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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.

  • New Louis Vuitton perfumes

    New Louis Vuitton perfumes

    Louis Vuitton perfumes are available again, with the French fashion house offering seven choices for its first fragrance launch in 70 years.

    Ingredients for the perfumes have been sourced internationally, including CO2 extractions from jasmine and May roses native to Grasse, the French town known as the world’s perfume capital. The extraction process is a first in the perfume industry.

    The 162-year-old label’s master perfumer, Jacques Cavallier Belletrud, whose creations include Issey Miyake’s L’Eau d’Issey and Stella by Stella McCartney, spent months travelling the five continents to seek out exotic and rare materials for the fragrances.

    “I wanted to surprise people who smell the perfumes – create emotion, bring them back to childhood or moments of pleasure,” says Belletrud, who is a native of Grasse.

    His new fragrances include elements from countries including China, France, Indonesia, Italy, Laos and Peru.

    For Rose des Vents, he blended a trio of roses, centifolia, Bulgarian and Turkish; with Apogee, he uses lily of the valley, Grasse jasmine and Chinese magnolia.

    While most of the scents are floral, the range also has the more masculine notes of leather and wood (in the perfumes Contre Moi and Matiere Noire).

    Louis Vuitton gave Belletrud the freedom to work without a deadline, and he took four years to produce the range. “The challenge was to create something that would last over the years,” he says.

    The fragrances will be available in Singapore next month at Louis Vuitton boutiques at Marina Bay Sands and Ngee Ann City.

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  • Prada falls on tough times in China

    Prada falls on tough times in China

    Italian fashion brand Prada is suffering from shrinking demand in its largest market of China, with a 20%-plus drop in first-half sales dragging down overall profit to the same degree.

    The Hong Kong-listed, Milano-based company announced late Friday that net revenue dropped 15% on the year to 1.55 billion euros ($1.37 billion) for February to July. The fall was “entirely attributable to a sales decline in the retail channel as the wholesales and royalties were positive,” Prada said. Retail net sales, accounting for more than 80% of net revenue, sank 18%.

    A significant blow came in greater China as sales from directly operated stores fell 24% to 278.7 million euros. On top of lower sales at stores on the mainland, “Hong Kong and Macau continued to weigh heavily on the region’s contraction,” the company said. China’s anti-corruption campaign and economic slowdown bit into purchases of pricey items. A reduced appetite for travel by mainlanders to Hong Kong and Macau also took a toll.

    The fall in revenue was not confined to greater China. All of its geographic categories, brands and product lines suffered declining sales. By product, sales of its signature leather goods dropped 22%, “especially in the Far East,” according to the statement.

    Excluding greater China, Europe was another hard-hit region, with a 21% drop in net sales. The main reason was terrorist attacks in major cities, with the company blaming a “reduction of traveler flows, resulting mainly from the publicized tragic events.”

    But there were some silver linings in Europe as well. Russian sales saw double-digit growth in local-currency terms, and the U.K. apparently benefited from “the weak pound after the Brexit” vote. Casualties in Japan and the Middle East were relatively light, with retail sales declining just 2% and 1%.

    Net profit decreased 25% to 141 million euros even after such belt-tightening measures as cutting labor and lease costs as well as advertising and communications expenses.

    Along with launching new collections to stimulate its customers’ appetite for buying, the company is upgrading important stores while shutting down others. Eighteen new outlets were opened in the half, while 14 were closed, bringing the number of directly owned stores to 622. The company continues to refurbish strategic stores into so-called new-concept stores in such key locations as a GUM department store in Moscow facing Red Square, and the Plaza 66 complex in central Shanghai on bustling Nanjing West Road.

    Prada closed 1.6% higher here at 21.65 Hong Kong dollars on Friday, ahead of the earnings announcement. Despite seeing some gains that day, the shares have lost more than 10% since the start of the year, while the benchmark Hang Seng index has risen 4.5%.

