Kong, Macau, Singapore and North America, saw same store sales decline 37 per cent in the three months to September (its second quarter) on the same period last year, which was weaker than expected, Bank of America Merrill Lynch analyst Tina Long said in a note.

    Much of the decline was due to gold sales, which recorded a 47 per cent fall in same store sales in the second quarter year on year , worse than competitor Chow Tai Fook’s 36 per cent decline.

    Sales of gemsets, items designed using various types of gem stones, fell 14 per cent, better than the 23 per cent drop seen by peers, but started moving into single digit growth in September and October.

    Sales were better in the mainland than in Hong Kong, which still accounts for 75 per cent of its revenue. Mainland sales fell 23 per cent, while combined sales for Hong Kong and Macau fell 37 per cent in the second quarter.

    Luk Fook’s management said in a statement the deterioration in gold sales this year was being compared with what had been a high base in 2015, thanks to the mini gold rush in July and August.

    That had been coupled with “overall sluggish retail sentiment” and the gold price rally in the same period this year.

    Daiwa analyst Jamie Soo noted that Hong-Kong based competitor Chow Tai Fook had released sales performance figures for the same period which showed a “similarly lacklustre performance”.

    Gold prices rallied to a three-year high in July as investors chose “safe haven” assets following Britain’s vote in June to leave the European Union.

    Gold futures were trading at over US$1,370 per ounce in July and August, but have dropped back down to $1,267.

    Both Long and Soo expect things to get brighter for the jewellery retailer, with Soo noting September had seen low single digit growth, mainly driven by an improvement in sales of gemsets.

    “Management also indicated that there has been slight improvement in gemset sales in Hong Kong and Macau,” he said.

    This momentum had continued into China’s national “golden week” holiday in October, and the management has said they believe there were signs of stabilisation, Soo said.

    Long expected a more favourable movement in the gold price and a better-than-expected recovery in consumer sentiment to help push the price objective up.

    “We think that sales bottomed in July, and kept improving thereafter with positive growth for gemsets seen in both September and October in Hong Kong and mainland,” Long said.

    Long estimated this year’s net income to slip from HK$959 million last year to HK$951 million before bouncing up to HK$1,072 million next year, still down on 2015’s HK$1,615 million.

    Long expected the share price to trend upward, helped by lower rental costs for retail outlets, although she lowered her price objective for Luk Fook from HK$21.70 to HK$21.00.

    “Luk Fook would be the biggest beneficiary from the recent upward trend of gold price due to its smallest hedging ratio of 15 per cent to 20 per cent,” she said.

    “We see re-rating more likely as sentiment towards gold stocks improves.”

    But Long warned that there were a number of risks to the rating, including a slowdown in Hong Kong tourist growth and depreciation of the yuan and gold prices.

    Retail sales in Hong Kong plunged 10.5 per cent in August on dwindling visitor numbers – the steepest decline since February, and the 18th consecutive monthly contraction.

    Luk Fook Holdings was trading at HK$20.25 on Monday, while Chow Tai Fook was trading at HK$5.63.

  • Foschini to open three more outlets after Junction Mall entry

    Foschini to open three more outlets after Junction Mall entry

    South Africa’s clothing retailer Foschini Group has set its eyes on opening of three more outlets after marking its entry into the country with a branch at Nairobi’s Junction Mall.

    Foschini Group, which has 22 different retail brands under its label, has opened Sterns — a contemporary and classic Jewellery shop that targets individuals in the lower-middle, middle and upper income class — at the Junction Mall.

    The firm plans to open three additional stores — Foschini women’s wear shop, Markham targeting men and a second Sterns store — at the Village Market before the end of the year, with further plans to open 10 more next year.

    “Sterns store is our first entry into Kenya and the East African market. We’re bringing something fresh into a market that has for a long time been dominated by closed family businesses. We aim to cater to individuals in all categories,” said the Foschini Group Kenya area manager Isabelle Achila in an interview.

    The Fix and Exact fashion lines, Totalsports and Sportscene sports and street wear brands, AmericanSwiss — a jewellery line and @Home, a homeware and interior décor store, are other retail brands the group is looking to introduce in Kenya. Foschini’s entry is expected to create more than 100 jobs for locals.

