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.

  • Gucci sorry for warning to Hong Kong funeral offering shops

    Gucci sorry for warning to Hong Kong funeral offering shops

    Gucci and its parent company apologized Friday after drawing heavy criticism for warning some Hong Kong shops not to sell paper offerings for the deceased that resembled the fashion brand’s luxury products.

    The brand and its Paris-based owner, Kering, also said in a statement that they regretted any misunderstanding caused by the letters, which were sent to six shops last month.

    After meeting with the shop owners, “Kering and Gucci would like to reiterate their utmost respect with regards to the funeral context,” the statement said.

    In Hong Kong and some other parts of Asia, people burn paper offerings at funerals and during grave-sweeping festivals for deceased relatives to “use” in the afterlife.

    Specialty shops near funeral parlors sell a diverse array of paper offerings, including bundles of “hell money,” mansions, iPhones, cars, cigarettes and designer handbags, cans of beer and soda, mahjong tables and dogs and cats.

    The letters, which were sent as part of the companies’ global intellectual property protection efforts, did not suggest legal action or compensation because they did not believe the shop owners intended to infringe on the Gucci trademark, the statement said.

    Gucci operates 11 boutiques in Hong Kong and is one of the brands most coveted by shoppers, including many visiting from mainland China, where luxury goods are more expensive because of higher taxes.

  • Hong Kong Sees Signs of Improving Retail Sales

    Hong Kong Sees Signs of Improving Retail Sales

    The latest figures show retail sales in Hong Kong continued falling in March. However, signs of improvement are in sight, with sales of drugs and cosmetics rising slightly.

    However, the biggest question on the minds of many in Hong Kong is how long the overall downturn in Hong Kong’s economic fortunes is going to continue.

    Retail sales in Hong Kong have been suffering through a year-long contraction, the longest decline since 1999. Overall retail sales are down around 10 percent in March compared to a year ago. However, March’s figures are far better than the 20-percent drop in sales registered through February.

    Through the first quarter of this year, retail sales in Hong Kong have fallen 12.5 percent compared with the same period last year. The Hong Kong government attributes the severe drag on retail sales to the slowdown in inbound tourism.

    However, there are some signs of life for the struggling city. The just-concluded three-day May Day holiday saw tourism numbers from the mainland come in 10 percent higher than most observers had been forecasting.

    At the same time, cosmetics firm Sasa has registered a slight growth in same-store sales. Cheng Wai Hung, Head of Hong Kong’s Retail Management Association, says even though there are signs of improvement, retailers still need to do more to keep people buying.

    “Retailers know it is hard to run businesses this year, so stores will start promotions earlier than usual to make up for the losses. It is likely that we will see sales starting from this month. Even some big brands will follow suit.” However, Banny Lam, co-Head of Research at Agricultural Bank of China International Securities, believes retail sales in Hong Kong are not likely to pick up in the short term.

    “I believe the rate of decline will narrow a little bit, but it won’t be a significant change, and sales won’t get back to positive territory any time soon. The current economic environment is rather weak, which has led to a sluggish overall retail performance. Another factor that’s worth noting is that the Disneyland in Shanghai is going to open soon. So the question is, is this going to affect Hong Kong’s tourism? ”

    At the same time, Deputy Director of Hong Kong Department Stores and Commercial Staff General Union, Tung Cheong Sing, says retailers in Hong Kong have to transform their business models to appeal to the changing demands of mainland tourists.

    “For example, stores should be selling middle or low-range priced watches, rather than luxury ones. Despite a decline in rents, many stores may have to close down some of their branches to adapt to the new environment.”

    Even though times have been tough for Hong Kong retailers, some are performing better than others.

    One store selling Japanese products has witnessed a 30 percent spike in sales through the first three months of this year.

    Store Manager Chuang Tin Chi says they’ve been able to keep their finger on the pulse of what’s been trendy this year.

    “There have been a number of movies released over the past couple of months which have featured a wide range of digital, video products or cell phone accessories. So to capitalize on that, we order in these products right away into Hong Kong from Japan, which has significantly increased our sales.”