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  • Curtain to Rise on Major Fashion Event Centerstage Next Month

    Curtain to Rise on Major Fashion Event Centerstage Next Month

    CENTRESTAGE, a brand new fashion promotion and launch platform, will be held from 7 to 10 September at the Hong Kong Convention and Exhibition Centre (HKCEC). Organised by the Hong Kong Trade Development Council (HKTDC), the trade show will feature some 200 fashion brands from 20 countries and regions, as well as more than 50 spectacular events, including the large-scale opening gala fashion show CENTRESTAGE ELITES and around 30 other fashion shows. There will also be designer sharing sessions, industry seminars, networking events and more.

    At a press conference today, HKTDC Deputy Executive Director Benjamin Chau noted, “Hong Kong has long been known as the region’s fashion capital, setting style trends for the region. To further solidify the city’s position, we are debuting CENTRESTAGE to provide the ideal promotion and launch platform for international, especially Asian, fashion brands and designer labels.” Mr Chau added that the trade show is supported by local and overseas industry players, and is expected to attract buyers, particularly select shops, department stores and e-tailers, as well as fashion media and fashion enthusiasts in the region.

    Designers and guests at the press conference included local designer Mim Mak as well as Simon Choi, Project Director of Fashion Mirage, Hong Kong Fashion Designers Association and Elina Lee, Director of Partnership, Marketing, Communications, Events & Special Projects, Hong Kong Design Centre (HKDC).

    “Shooting Stars” is the theme of the inaugural CENTRESTAGE, which includes four thematic zones: GLAM, ALLURE, METRO and FORWARD. The participating countries and regions, include the Chinese mainland, Taiwan, Japan, Korea, Malaysia, Thailand, India, Australia, the United States and Europe. Local and overseas industry associations will also attend, such as the Hong Kong Fashion Designers Association, the California State Trade and Export Promotion & Center for International Trade Development from the US, the Taiwan Textile Federation and the Thailand Textile Institute.

    Some 30 fashion shows: Showcasing new collections, new talents

    To further showcase Hong Kong as an international fashion capital, the large-scale opening gala fashion show CENTRESTAGE ELITES will be held on the first day (7 September). The hottest rising stars in Asia, namely Mim Mak from Hong Kong, Simon Gao from Beijing, Ko Taeyong from Seoul and Pongsak Suprratccheep & Thita Kamonnetsawat from Bangkok, will display their latest collections for Spring/Summer 2017. Top models including Angie Ng and Kiki Kang are invited to present designer collections at this spectacular fashion extravaganza.

    The Hong Kong Fashion Designers Association will stage a show, Fashion Mirage, on 7 September. According to Simon Choi, Project Director of Fashion Mirage, the show will adopt a theme based on five local cultural elements and the event will feature 50 fashion designers, including Walter Ma and Barney Cheng.

    For years, the Hong Kong Young Fashion Designers’ Contest (YDC) has identified many fine talents for the local fashion industry and has been a cradle for Hong Kong’s designer brands. The final competition of YDC 2016 will be held on the last day (10 September) of CENTRESTAGE, where 17 finalists will take the stage to compete for the top three awards, as well as the Best Footwear & Accessories Design Award. Trendy Japanese label FACETASM’s founder and designer Hiromichi Ochiai will be the VIP judge and will share his valuable views and insights with the finalists.

    In addition, the Knitwear Innovation & Design Society will organise the Knitwear Symphony to nurture a new generation of knitwear designers and promote Hong Kong’s knitwear design and capability.

    The nearly 30 fashion shows at CENTRESTAGE will also feature such brands as 45R, anagram, ANTEPRIMA, Aquascutum, ARTHUR LAM, ATSURO TAYAMA, Charmante, Galtiscopio, HARRISON WONG, HIDY N.G., initial, i.t., JNBY, KENAXLEUNG, KOYO, LOOM LOOP, LU LU CHEUNG, Marimekko, MOISELLE and more.