    “We believe that Kenya is a strong emerging market with opportunities for growth. Our mission it to be the biggest retailer in Africa and we plan to introduce other brands that are doing well outside South Africa,” said Ms Achila.

    The group’s debut in the local market was scheduled to happen in 2015 but the delay in completion of the Two Rivers Mall where Foschini Group has booked 10 stores and the construction of the Village Market extension saw them push back entry dates. The firm had also embarked on an expansion drive in West Africa delaying its entry into the Kenyan market.

    “The reason why we have not rolled out as aggressively as we had anticipated and would want to is because the various places where we had booked space are yet to open and this has delayed our entry plans. We are specific when it comes to location and we were able to open our current branch at the Junction Mall because an opportunity we liked presented itself,” she said.

    Foschini Group deals in clothing, jewellery, accessories, sporting and outdoor equipment as well as homeware that target the middle and upper middle income markets.

    The group has a network of more than 2,100 stores in African countries that include Botswana, Nigeria, Ghana, Lesotho, Swaziland and South Africa. It also has an international presence with stores in Hong Kong, Mexico, Netherlands, Qatar and Switzerland, among others.

    South African brands are looking for markets outside the country to beat competition and grow sales from Africa’s growing middle class with disposable income.

    Edgars, another South African fashion chain retailer is also eyeing the local market, which is now billed as the second biggest retail market after South Africa.

    It is estimated that by 2020 Africa’s spending power will be Sh140 trillion ($1.4 trillion) up from Sh86 billion ($860 million) in 2008.

    Global players are now turning to emerging markets such as Africa for growth, attracted by rising disposable household incomes, fast economic growth and a young population, according a study by McKinsey & Co.

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  • Downsizing and decluttering will ‘remake retail’

    Downsizing and decluttering will ‘remake retail’

    There’s a new consumer mantra: “when in doubt, toss it out”.

    With pressure on housing internationally, shoppers are buying fewer higher-quality items to save space – and that’s is expected to have long-term ramifications for retailers, says a new report.

    Decluttering: Anatomy of a Consumer Trend and How Retailers Can Win, from international think tank Fung Global Retail & Technology says while for some people downsizing and organising belongings is a matter of choice, for others the process is a necessity as rising housing prices force people to live in smaller homes, says the report.

    Others are focussing on sustainability and the ethical standards of manufacturers, writes Fung Global Retail & Technology MD Deborah Weinswig. Retailers, especially those in fast fashion that have relied on consumers buying a larger number of lower-priced items, will have to adapt to changing consumer needs and values.

    “Consumers’ future priorities will be ethics, a concept of ‘disownership’ and sustainability,” Weinswig writes. “Retailers … should align their product and service offerings more closely within the values of their target customers.”

    While the idea of having with fewer possessions has been around for centuries, the term “declutter” was born in the 1970s and the concept has continued to gain popularity, she writes. Decluttering resonates particularly strongly with urban dwellers, who struggle to fit belongings into small apartments.

    Now millennials, the largest generation in history, are more consciously frugal in terms of living arrangements, product consumption and travel expenses. The growth of the “sharing economy” has also resulted in the popularity of platforms such as eBay, Etsy and Craigslist, further eroding the purchase of new products.

    Long-term results

    Weinswig believes this will have long-term results for more traditional retailers and brands, especially in clothing. Fast fashion had helped apparel consumption skyrocket over previous decades. The average woman owned 120 items of clothing last year, up from 36 items in 1930, according to Cladwell, a company that helps users create their own capsule wardrobe. However, this trend may be reversing. A growing focus on ethical consumption has created consumer concern about hiring practices – sometimes involving children – in fast-fashion manufacturing.

    Some retailers are responding to the evolving preferences of shoppers. Patagonia’s Common Threads initiative provides a framework for responsible consumption based on five precepts: reduce, repair, reuse, recycle and reimagine. Japanese retailer Muji offers waste-reducing packaging, minimalist housewares and eco-friendly products.

    Other brands espousing minimalism include Scandinavia’s Bang & Olufsen and Cos, Calvin Klein in the US, and Japan’s Uniqlo.