    One bright spot for Hong Kong retailers has been the recent rise in the value of the renminbi to the US dollar, as the Hong Kong dollar remains pegged to the value of the greenback.

    This means mainland shoppers are getting a more favorable exchange rate when converting from the yuan into Hong Kong dollars, which may prompt more shoppers to cross the border.

     

  • Under Armour in trademark fight with Uncle Martian

    Under Armour in trademark fight with Uncle Martian

    Uncle Martian, a new competitor for sportswear brand Under Armour in one of its main markets, China, is in hot water for co-opting the US company’s logo.

    Under Armour uses a U over an inverted U that intersect to form a stylised A. Uncle Martian has the same two-U configuration, but the letters do not touch.

    Apparel manufacturer Tingfei Long Sporting Goods in Fujian province, in southeastern China, is the company behind the new brand, which is offering shoes in its first foray into athletic wear.

    Executive Huang Canlong says the brand aims to be associated with “comfort, excellence and innovation”. He told Shoes.net.cn he wants to create a high-profile brand with “high standards”.
    Out of Baltimore in the US, Under Armour has seen its sales in China almost triple in the first quarter of this year compared with the same period last year.

    Meanwhile, Chinese consumers have been criticising Uncle Martian for its blatant hijack of the Under Armour logo.

    “How come you can’t even design a logo? All you do is plagiarise – don’t you feel it’s disgusting?” one critic wrote on Weibo.
    Another Weibo user, Zhang Gemeng, has pointed out that such blatant copying goes against the national policy of encouraging homegrown creativity.
    “Don’t blame people when they say they look down upon domestic brands,” wrote another user, indicating the move as a “loss of face” for China.

    Under Armour, of course, is also unamused and is pursuing “all business and legal courses of action” according to spokesperson Diane Pelkey.

    “Uncle Martian’s uses of Under Armour’s famous logo, name and other intellectual property are a serious concern and blatant infringement.”

  • Esprit sales flat

    Esprit sales flat

    Reporting “flat” revenue for its third quarter, Hong Kong-listed clothing retailer Esprit Holdings points the finger at negative growth in its Asia Pacific stores, as well as weakness in its wholesale channel.

    There was a marginal decline of 0.1 per cent in Esprit sales for the three months but the company continued to benefit from improved product performance, as well as improved marketing and channel operations.

    Retail revenue (63.3 per cent of the group’s income) grew 3.1 per cent year-on-year, primarily driven by the European region.

    Particularly encouraging for the group was the continuation of the positive trends in several areas. The women’s divisions (including Esprit and EDC branded products) had retail revenue growth of 6.6 per cent for the quarter; plus comparable stores sales growth (including online) was up 10.3 per cent; while online sales totalled HK$984 million (US$126.8 million) – 35.4 per cent of the group’s retail revenue and an increase of 11.7 per cent.

    Performance, meanwhile, was still weak in Asia Pacific (15.2 per cent of the group’s revenue), with revenue tumbling 15.3 per cent.

    Esprit says the performance of Asia Pacific continued to be undermined by a combination of unfavourable macro-factors, including volatility in the financial markets, weak consumer sentiment amid the slowdown of economic growth in China, and reduced tourist flow in the region.

  • Estee Lauder to axe up to 1200  jobs

    Estee Lauder to axe up to 1200 jobs

    Beauty giant Estee Lauder has announced a multi-year initiative named Leading Beauty Forward to build on its strengths and better leverage its cost structure to free resources for investment to continue its growth momentum.

    The plan involves the reduction of between 900 and 1200 jobs – about 2.5 per cent of its workforce – and restructuring on a number of fronts aimed at saving US$250 million to $300 million in overheads.

    “Leading Beauty Forward is designed to enhance the company’s go-to-market capabilities, reinforce its leadership in global prestige beauty and continue creating sustainable value,” the company said in an announcement coinciding with its latest quarterly financial results.

