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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.

  • Boots to launch in south korea

    Boots to launch in south korea

    Walgreens Boots Alliance, Inc. (Nasdaq: WBA), the first global pharmacy-led, health and wellbeing enterprise, today announced that it has signed an agreement to form a franchise partnership with Emart Company Ltd (a member of Shinsegae Group), South Korea’s number one hypermarket retailer. Together, they will create a Boots branded pharmacy-led, health and beauty retail franchise in South Korea.

    Under the terms of the agreement, Boots branded stores will be opened in shopping malls, on high streets and within the outbound areas of Shinsegae department stores and Emart hypermarkets. The Boots stores will each feature an independent pharmacy and a range of Boots owned products and ‘exclusive to Boots’ brands as well as leading Korean brands.

    “South Korea is considered a leading market for skincare and cosmetics products in Asia today.  We believe there is a significant opportunity to extend the reach of Boots own brands into this market and are thrilled to be doing so with Emart,” said Ornella Barra Co-Chief Operating Officer of Walgreens Boots Alliance. “Emart is the preeminent retailer in South Korea and their strong experience as well as their marketing expertise gives us great confidence in the long-term potential of this partnership.”

    “We are delighted to have the opportunity to introduce the Boots brand, and offer pharmacy care as well as acting as a beauty and healthcare destination by also offering a wide range of both Korean and Boots product brands.” said Gab-Soo, Lee, CEO of Emart Inc.

    The first stores are expected to open before the end of the first half of calendar year 2017 and will include Boots highly regarded and exclusive No7 and Soap & Glory products.

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  • Lotte Department Store to Introduce 3D Foot-Measuring Device

    Lotte Department Store to Introduce 3D Foot-Measuring Device

    Korean retail giant Lotte Department Store revealed Thursday that it will implement a new 3D foot-measuring device at its stores starting Friday, to provide quick and accurate measurements for custom shoe orders.

    By placing his or her foot on the device, a customer will able to obtain not only their foot’s length, but its overall shape, including width and height, to gather more accurate sizing information.

    The conventional foot-measuring process can make customers feel uncomfortable, and usually takes two to three minutes. But the new device will shorten the process to two seconds using 3D scanning technology, according to a Lotte official.

    After having their feet measured, customers will select the shoe design of their choice, and a final pair of handmade shoes will be delivered to their doorstep in about two weeks. Upon request, customers can even have their foot size information mailed to them or saved in the store’s computer system, so they can place more orders in the future without having to re-measure their feet.

    The 3D device was developed in collaboration with Swedish start-up Volumental, and will first make its debut at the Tandy shoe store in Lotte’s flagship department store in Myeongdong. The service will expand to other shoe brands in department stores across the country starting July 29.

    Lotte Department Store also plans to launch a 3D virtual fitting service in the latter half of the year. The service uses a special mirror that provides a virtual reflection of the customer wearing clothing by applying a 3D image of the product to the customers’ body.

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  • ‘Thailand Shopping Festival’ to offer discounts

    ‘Thailand Shopping Festival’ to offer discounts

    “The economy in the second half should grow more strongly than in the first half. The government will launch many measures to stimulate growth, including the shopping festival to provide discounts for shoppers, and organise a low-price fair to help lower the cost of living,” Commerce Minister Apiradi Tantraporn said.

    The Thailand Shopping Festival will be set up at department stores, modern trade outlets, and retail and wholesale shops nationwide. Discounts of 20-40 per cent will be offered to consumers.

    Meanwhile many Otop (One Tambon, One Product) items and those made by small or medium-sized enterprises will be on sale at tourist destinations including Bangkok, Chiang Mai, Udon Thani, Nakhon Ratchasima, Ubon Ratchathani, Phuket, Surat Thani and Songkhla.

    The ministry will also organise a “Thong Fa Therd Phra Kiat” low-price fair to celebrate Her Majesty Queen Sirikit’s 84th birthday at Impact Muang Thong Thani. The event will offer discounts of 20-40 per cent for consumer goods, food, fresh fruits and vegetables, Otop and SME products, and those from projects initiated by His Majesty the King.

    The low-price fair will take place from August 4-7.