    “Decluttering is a long-term trend that is here to stay,” Weinswig writes. “Retailers can capitalise on this opportunity by responding to the evolving preferences of their customers, and seeking ways to influence consumer behaviour.”

    Based in New York, Fung Global Retail & Technology has a research team across New York, London and Hong Kong that follows retail and tech trends. Weinswig is a former Wall Street and retail tech analyst and startup adviser.

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  • Offshore investor shows interest in FJ Benjamin

    Offshore investor shows interest in FJ Benjamin

    An international group is seeking to invest in Singapore brand-management company FJ Benjamin, which has such brands as Bell & Ross, Givenchy, Guess and Tom Ford in its portfolio.

    FJ Benjamin says it has entered into a non-binding term sheet, a document that sets out the terms and conditions under which an investment will be made, with an offshore third party.

    This term sheet would be “in relation to a potential transaction which may enhance or unlock shareholder value”, the company said in a release to the Singapore Exchange.

    With mall vacancies in Singapore for the three months to June 30 rising to 7.8 per cent from 7.3 per cent the previous quarter, FJ Benjamin saw its net loss for the fiscal year ended the same date balloon by 35 per cent to about S$23.5 million (US$16.6 million) while revenue fell by 14 per cent to S$253.6 million – its third consecutive year of losses.

    Managing more than 20 brands, FJ Benjamin has 226 stores in eight cities. One of its international labels, Raoul, closed its last store in Singapore, in Paragon mall, in February.

  • New Phuket boutique opens for Furla at Shilla Duty Free

    New Phuket boutique opens for Furla at Shilla Duty Free

    The new boutique was officially opened last Saturday ^ featuring Furla’s Autumn and Winter 2016 Collection.

    The outlet is well lit and easily browsed with aisle room for customers to browse the wall-mounted leathergoods collections, as light boxes reinforce the brand’s product presentation and lifestyle.

    Gerry Munday, Furla’s Global Travel Retail Director said: “We thank Shilla Duty Free for their continued support of the brand.”

    Furla Phiket November 2016 Shilla
    The new boutique offering at Shilla Duty Free’s downtown store in Phuket.

    BACKGROUND TO PHUKET STORE OPENING

    It is first reported this new downtown duty free store development back in July of this year when Shilla Duty Free joint venture partner GMS Duty Free talked directly with our Asian Correspondent David Hayes.

    GMS Duty Free is the joint venture company formed by Shilla Duty Free with local partners, Gems Gallery Group and The Mall Group, to operate the store.

    The Mall Group is one of Thailand’s leading shopping mall operators with six malls, five of which are in Bangkok and one in northeast Thailand. The Gems Gallery Group is a leading Thai jewellery retailer and wholesaler with four showrooms in Bangkok, Chiang Mai, Pattaya and Phuket.

     

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  • Salvatore Ferragamo Japan re-opens flagship

    Salvatore Ferragamo Japan re-opens flagship

    Italian luxury house Salvatore Ferragamo Japan has re-opened its wholly renovated and extended Tokyo flagship store, at Chuo-dori, Ginza.

    Salvatore Ferragamo Japan - Ginza 1

    Covering 600 sqm, the new store is now Salvatore Ferragamo’s largest in Japan. Extending over three floors, it carries the label’s full range of men’s and women’s collections: ready-to-wear apparel, handbags, footwear, leather goods, silk accessories, eyewear, fragrances, watches and jewellery.

    Salvatore Ferragamo Japan - Ginza 3

     

    Each floor comprises interconnected rooms creating a domestic feel. They are furnished with a blend of Italian design classics and references to period design from the 1930s to the 1950s. The decor is an Italian-style showcase, from Gio Ponti furniture to period Venetian glass vases, from sofas and chairs from Italy to handmade rugs, together with Venetian stucco and travertine marble. LED illumination highlights the products on display.

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  • Saint Laurent Malaysia opens second store

    Saint Laurent Malaysia opens second store

    Just weeks after the opening of the Saint Laurent Malaysia store at Suria KLCC, another has started trading at Pavilion KL.