    Globally, net sales for the company’s third quarter to March 31 totalled US$2.66 billion, a 3 per cent increase compared over the $2.58 billion in the prior-year quarter. Net earnings were $265.6 million, down on the $272.1 million of last year.

    Fabrizio Freda, president and CEO of Estee Lauder, said: “We are launching this initiative from a position of exceptional strength. With the aid of our 10-year compass, we are proactively anticipating long-term industry trends and positioning our brands in more promising and faster growing areas. Leading Beauty Forward should further position us better to continue winning on a complex global stage and generate savings to help sustain our long-term sales growth and margin progress.

    “This initiative is expected to provide further resources to invest in brand growth, increase speed-to-market and flexibility in resource allocation, and better leverage growth for continued profitability improvement,” he concluded

    Leading Beauty Forward will begin during the company’s current quarter. Specific initiatives are expected to be approved through to the end of the 2019 fiscal year and be complete by 2021. Key actions include:

    • Better leveraging growth through cost savings, more scalable processes and organisational design;
    • Redesigning select areas of the company’s go-to-market brand, region and affiliate organisations to strengthen capabilities in areas such as digital and retail;
    • Redesigning and restructuring select corporate functions that support the company’s brands, channels and geographies through the development of scalable global and regional shared services with a more efficient cost base;
    • Investing in brand growth, such as new products, social media, communications, in-store merchandising, point-of-sale activities and advertising.

    The company expects to take restructuring and other charges of between $600 million and $700 million, before taxes, consisting of employee-related costs, asset write-offs and other costs associated with implementing these initiatives.

    Estee Lauder said the job cuts will take into account the elimination of some positions, retraining and redeployment of certain employees and investment in new positions in key areas.

  • Lady Gaga & Elton John launch Macy’s line

    Lady Gaga & Elton John launch Macy’s line

    Lady Gaga, Elton John and department store chain Macy’s have launched a limited edition clothing range for charity.

    Love Bravery is described as “a high-spirited, limited-edition line of clothing and accessories that inspire compassion and combat prejudice”. Available as part of Macy’s American Icons campaign, Love Bravery spans several categories, including shirts, sweats, outerwear, clutches, backpacks, scarves, beanies, keychains, pins, and even speakers, water bottles and skateboards, all rendered in vibrant graphic prints and designs that fuse both artists’ renowned musical talent and style.

    love-bravery-gaga-elton-04

    “It’s an honor to team up with Sir Elton John to create this line with Macy’s,” said Lady Gaga. “We need to make the world a kinder and braver place where men and women everywhere are empowered to live with compassion. That’s what Born This Way Foundation is all about, that’s what the Elton John AIDS Foundation is all about, and that’s what Love Bravery is all about.”

    “I love the idea of fusing who you are on the inside – your passions and dreams – with what you wear on the outside,” said Sir Elton John.

    “Love Bravery is about the compassion on the inside to understand someone’s fears, and the bravery on the outside to stand up for them, and for yourself: to accept others for who they are and to be who you want to be. It’s what I’ve tried to do in my life, my career and with the Elton John AIDS Foundation, and it’s a passion Lady Gaga and I share. So I’m thrilled we are collaborating on this project and delighted Macy’s understood our dream to connect with people this way.”

    Created in collaboration with Lady Gaga’s sister, Natali Germanotta, and designer Brandon Maxwell, the limited line boasts fresh crop tops and sleeveless tees in stark black-and-white, while heather sweatshirts with tonal graphics and tops with metallic lettering are edgy updates to the athleisure trend. Oversized scarves with piano key prints and artistic interpretations of Lady Gaga’s face are stylishly offbeat, and neoprene backpacks that say “Love” and also have piano key prints are super cool must-haves. With enamel pins and patches in the shape of moto jackets, electric guitars, microphones, platform shoes and Lady Gaga’s infamous claw, the options to show off your inner little monster are endless. Clutches in the shape of sunglasses, pianos and hearts are unapologetically fun and sassy.

