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.

  • China ripe for AmorePacific

    China ripe for AmorePacific

    AmorePacific, South Korea’s largest cosmetic company, has reaffirmed its commitment to China, seeing further room for growth in the rising middle-class consumers there, the firm said Thursday.

    AmorePacific has shown stellar performance in China with a range of luxury and low-end brands, thanks to the rising popularity of Korean drama and pop. It logged 5.66 trillion won (US$4.93 billion) in sales last year, up 20.1 per cent year-on-year.

    The Korean multinational owns the cosmetics and retail brands Etude House, Laneige, innisfree, and sulwhasoo, among others.

    “By 2020, the middle class population is expected to reach 500 million, and its size and influence will greatly expand in the next decade,” AmorePacific CEO Suh Kyung-bae said during a monthly meeting with senior officials earlier this month.

    While Beijing has applied non-tariff barriers, such as those on ingredients and the approval of foreign brands, Suh expects the focus of regulations will move to distribution to curb counterfeit items and the grey market.

    “However, the tightened retail regulations will have a limited impact on companies that have already established distribution channels in the Chinese market,” Suh said.

    While fledgling cosmetics producers have bloomed over the past years, Suh expects it will take time for them to match the level of its technology and brand power.

    “We will have to keep an eye on the growth of emerging local companies, but brand power is not something they can get in a short period of time,” he said.

  • The 23rd Hong Kong Fashion Week for Spring/Summer Curtains Up in July with Debut Women’s Wear and Knitwear Zones

    The 23rd Hong Kong Fashion Week for Spring/Summer Curtains Up in July with Debut Women’s Wear and Knitwear Zones

    The 23rd HKTDC Hong Kong Fashion Week for Spring/Summer (FWSS) will be staged from 4-7 July 2016 at the Hong Kong Convention and Exhibition Centre with Women’s wear and Knitwear as debut zones to optimize buyers’ sourcing selection. The premium fair in the region is expecting around 1,200 worldwide exhibitors. Previous edition attracted 16,000 buyers from 65 countries and regions.

    Popular thematic zones return

    Private or house labels have become increasingly effective marketing tools among fashion industry players to differentiate and upgrade the image of products. Emporium de Mode in FWSS is a dedicated premium section dedicated to promote elegant fashion brands. Fashion Gallery is an ideal platform to display brand labels and high fashion while the International Fashion Designers’ Showcase showcases unique designer brands for potential clients. Under the four major categories of Apparel, Upstream Supplies, Fashion Accessories and Technology and Business Matching, zoning will be fine-tuned to Footwear, Leggings & Socks, Eyewear, Hair Accessories & Headwear, Belts and Ties and Embroidery & Sewing Supplies to offer one stop platform to best catering buyers’ demand. Other popular zones will return with splendour, including Activewear & Sportswear, Intimate & Swim Wear, Children’s Wear, Men in Style, Denim Arcade and Fabrics & Yarn. Qualified exhibitors are awarded a “Green Solution Suppliers” insignia on their booth fascia to address the growing demand on eco-friendly apparel.

    China market remains resilient

    Chinese mainland market continues to be a driving force for Hong Kong Fashion industry. As of 29 Feb 2016, Hong Kong’s total exports of clothing & clothing accessories to mainland and Macau rose 2.2% and 8.8% respectively to $1.42 billion and $504 million. According to HKTDC’s research, mainland consumers generally find Hong Kong clothing brands trendsetting, fashionable and tasteful. They are willing to pay an average premium of 36% to purchase Hong Kong branded garments. Hong Kong Fashion Week for Spring/Summer serves an effective springboard for traders to expand their business in mainland and Asian market.

    “This fair is the right place for us to gain exposure to meet buyers. Buyers from the mainland and Australia are especially keen to source from us,” said Martens Yiu, Managing Director of Deut St. Limited which is expanding Chinese market. Stationed in Hong Kong, the company has been an exhibitor of Hong Kong Fashion Week for Spring/Summer for consecutive 3 years, reflecting its confidence on HKTDC’s marketing platform for business promotion.

    Neon Garden as fair theme

    With the theme of Neon Garden, a series of fashion house shows and runway parades will go alongside the Fashion Week to reinforce Hong Kong’s position as Asian fashion trendsetter. HKTDC offers business matching services, networking receptions, seminars and buyer forums during fair to provide a perfect platform for industry players to exchange market intelligence and explore new business opportunities. WGSN and Fashion Snoops are invited to talk about market trend. The Small-Order Zone is available for buyers sourcing from 5 to 1,000 pieces.

  • Lululemon figures shroud ‘weakness’

    Lululemon figures shroud ‘weakness’

    Lululemon’s final quarter numbers look fairly solid on the surface, especially when compared to the rather lacklustre performance during the prior quarter.