    20+ seminars and networking activities: Sharing new developments, new trends

    Apart from fashion shows, the HKTDC has invited forecasting experts from WGSN and Fashion Snoops to analyse fashion and retail trends for the coming year. At another seminar, the designers participating in CENTRESTAGE ELITES will discuss and share ideas on Asia’s design influence on international styles and trends. YDC VIP judge Hiromichi Ochiai will likewise share his creative journey with visitors to the show.

    During the event, there will also be thematic seminars to help businesses grasp the latest developments in the global market. These include “Technology Trends Transforming the Fashion Industry”, “Innovation and Technology Symposium 2016” and a panel discussion on “A More Sustainable Fashion System: Is Digital Disruption Fuelling Positive Change?”

    Hong Kong in Fashion: citywide participation

    CENTRESTAGE is set to become a signature fashion event for the region showcasing top-notch creativity in Asia and drawing close attention from fashion enthusiasts. To take CENTRESTAGE outside the HKCEC and share the excitement of the fashion industry with the public, the HKTDC is launching a citywide campaign “Hong Kong in Fashion”. The campaign, which will run from today until 25 September, features more than 80 activities organised with support from more than 90 partners, including fashion and design institutions, renowned fashion brands, malls, hotels and restaurants. The activities are open to all fashion lovers.

    The HKDC will organise “Fashion PMQ” from 7 to 19 September. Elina Lee said the event will feature 40 local fashion and accessories designers, with an aim to facilitate the development of Hong Kong’s fashion industry. Fashion Mart (9-11 September) will be the highlight, while the HKDC has arranged a number of Fashion Crossover Pop-ups at various PMQ studios from 7 to 19 September to feature collaborations or crossover items by fashion designers from different disciplines.

    The Footwear Design Competition, organised by The Federation of Hong Kong Footwear Ltd. and co-organised by the HKTDC, has helped to nurture many talented footwear designers over the years. This year’s awards presentation ceremony and winning entries parade will be held as a “Hong Kong in Fashion” event on 2 September at the concourse of the apm shopping mall in Kwun Tong.

    Other public activities include the Street Snap Competition. From now until 25 September, participants can upload a personal fashion styling snapshot to Instagram (#CENTRESTAGEHK) for a chance to win a total of more than $100,000 worth of gifts. For details of the many “Hong Kong in Fashion” activities, please visit: centrestage.com.hk/hkinfashion

    The last day of CENTRESTAGE (10 September) will be “OPENSTAGE”, which will be open to public visitors aged 12 or above free of charge. Members of the public will have the chance to experience this major fashion industry event and check out the latest designs from leading brands. Individual exhibitors will retail their discounted products, offering fair visitors more shopping fun.

  • Flying start for Innisfree China at Disneyland

    Flying start for Innisfree China at Disneyland

    Korean beauty brand Innisfree China, known for its natural ingredients, has come up with a fresh idea to promote its new store in Shanghai Disneyland.

    Using the “Jeju flying bike”, it is offering customers a virtual visit to the company’s home base of Jeju Island. They mount the bike and put on VR goggles for the journey, created by PostVisual.

    They “fly” from the 16.5 sqm store to the 1650 sqkm island, which is a Unesco World Heritage Site for its volcanic landscape. Through eye-tracking technology, the virtual tourists can fly around the island and “collect” natural ingredients such as canola blooms, green tea leaves and nutmeg.

    To create the 360deg aerial and underwater surroundings, PostVisual spent about three months producing the content, even building its own VR drone camera in-house.

    innisfree VR

    Thousands of visitors have already taken the virtual ride, and the concept will be rolled out this year to flagship stores in Hong Kong, Indonesia, Singapore and Vietnam as well as elsewhere in the US.

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  • Jimmy Choo sales outperform Burberry and Mulberry

    Jimmy Choo sales outperform Burberry and Mulberry

    British footwear brand Jimmy Choo has outperformed luxury peers such as Burberry and Mulberry to post a strong set of growth figures for the first half of 2016.

