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Fashion apparel brand Lacoste Korea has renovated its boutique unit inside the Shilla Jeju Duty Free store, showcasing its “standard premium” concept.
The retail space is on the fourth floor of the store on Jeju Island, close to Jeju International Airport. The store offers more than 300 brands.
Lacoste says Korea is a key market for its travel-retail business.
Fast fashion retailer New Look is to expand its China store network.
And while the UK retailer has modest aspirations in terms of store numbers – just 25 globally over five years – it is increasing its focus on menswear. Some of the new stores slated to open in China and France within the next 12 months will stock only men’s clothing.
New Look is experiencing “exceptional growth” in China, since its debut there early in 2015, according to UK news channel Retail Gazette.
The first standalone menswear store opened less than a year ago and customers of the previously womenswear brand have taken to its style and range.
New Look has not broken down the figures by market as to where the new stores will open.
Calvin Klein, Inc., a wholly owned subsidiary of PVH, today announced the appointment of Raf Simons as Chief Creative Officer of the brand, effective immediately.
Mr. Simons will lead the creative strategy of the Calvin Klein brand globally across the Calvin Klein Collection, Calvin Klein Platinum, Calvin Klein, Calvin Klein Jeans, Calvin Klein Underwear and Calvin Klein Home brands. As part of his role as Chief Creative Officer, Mr. Simons will oversee all aspects of Design, Global Marketing and Communications, and Visual Creative Services. Mr. Simons’ first collections will debut for the Fall 2017 season.
The appointment of Mr. Simons as Chief Creative Officer marks the implementation of Calvin Klein’s new global creative strategy, announced in April 2016, to unify all Calvin Klein brands under one creative vision. The strategy comes as part of a global evolution of the Calvin Klein brand, which began with the reacquisition of the Calvin Klein Jeans and Calvin Klein Underwear businesses in 2013. As Calvin Klein looks to grow the brand to $10 billion in global retail sales, this new leadership is intended to further strengthen the brand’s premium positioning worldwide and pave the way for future long-term global growth.
The arrival of Raf Simons as Chief Creative Officer signifies a momentous new chapter for Calvin Klein,” said Steve Shiffman, CEO of Calvin Klein, Inc. “Not since Mr. Klein himself was at the company has it been led by one creative visionary, and I am confident that this decision will drive the Calvin Klein brand and have a significant impact on its future. Raf’s exceptional contributions have shaped and modernized fashion as we see it today and, under his direction, Calvin Klein will further solidify its position as a leading global lifestyle brand.”
As part of the creative strategy for the apparel and accessories business, Calvin Klein also announced the hire of Pieter Mulier as Creative Director, reporting directly to Mr. Simons. Mr. Mulier will be responsible for executing Mr. Simons’ creative and design vision for men’s and women’s ready to wear, as well as the bridge and better apparel lines and accessories. He will also manage all men’s and women’s design teams within the Calvin Klein brand, under Mr. Simons’ leadership.
Calvin Klein, a wholly owned subsidiary of PVH, is one of the leading fashion design and marketing studios in the world. It designs and markets women’s and men’s designer collection apparel and a range of other products that are manufactured and marketed through an extensive network of licensing agreements and other arrangements worldwide. Product lines under the various Calvin Klein brands include women’s dresses and suits, men’s dress furnishings and tailored clothing, men’s and women’s sportswear and bridge and collection apparel, golf apparel, jeanswear, underwear, fragrances, eyewear, women’s performance apparel, hosiery, socks, footwear, swimwear, jewelry, watches, outerwear, handbags, small leather goods, and home furnishings (including furniture).
With a heritage going back over 130 years, PVH Corp. has excelled at growing brands and businesses with rich American heritages, becoming one of the largest apparel companies in the world. We have over 30,000 associates operating in over 40 countries with over $8 billion in 2015 revenues. We own the iconic Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Speedo*, Warner’s and Olga brands and market a variety of goods under these and other nationally and internationally known owned and licensed brands.
Christian Dior China has become the first luxury brand to sell top-end bags on messaging and social network WeChat.
With an eye on Chinese Valentine’s Day (Qixi) on August 9, it offered its limited-edition Lady Dior bag on the platform this week. It was to be available until today, but sold out on Tuesday.
As a special extra, consumers were able to drag online pictures of decorations on to the bag, so it could be tailored for their preferences.
Buyers could pay through WeChat for the bag, priced at 28,000 yuan (US$4210).
Other luxury brands, including Cartier, Longchamp and Montblanc have already launched online sales platforms on WeChat, providing special services and discounts.