    However, while there has been a pickup in sales momentum, the underlying figures continue to show signs of weakness.

    At headline level, net revenue from the Canadian athleisure wear retailer rose by an impressive 17 per cent. Most of this was propelled by the 62 new store openings across the fiscal year. There is nothing inherently wrong with this and, indeed, we would argue that it underlines the latent opportunity Lululemon has to increase its fleet across many geographies. However, the slight issue is that such expansion has come at the expense of profit growth, which at net income level rose by a subdued 6 per cent during the quarter.

    Margin was also eroded by another contributor to growth – direct sales. On a year-on-year basis direct sales grew by 28 per cent during the period to stand at just over a fifth of all company sales. Such a rise comes off the back of the continued traction of online and, as such, is aligned with consumer demand. However, we also believe the direct sales model to be marginally less profitable than sales made via stores – a fact reflected in the margin position which has fallen slightly compared to last year.

    As much as new stores and online have made positive contributions, the growth from physical stores is less impressive. Revenue from this channel grew by a paltry 1 per cent, certainly an uplift on the flat position of last quarter but still worryingly slow considering that many stores in the fleet are still relatively new. The meagre rise is made all the worse by the fact that prior year comparatives, when sales rose by 2 per cent, are relatively soft.

    Part of the reason for slower store sales growth is down to the stronger dollar. On a constant currency basis store sales rose by a more pleasing 5 per cent, but even so this remains a long way below the growth of other channels and somewhat below the growth rate for athleisure as a whole across the fourth quarter.

    While Lululemon should be applauded for its efforts around direct sales, its stores should be working much harder. There is still plenty of growth left in the athleisure segment and stores remain, for many consumers, become an important touchpoint for advice, inspiration and information. On these fronts Lululemon has more work to do on the in-store experience. This is especially so in light of a much more competitive marketplace in which players like Under Armour are rolling out more experiential stores.

    Looking ahead, the Lululemon brand remains strong, especially among its target market. However, while loyalty is relatively solid among its core constituency it also needs to look outside of this group if it is to drive growth. One area of opportunity is the push into more embryonic areas like men’s and teens. However, while Lululemon has made some good progress, the brand still has a somewhat limited appeal to many of these groups, and there is much more work to be done in making the brand connect with new segments.

    In the year ahead, Lululemon will continue to make progress on the sales front, however underlying sales will be fairly weak. The market for athleisure is unlikely to slow down any time soon, but it is now much more difficult to grow simply because there are so many players vying for share. Against this backdrop Lululemon needs to focus on refreshing its brand, both to draw existing shoppers back to its stores and attract new and lucrative consumers.

  • Plukka Debuts a Pop-Up in New York City

    Plukka Debuts a Pop-Up in New York City

    Plukka, which launched as a flash-sale website for made-to-order fine jewelry, is getting increasingly serious about bricks-and-mortar retailing. The Hong Kong–based company, which opened freestanding stores in Hong Kong and London in 2014 and 2015, respectively, has debuted a pop-up store at the Jack Vartanian store on Madison Avenue.

    And the roughly 600-square-foot space is, according to Plukka founder Joanne Ooi, “a preliminary step to opening a permanent NYC boutique in the future.”

    She adds, “It’s Plukka’s objective to be the first truly global multi-brand designer and fine jewelry retailer, so having a presence in the U.S., and specifically New York City, is a fundamental part of our mission. New York contains a hugely disproportionate share of both clients and influencers, so we consider the city a crucial beachhead location.”

    Plukka made news last year for launching a program that delivers up to $15,000 of merchandise to existing clients in New York City and Hong Kong—so they can shop in their homes.

    Plukka’s New York pop-up, which will run for two months, will feature ”designers not available in New York City,” says Ooi, whose picks for the temporary shop include pieces from L’Dezen by Payal Shah, Ashu Malpani, Sidney Chung, Baer Jewels, and Tana Chung. “We represent and work with many designers who are already in this market,” including Suzanne Kalan, Hoorsenbuhs, Yeprem, and Wendy Yue.

    “But the whole point of our very large stable of incredibly talented designers is that we can show different designers in different markets, depending on tastes, interests, demographics, and buying patterns,” she explains. ”We are using this pop-up to make the point that we are truly the premier discovery machine for the world’s most creative fine jewelry.”

  • Miniso stores set global retail record

    Miniso stores set global retail record

    Japanese fashion retailer Miniso has enjoyed explosive growth across Asia, last year raking in sales revenue of more than RMB5 billion (US$769.9 million).

