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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.

  • Ralph Lauren closing stores as sales see slump

    Ralph Lauren closing stores as sales see slump

    Ralph Lauren is closing stores, cutting jobs and focusing more on its most popular brands to try to reverse its declining fortunes.

    Shares of the fashion company tumbled 4 percent Tuesday.

    The changes are the first big moves from CEO Stefan Larsson, who replaced company founder Ralph Lauren in the role late last year. Lauren is still executive chairman and chief creative officer of the fashion and home decor business he created.

    The New York company, known for its polo shirts and pony logo, plans to close more than 50 stores, or about 10 percent of its total retail stores. It will let go approximately 1,000 of its 15,000 full-time employees, or almost 7 percent.

    It will focus more on its three best-selling brands — Ralph Lauren, Polo and Lauren — and devote fewer resources to its smaller ones, such as Chaps and RLX. The company also hopes to produce its clothing faster, cutting six months from the production process to make it nine months.

    Ralph Lauren expects the restructuring to save it between $180 million and $220 million a year. That’s on top of $125 million in cost cuts from last year. It expects to incur restructuring charges of up to $400 million for the year and inventory-related charges of up to $150 million.

    For the current quarter, it expects revenue to fall in the mid-single digits and fall in the low double digits for the year.

    Shares of Ralph Lauren Corp. fell $4.12, or 4.3 percent, to $92.21 in morning trading Tuesday. Its shares are down about 30 percent in the last year.

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  • Under Armour app gets personal with fitness freaks

    Under Armour app gets personal with fitness freaks

    Under Armour has launched UA Shop, a mobile app dedicated to elevating the consumer shopping experience built on the Under Armour Connected Fitness platform.

    Under Armour appIntegrating data from the world’s largest digital fitness community allows the Under Armour app provides “a deeply personalised experience” based on athlete inspiration, workout history and previous purchase history. UA Shop is available for download on the App Store and will be available soon on Google Play.

    “UA Shop is the next step in our connected fitness evolution as Under Armour becomes a true Math House,” said Jason LaRose, senior VP, revenue, at Under Armour. “This app was created to maximise our digital platform and complement our existing in-store experiences by bringing consumers a way to find the products they want, when they want it. We are now able to provide custom experiences across our various categories specific to our diverse customer base.”

    The UA Shop app will bridge the brand’s digital communities with Under Armour’s core business – performance apparel, footwear and equipment. UA Shop will connect consumers to the right gear driven by data through in-app recommendations. For example, a consumer living in a warmer climate who has logged several runs through MapMyRun might be exposed to UA CoolSwitch apparel and running footwear, a technology that pulls heat away from the skin and allows the user to feel cooler, longer. Meanwhile a customer in the Northeast who prefers hiking might see the latest Armour baselayer and outerwear. The Under Armour app is the only retail app on the market powered by the health and fitness information of more than 170 million members worldwide.

    UA Shop is also the first app in the Under Armour Connected Fitness suite that will launch with the new Under Armour Account – the creation of a single profile for all Under Armour apps. Members of UA Record and MapMyFitness can sync their existing account information to UA Shop, with MyFitnessPal and Endomondo integration being added soon. Additional features of UA Shop include one-touch purchasing with Apple Pay, expanded product content and customer reviews, and apparel tag scanners for enhanced in-store experiences.

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  • Perfumer’s Workshop finds its niche in Asian travel retail

    Perfumer’s Workshop finds its niche in Asian travel retail

    Niche fragrance specialist Perfumer’s Workshop International (PWI) is looking to make a move into travel retail locations in Malaysia, Sri Lanka and India following feedback from buyers at this year’s TFWA Asia Pacific Exhibition in Singapore.

    PWI Founder Donald Bauchner said his company’s success at the show was due to the “dramatic increase in awareness and attention to niche in general, and for oud concepts specifically”.

    Tea Rose w Petals High Res

    Tea Rose and Amouroud: two of Perfumer’s Workshop International’s signature lines

    Bauchner said PWI was considering domestic market openings for its Amouroud line in Singapore, South Korea, China, Indonesia, Malaysia, Bangladesh and Pakistan and is negotiating travel retail opportunities in Malaysia, India, Sri Lanka, Abu Dhabi and Russia.

    PWI’s oud-based Amouroud line will make its debut at London’s Harrods department store on 15 July. “We are very excited about our launch at Harrods,” said Bauchner. “Of course it will impact our travel retail opportunities within the UK. However we are not certain whether we would prefer to start travel retail and duty free in the UK at airports or inflight. Consumer profile will likely decide the issue but only once the timing itself is right,” he added.