    “In addition to being deeply talented musical artists, Lady Gaga and Sir Elton John are champions of self-love, courage, empathy and kindness, and Love Bravery represents all of those tenets,” said Martine Reardon, Macy’s chief marketing officer.

    “We are so proud to present a line that is not only fun and bold, but also stands for something so meaningful and important. The work they do through Born This Way Foundation and the Elton John AIDS Foundation is invaluable and truly changes lives, and Macy’s is honored to partner with them to spread the message of love and acceptance.”

    Born This Way Foundation is committed to supporting the wellness of young people and empowering them to create a kinder and braver world by shining a light on real people, supporting quality research, and fostering meaningful partnerships focused on social emotional learning (SEL) and mental health awareness and resources. The Elton John AIDS Foundation raises much-needed funds for evidence-based programs that give people the information and tools to protect and care for themselves and those they love – challenging stigma, reducing the spread of HIV and preventing people from getting sick or dying of AIDS.

    The foundations brought together a diverse array of young people to showcase the Love Bravery apparel and will be sharing content from that campaign this spring. The limited-edition line with Macy’s is the first in a series of activations which are planned for the coming months to make people feel proud of who they are.

    Love Bravery will be sold exclusively at Macy’s this spring, with 25 per cent of the purchase price benefiting Born This Way Foundation and the Elton John AIDS Foundation, and will be available globally later this year. All donations from the limited-edition line, on sale through August 30, will be made to Born This Way Foundation, which will use 50 per cent to support the Elton John AIDS Foundation.

  • WearYouWant advises start-ups to add profitability to execution strategy

    WearYouWant advises start-ups to add profitability to execution strategy

    WearYouWant, Thailand’s leading online fashion and beauty marketplace is advising start-ups to have a clear strategy toward profitability as investors are now demanding it and that the e-commerce space in SE Asia is currently experiencing an exciting time.
    At the Last Mile Fulfilment Asia (LMFAsia) Conference & Exhibition 2016 held in Singapore last month which brought together  retailers, e-commerce businesses, logistics and parcel industry professionals, CEO and Co-Founder of WearYouWant Martin Toft Sorensen said there was considerable discussion on how start-ups should focus beyond just team, product and market to become successful.
    “Start-ups should have a clear path and strategy towards achieving profitability by scaling the business without forgetting the life time value of the customer versus cost per acquisition,” pointed out Sorensen.
    “If e-commerce businesses simply follow a desire to climb user acquisition heights quickly without keeping an eye on the ROI, there is a higher risk of a greater fall. Penetration from online platforms can go far, wide and deep but the trajectory needs to be based on running a business that brings money for investors, shareholders and other stakeholders in the near future.”
    Echoing this advice is Thailand’s e-commerce guru, Pawoot Pongvitayapanu, CEO and Founder at efrastructure inc. and Managing Director and Founder of TARAD.com, who also attended the business platform event. 
    Sorensen advises that in addition to creating a viable business model that balances cost of acquiring customers with the ability to monetize the lifetime value of a customer, start-ups should also be creative in how to attract and keep customers. 
    While many e-commerce sites are reporting high sales growth, the reality is that they may not be showing any profitability, said Sorensen. 
    “In Thailand, we have yet to see any e-commerce companies proving they can scale and yet become profitable.
    The recent acquisition of Rocket Internet’s fast growing, yet loss-making e-commerce site Lazada by Chinese e-commerce giant Alibaba, and Zalora (Thailand and Vietnam) by Central Group, has definitely created waves in the e-commerce industry”.
     Martin (left) and Pawoot (right) at LMF Singapore Mar2016_RS
    Sorensen says that while Lazada will pave the way for Alibaba to penetrate into SE Asia in a market leader position, it remains to be seen whether Zalora’s acquisition by a traditional offline retailer will kick start true omni-channel experiences in Thailand.
     
    Sorensen adds that this is an exciting time particularly for e-commerce companies and start-ups in general, as well as for investors. 
  • Hermes sales rebound

    Hermes sales rebound

    Hermes sales rebounded globally in the first quarter of this year, exceeding analysts expectations.