    Moreover, the ministry’s Support Arts and Crafts International Centre of Thailand will hold an “Innovation Craft Fair” as part of the Queen’s birthday celebrations from August 4-12 at SACICT in Bang Sai, Ayutthaya.

    Also next month, in a further bid to promote economic growth as well as help lower the cost of living, the ministry will work with the Employee Council of Thailand to conduct events selling cheap food and fast-food dishes at factories, industrial estates and government agencies.

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  • Indonesia sparkles as jewellery retail market

    Indonesia sparkles as jewellery retail market

    Indonesia sparkles in the jewellery retail market, according to a new report from Euromonitor International.

    Buoyed by growth in Asia Pacific, particularly China and India, jewellery will continue to be the best-performing category in the personal accessories segment, according to its research.

    Indonesia is expected to be the fastest-growing country in the world for jewellery sales with 7.8 per cent compound annual growth rate (CAGR) predicted until 2021. It is followed by India at 6.9 per cent.

    Euromonitor’s research shows that jewellery sales will be worth US$316 billion this year. It is the fastest-growing segment within the personal accessories industry with 3 per cent growth over the past year.

    Jewellery, including both costume and fine jewellery, had 15 per cent year-on-year growth of internet retail sales, reaching $19 billion this year, up from $9 billion in 2011. Fine jewellery’s 16 per cent growth in internet retailing beat out costume jewellery’s 12 per cent growth, with more fine jewellery retailers going online.

    “Technology is the answer for the future growth of jewellery and personal accessories,” says industry analyst Jasmine Seng. While global sales of personal accessories are growing at 2 percent, internet retailing is experiencing double-digit growth.

    The lowest performer in internet sales is the watch segment.

    “Facing competition from smartwatches, industry players should collaborate with wearable-technology innovators to drive organic growth for their companies,” says Seng.

    Personal accessories sales are forecast to have 4 per cent CAGR between now and 2021 to reach $633 billion.

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  • H&M sales rise, profit falls

    H&M sales rise, profit falls

    H&M sales rose 7 per cent in local currencies during the first six months of the financial year. But profit failed to follow suit.

    Converted into Swedish kronor, H&M sales rose by 5 per cent to SEK 104.9 billion, (US$12.176 billion).

    Karl-Johan Persson, CEO, said the sales increase in March and April was significantly below plan, negatively affected by cold spring weather in many markets. In May, sales were much better with an increase of 9 per cent.

    After tax profit was SEK 5.357 billion, (US$621.4 million) down 17 per cent year-on-year.

    “Profits in the second quarter have been affected by a continued negative US dollar effect, but also by increased markdowns and the costs of our long-term investments. The fact that the sales increase in the quarter was below plan, naturally also had an impact on profits,” he said.

    “It has been a challenging half-year for fashion retail in many markets, but we have great confidence going forward and are continuing to develop our offering further within all our brands.”

    H&M has opened nine new online markets so far this year – in Slovenia, Croatia, Estonia, Latvia, Lithuania, Luxembourg, Ireland, Japan and Greece. Canada and South Korea will follow later this year.

    The fashion retailer has more than 4000 physical stores in 62 markets with plans to add 425 more this year. New markets this year are Puerto Rico, New Zealand and Cyprus, while Colombia will be one of four or five new destinations next year.

  • Turnover falls for Sa Sa International

    Turnover falls for Sa Sa International

    Sa Sa sales are slowing, despite an improvement in Mainland Chinese visitor numbers.

    Retail and wholesale turnover for cosmetics retailer Sa Sa International Holdings fell by 5.7 per cent for the first quarter to June 30, according to unaudited data.

    Turnover dropped 5.4 per cent to HK$1384.9 million (US$178.585 million) in the Hong Kong and Macau markets, while same-store sales decreased by 4.8 per cent. While there were only slightly fewer transactions, their average value fell 5.7 per cent.

    In other markets, including China, Malaysia, Singapore and Taiwan as well as Sasa.com, retail and wholesale turnover dropped 7 per cent to HK$1717.1 million for the quarter.

    While still in decline, the group’s retail sales in Hong Kong and Macau recorded a notable improvement compared to the last quarter of the last financial year, the company attributing this to traffic growth of 2.7 per cent among mainland customers.

    “Their consumption continued to be on the weaker side, with spending declining by 6.4 per cent per transaction. Local consumption sentiment remained sluggish,” says the company.