    PWI added two new fragrances, Midnight Rose and Miel Sauvage, to its Amouroud range which was presented in Singapore and extended its Samba Metallics line.

    Samba Metallic Range.HR

    Samba Metallics is based on a colour preference influencing fragrance preference concept

    “The Samba Metallics concept actually does work,” Bauchner said. “The interest at the show was very good. However we targeted our presentations to only those distributors who are actual ‘trend-setters’ in their regions.”

    PWI’s Zipped Man, targeting “fashion-conscious young ‘trendies’”, and Parfum Tea Rose were also highlighted in Singapore.

    Speaking at the TFWA Asia Pacific Exhibition, Bauchner said he predicts further growth for niche brands in Asia. “Generally niche customers do not want something that other people are wearing. They are not looking for a new signature scent. They are hunters, looking for a scent that they are not going to find everyone else wearing,” he said.

    “What will be interesting to see will be the eventual relationship between niche and prestige fragrance in Asia. There is a possibility that niche in Asia will eventually occupy as large, or a larger, section of the fine fragrance local market than in Europe  because what we refer to as ‘Western fine fragrance’ came late to Asia and therefore remains a far smaller market than elsewhere.

    “We believe that our Amouroud collection will perform very well in Asia because we are attuned to many Asian fragrance sensibilities: refinement, beauty, unique fragrance character, long lasting and qualitative packaging.

    “Asia was late coming to niche products and even later developing an interest in oud. But, hey, we are here. We have a wonderful concept that is proving to be well liked,” Bauchner concluded.

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  • Shiseido buying US-based Gurwitch Products

    Shiseido buying US-based Gurwitch Products

    Japanese cosmetics company Shiseido has agreed to buy US-based Gurwitch Products from Alticor.

    This move would add the Laura Mercier and ReVive brands as the 140-year-old cosmetics giant seeks growth overseas in the luxury anti-aging products market.

    Its American unit will lead the acquisition, Shiseido says, without disclosing terms. The transaction is scheduled to close in the third quarter of this year.

    Gurwitch had sales of US$175 million (about ¥19 billion) in its latest financial year.

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  • Uniqlo sales bounce back

    Uniqlo sales bounce back

    Uniqlo sales have bounced back from decline, giving parent Fast Retailing a much-needed round of good news for May.

    Same-store Uniqlo sales in Japan rose 5.9 per cent year-on-year, even though customer traffic fell 3.6 per cent. The average purchase increased by 9.9 per cent to make up for the customer shortfall.

    Total sales including online increased by 7.6 per cent.

    The figures show only trading in Uniqlo’s Japan division.

    Analyst Masafumi Shoda of Nomura Securities said in a research note that Fast Retailing’s sales decline appeared to have bottomed.

    “While jogger pants remained strong, trendy merchandise such as women’s t-blouses and embroidered t-shirts also emerged as drivers. Another contributing factor was the successful expansion of the mainstay Airism line to bottoms. Even factoring out the boost from the customer appreciation sale at the end of the month, signs are beginning to emerge that the company is successfully asserting leadership on both price and fashion.”

    But Shoda said profitability will be likely to decline both overseas and in Japan in the March to May period, due to retooling, “but we think it will improve in June to August thanks in part to the likelihood of a rebound from prior-year results dampened by unseasonable weather”.

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  • KFit Holdings moves into Indonesia with Groupon

    KFit Holdings moves into Indonesia with Groupon

    Malaysian health and fitness company KFit Holdings is about to enter the Indonesian market after signing a deal to acquire eCommerce company Groupon Indonesia.

    For an undisclosed amount, the acquisition will see KFit enter Indonesia with Groupon as a wholly owned subsidiary. The transaction is expected to be completed in the third quarter of this year.

    Groupon Indonesia has more than 1 million subscribers and 15,000-plus local merchants.

    “The combination of Groupon Indonesia’s established presence and KFit’s experience in building a mobile-first platform will propel us in a high-growth local commerce market, further accelerated by increasing mobile penetration,” says KFit CEO/founder Joel Neoh.

    “While KFit will continue to focus on health and fitness services, this presents a strategic direction for us to enhance and broaden our offerings. In the long run, this acquisition will provide us with a strong platform for growth in Southeast Asia.”

    KFit is an online subscription platform that provides users access to fitness studios, classes and gyms in various cities across Asia. Since its launch last year, it has extended its offering to include beauty and wellness, and launched its pay-per-use KFitGo. In the past six months, KFit users have reserved more than 400,000 activities. Today, one reservation is made every minute on the KFit platform.