    Launched in Tokyo by designer Miyake Jyunya and Chinese entrepreneur Ye Guofu just three years ago, the company has since opened more than 1400 stores internationally. Its expansion last year is believed to have set a global retail record.

    It aims to continue its growth this  year, aiming at RMB10 billion in sales.

    Offering fashionable and casual products, Miniso has as its brand philosophy “high quality, low price and full of texture”. Its prices range from 10 to 29 yuan, with a wide range of target consumers.

    It first focused on store design and decoration to attract attention, following up with high service levels. The linking of decoration, service, quality and economy is termed “four goods” by Miniso.

    As well as clothing, Miniso offers creative home necessities, health and beauty products, fashion jewellery, office supplies, stationery gifts, seasonal items and even food and drink – more than 10,000 lines altogether.

    Miniso stores can be found throughout greater China and in Dubai, Hong Kong, Italy, Macau, The Philippines, Singapore and the US.

    Jyunya graduated from Japanese Bunka Fashion College along with two other international brand founders, Issey Miyake and Zenzo Takada.

  • PGI: Platinum Jewellery Weathers Difficult Conditions Favorably in Key Markets

    PGI: Platinum Jewellery Weathers Difficult Conditions Favorably in Key Markets

    Platinum Guild International (“PGI”) today published the findings of its third annual Retail Barometer. The Barometer, conducted by independent platinum market experts and industry analysts, reveals the consumer retail sales data of platinum jewellery in 2015 and projections for 2016. It is the only research in the industry that measures sell-out, i.e. platinum ounces sold from retailers to consumers.

    The Retail Barometer gives a unique view of platinum demand from retail sales. Platinum jewellery is the second largest consumer of platinum in the world after the autocatalyst market.

    The research survey covered over 400 jewellery retail companies with approximately 23,000 retail outlets in the four main international markets of China, India, Japan and the USA. The research was conducted between January and February 2016.

    Huw Daniel, Chief Executive Officer of PGI, commented, “Despite manifold challenges in the luxury category and a difficult year for jewellery in general, jewellery retailers vested in platinum have weathered the storm ahead of their peers. The historically low platinum metal price has benefitted consumers and retailers alike, presenting a unique opportunity to acquire the most aspirational fine jewellery. Even China, the biggest market for platinum jewellery, shrank to a much lesser extent than other jewellery sectors. Both China and India remain key development markets for platinum jewellery which we will further grow ahead of the market average, leveraging successful programs and new launches.”

    Tim Schlick, Chief Strategy Officer of PGI, commented, “The jewellery industry is at a point where future growth comes from either conquest of market share or unlocking untapped consumer segments. PGI and our partners feel confident that having initiatives that provide both will continue to give us a competitive edge, as consumers increasingly seek quality and differentiation.”

    China
    China’s economic growth in 2015 was slowest in 25 years at 6.9%. The slow-down reflects an adjustment towards a consumption-based economy, which bodes well for future growth in platinum jewellery. Retail witnessed a year of fluctuation, however the growth in the H2 didn’t counter the decline in H1, resulting in a modest platinum jewellery volume decline of -4% for the whole year

    • The bridal segment continued to grow moderately despite the overall decline in jewellery consumption — in addition to pair rings and engagement rings, bridal platinum jewellery saw growth in other jewellery products, such as necklace and bracelet, which were typically purchased as a set along with the wedding rings.

    Based on initial retailer outlook, PGI expects to see a flat year of virtually no growth, or even a modest decline of 0% to -3%.

    India
    The Indian economy was also impacted by the global slow down, although consumer spending at a macro level increased slightly. Platinum Jewellery volume grew 24% in 2015, driven by increasing acceptance of platinum as the choice of the young aspiring urban consumer. Platinum saw increases across the board from Platinum Love Bands, Men’s Jewellery, and the new Evara Platinum Blessings, which marked platinum’s entry to the key wedding category in 2015.

    For 2016, PGI and retail partners expect continued growth of +23% — retailers expect platinum to continue outperforming the category average.

    Japan
    Japan’s economy is working to maintain modest recovery leading up to the 2020 Olympics with a GDP growth of 0.6%. The exceptionally warm winter benefitted jewellery and record numbers of inbound tourists benefitted metropolitan retailers and service providers, especially department stores and non-bridal. Platinum jewellery sales outperformed total jewellery, and platinum jewellery volume increase 2.7% in 2015.

    For 2016, retailers are nervous about economic outlook, but expect growth rate of +1% to +2% in platinum jewellery volume.

    USA
    The US economy has been further recovering and growing moderately at 1.9% in 2015 with overall retail growing in line with the GDP growth rate. Platinum jewelry imports experienced sharp increases in 2015, while retail demand increased +10%.