    But the best news seems to be from Hong Kong where the French luxury goods label reported sales had “stabilised” after last year’s serious decline.  Sales fell in Macau, Hermes said, without providing further details.

    In the broader picture, the company saw respite in its home market after shoppers began to return to stores following the nervousness fuelled by the terror attacks late last year.

    Hermes sales for the quarter rose 6.2 per cent on a constant currency basis, to reach 1.19 billion euros (US$1.35 billion)

    CEO Axel Dumas said during an earnings call that the fallout from the terror attacks – in both Brussels and Paris – was still hurting luxury goods retailers. Footfall had returned to normal in Milan and London, but remained down in Paris, causing a 9.2 per cent drop in sales of ties and silk scarves in the quarter.

    Leather goods was the only category to show a rise in sales – a healthy 15 per cent.

    “There’s a lot of volatility,” Dumas said. “We have to adapt to circumstance.”

  • BritishIndia store closes with a flourish

    BritishIndia store closes with a flourish

    Thousands of BritishIndia Malaysia customers grabbed a bargain as they farewelled the fashion store in Suria KLCC over the past week.

    BritishIndia farewell sale

    The fashion brand’s farewell sale offered 50 per cent off all items, ending its presence in the mall since 1998.

    BritishIndia farewell

    Built from scratch in Malaysia more than 20 years ago, BritishIndia now has more than 40 stores, in shopping centres in Singapore, Thailand and the Philippines.

    There is still a presence in Malaysia, with stores in 1Utama Petaling Jaya, Bangsar Shopping Centre, Mid Valley Megamall, Pavilion Kuala Lumpur, Publika Kuala Lumpur, SACC Mall in Shah Alam and Sunway Pyramid.

    Meanwhile, the brand says it is seeking further expansion overseas.

    The brand has been embroiled in a long drawn-out court case with Suria KLCC management over it lease terms.

  • Raoul Singapore closes last store

    Raoul Singapore closes last store

    The last Raoul Singapore boutique has closed its doors as creator FJ Benjamin decides to focus on wholesaling.

    Raoul, positioned as an affordable luxury brand, began life as a menswear brand back in 2002 before expanding into women’s fashion – because women shoppers were buying smaller sized men’s shirts to wear themselves.

    At one point, it had boutiques as far afield as Melbourne and London and became a beacon for the Singapore fashion industry in a market dominated by European fashion labels.

    Raoul closed its Paragon store on Orchard Rd in February, unwilling to pay the rents demanded.

    The founding premise

    When your business model is built around retailing products designed by others – as FJ Benjamin has for more than 50 years – your fortunes rise and fall with those brands and the head office decisions in other countries. That was a major part of the motivation to launch Raoul, which met with success very quickly.

    Over its first 50 years, FJ Benjamin held Singapore or regional rights to brands as diverse as Gucci, Gap, Manchester United, La Senza, Fendi, Goyard, Celine, Givenchy, Banana Republic, La Perla, Naomi Campbell, Valentino, Nautica, Victorinox and Rado. But after the financial crisis, it pulled back from high end labels to focus more on lifestyle brands.

    “In business you have to be nimble. We thought ‘OK, lifestyle has done well for us. Let’s continue’,” Douglas Benjamin, the company’s COO, told a presentation attended by Inside Retail Asia back in 2010.

    The Raoul brand was conceived on a trip by Benjamin to London.

    “The company had always been franchising and representing brands from other companies. My father was a strong believer we needed to have our own brand. In 2003 we bought some shirts from some expensive stores and after three to four months I was wearing shirt and the cuffs were fraying, buttons coming off.”

    What if they could produce shirts that looked as high in quality, but actually lasted?

    “We decided to develop a men’s shirt label. We’d get the best quality material and make it in Asia and if you give a man a choice, he will buy.”