    While competitors struggle with declining luxury demand in Asian markets, Jimmy Choo has bucked the trend and reported an impressive 22.1 per cent growth in Asia (ex-Japan) with China leading the way with double digit like-for-like growth; proving its measured approach to store expansion and brand building is successful without over exposing the brand.

    Europe, Middle East and Asia revenue grew by 12.2 per cent – commendable given it is one of Jimmy Choo’s most mature markets – with the UK performing well as domestic demand remained robust, supported by a renovated store portfolio.

    The recent uptick in luxury goods demand in the UK, as international travellers take advantage of the weaker pound, will further benefit Jimmy Choo’s UK performance in the second half.  The Americas, however, is proving a tougher nut to crack though, as sales declined 3.4 per cent; affected no doubt by the continuing volatility in the US department store market which has led wholesale orders to decline.

    Creative director Sandra Choi has led a strong half year of product design, building upon Jimmy Choo’s British identity to produce ranges which continue to resonate with consumers across the globe. The brand’s recent decision to focus on expanding men’s footwear is proving fruitful, as it’s now its fastest growing category, representing 8 per cent of total revenue. That will continue to grow as the brand opens dual gender stores and invests in the product and marketing of men’s collections.

    Globally, Jimmy Choo sales grew 9.2 per cent at reported currency and 3.8 per cent at constant currency. Improved gross margins and cost controls drove adjusted EBITDA growth of 13.7 per cent. Reported operating profit rose 42.6 per cent to £25.3 million.

    Jimmy Choo is in prime position to continue its growth momentum with its multi-pronged focus on eCommerce (bolstered by growing social media engagement and a robust distribution network) and conversion of retail outlets to new concept stores – all supported by a stellar product offer that is effective in both design and range.

    *Nivindya Sharma

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  • Pop-star eateries for Bangkok’s Show DC complex

    Pop-star eateries for Bangkok’s Show DC complex

    K-pop star Psy of Gangnam Style is one of several celebrities who will have eateries at the upcomingShow DC/YG Republique integrated food and entertainment complex in Bangkok.

    He will have a noodle house, while other Korean stars featured are singer Rain with After The Rain restaurant, and boy band BTS (Bangtan Boys) with Brick Cafe.

    Mr. Chayadit Hutanuwatra, Chairman of SHOW DC Corp Ltd (Right) and Dr. Julianne Hur, Vice President of The The Mall OF Korea (Left)

    Mr. Chayadit Hutanuwatra, Chairman of SHOW DC Corp Ltd (Right)
    and Dr. Julianne Hur, Vice President of The The Mall OF Korea (Left)

    This was revealed at a media update event, which featured a K-pop fashion show featuring Thai model Rawiwan Bunprachom (“Yoghurt”).

    Show DC 5

    Mr. Chayadit Hutanuwatra, Chairman of SHOW DC Corp Ltd (Center), Mr. Thammarat Thuratong, Celeb E-san’s owner (Far Right), Dr. Wichuda Na-Songkhla Sriyaphai (Far Left), Deputy Managing Director of Wandee Culinary Art School

    Near Rama IX Road the Bht9.5 billion (US$274.8 million) project is 90 per cent complete and on track to open in November. It covers 18,000 sqm over six levels, and more than 400 brands have already signed up 93 per cent of the retail space.

    Show DC 1

    K-District @Show DC will be the largest K-Pop town outside Korea. As well as retail and restaurants, it will showcase an acting and talent academy from Korea, plus Korean plastic surgery clinics, cosmetics, fashion and lifestyle shops.

    Show DC 2

    “Our plan is also to stimulate the economy and promote Thai products by putting together best-in-class Thai products at the Thai Thai Market, covering 2500 sqm on the fourth floor,” says Show DC chairman Chayadit Hutanuwatra. The market will feature 150 shops.

    Outlets at the project’s “Shop & Enjoy” experience include Asia Herbs Association, Hot Star (Taiwanese snacks), Kanna (health food), Krua Wandee Culinary Art School and Stick House (Italian-style ice cream), along with fashion brands BKK Original and H&M.