    For 2016, PGI expects platinum to continue to benefit from the positive 2015 momentum, in particular if the ounce price remains low, resulting in an expected volume growth rate of +5% to +7%.

     

  • RayBan Manila marks first Asian pop-up

    RayBan Manila marks first Asian pop-up

    A new Ray-Ban Manila pop-up store is the eyewear brand’s first in Asia.

    The pop-up, at the Greenbelt shopping centre in Makati, will showcase the Ray-Ban Aviators range.

    Originally designed for US military pilots in 1937, Ray-Ban Aviators is one of the leading global brands in the premium eyewear category.

    “We’re trying to recreate everything here in the Philippines. We’re the first (in Asia) from Ray-Ban,”  Vincent Teotico, Ray-Ban’s assistant marketing manager, told Manila Bulletin.

    The Ray-Ban Hub – the first flagship store in New York City inspired the Pop-Up Concept Store, both having an urban feel, with neon lights and fun activities inside.

    Asked about setting up a permanent store in the Philippines, Teotico said this would be possible depending on the turnout of their latest move in the Philippine market.

    Ray-Ban’s Pop-Up Concept Store will only be around until July on the ground floor of Greenbelt 5 in Ayala Center, Makati City. Ray-Ban products are also available at optical stores such as Eye Society outlets in Jupiter St and SM Aura in BGC.

  • K-beauty spreads worldwide

    K-beauty spreads worldwide

    The ‘K-beauty’ market is expanding its sphere of influence beyond Asia, and reaching out to other global markets.

    According to Aju News, a Korean newspaper, Korean cosmetics brands are exploring new markets worldwide. As the global interest in K-pop and K-dramas is rising, women all over the world are now looking at K-cosmetics.

    Amore Pacific has been eyeing the international market since the 1990s. After establishing factories in France and China, the company continued to expand its influence worldwide, with products now being sold in the U.S., Malaysia, Indonesia, Vietnam, Canada, Thailand, the Philippines, Singapore, Myanmar, and Japan, generating global sales of 1.26 trillion won.

    Able C&C’s cosmetics brand Missha is following the lead, spreading K-beauty all over the world. Missha stores can now be found in Brazil, Germany, Mexico, Venezuela, Turkey and Spain. The Brazilian market in particular is expected to generate strong sales growth, as reports show that the local cosmetics market is the fourth largest in the world.

    LG Household & Health Care’s The Face Shop is focusing on the Middle Eastern market, opening 55 stores in five countries – Jordan, Saudi Arabia, UAE, Oman and Armenia.

    Cosmetics brands are using a number of different marketing strategies to aggressively target overseas markets.

    In areas where natural ingredients and safety are important, such as Europe and the US, businesses are attracting customers with their ‘natural’ brands. Some brands promote elements of Korean tradition to attract western consumers. Many are ‘blending in’ with the locals through collaboration with local businesses.

    To boost overseas expansion, the Korea Trade Promotion Corporation (Kotra) is taking steps to boost sales of Korean cosmetics through American and Chinese online shopping sites.

    Kotra will host a ‘K-beauty summit’ to help Korean cosmetics brands export their products. The agency’s ‘online export incubating program’ will be introduced, and is expected to help businesses sell their products through Amazon.

    Kotra is also seeking to secure new trading opportunities in China in collaboration with the online shopping site TaoBao, operated by Chinese eCommerce behemoth Alibaba. The two parties plan to host a K-beauty expo in China during the first half of the year.

    Innisfree store in Shanghi

    The cooperation with TaoBao is only the start, as Kotra is also planning to work with other online shopping portals such as JD.com.

    Officials at Kotra emphasise the importance of making inroads in the American and Chinese markets to prolong the popularity of the K-beauty trend. They expect to draw the attention of young consumers who are sensitive to fashion and style trends and familiar with online shopping.

  • Furla to showcase FW16 collection in Singapore

    Furla to showcase FW16 collection in Singapore

    Italian luxury leathergoods supplier Furla will showcase its FW16 collection at the upcoming Tax Free World Association Singapore show in May.

    According to the company, the new Furla bags embody the rebellious spirit, typical of the music scene, from rock to pop and influenced by a metropolitan tribal beat in its more modern interpretation.

    The bags are decorated with laser cuts, which add 3D effects and create kaleidoscopic patterns, embellished with golden studs. The new Furla Loop bag, for example, has fringes emphasising movement and femininity.

    Shoulder straps, the season’s protagonists, recall guitar-like straps and are enriched with details and weave effects. The leathers are smooth, supple and soft and adapt to the body. Perfectly on-trend, charms convey a personal touch to each bag, making it special for every occasion.