For the first half of this year, Dior’s net profits fell 30.2 per cent to €74 million ($82.8 million).
Fast fashion retailer New Look is taking advantage of its popularity in menswear by opening 25 new stores in the next five years – including a batch of standalone menswear stores in China and France over the next 12 months.
While the store split between the UK and overseas is not yet known, the retailer currently going through exceptional growth in China where it has had like-for-like growth since entering the market at the start of 2015.
New Look first launched standalone menswear stores almost a year ago and has quickly garnered a reputation as being a leader in the trend of standalone high street menswear stores.
Online retailer Boohoo launched a standalone menswear site in April while Net-a-Porter recently revealed its own-brand menswear label.
Department store chain Harvey Nichols also recently relaunched its menswear department, while fashion chain Jigsaw has announced plans to expand its menswear range over the next five years.
Nike is phasing out its golf equipment business to focus on shoes and apparel.
The company has announced it is accelerating its footwear and apparel business and will transition out of Nike golf equipment range – including clubs, balls and bags.
“We’re committed to being the undisputed leader in golf footwear and apparel,” says Trevor Edwards, president, Nike Brand. “We will achieve this by investing in performance innovation for athletes and delivering sustainable profitable growth for Nike Golf.”
The global giant said it will continue to partner with more of the world’s best golfers as part of its changed golfing segment strategy.
“Athletes like Tiger, Rory and Michelle drive tremendous energy for the game and inspire consumers worldwide,” says Daric Ashford, president of Nike Golf.
“Over the past year the MM Fly Blade Polo, the Flyknit Chukka and Air Zoom 90 have all connected strongly with golfers. We’ll continue to ignite excitement with our athletes and deliver the best of Nike for the game.”
Star power is being used to connect fast-growing athleisure brand Under Armour with Chinese consumers.
NBA All-Star Stephen Curry heads back to China next month for another promotional tour for sportswear brand Under Armour China (UA).
As UA seeks to take market share away from rival Nike, the basketballer will be touring the greater China region, including Taiwan, from September 2 to 6.
Under Armour CEO Kevin Plank plans to more than double the company’s annual revenue to $10 billion by 2020, identifying three key growth areas: channels, categories and geographies.
“Our eCommerce in China has basically exploded for us,” he says, “so this is not just a bricks-and-mortar story.” He believes China may actually end up providing the script for the balance between digital and store sales.
So far this year, UA has reported a 157 per cent increase over the same period last year from its eCommerce initiatives in China. In just 10 years, the company has grown its overseas business exponentially, to $454 million last year from $6 million in 2006.
Probably trying to catch this wave, low-end Chinese sneaker manufacturer Tingfei Long Sporting Goods introduced its Uncle Martian apparel line in April with a logo similar to UA’s trademark intersecting arches. UA responded by saying it will pursue “all business and legal courses of action.”
To thrive in China, brand recognition over knockoffs is key for UA, which is why it is sending spokesman Curry into play. Following his first tour two years ago, quarterly revenue in China grew three-fold (Nike had a 23 per cent gain).
UA plans to open 120 stores in China, more than doubling its presence, by the end of this year. Adidas and Nike have between 8000 and 9000 stores in China already. Nike’s market share grew to 14.3 per cent last year from 11.2 per cent in 2011, while Adidas grew its market share to 13.8 per cent from 8.5 per cent over the same period, according to research company Euromonitor.
Zalora has appointed a new CEO, Parker Gundersen, who joins the online fashion retailer from DFS Group, the travel retail subsidiary of Louis Vuitton Moet Hennessy.
The new Zalora CEO has more than 15 years of retail and leadership experience in key management positions across Asia, the Middle East and North America.
From 2011 to 2015, Parker served as GM for DFS Singapore, and recently held the position of VP for DFS North America, overseeing the company’s operations and business development function in the region. Prior to DFS, Parker worked in management consulting in the Strategy & Operations practice at Deloitte Consulting.
Romain Voog, CEO of Global Fashion Group, said Gundersen’s experience in retail across Asia and his strong leadership skills will be instrumental in strengthening Zalora’s leadership in Southeast Asia’s e-fashion space.
Parker holds degrees in economics and management from the University of St. Thomas and has an MBA from The Kellogg School of Management at Northwestern University.
Philippine fashion retailer Golden ABC Inc is set for Asian expansion.
The company behind Penshoppe, Oxygen, Regatta, For Me, Memo, Tyler and Red Logo said it plans to increase its approximately 660 stores in the Philippines to 700, and open 50 stores elsewhere in the region by the end of 2016.