    Improved sales performances were partially because of the group’s efforts to adjust product offerings to meet market demand.

    As at June 30, the company had 112 stores in Hong Kong and Macau, a drop of one from the start of the quarter. At 55, there were two fewer stores on the mainland, Singapore was steady at 23 stores, Malaysia’s 67 stores included had one more outlet, and Taiwan also lost a store for a total of 31. Overall, the company had 288 stores, down from 291.

    Sales performance during the period was affected by a series of factors, says the company, so the data for the period may not be able to reflect the overall performance of the reporting period.

  • Galleria Duty Free 63 opens in Seoul

    Galleria Duty Free 63 opens in Seoul

    Galleria Duty Free 63 has been officially opened – and it’s offering more than just duty free products.

    The new duty free store, located in Seoul’s iconic 63 Building, is operated by Hanwha Galleria, a subsidiary of Hanwha Group. Since its ‘Free Opening’ last December, the store has recorded daily average revenue of between 600 million and 700 million won, which the company expects to reach to 1 billion won (US$880,000) in the third quarter of this year.

    But what is most intriguing about the latest duty free branch is its 63 Building-based tourism content that visiting shoppers can take advantage of.

    The 63 Building, also owned by Hanwha Group, houses an observation deck overlooking the capital, and 63 Sea World, an aquarium that was recently renovated and renamed to AquaPlanet 63. Galleria Duty Free 63 has incorporated the building’s touristic elements and started operating tourism packages for its shoppers at the beginning of July.

    Hanwha Galleria also joined hands with Chinese conglomerate Wanda Group to establish a new marketing partnership. Wanda Group currently has some 120 million subscribers in China, and it will be joining Hanwha Galleria’s marketing campaigns to reshape the store into the next big tourist attraction for Chinese vacationers in Seoul.

    “Although the distribution industry has seen better times, we expect Hanwha Galleria to contribute to the Korea tourism industry with its distinctive duty free enterprise,” said Kim Seung-youn, CEO of Hanwha Group, who visited the store on Thursday.

    The new store currently features 540 brands, from luxury labels like Gucci, Coach, and Michael Kors, to brands that are exclusive to Galleria Duty Free 63, such as Stefano Ricci and Golden Goose. More brands including Chanel Cosmetics and Bottega Veneta will be joining the branch in coming months.

     

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  • Bruno Magli to launch in China and Japan

    Bruno Magli to launch in China and Japan

    Bruno Magli Hong Kong will launch in August as the Italian luxury brand signs partnerships in China and Japan, paving the way for a focussed Asian expansion.

    The luxury Italian fashion brand has signed new partnerships in Asia with Sitoy Retailing in China and Bruno Magli Partners in Japan. With these partnerships, coupled with its existing legacy business in South Korea, Bruno Magli believes is is positioned to become one of the leading luxury lifestyle brands in Asia.

    Sitoy Retailing will open the first Bruno Magli shop-in-shop in the Sogo department store at Causeway Bay in Hong Kong in August, to be followed by at least 15 mono-branded stores throughout China. In September, Bruno Magli Partners will launch an eCommerce business in Japan, a historic market for Bruno Magli loyalists. Physical stores will start to open from 2017.

    “Bruno Magli has a classic Italian heritage with 80 years in luxury and a reputation for unique design and quality craftsmanship” said Andrew Yeung, executive director and head of retailing at Sitoy Group.

    “With 55 years in Japan, Bruno Magli has built a brand synonymous with classic styling, quality craftsmanship, and exceptional comfort,” said Kyle Nakamura, president at Bruno Magli Partners.  “As investors, [we] are confident that Bruno Magli will continue to grow as a leading lifestyle brand in the Japanese market.”

    The Italian brand plans to launch an “extensive” fall/winter 2016 global advertising campaign, coinciding with the re-launch of Bruno Magli women’s footwear, with actress Lucy Liu as the category’s brand ambassador.

    Other new categories set to launch for holiday include men’s tailoring, men’s bags and small leather goods, men’s hosiery, women’s handbags, and men’s and women’s timepieces.

    “This is an incredible time for Bruno Magli,” said Cory M Baker, COO of Marquee Brands, parent of Bruno Magli. “As we celebrate the brand’s 80th anniversary, our expansion into China and Japan with these strategic partners will help solidify our global growth with an already loyal customer base.”