    So Raoul – the French name for Ralph – was launched through stores in Singapore, Malaysia and Indonesia. The first store combining both ranges opened its doors in 2007 and a flagship in the classic Paragon shopping centre on Orchard Rd in 2009. Later, stores would follow in Mainland China and the Middle East.

    Raoul is by no means finished despite the closure of the Singapore stores. A concession continues to trade at Robinsons department store on Orchard Rd and the company will now concentrate on wholesaling with a particular focus on the US, UK and Middle East. Among the UK stockists of Raoul are Harrods, Harvey Nichols and Liberty of London. Saks and Neiman Marcus in the US and KaDeWe in Germany also stock Raoul, further underlining the brand’s fashion cachet.

    Despite its high profile globally, Singapore seemingly cannot sustain a flagship store. As a saddened fashion designer Sabrina Goh of fellow home-grown brand Elohim By Sabrina Goh told the Straits Times this week: “Raoul has always been seen as a sound brand with years of industry experience, and financial and production clout. It really just illustrates how tough the current Singapore retail market is.”

  • Multi-brand Korean cosmetic shops thrive

    Multi-brand Korean cosmetic shops thrive

    Korean cosmetic shops that sell various brands under one roof have steadily expanded their presence across the country, giving sophisticated customers more options, according to industry sources.

    AmorePacific, South Korea’s No. 1 cosmetic company, operates about 1350 multi-brand stores, called Aritaum nationwide, which offer a wide selection of its products, including such mass brands as Laneige and IOPE. The company also operates single brand shops such as Innisfree and Etude House in the lower-end and Sulhwasoo and Hera in the higher-end segment as part of a two-track strategy.

    Also showcasing multi-brands are beauty and health care stores, such as CJ’s Olive Young and its smaller rival Watsons, which have expanded and enjoyed growing popularity among urban youngsters.

    To catch up with the latest trend, local cosmetic companies have launched multi-brand cosmetic shops in major retail strips.

    LG Household & Health Care Ltd., the nation’s second-largest cosmetic maker, launched a multi-brand shop called Nature Collection, in February, operating 11 stores in major retail strips in Seoul. The store features brands that focus on a natural look, including The Face Shop and Beyond.

    “Nature Collection is promoted through word-of-mouth, with various products and promotional events,” a company spokesman told Yonhap news service.

    Able C&C, which created the boom for the single brand shop with Missha, has recently opened a multi-brand shop called Beauty Net on a popular street in Seoul to display a wide range of select products.

    Beauty Net Korea store

    Industry officials say multi-brand shops are effective in improving customer convenience and brand management and promotion, providing easier access to new brands.

    “Expansion of these multi-brands provide the other brands with more chances to be introduced to customers,” said an Able C&C spokesman.

  • New lifeline for sagging Rocket Internet fashion sites

    New lifeline for sagging Rocket Internet fashion sites

    Investors have injected US$339 million lifeline into GFG, which owns the struggling Rocket Internet fashion websites.

    Rocket Internet and others have sunk the euro 300 million into its Global Fashion Group, raising GFG’s valuation to €1 billion – which is about a third of what it was worth hardly a year ago, when it raised €150 million.

    Launched in Luxembourg in 2014, GFG is a holding company formed from a merger of five eCommerce fashion companies – India’s Jabong, Latin America’s Dafiti, Russia’s Lamoda, Middle East firm Namshi, and Zalora (Southeast Asia and Australia).

    GFG acting CEO Romain Voog says the financing will provide the group with the capital it needs to continue with its strategy of “building out its leading position” in the online fashion sector in emerging markets.

    Rocket claims GFG’s performance has improved in the past year, easing its losses and raising its adjusted EBITDA margin. But it has been struggling to gain market share, and pulled out of Thailand and Vietnam, one of the fastest-growing eCommerce and internet markets in Asia.

    And GFG’s Jabong business in India, considered the next big market after China, has reportedly been up for sale for months with its valuation eroded by a tenth in just a year. Meanwhile, rival eCommerce companies like Flipkart and Snapdeal have soared in value.