“The vision of the company is to become the most admired Asian fashion brand company,” said Liu in an interview.
Golden ABC has recently approved six new sites in Vietnam for its expansion there. Currently, it has more than 40 stores outside the Philippines, and most of these are located in Indonesia, Vietnam, Saudi Arabia, Dubai and Bahrain. It also has a store in Cambodia and will debut in Myanmar in August. Online, Golden ABC has a strong presence in Singapore, Malaysia, Taiwan and Hong Kong.
Liu added that Asia is the focus as of the moment, and there are no plans to open stores in the US or Europe yet, despite invitations to these markets.
“I want to put more focus and attention in ASEAN, which I think rightfully deserves the opportunity because that is really the new frontier, the new growth area,” he said.
Commenting on the entry of foreign brands in the Philippines, Liu said: “You have to level up by preparing. You invest and innovate. You look at best practices and how you can differentiate.”
Fashion brand Burberry China has spent £54 million (US$71.2 million) to take full control of its retail business, buying the 15 per cent interest held by Sparkle Roll Holdings.
Headquartered in London, the 160-year-old label launched its foray in China in 2010. The mainland now accounts for about half the retail spend of Burberry’s Chinese customers. Last year it was relatively stable, but significantly lower footfall again was a challenge in Hong Kong, which accounts for 9 per cent of global retail/wholesale revenue.
Burberry says it has been looking to cut costs to ensure its Hong Kong stores stay profitable, with its first-quarter trading showing improvement over the fourth quarter but comparable sales continuing their double-digit percentage decline, reports DigitalLook.
Like-for-like sales on the mainland were broadly unchanged in the first quarter.
Founded by Malaysian blogger and fashion entrepreneur Vivy Yusof, online fashion outlet Duck Scarves has come to ground, opening its first store, in Pavilion Kuala Lumpur.
Since launching in May 2014, Duck products have become known for their presentation and packaging, as well as design and quality. Each scarf comes with special hem detailing and a shiny Duck charm.
Duck’s new store has a minimalist design with a spacious layout and ample light. Its grey and white palette is accented by purple, the brand’s main colour. It features a private fitting area.
The Duck brand revolves around a character named D, and its evolution echoes her life and adventures.
Asia is driving “significant growth” in the global airport retail market, according to a new report from Credence Research.
This is based on the increasing disposable income of middle-class families in emerging countries coupled with affordable travel options, says the report, Airport Retail Market – Growth, Share, Opportunities, Competitive Analysis, and Forecast 2016 – 2022.
Emerging countries such as China and India are increasingly investing in new terminals and expanded retail areas.
Widening budget options are boosting the number of travellers, particularly in Asia Pacific, says the report.
Fashion and accessories is the largest product category in airport retail, accounting for more than half of revenue share. The segment can expect considerable growth, says the report.
However, the fastest growth is expected in the F&B segment with rising sales for premium liquor products and the expansion of food chains.
By store type the largest segment is the independent store and showroom. These are steadily growing in number with concessions being offered by airport authorities to local companies. The fastest growth is predicted in the duty-free stores segment, which is bolstered by more and more promotional activities.
Asia Pacific is the largest regional market for airport retail, accounting for 40.5 per cent of revenue share last year. It is forecast to have the fastest growth, particularly in India, China, Australia and Southeast Asia countries.
The report says the global airport retail industry is highly competitive with a strong multinational component. Major companies involved include Aer Rianta International, Autogrill, Dubai Duty Free, Dufry, Duty Free Shoppers, Heinemann, LS Travel Retail, Lotte Duty Free, Nuance Group, Shilla Duty Free and Stellar Partners.
International tourists, particularly from Asia, have been a major driver of strong revenue growth in Australian luxury retailing over the past five years.
The latest Luxury Retailing in Australia report from business data company IbisWorld predicts that across the sector, which covers the sales of such goods as Swiss watches and designer handbags and clothing, revenue will reach AU$1.8 billion next year, an 11 per cent annual growth rate. For the ensuing five years, growth is anticipated to continue at the rate of 8.2 per cent a year to reach more than $2.7 billion.
IbisWorld anticipates that about 30 per cent of industry revenue can be attributed to inbound tourists, especially from increasingly sophisticated markets in Asia.
Its reports says these tourists have traditionally been drawn to heritage luxury labels and flagship stores, mainly because of the perceived prestige of brands like Chanel, Gucci and Louis Vuitton across Asia, particularly China.
A gradual depreciation of the Australian dollar since mid-2013 has helped drive growth in inbound tourism, boosting demand for luxury goods.
