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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.

  • Government fine watch shop over Aishwarya Rai photo

    Government fine watch shop over Aishwarya Rai photo

    The photograph below is from a Longines advertising campaign, and features arguably India’s most famous Bollywood star, Aishwarya Rai.

    Some might consider it elegant, others “hi-so” in certain parts of Southeast Asia. But in Malaysia, religious zealots have fined a non-Muslim watch retailer for displaying a poster in-store featuring this same Aishwarya Rai photo.

    According to Malaysian mainstream media, someone from the Kota Baru Municipal Council considered the photograph too “sexy” – an “offence” the beleaguered retailer has supposedly committed more than 10 times since the 1990s.

    Aishwarya-Rai-Longines

    Swee Cheong Watch & Pen Co owner Lee Kum Chuan’s latest bureaucratic punishment came to light when he went to obtain a business licence from the council to open a new store in Aeon Mall, his third outlet in Kota Baru.

    “When I went to MPKB to apply for a business permit for the new shop, I was told to settle the fines for the offence committed in KB Mall,” he told The Star in Kuala Lumpur.

    “I was hit with a total RM2000 (S$668) in fines, but the amount was reduced to RM400. I had to pay the sum before I could get the new permit,” he said.

    In a nation where family members of the Prime Minister are allegedly siphoning off hundreds of millions of dollars of state funds to spend on luxury goods, movie productions, condominiums and aircraft, prompting investigations in a dozen or so countries, law-enforcement officials consider it damaging to community standards for a fully dressed Bollywood actress to promote watches. At least that’s how it seems.

    Shop ‘raid’

    MPKB enforcement officers “raided” the new Swee Cheong Watch & Pen shop in Aeon Mall on Monday, ordering the “offensive” posters be removed from display.

    “The posters were supplied by our manufacturers,” Lee told The Star.

    The issue has sparked wider concerns about the application of a dual justice system in Malaysia in which hudud laws – and their applicable punishments – apply to Muslims, and more conventional laws apply to Chinese, Indian and other ethnicities. (In Malaysia, ethnic Malaysians are born Muslim and face physical punishment if they try to renounce their religion). Hudud is defined by Wikipedia as “an Islamic concept: punishments which under Islamic law (Shariah) are mandated and fixed by God”.

    Kelantan Malaysian Chinese Association secretary Datuk Lua Choon Hann says the harassment of the watch retailer follows the council taking action against hairdressers for attending clients of a different gender.

    “The government has proved yet again that its repeated claims that the hudud enactment will have no bearing on non-Muslims are nothing but mere fallacy,” he said in a statement this week.

    “Based on the summonses issued by local councils (in Kelantan), MCA wants to raise awareness of the motives to remove clauses in the Federal Constitution that protect the rights of non-Muslims and Muslims against punitive criminal actions based on religious precepts,” he said.

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  • Lane Crawford harnesses power of sound for in-store oasis

    Lane Crawford harnesses power of sound for in-store oasis

    Chinese department store chain Lane Crawford is giving consumers a relaxing retreat from the bustle of Hong Kong.

    Within the retailer’s ifc mall flagship, a Sound Room has been set up for visitors to experience the sound’s power as a form of therapy. Increasingly, sales floor space is being used for more than just product displays, as retailers seek to create places for consumers to extend their time in-store.

    “I love Lane Crawford because they are always trying new things to differentiate themselves and create a luxurious and unique experience for their customers,” said Gustavo Gomez, senior advisor at Envirosell, New York.

    “They are in the business of delighting their patrons, and this new sound space does that,” he said. “This space not only provides something new that other retailers don’t have, but it is an experience in sensorial luxury.  In our modern cities, noise is a 24/7 phenomenon. Whether one perceives the daily noise or not, it has an influence on our mental function – it increases stress levels.

    “I don’t know if this was Lane Crawford’s intention, but some sound therapy before shopping can reduce the stress level of the shopper and possibly contribute to an increased likelihood to purchase. It has been shown that increase stress makes shoppers more price sensitive and more likely to comparison shop.

    “Lane Crawford’s sound room may help reduce stress and thus reduce price sensitivity. It would be interesting to see if those that use the sound room have different purchase patterns than those that don’t.It is also a great way to sell the high-end speakers.”

    Mr. Gomez is not affiliated with Lane Crawford, but agreed to comment as an industry expert.

    Lane Crawford did not respond before press deadline.

    Tone quality
    On Lane Crawford’s Web site, an article delves into sound’s effect on the mind and body, from health to well-being.

    The constant noise of traffic, including car horns and the rumble of cars, ignites primal responses to danger based on its similarities to screams and the sound of earthquakes. This causes a fight or flight effect, sending adrenaline coursing through the body many times a day and making consumers tired.