    Voog is optimistic the reduced losses combined with this funding round will help accelerate the GFG’s path to profitability while it expands. A third of the €300 million raised came from Rocket. Swedish investor Kinnevik was also involved, along with existing shareholders.

  • Fossil Asia all set to enter wearable segment

    Fossil Asia all set to enter wearable segment

    As a part of its exercise to strengthen its foothold in the Indian market, watch and accessories brand Fossil is looking not just at penetrating with mono brand retail stores but also introducing its wearable lines which marries technology and fashion.

    The company said it is also going from strength to strength in increasing its presence in the third party e-commerce sites even as it considers setting up its own e-commerce platform following the government’s recent change in rule regarding FDI in e-commerce.

    “Retail and especially, e-commerce, is growing in India. It is only a matter of time when a large chunk of purchases will happen through it. We are piloting our platform but it will be non-transactional for the time being. We may look at transaction from it after regulatory approvals sometime later this year,” Jack Quinlan, Senior V-P, Asia Pacific, Fossil Asia Pacific.

    The company said it is also looking to scale up its mono brand retail stores.

    Aims for 25 stores

    “Our own stores here have struck growth for us. Indian market is growing in double digits. In India, we have 14 mono brand stores. We are looking to take that to 25 in the next few years,” he added.

    Fossil India is the 100 per cent subsidiary of the global brand. It had previously sold through multi-brand retailers. However, following approval of its single brand retail licence, the company had set up its mono brand stores. It has so far committed an investment of $4.5 million (₹30 crore) in the Indian market for retail, Quinlan said. To attract consumers into the affordable luxury brand, the company is will be introducing its wearable line by August-September and it will be priced around $275, he added.

    According to data, smart watches and smart brands is a growing market. Gartner predicts that by the end of 2016, smart watches will constitute about 40 per cent of wearable devices for the wrist. It is estimated that seven out of the top ten smart phone vendors have either entered or are planning to enter the wearable space. Several watch makers have also joined the fray.

    In India, Fossil sells its watches, leather goods and jewellery. “We are also looking at multi-brand retail to bring in more products,” he added.

    Asked if the company is looking at sourcing or manufacturing in India, Quinlan said the company has a sourcing for its leather goods, and factory in Himachal Pradesh for its watches.

     

  • Why Singapore is deemed as the failure market for Decathlon

    Why Singapore is deemed as the failure market for Decathlon

    French sporting house Decathlon is a relatively young player in the local retail scene, opening up its store earlier this year. The brand entered the retail scene at a point many established players were pulling out.

    The launch came after it had already established an e-commerce practice for nearly two and a half years to “painstakingly” understand and collect consumer data from the market. It is safe to say when Decathlon started up in Southeast Asia, the public did not really know it was a sports retailer.

    This, admits Clarence Chew (pictured) , head of marketing and communications at Decathlon, was one of the biggest problems.

    “E-commerce is not easy and was a struggle when you are selling products that people don’t actually need. People didn’t care about us. If they saw online that the product was too cheap, they would think it isn’t of quality; too expensive, and they wouldn’t want to spend. So our problem was how do we tell customers we are here?” he said, at a recent event hosted by OgilvyOne called “Delivering consumer value in an era of Disruption”.

    The brand decided to be part of the discovery process using a multi-channel approach. It was wherever consumers were looking and ensured it was part of the consumer journey.

    What also helped Chew in this process was the senior management was able to see e-commerce as part of the customer journey and not as a separate entity from the retail function. As such the goal was more synergistic.

    He added, “It wasn’t a push but rather a pull factor for us that drew customers.”

    Another big sigh of relief for Chew was when he was able to successfully convince the senior management to make Singapore a “failure market” for the brand and  use it as a test bed for all things new and shiny in the digital landscape. After all, failure is vital to any great discovery and innovation. He said:

    “In Singapore, I can do whatever I want with any budget I want. And I will not be blamed if it fails.”