Three years after the Japanese luxury department store chain announced plans to enter Saigon, Takashimaya Vietnam opened its doors at the weekend.
As the anchor tenant of downtown Ho Chi Minh City’s Saigon Center, Takashimaya takes up a whole five floors making it by far the nation’s largest department store – and likely its most expensive.
The first impression that the department store makes is its spacious interior. Concessions to brands have been arranged to leave unusually wide aisles – ensuring the store was comfortable even on its crowded grand opening day.
The central atrium of the expanded Saigon Center featuring Takashimaya’s first Vietnam store.
The first floor of Takashimaya houses the food maison, most of which is filled by Japanese F&B brands such as Minamoto Kitchoan, Gyumaru, Azabu Sabo, Yamazaki and Suizan. Some tea brands make their way into that space, including Vietnam’s own Phuc Long, Singapore’s TWG tea, and B Tea.
Targeting the high class consumers in Saigon and Vietnam, Takashimaya has chosen carefully the brands to appear in their stores, including luxury brands coming to Vietnam the first time, complemented by the high level of customer service Takashimaya offers elsewhere in the world.
The second floor is exclusively for ladies with international fashion names such as Banana Republic, Bebe, Bonia, Braun Buffel; footwear from Clarks, Geox, Cole Haan; bags from Carlo Rino, Cromia; and Furla with its first flagship in Vietnam after years being distributed by Ha Vang company.
The rest space is occupied by cosmetics brands, including Korean labels Skinfood, which marked the store’s opening with a special event ‘Makeup Style for Your Summer’.
“We offer free makeup and manicure for our customers for two days. Besides, when they buy our products, they will receive a gift set,” said Kieu Oanh, senior PR & marketing executive of Skinfood Vietnam.
For women, the excitement continues on the next level of Takashimaya: a heaven of luxury cosmetics, jewelleries and fragrances. Christian Dior is prominently located at the front, with rival Lancome opposite. Lancome also opened its own ‘Lancome Cafe’ – a style boutique, where women can take free makeup lessons and receive gifts for the best ‘artwork’.
Other brands include Bobbi Brown, Shiseido, Estee Lauder, Swarovski, and Mac.
The next floor features international fashion and cosmetics brands including Diane von Furstenberg, Hugo, Versace and Paul & Shark, along with restaurants and cafes. This level has a rest space with some chairs for visitors arranged around a huge grey pillar.
Local luxury multibrand retailer Runway comes back after closing its store in Vincom Center in March. As usual, it has a large space in the center, gathering all women’s favourite brands with modern and elegant designs.
The new Runway store replaces the local multi-label luxury brand’s previous space at Vincom.
Another highlight is the ready-to-launch space of women handbags Kate Spade New York. That outlet is expected to open soon.
Coming soon: Kate Spade.
The last level of Takashimaya is filled with men’s fashion and casual wear and children’s clothing and toys. Tommy Hilfiger has the largest outlet here, opposite the first authentic Fred Perry store.
With more than 180 years of experience and US$290 million investment, it is expected that Takashimaya will not only take Vietnamese shopping to a higher level but also mark a turning point for economic development and quality retail in Vietnam.
The Shilla Duty Free has posted a 29 per cent year-on-year rise in second-quarter revenues for its Korean downtown stores, rebounding from the MERS-ravaged tourism sector at the same time last year.
Downtown store revenue climbed to KW538.2 billion (US$473.6 million) for the quarter, with growth outstripping the 23.5 per cent increase in the total Korean duty-free market, especially with higher competition after the government issued more licences last year.
However, Korean airport sales fell 19.2 per cent to KW198 billion, driven by a downturn in Incheon International Airport revenues because of reduced floor space.
Overseas duty-free revenues (mainly Singapore’s Changi Airport and Macau International Airport) rose by 16.3 per cent year-on-year to KW121.3 billion. However, Shilla posted a KW12.3 billion operating loss on its overseas stores, mainly because of the high cost of entry at Changi. This hit overall profits, which fell 51.4 per cent to KW15.4 billion. Even the Korean downtown business fell 39 per cent to KW27.7 billion.
A factor in that decline has been the rocketing costs of commissions to Chinese travel retail agents – up from between 7 and 100 per cent to around 23 per cent, according to The Moodie Davitt Report.
The Shilla Duty Free is the key revenue and profits contributor to parent Hotel Shilla, whose consolidated revenues rose 13 per cent year-on-year to KW954.1 billion, while operating profits fell 36.04 per cent to KW18.7 billion.