    Counteracting this, music that is slower than the heartbeat, at less than 60 beats per minute, can help create a sense of calm.

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    Inside Lane Crawford’s ifc mall store

    Accompanying the article is a soundtrack of twinkling tones embellished with chirping birds, allowing the reader to heal themselves.

    Responding to the rise in sound therapy, Lane Crawford has launched a Sound Room.

    Demonstrating the escape from sound, Lane Crawford filmed a short video.

    The text “Lane Crawford presents a journey of discovery through sound” appears over a series of scene-setting shots in which people crowd into subway cars and buses roam the streets of Hong Kong. Suddenly, the film zooms in on a man, who walks up to a pair of B&O Play headphones.

    As he puts them over his ears, he is suddenly transported to a plant-filled room painted green. The tranquil space boasts beanbag chairs, reading material and mood lighting.

    While sound waves surround his head, he can place himself on the beach or on a mountaintop.

    The Sound Room will be open until Aug. 29.

    “This addition once again makes Lane Crawford stand apart from the competition as an innovative retailer that cares about the whole customer and not only about the individual sale,” Mr. Gomez said. “Lane Crawford continues to be a place where one goes to indulge all the senses.

    “They are going beyond the touch and feel aspect of shopping and beyond background music while you shop,” he said. “One can now pamper oneself through hearing.”

    Experiential environments
    Other retailers have turned what would traditionally be selling space into places to engage consumers.

    British department store chain Selfridges is embracing literal retail theater with a celebration of the work of renowned playwright William Shakespeare.

    In honor of the 400th anniversary of the Bard’s death, the retailer is launching a multichannel campaign, “Shakespeare Refashioned,” updating some of his most popular plays through a fashion-forward filter. Through this celebration, beginning July 4, Selfridges is able to showcase its affection for the arts while highlighting its British heritage.

    Part of Selfridges’ effort includes the opening of an in-store theater, which will host a production and drama workshop classes.

    The luxury retail environment is undergoing critical changes, making it is essential for retailers to focus their attention on enhancing the in-store experience, according to a report by Unity Marketing.

    Affluent consumers increasingly prefer to shop online, and for traditional retailers to compete they will need to offer more specialized and personalized retail experiences. Furthermore, as affluents have been shown to have less interest in the accumulation of possessions, it is important for retailers to make stores more experiential and craft a rewarding experience for consumers.

    “Retail has been on the experiential route for a couple of years now,” Mr. Gomez said. “From in-store cafes to treasure hunts, from lighting and sound to concerts.

    “The key is to match the experience with the brand,” he said. “Many retailers are still missing that connection.

    “Lane Crawford seems to match their experience with their brand. Only time will tell if shoppers see the sound experience and something they want in-store. If it succeeds, it may become a permanent area of the store.”

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  • How the new Sephora flagship store at Ion Orchard lure shoppers back to brick-and-mortar …

    How the new Sephora flagship store at Ion Orchard lure shoppers back to brick-and-mortar …

    French multi-brand beauty retail giant Sephora opened its new local flagship store at Ion Orchard to much fanfare last Friday. The store sprawls across 10,000sqf on basement 2, and features a refreshed store concept from its previous premises on level 1, incorporating a boutique-within-a-boutique concept and better lighting.

    The queue to be among the first paying customers to enter the store at noon on July 22 started forming at 9.30pm the night before, and there were 1,000 people waiting outside by the time the store was opened. Sephora vouchers of S$100, S$50 and S$10 were handed out to the first 500 people in the queue, while limited-edition gift packs were given to the next 500.

    Among those in the pre-opening queue was 21-year-old sales associate Catherine Low, who had joined the snaking line at 6.15am on opening day. “I decided to join the queue to be among the first in line because I have been lusting after Kat Von D products for a long time and now I can finally purchase it in stores here,” she said. “When I got in I made a beeline for the Kat Von D Everlasting Liquid Lipstick in Lolita. This shade is really popular and I was afraid it would be sold out”.

    The flagship store boasts a global-first for Sephora — a Kat Von D store-in-store that carries the full range of the cosmetics brand that was founded by the celebrity Los Angeles-based tattoo artist, who shot to fame on reality television show LA Ink. Close to 4,000 products from the Kat Von D range were sold on launch day, with the sales of the brand’s popular Everlasting Liquid Lipsticks accounting for half of the sales.

    Kat Von D currently takes pole position at Sephora in Malaysia, Thailand and Singapore since it was launched on Sephora’s local e-commerce site on July 7 and in the retail stores in Malaysia and Thailand on July 16. It has racked up over six figures in sales in these three countries to date.