    KFit founder Joel Neoh also founded Groupon Malaysia, in 2011, going on to head Groupon Asia-Pacific.

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  • L’Occitane to expand to China’s lower-tier cities

    L’Occitane to expand to China’s lower-tier cities

    French skincare brand L’Occitane has revealed its plans to expand into China’s lower-tier cities through e-commerce, in particular Tmall, an online platform for branded goods operated by Alibaba Group Holding.

    The company revealed that it has a marketing partnership with the online platform to meet China’s emerging middle class, who are creating growing demand for imported premium products.

    According to Andre Hoffmann, L’Occitane’s vice chairman and managing director of Asia-Pacific, opening new physical stores in China’s second and third-tier cities would help create brand awareness.

    The group reported that mainland China was its largest source of growth last year, with sales in the country growing 16.8 percent, contributing nearly 30 percent to the company’s overall growth. The company saw an 8.9 percent rise in sales to USD1.45 billon over the 12 months ending in March.

    Meanwhile, L’Occitane held off on plans to expand in Hong Kong and Macau due to the declining numbers of Chinese tourists visiting the two regions. The company revealed that it will be shutting down a store in Hong Kong in September, following a recent closure of one of its shops in Macau.

    “Now [that] mainland tourist numbers are shrinking, maybe we don’t need so many stores to do the same level of business,” said Hoffman in a Nikkei report.

    L’Occitane is planning to continue adding to its 187 stores in 65 cities across mainland China. Some 50 stores, which are set to open globally later this year, will be in mainland China, Japan and South Korea.

    While Hoffman noted that all stores in Hong Kong have been “profitable,” he admitted that the retail market has been “very challenging in the past 18 months.”

    The vice-chairman revealed that its current strategy is to focus more on local costumers, adding, “The mainland tourists are just like the cherry on top of the ice-cream sundae.”

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  • Giorgio Armani Asia suffers in China

    Giorgio Armani Asia suffers in China

    Italian fashion house Giorgio Armani Asia is the latest luxury retailer to cite greater China as the cause of a downturn in sales.

    Burberry and Hugo Boss have also been hit by China’s economic slowdown, leading to Hugo Boss cutting its prices in Asia.

    Armani says revenues grew 4.5 per cent last year, a 16 per cent drop from the year before. Revenues totalled €2.65 billion (US$ 2.95 billion). Prada had sales of €3.55 billion.

    The Milan-based group, whose products include accessories, cosmetics and furniture, and the more affordable Armani Exchange range, says earnings before interest, tax, depreciation and amortisation edged up 1 per cent to €513 million last year, from €507 million in 2014.

    Despite the slowdown, the firm says its cash reserves of €640 million allowed it to step up investments in its brands to “further strengthen its competitive market position”.

    “These results are the outcome of an attentive diversification policy for the group’s lines, paired with the co-ordination of distribution channels and enhancement of the role that our trade partners play,” says president Giorgio Armani, who founded the company in 1975. The 81-year-old designer is still actively involved in the business.

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  • Christian Lahoude Studio designed the 60-square-meter Jimmy Choo store in Hong Kong

    Christian Lahoude Studio designed the 60-square-meter Jimmy Choo store in Hong Kong

    Christian Lahoude Studio designed the 60-square-meter Jimmy Choo store in Hong Kong’s luxury LANDMARK shopping mall, updating the existing space with the refreshed brand identity. The double-height, glass façade, with a large light box display, attracts the mall traffic into the shop. The framed glass façade was designed without molding, providing the setting for the custom window displays and a clear view into the retail environment.

    Upon entering the store, visitors are greeted by the central display feature conceived by the Studio to best make use of the small footprint and to create circulation through the shopping space. Standard design elements that convey sophistication and luxury, deployed globally in the Jimmy Choo concept, include gold mesh, white Carrera marble, plush grey carpet and velvet fabric for the seating.

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  • Michael Kors acquires Greater China licensee

    Michael Kors acquires Greater China licensee

    Michael Kors is pleased to announce that the Company has completed the acquisition of Michael Kors (HK) Limited, the exclusive licensee of the Company in China and certain other jurisdictions in Asia, on May 31, 2016, for $500 million in cash, subject to certain adjustments.