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  • Gitanjali Gems eyes world expansion

    Gitanjali Gems eyes world expansion

    After announcing plans to capture the global recovery in demand for diamond jewellery and other luxury items, India’s Gitanjali Gems saw its share price hit a 52-week high.

    This follows the jewellery manufacturer and exporter’s share price dipping to its lowest in many years on March 1.

    As well as diverting its focus from gold ornaments to diamond jewellery, Gitanjali has introduced low-carat gold content in stone-studded products, and is planning to raise Rs 110 crore (US$1.64 million) for its proposed expansion plan in both domestic and global markets.

    “The company is going in for diamond jewellery retailing all over the world, and also for more profitable items,” says MD Mehul Choksi. “It plans 50 more stores in the US to expand its presence by 50 per cent in the world’s largest diamond-jewellery consuming market. We are also setting up distribution centres in China and the Middle East.”

    Gitanjali also plans to increase its shop-in-shop model by 3000 outlets worldwide.

    After the US, the company plans to concentrate on its home market, followed by China and west Asia.

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  • FJ Benjamin secures Marc Jacobs rights

    FJ Benjamin secures Marc Jacobs rights

    Singapore fashion and lifestyle group FJ Benjamin has secured exclusive rights to distribute the Marc Jacobs brand.

    An agreement with Marc Jacobs International allows FJ Benjamin to open Marc Jacobs stores in
    Indonesia, Malaysia and Singapore.

    FJ Benjamin plans to open four stores in the next two years carrying the full range of the American designer’s women’s ready-to-wear, shoes, jewellery, bags and accessories.

    Starting his own label at the age of 23 in 1986, Jacobs became the youngest designer to win the Perry Ellis Award for New Talent from the Council of Fashion Designers of America.

    FJ Benjamin Holdings group COO Douglas Benjamin describes Marc Jacobs as one of the most exciting and sought-after fashion brands.

    Dating back to 1959, FJ Benjamin Holdings specialises in brand building and management through distribution and retail. With offices in Indonesia, Malaysia and Singapore, it manages more than 20 brands and has 226 stores.

  • Old Navy Opening Doors At First Store in Malaysia

    Old Navy Opening Doors At First Store in Malaysia

    Global apparel brand Old Navy announced today that it is opening its first store in Malaysia at 1 Utama Shopping Center, the fifth largest mall in the world, which is located in the heart of MSC Malaysia Cybercentre Township Bandar Utama. Old Navy makes current American fashion essentials accessible for every family, with a focus on fashion, family, fun and value. The brand launched in 1994 and quickly became one of the top apparel brands in the United States, making history in 1997 as the first retailer to reach $1 billion in annual sales in less than four years. Old Navy is part of the Gap Inc. portfolio of brands, which also includes Gap, Banana Republic, Athleta and Intermix.

    The brand’s entry into Malaysia marks another milestone in Old Navy’s continued global growth strategy. The first store will feature the same great product that the brand has become known for in the United States and will offer apparel and accessories collections for men, women, kids and babies. It will also provide a fun and energizing shopping experience for customers, featuring a spacious 800 square meter layout and Old Navy’s newest store design.

    The store will open its doors on September 30 at 5:00 pm and will be open until 10:30 pm. To celebrate the opening, customers can enjoy fun activities, meet special guests, and receive RM60 back when they spend RM200 and above. Additionally, the first customers in line will receive a free limited edition Old Navy Malaysia tote bag with any purchase, and the first 100 customers will be eligible to win a RM1000 shopping spree.

    This is the seventh franchise market expansion for Old Navy. In March 2014, the brand opened its first franchise-operated stores in the Philippines and has since opened stores in Qatar, Kuwait, Saudi Arabia, the UAE, and most recently, Indonesia. The brand’s move into Southeast Asia builds on the success that Gap and Banana Republic have experienced since entering the market in 2007.