    The experiential element

    What Sephora nailed was creating a retail environment shoppers are excited to be in. “Sephora Ion Orchard has always been one of the top 10 (outlets), not just in Asia, but in the world, so it was the natural choice to launch the first Kat Von D Shop-in-Shop together with Sephora Ion Orchard’s new home to provide a more vibrant and electrifying retail experience for her many fans,” said Mathieu Sidokpohou, Sephora’s managing director of South-east Asia.

    sephora

    Other highlights at the store include professional cosmetics brand Make Up For Ever’s “sushi bar” concept counter, which features a conveyor belt where shoppers can pick up bento boxes of makeup items, exclusive-to-store brands Cover FX and Zoeva and a Made-in-Sephora gondola featuring house-brand products.

    These in-store highlights, together with the prime positioning of the store, which is a stone’s throw from Orchard MRT Station, is set to further strengthen Sephora Ion Orchard’s position as one of the top-grossing beauty retail spots in Singapore and the region. The anticipated footfall at the flagship Sephora store also presents beauty retailers with an opportunity to create a buzz around big campaigns and launches before products are rolled out to the rest of the island. The store is the first in Asia to carry all 100 lipstick and 50 lip pencil shades of cult US cosmetics brand Urban Decay’s highly hyped 10th anniversary collection.

    The beauty retailers spoke to welcome the added experiential retail elements at the store. “The new design layout of two main aisles instead of just one allows more visibility for brands from different categories and allows customers more interaction with the brands, which translates to a refreshing customer experience,” said Chen Jingwen, Nudestix’s brand manager for South-east Asia, which is one of the beauty brands that are exclusively available at Sephora outlets here.

    Avid Sephora customer and 98.7FM DJ Sonia Chew agreed: “I love the new store for the vast amount of brands they have and it’s also got a much edgier and fresher feel to it with plenty of corners to explore in the store — and to discover more goodies to buy! Sephora attracts the true-blue beauty junkies, and I always feel like I have a secret bond with the people who shop there.”

    Naturally, the management of Ion Orchard is pleased with the response as Sephora’s relocation is part of the mall’s strategy to keep the retail scene healthy. “The relocation of Sephora is part of our ongoing efforts to refresh our tenant mix with new and established brands that have their flagship presence at Ion Orchard, and to enhance the existing beauty cluster,” said Chris Chong, chief executive of Orchard Turn Developments, adding that this move had been in the works since last year. “Ion Orchard houses many international brands whose stores at Ion Orchard rank among their top 10 globally for size and sales. Sephora counts as one of these. We have been working with Sephora to delight our shoppers with high-profile celebrity appearances by Sandara Park, David Gandy and Kat Von D, and will continue to partner them in such activities and mall campaigns.”

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  • Official debut for Fred Perry Vietnam

    Official debut for Fred Perry Vietnam

    Tennis-inspired clothing brand Fred Perry is to open its first official store in Vietnam this month.

    The subcultural fashion line announced last week on its Fred Perry Vietnam Facebook page that the new store will be located on Level 3 of the refurbished and expanded Saigon Center in District 1. The centre, which includes Japanese department store Takashimaya, will open on July 30 and fitout of the Fred Perry store is expected to be completed in time.

    fred perry vietnam

    Alongside the success of crossing from sportswear to streetwear fashion, the brand has a subcultural music appeal internationally. To celebrate the official opening of the first Fred Perry Vietnam shop, a live party will be held on Friday, August 5 at Piu Piu Bar.

    Fred Perry is a clothing line founded by the Wimbledon champion Fred Perry in 1952, and become popular internationally since. The brand is now owned by Japan-based company Hit Union.

    In Vietnam, the brand is famous for its shoes and classic polo shirts. The official arrival of Fred Perry in Vietnam will come as great news for Vietnamese fans. For years, they have shopped “laurel wreath” products online and through hand-carried importation services – always with a high chance of ending up with fake merchandise.

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  • JDC picks up gold award for effective marketing

    JDC picks up gold award for effective marketing

    The government-owned Jeju Free International City Development Center (JDC) – parent company of Jeju Duty Free – has won a Gold Prize at the recent Asia Tourism Marketing Festival, for its success in attracting Chinese visitors through its highly effective marketing efforts.

    JDC subsidiary, Jeju Duty Free operates at Jeju International Airport, the second largest airport in South Korea, behind Incheon International Airport.

    The company offers liquor and tobacco, perfume and cosmetics, watches, luggage and leathergoods, accessories, sunglasses, confectionery, ginseng, stationery and toys. Apparently Jeju Duty Free lists over 10,000 items in total from 190 different brands.