    The colour palette is sharp and well-defined, veering from black to blues to army green with touches of deep red and metal sparkles.

    The Furla Valentina and Furla Club bags are characterised by a new and colourful camouflage pattern that becomes a manifesto of the fervent cultural mixes of big cities, especially when matched to the new tribe tattoo themed straps and tags.

    The Furla Metropolis bag has evolved into a “creative laboratory” where new dimensions, craftsmanship and materials are developed and enriched.

    Also being shown is the new travel-retail exclusive Furla bag, a limited-edition set of three crossbody bags in Saffiano leather, each with a smaller detachable pouch inside. Available in three colour combinations: Lampone & Magnolia, Onyx & Gold, and Cobalto & Silver, each bag has an adjustable and detachable strap.

    Furla global travel retail director Gerry Munday said: “Asia is extremely important to the Furla brand and accounts for 35% of our global business in travel-retail. We are seeing significant growth in all areas, with a 36% sales increase in 2015 thanks to our presence now in 48 countries with a total of 195 airport doors versus 174 in 2014. We also have some exciting projects being finalised which will be announced in due course.

    “I’m confident this growth will continue as we continue to bring out collections that break the mould in terms of innovation, design and styling. The FW16 collection has already received incredible feedback and, with the addition of our latest travel-retail exclusive, we are looking forward to a very successful and productive week in Singapore this year.”

  • To survive, we need to change: German luxury brand Braun Buffel

    To survive, we need to change: German luxury brand Braun Buffel

    Amid a retail environment clouded by slowing global growth and the rise of technological trends that threaten to displace traditional retailers, the boss of German luxury brand Braun Buffel said change will hold the key to survival.

    “Mankind tends to stay with what they know and sometimes people are not open to changes. But to survive in the long run, we need those changes,” owner and managing director Christiane Brunk.

    The more than century-old label, founded by Johann Braun in 1887, is best known for its handcrafted leather goods and accessories, but has in recent years ventured into new segments such as sunglasses and watches – a step which Mrs Brunk described as “enhancing the brand’s experience”.

    Such nimble thinking is also evident in the introduction of more colours and shapes to its product line. According to Mrs Brunk, Mr Braun’s great granddaughter and the fourth generation to helm the family business, these changes made the historical European brand “a little bit more fashion forward”.

    The leather used in products sold worldwide also differs, so as to cater to the varying preferences and climate in various parts of the world. For example, the leather used in products sold in Asia has to undergo special treatment to suit consumer preferences and the climate in this part of the world, according to Braun Buffel’s master craftsman and production manager Manfred Goll.

    “In Europe, the consumer prefers softer materials, but leathers which are stiffer and have other surfaces do better in this region,” Mr Goll said through a translator. “Leather in Asia also needs to be treated to avoid any reaction to the humid climate.”

    Meanwhile, the company is also embracing the rising trend of e-commerce, with plans to roll out an online retail platform in Asia soon.

    While analysts have identified Internet retail as a key threat for brick-and-mortar retailers, Mrs Brunk thinks otherwise: “As a traditional company, we might not belong to the group of early adopters … but this is something that we can’t exclude from our distribution channels.”

    Christiane Brunk, Managing Director of Braun Büffel.

    FLAGSHIP BOUTIQUE OPENS IN SINGAPORE

    Change is also evident with the official opening of a flagship boutique at Singapore’s Marina Bay Sands on Tuesday.

    The 1,500-square-foot store, which features Braun Buffel’s trademark leather extensively in the form of an Italian fine-grain leather wall and bespoke leather armchairs in the lounge area, is the first in the world to roll out the brand new design concept.

    According to Mrs Brunk, it will serve as a test bed for future store designs and understanding consumer preferences in the region, especially the Indonesian market which the brand is keenly eyeing.

    “Singapore is always a good and important base for us in the Asia-Pacific region because there’s good global connectivity and a multicultural population which gives you great customer insights,” said Mrs Brunk, who took the reins at the 129-year-old label in 2005.

    “In Singapore, we always get very good and precise feedback so it was clear to choose here as the first location in Asia-Pacific again,” she added, referring to how the German leather goods label picked the Lion City as its first Asian market back in 1982.

    Braun Buffel’s latest Fall-Winter 2016 collection on display at Marina Bay Sands. (Photo: Tang See Kit)

    “GO SLOW AND STEADY”

    But while change is the only constant in keeping up with competition, the well-established leather goods manufacturer prefers to stick to its own pace.

    For one, the brand new boutique in Singapore – Braun Buffel’s fifth store in the Lion City –was a year in the making.

    “When we do things, we try to do it as perfectly as possible. That’s our principle so we took our time to go over details such as choosing the leather for the wall,” Mrs Brunk said.