    Chew explained the country was chosen for its dense and diverse population. The city-state structure worked to the brands’ benefit and there was a healthy mix of old and young and locals and expatriates. This helped the brand see the contrast between old school marketing tactics and new shiny toys and figure out what really works.

    “Singapore  is a nice drawing board. Chances are if it works here, all the other countries like Malaysia and Indonesia will all eventually embrace it,” he added. But for every other country, clarified Chew, he would still need to meet the regular KPIs and carry out customised marketing.

    Bringing change internally

    Another challenge Chew faces, is getting people on board to try new ideas. He said:

    “Even if you have a CEO willing to adopt stuff, you have many other people in the organisation who don’t know and don’t care or won’t agree.”

    Agreeing with him was panelist Tony Menezes, VP of Cognitive Solutions at IBM, who also added that the country’s safe nature helped companies come up with creative solutions and ideas without as high a fear of intellectual theft. Ultimately even if technology is available, companies need to be willing to embrace it.

    “Companies need to recognise the disruptive idea will come from day to day interaction with customers and employees. Figure out how to tap into that source,” Menez said.

    For IBM, even today, the company is holding a new contest cognitive bill where employees came up with ideas to make the company a cognitive company across industries. IBM has 50 ideas from it which will come down to 10 to potentially explore.

    Ultimately if the culture of innovation has to be embraced across all levels from top to front-line in a company. When asked by the audience if building relationship is tough in a disruptive world, he said:

    “Brands that have an affiliation with consumers and communicate clearly how they plan to protect personal data, will earn the trust of consumers.”

    He explained that the commonalities amongst the many brand hacks and online breaches in recent years show that leading companies address the problems head on and share a direct strategy  with consumers rather than sit idle.

    “If consumers know that when they opt in they will get something in return from the brand and the brand is clear about it, they will get more trust.”

    And sometimes the best way to do this is to ask. As Todd Kurie, VP of marketing at RedMart, who was also on the panel said:

    “Even relatively old-school tactics like surveys can go a long way to show you are listening”

    He added the brand is a huge believer in simply asking consumers what they want.

  • Maui Jim to introduce new glass styles in Singapore

    Maui Jim to introduce new glass styles in Singapore

    Premium sunglass company Maui Jim will introduce four new super-thin glass styles to its collection at next month’s TFWA Asia Pacific exhibition.

    The company said the new glasses were 20% and lighter than conventional glass lenses, comfortable to wear, boasted excellent scratch and solvent resistance and offered the best optics available.

    Maui Jim Ocean is available in various colour combinations: Tortoise with Peacock nylon frame and HCL Bronze lenses; Tortoise with Raspberry and Maui Rose lenses and Grey Tortoise Stripe and Neutral Grey lenses. The lenses in this style only are MauiGradient, lighter at the bottom than top. This is to protect the eyes and make reading easier.

    Popoki, is a similar shape but slightly smaller and constructed in Satin Monel metal. The vintage silhouette is complemented by acetate temples in burgundy, green and blue mottled colour combinations. The frame base colours are satin dark gunmetal with Maui Rose lenses; satin chocolate with HCL bronze and satin black with neutral grey.

    With a trendy oversised frame to suit men and women with slightly larger faces, Rising Sun is crafted in lightweight nylon for comfort. Three colourways are offered: Burgundy stripe with Maui rose lenses; matte tortoise with HCL bronze; classic matte black with neutral grey.

    The more masculine Snapback is a classic wayfarer sunglass style, constructed in light nylon with the same high clarity ST lenses. Available in matte black, matte tortoise, grey tortoise and green stripe with complementary lens colours, this style is designed to suit every face shape, indicated Maui Jim.

    The company said: “All Maui Jim sunglasses have PolarisedPlus2 lenses which wipe out 99% of glare, manage 95% of HEV and block 99% of harmful UV while boosting colours to unmatched levels. They have been recommended by The Skin Cancer Foundation as an effective UV filter for the eyes and surrounding skin.”

    Maui Jim will be located K9 Basement 2 at TFWA Asia Pacific.