    The JDC entity aims to promote tourism, elevate the public image of Jeju and attact both domestic and foreign investment for business, public relations and marketing activities.

    JDC-Asia-Tourism-Festival-Awards

    JDC executives receive the gold prize for the company’s effective marketing efforts.

    Operating according to the South Korean government’s Special Act on Jeju Free International City, the corporation is affiliated with the Ministry of Construction and Transportation.

    On 11 June, JDC picked up the gold prize at the Asia Tourism Marketing Festival.

    JDC says that the company’s duty free shops make a concerted effort to offer customers a variety of activities and promotions, every season which has seen Jeju Duty Free obtain a high evaluation by ATMF.

    Attracting Chinese visitors to Jeju and into its duty free shops is of paramount importance to JDC, a Marketing Manager said.

    Jeju International Airport already benefits from healthy passenger traffic and in fact in the past has suffered from congestion, which has prevented some retail expansion.

    According to Korea Airports Corporation (KAC), JDC’s Domestic Terminal store, which covers almost 3,000sq m, recorded sales of KRW.338bn ($310m) in 2013.

     

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  • Shilla Duty Free downtown and off-shore stores contradiction performance

    Shilla Duty Free downtown and off-shore stores contradiction performance

    The Shilla Duty Free posted a +29.0% year-on-year rise in second-quarter revenues for its Korean downtown duty free operations, reflecting a strong rebound from the MERS-ravaged corresponding period last year.

    Downtown store revenue climbed to KW538.2 billion (US$473.6 million) for the quarter, with growth outstripping the +23.5% increase in the total Korean duty free market (see Mirae Asset Daewoo chart below) for the period – encouraging news for Shilla given the increase in competitors following last year’s government licence additions.

    However, Korean airport sales fell -19.2% to KW198 billion (US$174.2 million), driven by a downturn in Incheon International Airport revenues caused by reduced floor space in the wake of last year’s tender results.

    Overseas duty free revenues (principally Singapore Changi Airport and Macau International Airport) rose by +16.3% year-on-year to KW121.3 billion (US$106.7 million). More pertinently, however, Shilla posted a KW12.3 billion (US$10.8 million) operating loss on those operations, reflecting in particular the high cost of entry at Changi.

    The offshore losses put a big dent in The Shilla Duty Free’s overall operating profits, which fell -51.4% to KW15.4 billion (US$13.6 million). Even profits on the more lucrative Korean downtown business fell sharply, down -39.0% to KW27.7 billion (US$24.4 million).

    A key factor in that decline has been, as we reported recently, the rocketing costs of commissions to Chinese travel retail agents – up from between 7% and 100% to around 23% since the advent of new duty free retailers last year. As one leading luxury brand executive told The Moodie Davitt Report recently, “The real winner in Korean duty free is the Chinese travel agent.” These numbers bear out that view.

    shilla July 2016 2

    shilla July 2016 3

    shilla July 2016 6The Shilla Duty Free is the key revenue and profits contributor to parent Hotel Shilla, whose consolidated revenues rose +13% year-on-year to KW954.1 billion (US$839.6 million), while operating profits tumbled -36.04% to KW18.7 billion (US$16.5 million).

    Group operating profit margin was 2.0%; with travel retail overall at 1.8%, Korean travel retail at 3.8% (6.1% downtown) and offshore duty free operations -10.1%.

    shilla_changi_opening_10feb2015_shilla5

    The Shilla Duty Free’s overseas airport operations once more posted heavy losses. The major problem lay with the heavy concession fees at Singapore Changi Airport (above). Pictured below is Shilla’s smaller operation at Macau International Airport, a joint venture with Hong Kong’s Sky Connection.

    NWS_Holdings_shop_0216_600_2MIXED REACTION FROM ANALYSTS

    MIRAE ASSET DAEWOO : Regina Hahm, Equity Analyst (Cosmetics, Hotels & Leisure, Fashion) at Mirae Asset Daewoo Research Center, said: “2Q earnings were way weaker than the market estimates.

    “However, I do think that it is positive that Shilla has further strengthened its existence in the market. It seems pretty apparent that group tourists have been absorbed by the Jangchung store [Shilla’s flagship Seoul shop -Ed], especially since the absence of Lotte World and WalkerHill.”

    In a review of Hotel Shilla’s results, Ms Hahm noted: “The domestic duty free business, which was hurt by the impact of MERS, resumed robust growth. Revenue from the downtown duty-free operation [of Shilla] climbed +29.0% YoY to KW538.2 billion during the quarter, meeting our expectation (+27.7% YoY). In the corresponding period, the overall duty free market saw revenue growth of 23.5% YoY, even as new entrants began full-fledged operations.