    Franchise partner RSH Limited has a 39-year history of delivering seamless brand experiences to customers in Southeast Asia, the Middle East and South Pacific. Today, RSH Limited’s portfolio includes more than 70 international brands with over 700 stores and shops-in-shop in 11 countries.

  • China to fuel VF Corporation brands

    China to fuel VF Corporation brands

    Multibrand fashion group VF Corporation sees Asia – and especially China – as the primary driver of growth in the years ahead.

    VF Corporation brands include Vans, Kipling, Lee and The North Face.

    The US-headquartered company says it is focused on expanding geographically to take advantage of its scale in markets around the world.

    “The Asia Pacific (APAC) market, and in particular China, represent robust growth opportunities for VF, according to the company’s business lead,” the company revealed in an online newsletter.

    “Asia Pacific is an important region for business development and remains a priority focus for the company,” said Aidan O’Meara, VF’s Asia Pacific president. “Our plan is to continue to focus on locally relevant innovation, further invest in demand creation and leverage our scale and capabilities as ‘One VF’ to fully capitalise on the growth opportunities and take market share.”

    VF’s APAC business continues to expand. In 2015, currency neutral revenues in the region were up 10 per cent reaching US$1.2 billion.

    China, which accounts for roughly half of APAC revenue, has seen consistent, strong growth from the country’s three largest brands: The North Face, Lee and Vans. In particular, Lee in China has experienced consistently strong growth over the years for the company, with product innovations driving recent success.

    Denim leads the charge in China

    VF brands currently maintain presences in more than 170 Chinese cities. And, that number is expected to increase in coming years.

    “We see growth potential in a market with increasing affluence, a burgeoning middle class and increasing sophistication and demand for quality jeanswear,” O’Meara said.

    The company sees a competitive edge in the market, particularly at Lee. VF launched Lee as the company’s first owned business in China in 1995.

    “Statistics show that while jeans ownership is about eight pairs per person in North America,” O’Meara said. “In China, it is less than one pair per person, and if you look at India, there is still a lot of room as jeans ownership averages about three pairs per person.”

    O’Meara noted there was a time when many jeans manufacturers rested on their laurels. However, as competition intensified, many consumers lost excitement with the products available on the market, opening a door for an innovative new product.

    Lee saw this opportunity and put its research and development to the test. The resulting JadeFusion Denim has been a resounding success and garnered a Bronze Innovation Edison Award in the Materials Science category.

    JadeFusion immediately accounted for 13 per cent of China’s denim sales in its first season on the market in the spring and summer of 2015.

    “Lee exemplifies VF’s continuous innovation as one of the key strategies which differentiate us from our competitors,” O’Meara said.

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  • Boss puts positive spin on Estee Lauder results

    Boss puts positive spin on Estee Lauder results

    Cosmetics maker Estee Lauder has forecast a lower-than-expected profit for the full year, hurt by fewer customer visits to department stores and uncertainties in some markets.

    “We believe the risk of other economic and political disruptions will remain high as we start our new fiscal year,” says CFO Tracey Travis of the latest estee Lauder results.
    Weak sales in some Asia-Pacific countries, mainly Hong Kong, helped dent its sales figures.

    The company also says it expects to incur charges of about US$80 million to $100 million in fiscal 2017, related to restructuring initiatives, quitting businesses in certain markets and cutting its global workforce.
    However, president/CEO Fabrizio Freda has a positive spin, saying the company’s performance “gives us much to celebrate”.

    He says the company capitalised on shifting consumer preferences by leveraging its strength in makeup and positioning the company to win in luxury fragrances.

    “We nimbly allocated resources and made strategic investments in areas that gave us terrific results, including emerging markets, our makeup category, and the online and specialty-multi retail channels. Importantly, we achieved these results against a backdrop of social and political instability, currency volatility and economic challenges.”
    For the quarter ended June 30, the company had net sales of $2.65 billion, a 5 per cent increase on the prior-year period. It posted across-the-board sales gains in all geographic regions and product categories, except fragrance.