    This “slow and steady wins the race” approach also applies to Braun Buffel’s expansion plans.

    “We don’t dance (at) too many parties,” Mrs Brunk said. “There are fields such as product quality and development where we take the lead, but in terms of store expansion, sometimes you have to wait. These are huge investments and as ‘careful merchants’, we need to make sure our investments are successful.”

    Apart from Indonesia where a booming middle class means untapped opportunities for the German luxury brand, China is the other emerging market where Braun Buffel has set its sights on.

    When asked whether she is worried about the spending power of Chinese consumers amid an ongoing anti-graft campaign, slowing economic growth and a turbulent equity market, Mrs Brunk said: “During the past 130 years, we have overcome several crisis including wars, and in an economy there will always be ups and downs. I think we are doing a quite good job in China now and even though the market is slowing, we still see room for expansion.”

    She added: “We now have nearly 200 point-of-sale in China. We are very keen on certain locations in big cities like Beijing and Shanghai. But it’s not our strategy to expand very fast so we are not under pressure (from the slowing economy).”

  • Asia gives Jimmy Choo an unlikely boost

    Asia gives Jimmy Choo an unlikely boost

    While a majority of luxury fashion retailers are blaming Asia for declining sales and failing to meet profit projections, Jimmy Choo has confounded the market by praising the continent.

    Jimmy Choo has reported sustained growth in far eastern markets to deliver 6.1 per cent revenue growth for 2015, to £317.9 million.

    “Whereas other players such as Burberry have faltered with declining Chinese demand, Jimmy Choo has been able to deliver impressive revenue growth across Asia,” notes Andrew Hall, an analyst atVerdict Retail.

    “The brand’s relative immaturity in these markets has helped to shield it from the decreasing demand and a stuttering economic slowdown in the region. Investment in new store openings and plans for new flagship stores across Asia sets Jimmy Choo apart from its rivals and will continue to reap rewards for the brand.”

    Jimmy Choo’s Asian sales rose a staggering 21.2 per cent, more than enough to offset a 2 per cent decline in sales in Europe, Middle East and Africa.

    The company reported a pre-tax profit of £22.1million, a significant turnaround on the 2014 loss of £8.2 million. It opened 13 new stores.

    In an earnings statement, Jimmy Choo said its Asian business in Asia and Japan is growing well.

    “We see significant opportunities to maintain this outperformance in the years ahead. Despite challenging market conditions, we expect continuous operating efficiencies and the dynamism and flexibility of our teams to enable us to drive margin expansion and continue the reduction in leverage and financing costs.”

    Said chairman Peter Harf: “Jimmy Choo continues to outpace the sector despite the challenging competitive environment. The company successfully reversed the first half decline in wholesale revenues and remains on track with growth forecasts in Asia and Japan where brand awareness continues to grow strongly.”

    However, Hall warns that Jimmy Choo is far from immune to the geopolitical situation: the decline of Russian luxury consumers in Europe, attacks in Paris deterring European consumers, and the weakening of the euro have contributed to disappointing performance in EMEA.

    “While the brand has achieved an operating margin of 9.4 per cent, compared to 8 per cent last year, the shoe specialist must be wary of creeping costs as it not only pursues store expansion but invests in omnichannel capabilities and continues to develop a strong social media presence,” said Hall.

    “Creative Director Sandra Choi has led a strong year of product design, building upon Jimmy Choo’s British identity to produce seasonal ranges which continue to resonate with consumers across the globe. While attempts to embrace the male market remains a difficult nut to crack, the development of stores aimed at both genders and the strength of new fragrances has seen the brand make headway into capturing a male demographic.”

    Hall said Verdict expects Jimmy Choo to continue to outperform the luxury sector in Asia giving it another year of solid total revenue growth.

    “However the Chinese market remains volatile and Jimmy Choo should be wary of putting all of its eggs in one far-eastern basket as its grip on European markets loosens.”

  • Trinity Group confident despite loss

    Trinity Group confident despite loss

    With revenue totalling HK$1.9 billion (US$245 million), Hong Kong-listed retailer Trinity Group lost HK$88.5 million last year.

    Trinity Group, which sells premium menswear brands in greater China and Europe, says it continued to be dragged down by the dampened consumer spending environment in China, but has implemented business reforms as well as restructuring aimed at improving its position long term.

    As well as the slower growth in China, its main market, the group also lost money with one-off restructuring costs and the impact of the RMB’s depreciation.

    Trinity Group, a Fung Retailing company, owns the Cerruti 1881, Kent & Curwen and Gieves & Hawkes brands and manages D’Urban under long-term licence in Greater China.