    “We think this shows the performance gap between major duty free players and less competitive, new players is widening further, which is natural given the importance of scale effects, the quality of sourced products, as well as experience in the duty free industry.

    Looking forward to Q3, typically a peak season for both inbound and outbound tourism demand, Ms Hahm foresees strong growth potential in Shilla’s duty free business, particularly given the low base line from the MERS-hit comparative quarter in 2016.

    She commented: “Airport revenue is likely to turn around in 3Q16, aided by the dissipation of high base effects.”

    Commenting on the group share price, she concluded: “Hotel Shilla shares have long been weighed down by a series of negatives, such as controversies over domestic duty free industry policies, the loss of licences by a few major players, and MERS.

    “In 2H, with the performance gap between new entrants and major existing players widening further, we expect Hotel Shilla to solidify its position as a leading player. Also, in our view, the stock could see a re-rating, given peak-season effects and strengthened market dominance.”

    Accordingly, Mirae Asset Daewoo maintained its ‘Buy’ rating on Hotel Shilla with a target price of KW110,000 (currently US$96.80), the stock brokerage and investment bank company’s top pick in tourism. By mid-afternoon today (26 July) it was trading at KW61,700, off by -0.80%.

    NOMURA: Analysts Cara Song and Jiun Im took a very different view, downgrading the stock from a buy to a reduce, and cutting their target price from KRW100,000 a share to just KRW47,000.

    In comments quoted by Barron’s Asia, they noted: “Operating profit margins at the domestic downtown duty free stores (Hotel Shilla’s sole profitable business) declined sharply to 6.1% in 2Q16 (vs. 8.8% in 1Q16, 10.3% in FY15). The company attributed this to a bigger contribution from lower-margin group tourists (from 70% in FY15 to 85% in 2Q16).

    “Considering that it is easier to attract group tourists than individual travellers by: 1) paying higher sales incentives to travel agencies; 2) more aggressive price promotions, Hotel Shilla’s customer mix has deteriorated, in our view.”

    HDC_Shilla_600_004 (1)

    Shilla IPark duty free is a stunning addition to Korea’s travel retail landscape. But Shilla’s overall reliance on group tourists, as opposed to higher-spending FIT customers, concerns Nomura.

    The analysts were particularly alarmed by the airport losses in Singapore, commenting: “Contrary to company guidance, Changi Airport DFS continued to struggle, with persistent losses in 2Q16. With the [Korean] government’s plan to issue additional DFS licences in 4Q16F, the DFS business environment could be dampened further.

    “Reflecting this, we cut our net profit estimate by 49.5%/36.5% respectively for FY16F/17F. Our FY16F/ 17F net profit estimates are c.33% lower than Street expectations (Fig.11).”

    Nomura also suggested there could be an added hit to earnings if Hotel Shilla’s planned part-acquisition of Miami-based DFASS Group in the third quarter falls through. The Moodie Davitt Report understands that constructive dialogue continues on that deal, though it is still some way from closing.

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  • Award-winning Singaporean jewellery brand expands to Hong Kong

    Award-winning Singaporean jewellery brand expands to Hong Kong

    Singaporean contemporary jewellery brand Luvenus Jewellery announced today (July 26) that it has opened its first overseas outlet at Hong Kong International Airport to showcase its designs to the millions of travellers that pass through the airport each year.

    Launched in 2012, Luvenus is an award-winning company specialising in pure 22-karat and 24-karat gold jewellery with diverse and unique product designs. It also carries a collection of fully certified diamond jewellery, said the Managing Director, Mr Parthiban Murugaiyan.

    He said that the newly opened store at Hong Kong International Airport is the brand’s fourth outlet worldwide and first outside Singapore. Luvenus has been recognised for its quality service and has received several awards from Singapore’s Changi Airport.

    “Hong Kong is a major tourist and business travel destination for both Mainland and international visitors. Having a retail outlet at Hong Kong International Airport is part of our strategic plan for expansion into the Mainland. We will be using Hong Kong as our regional base from which to grow our business and better serve the needs of our customers,” he added. Luvenus Jewellery hopes to expand further in Hong Kong and the Mainland market and would consider various models including franchising.

    Associate Director-General of Investment Promotion Dr Jimmy Chiang said, “Hong Kong International Airport is one of the world’s busiest airports in terms of international passenger traffic. It is an excellent showcase for retailers. I wish Luvenus Jewellery every success in our city and look forward to its continued expansion from Hong Kong.”

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  • Miss Sixty parent plans IPO

    Miss Sixty parent plans IPO

    Miss Sixty parent in Asia, Chinese fashion house Trendy International Group, is planning a domestic initial public offering, probably by the end of next year.