    Sitoy Group was founded by Michael Yeung in the 1970s and was listed on the Stock Exchange of Hong Kong in 2011. It has been actively developing the Greater China retail market since 2011 for Tuscan’s, a leather goods brand from Italy, with retail outlets in major cities including, Shanghai, Guangzhou and Chengdu, while simultaneously expanding a select distribution network into secondary and tertiary cities.

    Marquee Brands is a brand acquisition, licensing and development company, sponsored by Neuberger Berman Private Equity, which targets high quality brands with strong consumer awareness and long-term growth potential.

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  • Revenue up but profit down for Fast Retailing Group

    Revenue up but profit down for Fast Retailing Group

    Revenue rose but profit fell for Uniqlo parent The Fast Retailing Group for the first nine months of its latest fiscal year, from September 1 last year to May 31.

    Consolidated revenue for the group reached ¥1.4346 trillion (US$215 billion), a rise of 6.4 per cent year-on-year.

    For its three business segments, Global Brands saw both revenue and profit rise, while both Uniqlo Japan and Uniqlo International had more revenue but less profit.

    Foreign-exchange losses were down ¥43.4 billion to ¥23.4 billion, resulting in consolidated profit before income taxes dropping by a considerable 41.9 per cent.

    However, consolidated revenue rose 6.2 per cent and consolidated operating profit grew by 18.6 per cent, thanks to a recovery in performance at both Uniqlo Japan and Uniqlo International.

    The group continued to boost Uniqlo store numbers, opened global flagship stores and large-format stores in major cities, and also expanded its low-priced GU casual fashion brand.

    On the product side, Fast Retailing sought to boost awareness and visibility of the Uniqlo brand through collaborations with designers and artistic directors from other brands.

    In April, the company launched a next-generation distribution centre in Tokyo, and is pressing ahead with plans to open distribution centres elsewhere in Japan as well as internationally, starting in China and the US.

    There are also plans to accelerate GU store openings outside Japan.

    In Japan, the eCommerce segment continued to grow strongly, with online sales rising 40.6 per cent to 5.5 per cent of total sales. On-ground stores increased by two to 846 at the end of May, including 39 franchise stores.

    Recovery

    Uniqlo International’s revenue for the nine months reached ¥532.8 billion (up 10.6 per cent) while its operating profit of ¥42.2 billion was an 18.7 per cent fall. However, both revenue and profit grew in the third quarter (March to May) by 5.3 and 41.1 per cent respectively.

    Profits recovered for Uniqlo Greater China (including Hong Kong and Taiwan) while Uniqlo Southeast Asia and Oceania (Australia, Indonesia, Malaysia, Singapore, Thailand and the Philippines) continued both revenue and profit growth.

    Uniqlo South Korea continued to struggle, losing profits in the face of a sluggish economy and increasingly fierce competition.

    The total number of Uniqlo international outlets grew by 161 to 928 stores.

    Under its CSR policy, Uniqlo joined the Nippon Foundation opening the Tsurumi Children’s Hospice in Osaka in April. This is for children with life-threatening illnesses and is the first community children’s hospice in Japan.

    Following the Kumamoto earthquake this year, Fast Retailing provided emergency clothing for victims, donating 13,600 items such as underwear, socks and loungewear.

    WIth its global partnership with the United Nations High Commissioner for Refugees (UNHCR), helped collect clothing for refugees and displaced persons on World Refugee Day. A special project exceeded its goal of collecting 10 million articles of clothing with a total of 12.81 million items. This involved 112 affiliated companies in 846 locations, 238 educational institutions, 28 student organisations, and communities in 16 countries and regions in which Uniqlo has business.

  • Cool Kids Fashion featuring 70 brands

    Cool Kids Fashion featuring 70 brands

    Today’s Chinese kids are increasingly being dressed to a fashion.

    “The demand for the children’s wear in China has shifted from fulfilling basic needs to pursuing fashion and style,” says marketing director Aber of Shenzhen Perseus Brand Management, an exhibitor at Cool Kids Fashion Shanghai this week.

    “Nowadays, Chinese kids want to look ‘cool’ and ‘chic’, so we have incorporated these elements into our products.”