    Sales benefitted from new products and double-digit growth in several emerging and developed markets. The company also generated double-digit gains in its travel retail and online channels. Net earnings for the quarter were $93.5 million, compared with $153 million last year.
    For the year, the company achieved net sales of $11.26 billion, a 4 per cent increase over the previous year. Net earnings were $1.11 billion, up 2 per cent.
    Freda says the company will continue to seek geographic and channel opportunities to reach more consumers “while keeping a sharp focus on like-door growth”.

    During the fourth quarter, the company recorded restructuring and other charges of $101 million ($69.6 million after tax).

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  • Ted Baker Vietnam makes debut

    Ted Baker Vietnam makes debut

    Unconventional British fashion brand Ted Baker has opened its first store in Vietnam.

    Ted Baker Vietnam joins other luxury brands at the revamped Saigon Center in Ho Chi Minh City, with its re-opening celebrated at an event featuring Vietnamese entertainers. Guests included representatives from the UK Consulate General.

    Brought to Vietnam by retail management company Maison, Ted Baker was described at the event by British Business Group Vietnam (BBGV) director Peter Rimmer as “the most outstanding luxury fashion brand in the UK” and an inspiration for people seeking an individual style.

    Ted Baker introduced its latest collection with a mini-catwalk show at the event. Many of the guests were also wearing the label.

    Established in 1988 with a focus on menswear, the London brand has also produced collections for women seeking to blend traditional and contemporary styles.

    Maison, launched in 2012, has brought more than 17 international brands to Vietnam including Coach, Dorothy Perkins, Karen Miller, Mango and Topshop.

  • Outlet malls booming in China as department stores feel the pinch

    Outlet malls booming in China as department stores feel the pinch

    Designer outlet malls are sprouting up all over mainland China, even as department stores find themselves struggling amid a slump in retail sales.

    At least 17 new outlet malls are scheduled to open in China in the second half of 2016, according to a report by Outlet Sight, which tracks the industry. Some developers are betting on outlet malls because they typically offer off-season or factory excess goods priced at a discount to the in-season products sold by the same brands in department stores.

    “We think designer outlets are more defensive than high-street retail,” said Chris Reilly, Asia-Pacific managing director at TH Real Estate, a property fund that manages nearly US$100 billion of real estate in Asia, Europe and the US. “Their fundamentals are better in terms of supply and demand.”

    China’s department store sector has been battered in recent years by sluggish sales growth and declining profits, with store closures intensifying since 2015. Offline sales at the mainland’s top 50 retailers declined 3.1 per cent year on year in the first half of 2016, according to figures from the National Commercial Information Centre of China.

    However, the discount mall sector appears ripe for strong growth; for a country with China’s population and spending power, there are relatively few factory outlet malls – just 40 at present – compared with as many as 300 in the US, said Zhong Beichen, chief executive of outlet developer Beijing Capital Juda, which has already opened four such outlets, in Beijing, Hainan, Zhejiang and Jiangsu.

    “We aim to open outlets in more than 20 cities by 2020 and become the largest outlet operator in China,” Zhong told the South China Morning Post. “Discount malls can perform well despite economic ups and downs” because they offer customers cheaper price points, he said. “When the economy expands, people shop to dress nice, but outlets will still be the first choice for those seeking affordable luxury in an economic slowdown.”

    Juda was spun off from state-owned property developer Beijing Capital Land Ltd and listed in Hong Kong in 2015.

    The boom is attracting developers and investors to the fray.

    London-based TH Real Estate launched an US$850 million fund in China, with two Italian village-themed outlet malls in Wuqing in Tianjin city and Shanghai.

    “Our target shopper is the Chinese household earning more than US$20,000 a year,” said TH Real Estate’s Reilly. “This demographic group is already the largest in the world, and we expect the number to more than double over 10 years with the rise of the Chinese middle class.”

    With TH Real Estate’s Florentia Village in Shanghai 90 per cent occupied, and its Florentia Village Wuqing full to capacity, Reilly said he is confident the China Outlet Mall Fund can grow to US$2 billion by 2020. Four more Florentia Village malls are slated to open in Chengdu, Wuhan, Chongqing and Qingdao by 2017.