    The Guangzhou-based company hopes to achieve a valuation of about US$5 billion before selling an undisclosed stake, insiders say. Trendy International will join other Chinese clothing retailers such as Modern Avenue Group, owner of the Canudilo brand, and Shanghai La Chapelle Fashion in funding expansion by selling shares.

    Altogether, 25 apparel companies have held IPOs in China and Hong Kong during the past three years, raising a combined $2.2 billion, according to Bloomberg.

    Investment firm L Capital Asia, backed by French luxury group LVMH, bought a minority stake, estimated at about 10 per cent, in Trendy International for nearly $200 million in 2011.

    Founded in 1999, Trendy International owns women’s brands Five Plus and Ochirly as well as male casualwear line Trendiano. It later acquired the Asian business of Miss Sixty, known for its skin-tight retro jeans, as well as the Energie and Killah denim brands.

    The fashion group has more than 3000 shops, and last year set up a joint venture with UK clothing chain SuperGroup to introduce its Superdry brand into China.

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  • Swatch Group profit lowest for seven years

    Swatch Group profit lowest for seven years

    Swatch Group, the maker of Omega and Tissot timepieces, has reported its lowest first-half profit in seven years, with demand tumbling in Hong Kong, France and Switzerland.

    Its first-half operating profit fell 54 per cent to 353 million francs (US$359 million), the company says. This followed an earlier warning that earnings would probably fall 50 to 60 per cent.

    After previously forecasting growth, CEO Nick Hayek says sales for the year may fall as much as 6 per cent. Terrorist attacks in France are keeping tourists at bay, denting sales.

    However, Swatch says its full-year results will be close or equivalent to those of last year.
    Swiss watch exports declined a record 11 per cent in the first half, says the Federation of the Swiss Watch Industry.

    Swatch says the first three weeks of this month showed good growth in China, particularly for its luxury brands Blancpain, Breguet and Omega.

    The company also says the drop in Hong Kong’s retail sales has bottomed out.

  • Uniqlo Thailand launching online store

    Uniqlo Thailand launching online store

    Japan’s global fashion label Uniqlo Thailand is launching an online store, offering its full Thai range.

    The online store will help strengthen the firm’s “made for all” brand promise, says Uniqlo Thailand marketing and PR director/head of eCommerce Chanvit Khieonavavongsa.

    After nearly five years in Thailand, Uniqlo has 32 branches in nine provinces, covering about a third of the population. The eCommerce channel will meet the demand from customers in areas where the brand does not have an outlet.

    Exclusive to the Thai online store, Uniqlo will offer a cash-on-delivery service to cater for consumers who are still not confident about using credit cards for online transactions.

    Chanvit says the online channel will not affect Uniqlo’s expansion in the kingdom.

    “As long as there are good locations and customers, we will open a store,” he says. “There is no intention of reducing the opening of branches.”

    Two branches opened in the first half of this year, with two more to follow in September, at Blu Port in Hua Hin and at the Mall Korat.

    The online store is the brand’s 12th worldwide, with similar stores launching in Singapore in 2014 and in Malaysia last year.

    Uniqlo has assigned Singapore Post to handle logistics and deliveries for online orders, with guaranteed nationwide delivery of between one and three days. There is no delivery fee, while the packaging charge is waived for orders of Bt1500 (US43) or more. Customers have 30 days to return their goods to the company if they are not satisfied.

    Scheduled to go live on Friday, the online store will offer exclusive items and collections such as Kaws companion t-shirts and the HeatTech line of thermal wear. The mark the launch, there will also be special prices for popular items.

    Chanvit says the eCommerce expansion is part of Uniqlo’s global target to have 30 per cent of its sales derived from the online channel by 2020. The brand has already built awareness online in Thailand through Line, where it has 12 million subscribers, and Facebook, where it has had more than 1 million likes. Further awareness will be built through an integrated marketing communication plan across offline and online channels nationwide.

  • Fresh look for Prada Hong Kong

    Fresh look for Prada Hong Kong

    Fashion brand Prada Hong Kong will renovate and expand its store on Canton Rd.

    Covering more than 1300 sqm over two storeys, the store has a secondary internal access from Harbour City.

    Its facade pays homage to Franco-Venezuelan kinetic artist Carlos Cruz-Diez with a geometric pattern. The Harbour City frontage, in black marble, has display windows and offers view of the store interior.

    prada inside

    The Canton Rd entrance introduces a room defined by signature elements of the brand, such as the black-and-white checkerboard floor and walls of light green encaustic and marble.