    Differentiation by style, branding and marketing has become more important as demand rises, says Kidswant Children Products product centre director Pinky Lu. “Low prices are no longer effective in securing market share; conversely, the ability to suit personal taste differences is becoming more important.”

    More than 70 global fashion brands will be showcasing their latest product at the third edition of Cool Kids Fashion Shanghai, being held concurrently with CBME China from July 20 to 22.

    Fierce competition

    With fierce competition in the children’s fashion market in China, brands are constantly pushing out new products, says Baodaxiang Shopping for Kids Group procurement manager Yanjing Wang. “The new generation of consumers is more interested in style, brands and value for money.”

    Among the brands at Cool Kids Fashion will be B. Duck (Hong Kong), CCILU (Japan), Cocolico (France), Lab by Baby (Korea), Metro Kids Company (Portugal), Mim-Pi (Netherlands), Overkids (Italy), RIA (Spain), Shadez (Switzerland) and Tip Toey Joey (Brazil). The event will bring together distributors, department stores and property developers, franchisees and fashion buyers.

    There will also be events highlighting trends, creativity, innovation and talent.

    Trend forum speakers include WGSN creative director Zhang Yiling and H&M visual merchandising manager Raj.

    Twenty shortlisted aspiring designers out of 1035 contestants will have their designs and creations displayed at the Kids Design Contest Gallery, followed by a runway showcase.

    Brands featuring in the fashion shows include Angel’s Face (UK), BabyBol (Spain), Blaa (Finland), Maya (US), PennyScallan (Australia) and Teddy Doctor (China).

    Meanwhile, CBME China will showcase baby, child and maternity products. The two shows will cover 223,305 sqm, featuring 3673 brands from 2366 suppliers, at the National Exhibition and Convention Center (NECC) in Shanghai.

    Design is one of the most important factors when parents buy children’s clothing, according to the UBM China Baby Products Market Consumer Research Report 2015.

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  • chuang x yi concept store by lukstudio in shanghai

    chuang x yi concept store by lukstudio in shanghai

    chuang x yi concept store by lukstudio in shanghai

    lukstudio’s ‘modular lilong’ was developed at the behest of value retail china to showcase ‘chuang x yi’ — a fashion platform for chinese designers. the 150 sqm site, located in yioulai shanghai village, is organized around meandering lanes, or lilong, a system that allows creative displays in areas with spatial constraints. this concept, in part, is what gives shanghai its signature streetscape.

    lukstudio07-designboom
    ‘chuang x yi’ concept store
    images © dirk weiblen

    ‘lilong’, interpreted by lukstudio, results in a modular interior that can be easily disassembled and re-located to other locations. pieces are based on architectural features and textures often found in a ‘lilong’ including old stone ‘shikumen’ gates; visualized in smooth, rounded corners in displays. laundry lines become copper-coated clothing racks, and bamboo rattan is utilized as dividers.

    lukstudio06-designboom
    rattan serves as dividers in the store

    the retail experience of ‘chuang x yi’ offers a visual dialogue between interior and urban environment, combining many layers into a cohesive structure. lukstudio’s work is a journey of discovery that connects historical shanghai architecture and the consumer culture of today.

    lukstudio05-designboom
    interior by lukstudio


    seating and structural display

    lukstudio04-designboom
    grid layout


    interior

    chuang x yi concept store lukstudio shanghai china
    display cube

    lukstudio03-designboom
    axonometric

    lukstudio02-designboom
    floor plan

    project info:

    name: chuang x yi: the modular lilong
    client: value retail china
    location: shanghai village, 88 shendi east road, pudong new area, shanghai, china
    net area: 150 sqm
    interior & lighting design: lukstudio
    team: christina luk, marcello chiado rana, alba beroiz blazquez
    display furniture & custom lighting: TIWU design
    lounge furniture: lost and found, MRT
    timeline: jan. – feb. 2016
    construction: mar. 2016
    general contractor: centroid construction
    photography: dirk weiblen

     

     

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  • Valentino heading into India

    Valentino heading into India

    Italian fashion house Valentino is about to enter India, joining a growing list of luxury brands changing their focus to a buoyant retail scene far from the slowing Chinese economy.