    Its latest store aims to reflect the fashion brand’s heritage and identity, offering an original shopping experience. The boutique offers prêt-à-porter, accessories, shoes, sunglasses and jewellery for both men and women.

    Across two floors, one at street level, the boutique offers a modern interpretation of the French modernist movement of the 20th century, reports Buro 24/7. It takes a minimalist approach and is finished with art deco materials presenting an interplay of matte and shine through a fusion of materials: the floors and walls are in white statuary marble and black silk marble, with structures in polished brass and extra-clear glass.

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  • Shiseido profits leap 135 per cent

    Shiseido profits leap 135 per cent

    Shiseido profits for its latest nine months more than doubled over the same period last year.

    ‘New income’ leaped 135 per cent to a record ￥37.2 billion (US$345.8 million) for the nine months to September 30. The cosmetics company attributes this to several factors including an increase in operating income, the sale of intellectual property rights associated with the Jean Paul Gaultier brand, and gain from the sale of its Kamakura factory site.

    Shiseido’s operating income increased 17.1 per cent year on year to ￥38.7 billion. As well as “substantial” grown in its home market, it also had higher sales in Chinai and in travel retail.

    However, sales fell in the Americas, Asia-Pacific, Europe, the Middle East and Africa.

    The company still expects its full-year net profits to grow by 1.8 per cent to Y30 billion with a significant year-on-year decrease in operating income in the fourth quarter.

  • H&M Vietnam launching in 2017

    H&M Vietnam launching in 2017

    International fashion brand H&M Vietnam (Hennes & Mauritz) has signed for its first store openings next year.

    No further details have been released by the Swedish fast-fashion company, which will also move into Colombia, Iceland, Kazakhstan and Georgia next year.

    Founded in 1947, H&M’s business credo is to offer fashion and quality at the best price in a sustainable manner.

    Other brands in the H&M Hennes & Mauritz group include & Other Stories, Cheap Monday, COS, Monki and Weekday, as well as H&M Home. The H&M Group has more than 4200 stores in 64 markets, including franchise markets.

    It’s debut in Vietnam was widely expected after rival brand Zara launched in Ho Chi Minh City in September, achieving the highest first day sales of any store globally.

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  • The Hour Glass profits drops 14 per cent

    The Hour Glass profits drops 14 per cent

    Citing challenging business conditions and weakening consumer confidence, luxury-watch retailer The Hour Glass reports that its net profit for the second quarter ended September 30 fell 14 per cent year-on-year to S$8.32 million (US$5.88 million).

    Revenue declined 7 per cent to S$163.11 million for the period.

    For the six months to September 30, The Hour Glass profit slumped 18 per cent to $16.51 million and revenue was down 7 per cent at $311.3 million.

    The group says the death of the King of Thailand will have an impact on the performance of the group’s Thai associates as the country enters a prolonged period of mourning.

    While the retailer believes market conditions will continue to be challenging, it expects to remain profitable for the rest of the financial year.

  • Lotte Shopping profit soars 203 per cent

    Lotte Shopping profit soars 203 per cent

    While revenue for its third quarter rose 2 per cent year-on-year, South Korea’s Lotte Shopping Companysaw its net profit soar 203.9 per cent to KRW78.2 billion (US$68 million).

    The retail giant says these are preliminary figures yet to be independently audited.

    Third-quarter revenue rose 2 per cent to KRW7.9 trillion. Domestic department stores maintained solid same-store sales growth (SSSG) of 2.2 per cent, while hypermarket SSSG faded 2.4 per cent in the face of a sluggish industry and the impact of renewal construction.

    Internationally the company had strong sales growth, apart from weakness for its China hypermarkets because of competition. Department store SSSG rose 9.2 per cent while hypermarkets declined 5.1 per cent.

    Lotte’s third-quarter operating profit dipped 10.1 per cent to KRW176 billion, both for department stores and hypermarkets domestically.

    On the international market there was an improvement in operating loss thanks to enhanced efficiency in all stores, plus there was an increased profit contribution from its cinema and electronics businesses.

    There was an increase in labour costs because of a one-off special incentive paid to all Lotte employees.