    Glass display cases with bottoms in green marble alternate with shelving systems. The beamed ceiling is a contemporary interpretation, in Prada green, of the typical ceilings of historic Italian buildings. Throughout the store, new materials are paired with 1950s design. Seating elements of different forms and colours create intimate salons, arranged with low tables. Classic materials like velvet are juxtaposed with modern materials like acrylic glass and marble.

    On the ground floor, the footwear area has carpet with velvet-covered walls, with exclusive green velvet chairs by Osvaldo Borsani.

    A special display niche inside the store’s mall entrance features black marble and a video screen. Spaces in green encaustic and black marble dedicated to leather and women’s accessories alternate with salons in red and green velvet with geometrically patterned carpets.

    In the clothing area, the beamed ceiling is covered in velvet to match the walls as a counterpoint to a video wall. Green velvet Borsani chairs, acrylic glass furnishings and the polished steel racks complete the decor.

    Sheathed in green marble, the stairway leading to the basement floor has as a background a steel and glass display case. The basement is dedicated to the men’s collections, with a special selection of clothing and footwear for women. A black-and-white marble floor, a beamed ceiling and green encaustic walls are the predominant elements.

    The men’s area is distinguished by tall furnishings in black iron and glass, blue ostrich skin chairs and carpet in aviator blue and grey with geometric patterns.

    A special room dedicated to clothing features a dark wood floor of narrow boards, walls covered in aviator-blue velvet and chairs in grey velvet with wooden arms.

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  • Bottom line: brands chase China’s high-end lingerie market

    Bottom line: brands chase China’s high-end lingerie market

    High-end lingerie sales are outpacing China’s generally downbeat luxury market, and heating up competition between international brands and local rivals looking to go upmarket.

    U.S. brand Victoria’s Secret will open its first store, and companies including Italy’s ultra-luxury La Perla and Germany’s Triumph are adding stores and moving beyond China’s mega-cities to tap a lingerie market that has more than doubled in five years to $18 billion, according to Mintel Group.

    Chinese consumer tastes are maturing, women are more confident about buying for themselves and President Xi Jinping’s drive against conspicuous consumption is likely diverting spending from flashy branded bags and accessories to sports and ath-leisure wear and the more discreet lingerie.

    “Luxury is … not about buying to show off, it’s about buying items that make you feel good,” says Chiara Scaglia, La Perla’s Asia chief.

    China’s women’s underwear market is expected to have a retail value of $25 billion by next year – double that of the United States – and will grow to $33 billion by 2020, according to Euromonitor.

    Chinese firms such as Beijing Aimer, Maniform and Ordifen are also chasing that money, targeting higher-end customers and raising their quality.

    “That means foreign brands will have to out-compete local brands not just on quality, but also innovation,” said Matthew Crabbe, director at Mintel.

    For now, the market is highly fragmented, with none of the leading firms having more than around a 3 percent share. International brands see China as a priority to help bolster overall sales given a fairly bleak global outlook.

    La Perla, which sells bras priced around 2,000 yuan ($300), has eight stores in China and plans additional outlets in Chengdu and Chongqing within the year. It also aims to open a men’s store in Beijing.

    “The perception of the lingerie sector has changed,” Scaglia told Reuters. “At the beginning many people we spoke to were confused as to why anybody should spend over $1,000 on panties for something nobody sees.”

    EXPANDING FOOTPRINT

    Victoria’s Secret will open a 20,000 square foot (1,860 square meter) flagship store in Shanghai this year, taking over a prime downtown location that used to house a Louis Vuitton store. “I think it will announce our arrival in China in a very significant way, and should be the beginning of an enormous business for us,” said Martin Waters, L Brands International President.

    Triumph, which already has 1,000 China stores, plans to open in five new cities this year and up to 11 cities next year.

    Cosmo Lady (2298.HK), a Chinese firm that has focused on the mass market, selling bras from 50 yuan ($7.50), last year bought Ordifen to increase its presence in the luxury market.

    “We would like to gradually step into the high-end market,” said Peter Lam, Cosmo Lady’s assistant chief financial officer.

    Gao Qiannan, a 22-year-old Shandong student who says she spends upwards of 1,500 yuan a year on lingerie, doesn’t think there’s a big difference between Chinese and foreign brands.

    “If I can buy a domestic brand, I will, but if I particularly like the international brand’s style, I’ll get that,” she said.

    The international brands say they don’t offer products specifically for the Chinese market, though La Perla notes that some colors – red and baby pink – sell far better in Asia than in Europe or the United States. The Italian brand has also used Chinese supermodel Liu Wen in its campaigns.

    Japanese and South Korean brands are also growing in popularity in China.