    CEO Richard Cohen says while the group took measures to mitigate against the expected lower consumer spend, the impact on same-store sales in the last quarter was far more significant than the retail sector predicted. However, the group’s overall performance was in line with that experienced by the wider high-end and premium retail sectors.

    “Our results, along with others in the industry, are disappointing but not wholly unexpected. Looking forward, we believe there are significant international wholesale, franchising and retail opportunities for the group in the long term.”

    Efficiency measures by the group last year included improvements to sourcing and inventory management. This involved a consolidation restructure, including moves to further reduce staff costs, which resulted in one-off full-year costs of HK$60 million.

    Fifty non-performing stores were closed, reducing the group’s outlets from 399 at the end of 2014 to 349.

    Cohen says the group was able to maintain gross-profit margins above 70 per cent despite the difficult retail environment.

    While maintaining its focus on the Chinese consumer, Cohen says the Trinity Group has revised its global strategy.

    “The growing middle class in China is increasingly travelling abroad, so our strategy is to continue to engage with these core customers when they travel, while also reaching out to new clientele.”

    Related to this strategy, the group signed an exclusive five-year agreement in September that will see international sports icon David Beckham play a multifaceted role in driving Trinity’s Kent & Curwen business globally.

  • New Balance India return

    New Balance India return

    New Balance India is to make a comeback – and says it aims to open about 50 stores within the next few years.

    The US sports shoes brand’s first foray into India was in the early 2000s, but it shut its shops after a few years. Now its VP for Asia Pacific Darren Tucker says it plans outlets across shopping malls and high streets in Delhi, National Capital Region (NCR), Mumbai and Bengaluru.

    “We were ahead of time,” says Tucker. “We did not have such a wide brand presence globally then, and the retailing experience was poor. Now, the market looks more mature.”

    Its first store this time around opened yesterday – an 1100 sqft (102 sqm) New Balance Athletic Shoes standalone outlet at DLF Mall of India in Noida, near New Delhi. The company has a distribution agreement with The Major Brands Group in Mumbai for retailing New Balance products in India.

    “It’s not about the number of stores,” says Tucker. “We would prefer to have a profitable retail presence and grow at a relatively slower pace this time.

    “All our global competitors are here. The market is built. We know our competitors, and that’s an advantage.”

    With an average selling price of Rs.7000 (US$105) for shoes, New Balance will be a premium offering. Tucker says apparel is a promising segment, so lifestyle will be a focus area. The company has also tied up with online retailer Jabong for e-etailing, and is negotiating with global partner Amazon for the Indian market.

    “Considering the growth of eCommerce in India, that’s a must,” says Tucker. The company will continue to leverage its global marketing properties across sports and athletics, and plans to develop local properties. “For India, it’s going to be cricket first.”

    At the moment, the sports shoe and apparel market in India is dominated by Adidas, Nike, Puma and Reebok. Japan’s Asics Corp. opened its first standalone store in Delhi last July.

    A report by Images F&R Research estimates India’s active sportswear market at Rs.6000 crore, growing at 13 per cent a year.

    New Balance, which reported $3.3 billion in sales worldwide in 2014, was founded in 1906 by British immigrant William J. Riley to sell arch supports to police officers and waiters. The company was bought by Jim Davis, the son of a Greek immigrant, in 1972 and from its base in Boston now sells athletic shoes, apparel and accessories for men, women and children across 5000 outlets worldwide under brands such as Aravon, Brine, Dunham, PF Flyers and Warrior Sports.

  • Farah China to launch next year

    Farah China to launch next year

    Perry Ellis International has signed an agreement with MRH SpaRotica Groupe (MRH) to introduceFarah China next year.

    The brand will be launched in department stores, free-standing stores and specialty outlets as well as online with third-party eCommerce platforms such as Tmall. The first free-standing Farah store is planned to open early next year.

    With street credibility, the Farah has creative brand ambassadors from art, music and modern culture who are empowered to become product developers, storytellers and educators inspiring millennials. The products are sold internationally through major retailers and company-owned stores, as well as online.

    “This is our first agreement for Farah in greater China and represents a major step in the expansion of the brand outside of the United Kingdom and Europe,” says Perry Ellis International chairman/CEO George Feldenkreis.

    MRH president/CEO Richard Kisembo says the company is confident of the impact Farah can make in China. “We believe in brands that make emotional connections with consumers, and Farah will stand out for its modern classics.”

    Perry Ellis International is a designer, distributor and licensor of men’s and women’s apparel, accessories and fragrances. It owns a portfolio of brands including: Axist, Ben Hogan, Cubavera, Grand Slam,  Jantzen, John Henry, Laundry by Shelli Segal, Manhattan, Original Penguin by Munsingwear, Perry Ellis, Rafaella and Savane. The company also licenses trademarks from third parties, including Jag and Nike for swimwear, and Callaway, Jack Nicklaus and PGA Tour for golf apparel.