    The acquisition was approved by the independent members of the Company’s board of directors, upon recommendation of a Special Committee, comprised of solely independent directors, which was responsible for evaluating the terms of the acquisition. The Special Committee retained independent legal and financial advisors to assist in evaluating and negotiating the terms of the acquisition and the Purchase Agreement. The Greater China business generated total revenue of $197 million for the year ended March 31, 2016, and had a network of 91 company operated retail stores and six travel retail locations, across China, Hong Kong, Macau and Taiwan. For fiscal year 2017, the Greater China business is expected to contribute approximately $200 million to retail net sales, reflecting sales for the ten month period following the closing of the acquisition. The acquisition is expected to be neutral to earnings per share on a GAAP basis, and accretive to earnings per share on a non-GAAP basis, excluding $15 million of one-time acquisition costs. The acquisition is expected to be accretive to earnings per share in fiscal 2018 and thereafter.

    “We are very excited about the acquisition of our Greater China licensee,” says John D. Idol, Chairman and Chief Executive Officer. “As you know, we have worked diligently over the past several years, with our licensed partner in this region, to build the infrastructure, establish the brand, and grow acceptance of Michael Kors in the Chinese market. We believe that our brand is gaining strong momentum in Greater China, making it the ideal time for us to integrate this territory into our business and capitalize on the enormous growth potential in this region.”

    USE OF NON-GAAP FINANCIAL MEASURES

    This release includes certain non-GAAP financial measures relating to certain one-time costs associated with the acquisition of the Greater China licensee. The Company uses non-GAAP financial measures, among other things, to evaluate its operating performance and in order to represent the manner in which the Company conducts and views its business. The Company believes that excluding non-recurring items helps its management and investors compare operating performance based on its ongoing operations. While the Company considers the non-GAAP measures to be useful supplemental measures in analyzing its results, they are not intended to replace, nor act as a substitute for, any amounts presented in its consolidated financial statements prepared in conformity with U.S. GAAP and may be different from non-GAAP measures reported by other companies.

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  • 10-week Great Singapore Sale starts last Friday

    10-week Great Singapore Sale starts last Friday

    The Great Singapore Sale (GSS), which starts on Friday (June 3), has been extended from eight to 10 weeks this year to cater to tourists from the region.

    And for the first time, UnionPay International cardholders will get extra perks during the sale, under a new three-year partnership between the payment network and GSS’ organiser, the Singapore Retailers Association (SRA).

    SRA said the sale, now in its 23rd year, has grown into an “all-encompassing” event with offers at both online and offline stores, ranging from fashion and dining to beauty and wellness, hotel stays, sightseeing tours and visits to attractions. The sale also stretches from Orchard Road to Marina Bay, Sentosa Harbourfront and the heartlands.

    There are no “official” participants of the GSS, as merchants do not need to formally register or sign up with SRA to take part. All merchants who offer special deals during the sale period are considered participants of GSS, said SRA.

    The extension of the sale period to 10 weeks – for the last 12 years, GSS stretched over eight weeks – is to better cater to tourists from Asia-Pacific countries whose summer holidays fall in the June to August period, said SRA’s executive director Anthony Gan.

    He added that the sale, which ends Aug 14, will still coincide with the school holidays in June and the regional peak travel seasons in July, as with previous years.

    UnionPay International also replaces MasterCard Singapore as the new official card of GSS. This means UnionPay cardholders can get exclusive privileges at over 100 retailers here during this year’s sale.

    “With a base of over 5.4 billion UnionPay cards issued worldwide and an acceptance rate of over 80 per cent at various retail, lifestyle and food and beverage establishments in Singapore, we are confident that our partnership with UnionPay International will bring substantial benefits to the GSS, participating merchants and consumers,” said Mr Gan.

    Consumers who shop at GSS stand to win a record of over $200,000, with SRA giving out $100 each – in the form of a UnionPay prepaid card loaded with the cash – to five shoppers daily, while those who pay with UnionPay cards stand to win an additional $500.

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  • Ugg Asia to take on new store concept

    Ugg Asia to take on new store concept

    American footwear retailer Ugg’s new global retail store concept – part of the brand’s largest re-launch in 37 years – will be introduced in Ugg Asia outlets this year.

    Coinciding with the 10th anniversary of Ugg’s New York flagship store in SoHo, the new 263 sqm retail concept store opened at Disney Springs, Walt Disney World Resort, Florida.

    The store was designed by Checkland Kindleysides to be scalable so it can fit different formats from wholesale to showroom spaces.

    The concept honours the footwear’s history, says Stefano Caroti of clothing/footwear giant Deckers Brands, which owns Ugg.

    UGG Disney Springs 1

    “The inspiration came from the Californian roots of the brand, its connections to nature and its modernist vibe – a sense of stylish living that’s both ‘off duty’ and ‘on air’,” says Checkland Kindleysides creative director Joe Evans.

    “The store offers a relaxing social environment that radiates the Ugg brand’s luxurious warmth, engages through sensorial brand storytelling and invites you to enjoy the good things in life with good people.”