    Factory outlets face stiff competition from online retailers, but have the advantage of providing a complete experience, Juda’s Zhong said.

    “Our strategy is to build outlets in places with beautiful scenery to attract families for the shopping experience,” he said, citing their 110,000 square meter outlet in Beijing’s Fangshan District, which is located near a forest park.

    Themed malls, such as the Florentia Village brands, are also becoming popular. Covering 90,000 square meters and with 3,000 car parking spaces, Florentia Shanghai reconstructs scenes of Florence including an Italian-styled city plaza, paved streets, porches, fountains and luxury brands such as Versace, Ferragamo and Zegna.

    “Shoppers like to visit outlets for the discounts, they want to try on designer brands, but what’s more important, it’s like a day out,” Reilly said.

    -Originally written by Summer Zhen, SCMP

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  • Plaza Indonesia’s ‘Fashion On4’ Showcases Favorite Local Brands

    Plaza Indonesia’s ‘Fashion On4’ Showcases Favorite Local Brands

    “We’re currently re-branding the whole level four as a new hang-out place for young people in the city,” Astri Abyanti, senior marketing communications, public relations and digital marketing manager of Plaza Indonesia, said at the opening of Fashion On4 on Tuesday (16/08).

    “We want to support Indonesia’s growing fashion industry, especially local brands that target young people. That’s why we’ve invited these nine brands to showcase their collections at Fashion On4,” Astri said.

    The nine fashion labels, according to Astri, were selected based on a survey of the shopping mall’s young clientele.

    “These are the brands that [our young clients] would like to see at the mall,” she said.

    Among the brands are Ikat Indonesia, No’om, Populo Batik, Rama Dauhan, Ria Miranda and Sky Inc.

    “(Fashion On4) breathes fresh air into Plaza Indonesia,” fashion designer Rama Dauhan said. “It’s also an opportunity for us to show that Indonesian fashion brands’ creations are on par with international ones.”

    For Fashion On4, Rama showcases his newest collection “Sensatia,” whose main strength is in easy-to-wear pieces embellished with patchwork designs.

    “It’s a great opportunity for us to branch out,” Sky Inc’s designer Amot Sjamsuri Muda said.

    For the new pop-up store, Sky Inc, previously known as Isis, presents an extended summer collection, inspired by “ulos,” a traditional fabric from North Sumatra. The fabric is made into casual dresses, crop tops and oversized jackets showcasing the intricate patterns of the traditional textile.

    Ria Miranda is the only Muslim fashion label among the nine new labels at the pop-up store.

    “I’m so excited to be here,” Ria said. “I hope to get a lot of new customers from this new store.”

    For Fashion On4, the Muslim designer presents her 2016 Fall/Winter collection, Forresta, inspired by her recent visit to Japan.

    “It’s a universal collection that can be worn by Muslim and non-Muslim [women] alike,” she said.

    The collection features simple pieces in a combination of bold colors that can easily be mixed and matched.

    Fashion On4 will be open at the mall until December 2016.

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  • Property sale boosts Bossini International profit

    Property sale boosts Bossini International profit

    While expecting a leap in profit because of a special circumstance, clothing retailer Bossini International Holdings had a “significant” decrease in revenue for its latest year of trading.

    The group reports an expected jump in profit ranging from 147 to 157 per cent for the year ended June 30, mainly because of a gain of about HK$267 million (US$34.4 million) on the disposal of a macau property and a leaseback arrangement.

    Excluding that gain, the group predicts a drop in profit of between 75 and 85 per cent compared with the previous year, attributed mainly to a drop in revenue resulting from fewer tourists in Hong Kong and Macau, and a strong Hong Kong dollar.

    Other factors were weak local consumer sentiment, an unseasonably warm winter and intensified competition in several core markets.

    Bossini’s audited annual results are expected to be announced late next month.

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