    Based in Shanghai, MRH curates and invests in brands through acquisition and licensing. It has retail stores, distributes merchandise through franchisees, and runs eCommerce websites.

  • UNIQLO to Open First Global Flagship Store in Singapore and in Southeast Asia Region

    UNIQLO to Open First Global Flagship Store in Singapore and in Southeast Asia Region

    UNIQLO today announces that it will open its first global flagship store in Singapore, and in the Southeast Asia region, in the autumn of this year. The new store, which will be the largest UNIQLO store in Singapore and in the region, will be located in the Orchard Central mall along Orchard Road, the fashion hub of Singapore for both local residents and international visitors.

    “We are very honored, and excited, to open our first UNIQLO Global Flagship Store in Singapore. Having been a member of the local retail scene since 2009, we remain committed toward contributing to the local community and being an integral part of Singapore’s growth and future,” said Taku Morikawa, UNIQLO Southeast Asia CEO. “We will continue our effort to design and create innovative clothes that enrich the daily lives of people, as a reflection of our LifeWear philosophy,” he added.

    The Singapore Global Flagship Store will provide an extensive range of the latest lines for women, men, kids and babies, in a sales area of approximately 2,700 square meters across three levels in the Orchard Central, the first and tallest vertical mall in Singapore. Modelled on highly successful UNIQLO flagship stores around the world, customers will enjoy the best that UNIQLO has to offer, in a truly unique retailing setting – from the product range to the store’s interior and layout.

    The opening of a Global Flagship Store in Singapore highlights its prominence in UNIQLO’s expansion plans worldwide and will add to global flagship stores in key locations today, including New York’s Fifth Avenue, London’s Oxford Street, and Ginza in Tokyo. Through its innovative, high-tech displays and extensive product lineup, the new Singapore Global Flagship Store will serve as a launch pad to display the brand’s LifeWear to a wider audience. The latest UNIQLO Global Flagship Store will create more than 300 jobs in Singapore.

    UNIQLO Singapore Global Flagship Store (official name to be announced at a later date)

    Opening Date: Autumn 2016 (Planned)
    Address: 181 Orchard Rd, #01-01, Singapore 238896
    Sales Area: Approx. 2,700 square meters across three levels

    About UNIQLO LifeWear

    Apparel that comes from the Japanese values of simplicity, quality and longevity. Designed to be of the time and for the time, LifeWear is made with such modern elegance that it becomes the building blocks of each individual’s style. A perfect shirt that is always being made more perfect. The simplest design hiding the most thoughtful and modern details. The best in fit and fabric made to be affordable and accessible to all. LifeWear is clothing that is constantly being innovated, bringing more warmth, more lightness, better design, and better comfort to people’s lives.

    About UNIQLO and Fast Retailing

    UNIQLO is a brand of Fast Retailing Co., Ltd., a leading global Japanese retail holding company that designs, manufactures and sells clothing under seven main brands: Comptoir des Cotonniers, GU, Helmut Lang, J Brand, Princessetam.tam, Theory, and UNIQLO. With global sales of approximately 1.6817 trillion yen for the 2015 fiscal year ending August 31, 2015 (US $13.88 billion, calculated in yen using the end of August 2015 rate of $1 = 121.18 yen), Fast Retailing is one of the world’s largest apparel retail companies, and UNIQLO is Japan’s leading specialty retailer.

    UNIQLO continues to open large-scale stores in some of the world’s most important cities and locations, as part of its ongoing efforts to solidify its status as a truly global brand. Today the company has a total of more than 1,700 stores in 17 markets worldwide including Japan, Australia, Belgium, China, France, Germany, Hong Kong, Indonesia, Malaysia, Philippines, Russia, Singapore, South Korea, Taiwan, Thailand, U.K. and the U.S. In addition, Grameen UNIQLO, a social business established in Bangladesh in September 2010, currently operates several Grameen UNIQLO stores in Dhaka. UNIQLO manages an integrated business model under which it designs, manufactures, markets and sells high-quality, casual apparel. The company believes that truly great clothes should be supremely comfortable, feature universal designs, are of high quality and offer a superb fit to everyone who wears them.

    With a corporate statement committed to changing clothes, changing conventional wisdom and change the world, Fast Retailing is dedicated to creating great clothing with new and unique value to enrich the lives of people everywhere. For more information about UNIQLO and Fast Retailing, please visitwww.uniqlo.com andwww.fastretailing.com.