    Yin Huijuan, 23, who spends 800 yuan ($120) on lingerie every three months, said she prefers Japanese brands such as Wacoal and Narue. “I feel foreign brands’ style is more detailed and diversified, these are areas where domestic brands fall short,” she said.

    CONSUMER CAUTION, ONLINE COMPETITION

    Even in the lingerie market, though, there are bumps.

    Cosmo Lady, which has 8,600 outlets including Ordifen’s 550 China stores, saw robust growth in its mass market sales last year, but has warned about its profits for the first half of this year, citing China’s slowing economic growth, consumer caution and competing online sales.

    Hong Kong-listed Embry Holdings (1388.HK), which owns the Embry Form lingerie brand, said its group retail sales slipped by nearly a fifth in April-June on tougher competition and the economy.

    Despite those bumps, the lingerie sector retains a strong appeal, said Eugene Mak, an analyst at China Merchant Securities in Hong Kong, and firms like Cosmo Lady are still outperforming other apparel retailers.

    He predicts the market will hit a consolidation phase at some time. “It’s a very young market, but in the near-term it’s going to be messy,” he said.

    (Reporting by Farah Master, with additional reporting by Giulia Segreti in Milan, Shanghai newsroom, and Sharon Shi and Joyce Zhou in Hong Kong; Editing by Ian Geoghegan)

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  • Unilever buys Dollar Shave Club

    Unilever buys Dollar Shave Club

    Consumer products giant Unilever is to buy California-based Dollar Shave Club, an online razor delivery subscription business that has 3.2 million members.

    Terms of the transaction were not officially disclosed, but sources say the FMCG giant is paying the razor business US$1 billion in cash.

    “Dollar Shave Club is an innovative and disruptive male grooming brand with incredibly deep connections to its diverse and highly engaged consumers,” said Kees Kruythoff, president of Unilever North America.

    “In addition to its unique consumer and data insights, Dollar Shave Club is the category leader in its direct-to-consumer space. We plan to leverage the global strength of Unilever to support Dollar Shave Club in achieving its full potential in terms of offering and reach.”

    Michael Dubin, founder or Dollar Shave Club, will continue to serve as its CEO.

    “We have long admired Unilever’s purpose-driven business leadership and its category expertise is unmatched,” said Dubin. “We are excited to be part of the family.”

    Subject to regulatory approval, the transaction is expected to close during the third quarter.

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  • Chinese beauty retail market predicted to reach $50bn

    Chinese beauty retail market predicted to reach $50bn

    Despite less frequent purchases, the high demand for skincare products will see the Chinese beauty retail market continue strong growth to reach 338 billion yuan (US$50 billion) in value by 2020, says a new report.

    Research by Mintel shows that 65 per cent of consumers spent more on facial skincare last year than in 2014, despite consumers buying beauty products less often.

    Purchase rates for all beauty and personal-care categories surveyed by Mintel slowed during the three months to October last year. The categories most affected are hair beauty products, beauty supplements and fragrances, falling 32 per cent, 28 per cent and 26 per cent respectively.

    Total retail sales of cosmetics in China grew 12.3 per cent to reach 204.9 billion yuan last year.

    “The beauty retailing market seems resistant to decline, and this is mainly because the dynamic development of the facial skincare market,” says Mintel senior beauty and personal care analyst Chen Wenwen.

    “To leverage their passion and spending power, it is essential for both retailers and manufacturers to engage consumers via mobile platforms.”

    As many as 44 per cent of consumers used a mobile device to pay for beauty/personal care products online in the three months to October – double the number since 2014.

  • Sales fall 19pc for L’Occitane International

    Sales fall 19pc for L’Occitane International

    A 19.8 per cent drop in sales in Hong Kong and Macau has been recorded by French skincare retailer L’Occitane International for its first fiscal quarter.

    This amounts to €22.8 million (MOP175.3 million/US$21.9 million), according to its filing with the Hong Kong Stock Exchange.

    Its same-store sales in the two regions for the three months ended June 30 dropped by 11.7 per cent year-on-year. The company had 33 stores in Hong Kong and three in Macau at the end of June.

    Total net sales reached €268.5 million for the period, down 2.2 per cent. Of the total, sell-out sales brought in €200.4 million.

    L’Occitane says the soft performance was because of “lower sales to travel retail operations in the Asia region” as well as the global economic downturn and overall unfavourable foreign exchange impact.

    Meanwhile, the company’s sales on the mainland decreased 5.3 per cent during the quarter to €24 million. Same-store sales, however, eased by only 0.4 per cent year-on-year.
    The company had 195 stores on the mainland at the end of June, eight more than at the same time last year.

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