    Valentino is reportedly dealing with IDFS Tradings and is also in talks with DLF Luxury Retail.

    Over the past few months, French luxury leather-goods maker Longchamp, Italian bespoke menswear brand Isaia and Swiss watch brand Bovet have been launched in India.

    One commentator says the possibilities of an omni-channel strategy is among factors attracting top brands to India.

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  • LVMH affiliate invests $50m in Clio

    LVMH affiliate invests $50m in Clio

    L Capital, an affiliate of luxury brand group LVMH, will invest US$50 million in Korean cosmetics company Clio, which aims to go public by the end of this year.

    Clio will issue redeemable convertible preference shares to be taken over by the investment company, and an official agreement for this pre-IPO investment will be signed next week.

    After almost two decades of mediocre turnover since its establishment in 1997, Clio’s sales surged to 107 billion won ($93.07 million) last year with an operating profit of 22.5 billion won, boosted by an appearance on a popular TV show. Its total market value after IPO is expected to be more than 1 trillion won.

    L Capital ventured into the Korean corporate world two years ago by investing 60 billion won in YG Entertainment, becoming the second-largest shareholder of one of the top three entertainment companies in Korea.

    Its second choice of Clio reflects the growing demand in Asia, particularly China, for K-beauty products.

    Korean cosmetics exports to China alone last year were worth $1.09 billion, double the value of the previous year and coming in second to French cosmetics.

    US cosmetics company Estee Lauder last year became a major shareholder of Have and Be, the parent company of Dr Jart, while Goldman Sachs’ private equity fund took over Carver Korea, which owns AHC, for 520 billion won this year.

  • New ambassador sings praises of Gucci Asia

    New ambassador sings praises of Gucci Asia

    Chinese actress/singer Chris Lee is Gucci Asia’s new ambassador for timepieces and jewellery.

    The fashion giant says Lee was chosen for her personal style, which is in “absolute harmony” with Gucci creative director Alessandro Michele’s philosophy of self-expression.

    CHRIS-LEE-JEWELLERY-AMBASSADOR_SP_3_300dpi-1200x800

    “I have been captivated by Michele’s collections since he became creative director as they are original and joyful,” says Lee.

    For her first official photoshoot, the celebrity wore items from Gucci’s fine timepieces and jewellery collections. For watches, she modelled the GG2570, named in homage to Michele’s lucky number (25) and Gucci’s hallmark decade, the ’70s. She also wore the G-Timeless automatic, which features decorative bees, a heart and stars on the dial.

    For jewellery, Lee promoted pieces from the Icon Fine Jewellery Collection, including rings, bangles and a matching pendant chain necklace in 18-karat pink gold and white enamel. In an update, small flower and leaf motifs have been added to Icon’s engraved “G” motif.

    Gucci says the campaign launches across Asia this month.

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  • Weather dampens Mothercare sales

    Weather dampens Mothercare sales

    Baby care specialist retailer Mothercare has reported a reasonable set of results for its Q1 trading, with UK sales declining by 2.1 per cent, reflecting an unsuccessful battle against unseasonable weather conditions.

    UK like-for-like Mothercare sales were up by 1.2 per cent, although this represents a slight slowdown on growth, impacted by a reduction of store space.

    As Mothercare continues to focus on its turnaround, it must establish a loyal customer base, appealing to all ages through social media engagement and exemplary customer service. As part of this turnaround, Mothercare continued its refurbishment of stores this quarter, with this a key component of its modernisation plan to improve the customer shopping experience, and ultimately entice young mothers back to its stores.

    Mothercare is also working to improve its online proposition as part of its aim of becoming a ‘digitally led business’. Over the quarter, online sales grew by 6.4 per cent, while mobile now represents 84 per cent of online traffic.  Innovation of its app is proving to be highly successful, with additions to differentiate it from the mobile site, such as Baby Tunes (songs and white noise for babies), helping to create a more interactive experience.

    International exposure remains volatile, although sales were strengthened this quarter by the timing of Ramadan, which fell entirely in Q1 this year. In spite of this impressive growth, Mothercare must remain cautious in light of the UK’s decision to leave the EU, with this development likely to impact trading globally. Hedging in both the dollar and royalty receipts should limit the impact on the weakening of the pound, allowing Mothercare to see further sustained growth this financial year.