    Meanwhile, the new look will roll out in Shanghai and Tokyo toward the end of this year.

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  • Korean showcase for Luk Fook Holdings

    Korean showcase for Luk Fook Holdings

    Hong Kong jewellery group Luk Fook Holdings International has opened a retail outlet at the Shinsegae Main Store in Seoul.

    Korea’s first department store, Shinsegae opened in 1930 and has become a tourist attraction.

    Luk Fook chairman/chief executive Wong Wai Sheung says it is hoped the group’s outlet in the store will help develop overseas markets and further improve its brand recognition globally.

    Luk Fook has more than 1420 shops, in Australia, Canada, China, Hong Kong, Korea, Macau, Singapore and the US.

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  • Michael Kors result ‘disappointing’

    Michael Kors result ‘disappointing’

    At headline level Michael Kors has ended its fiscal year on a strong note with total revenue up by 10.9 per cent, underpinned by a robust increase of 22 per cent in retail sales.

    However, most of the uplift is thanks to the fact the company opened some 142 new stores over the past year and has also expanded its online operations. When these are factored out, underlying growth is anemic – rising just 0.3 per cent over the prior year.

    Such a soft comparable number is disappointing, especially as it comes off the back of a very weak comparative in the prior year when same-store sales dropped by 5.8 per cent. Licensing revenue also shrank, down by 13.6 per cent on a year-on-year basis. That growth only came from expansionary activities rather than from underlying productivity gains shows on the bottom line where net income fell by 3.5 per cent.

    Michael Kors’ numbers are also something of a mixed bag on a regional basis. In North America, which remains the company’s biggest market, revenue rose by a respectable, but fairly modest, 4.6 per cent. Europe came in slightly stronger with a 15.6 per cent increase, but Asia was the star of the show with a 216.4 per cent increase over the prior year. This variance is no coincidence and reflects the differences in maturity of the Michael Kors brand in terms of both physical coverage and saturation levels with consumers. That said, even with the variances, Michael Kors is showing a much better growth story than many rival brands, including Coach.

    While North America remains in growth Michael Kors will struggle to boost its sales in the US over the next few years, mainly because consumer interest in the brand seems to have peaked. It is notable that Nordstrom has started to cut back on Michael Kors inventory, while a number of other department stores are offering heavy discounts on its product. This underlines the continued issues of saturation and ubiquity in the home market.

    This dynamic means it is fortunate that Michael Kors has other regions to turn to for growth, with Asia having the most potential. Here we are encouraged that Michael Kors has acquired Michael Kors (Hong Kong), which was previously a separate operation licensed to sell into China and a number of other Asian countries. This will, allow the business to ramp up the pace of expansion in the region and, over the medium term, boost earnings potential. That said, in the short term investments in new openings and marketing are likely to act as a brake on bottom line growth, as indeed will the continued impact of the strong dollar.

    Given that it will take time to ramp up growth in Asia, and that pressures at home continue, the start of the new fiscal year is likely to see a slight dip in comparable sales accompanied by a deterioration in profit.

    Longer term, the outlook is more positive as Michael Kors reaps the benefits of its growth program.

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  • Major Asia investment for Michael Kors

    Major Asia investment for Michael Kors

    Michael Kors has paid $500 million in cash to acquire Michael Kors HK, the exclusive licensee of the company in China and certain other jurisdictions in Asia.

    Approved by independent members of the company’s board of directors, the acquisition is subject to adjustment.

    The greater China business generated total revenue of $197 million for the year ended March 31, with a network of 91 company-run retail stores and six travel retail locations across China, Hong Kong, Macau and Taiwan.

    This fiscal year, the greater China business is expected to contribute about $200 million to retail net sales, reflecting sales for the 10-month period following the closing of the acquisition.

    Michael Kors chairman/CEO John Idol says the company is excited about acquiring its greater China licensee. “We have worked diligently over the past several years with our licensed partner in this region to build the infrastructure, establish the brand and grow acceptance of Michael Kors in the Chinese market.

    “We believe our brand is gaining strong momentum in greater China, making it the ideal time for us to integrate this territory into our business and capitalise on the enormous growth potential in this region.”
    CEO Neil Saunders of retail research agency Conlumino says the acquisition will allow the business to ramp up its pace of expansion in the region and, over the medium term, boost earnings potential.

    “It is fortunate Michael Kors has other regions to turn to for growth, with Asia having the most potential.”

    An award-winning designer of luxury accessories and ready-to-wear fashion, Michael Kors established his namesake company in 1981. Michael Kors stores can be found in Seoul and Tokyo.

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