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.

  • Kung Fu in Hublot store in Beijing

    Kung Fu in Hublot store in Beijing

    In a collaboration with the Bruce Lee Foundation, a special tribute exhibition for the Kung Fu superstar marks the launch of the Swiss watch brand Hublot’s store at the high-end Shin Kong Place (SKP) shopping centre in Beijing.

    Hublot new store Beijing at Shin Kong Place SKP 3

    On display until March 6, the Be Water, My Friend – Legend of Bruce Lee Memorial Exhibition features precious items the actor owned himself, as well as limited-edition Hublot timepieces.

    Lee’s daughter, foundation founder Shannon Lee, cut the ribbon of the new store along with Hublot Greater China GM Loic Biver.

    Hublot new store Beijing at Shin Kong Place SKP 4

    Hublot participated in the design of the Bruce Lee exhibition. “As an icon of the 20th century and the most iconic Kung Fu star in history, Bruce Lee embodies the real ‘art of fusion’ of East-West culture,” says Biver.

    Hublot also worked with the foundation on the Bruce Lee 75th Anniversary Memorial Exhibition in Hong Kong, and this time released a second limited-edition timepiece as a tribute to Lee.

    Hublot new store Beijing at Shin Kong Place SKP

     

    The actor’s personal items on display include a Tang-style Kung Fu jacket, a genuine copy of the Way of the Dragon script, a replica of the life mask of Kato in The Green Hornet, and the business card for the Bruce Lee Martial Arts Studio he founded.

    Exhibition guests can also experience the Bruce Lee Mirror, a cylindrical glass photo frame featuring Lee’s classic Kung Fu postures. Made of glass fragments, it uses 3D special effects integrating the Hublot Unico In-House chronograph movement.

    Hublot new store Beijing at Shin Kong Place SKP 2

     

    Inspired by the dragon pattern on Bruce Lee’s desk, Hublot has designed a limited-edition (100 pieces) watch, Spirit of Big Bang Bruce Lee Be Water. It features a tonneau case in all-black microblasted ceramic and is fitted with the HUB4700 skeletonised automatic winding movement. Echoing Lee’s philosophy of water, the strap is made of blue alligator leather sewn on natural rubber.

    Hublot new store Beijing at Shin Kong Place SKP 1

    The Hublot SKP Beijing boutique follows the brand-specific black, featuring dark grey carpet and black leather furniture combined with glass and metal counters. Subtle scientific and technological elements in the window display tell the story of the brand, connecting its past with the future with projections on a book. Big Bang, Classic Fusion, King Power are among the pieces and novelties on display.

  • Two-pronged approach for Giordano Vietnam

    Two-pronged approach for Giordano Vietnam

    Vietnam is on the radar for Hong Kong clothing retailer Giordano International, both as a market and supplier.

    With its steady growth in the emerging market, the company is planning to establish a legal entity Giordano Vietnam.

    It is also eyeing the country as a source market for product, while it continues to develop sourcing opportunities in Bangladesh.

    While Giordano still sees opportunities for growth in developing markets such as Indonesia, Malaysia and Thailand, the company says in its annual review that those opportunities are fading.

    Meanwhile, the group has plans to launch digital sales channels outside mainland China this year, initially through the development of its own eShops.

    “Market conditions in Southeast Asia have been challenging in the past two years,” says the group, which improved its merchandising, and therefore profitability, in Singapore last year – “but this will be a tough market going forward”.

    In the 2015 financial year, consolidated sales eased by 3 per cent – but increased by 1 per cent on a constant currency basis. Global brand sales were down 1 per cent for the year, but comparable same-store sales grew by 3 per cent.

    As a strong Chinese New Year offset the impact of 81 store closures, brand sales in the first half of the year grew by 1 per cent. But in the second there was a 3 per cent drop because of unseasonably warm weather in Greater China.
    Gross profit margin declined by 0.4 percentage points to 57.6 per cent, with higher purchasing costs caused by a strong US dollar eroding margins in Southeast Asia and Taiwan.
    “Weak consumer demand in many markets has led to fierce competitive pressure on selling
    prices,” says the group.

    Nevertheless, in the second half of the year, improved purchasing and merchandising resulted in gross margin improving from 57.4 to 57.9 per cent.

  • Abercrombie & Fitch ‘in recovery mode’

    Abercrombie & Fitch ‘in recovery mode’

    Broadly, the latest set of results from Abercrombie & Fitch are to be welcomed: they are a sign that the brand continues to make progress in what remains a challenging market during a particularly difficult period of trading.

    Across the quarter, total sales shrank by 1 per cent on a reported basis, although when currency fluctuations are removed that number turns into growth of 2 per cent. Across the group, same store sales increased by 1 per cent on a year-over-year basis, with particularly good gains coming from international operations.

    There is also a reasonably positive story on the margin front where – despite a highly promotional environment and suppressed consumer demand- A&F saw gross profit as a percentage of sales drop by just 0.5 percentage points. The outcome here could have potentially been far worse.

    Despite there being clear signs of progress, which includes a sequential improvement in most of the sales and profit metrics, A&F is still very much in recovery mode and the brand is still not yet back to full health. This is evidenced by the fact that although the sales outcome was reasonable, it came off the back of what can only be described as a tumultuous final quarter last year when total sales shrank by 14 per cent and same store sales dipped by 13 per cent.

    Such soft comparatives flatter this quarter’s numbers and raise the question as to whether the better performance is a natural bottoming out, or if it is thanks to some of the corrective action that is now being taken by the management team. In truth, we think the results reflect a bit of both factors.

    Future growth will be governed, in large part, by how successfully the brand is able to reestablish its connection with younger consumers. Over the past year there has been evidence that both Abercrombie and Hollister are moving in the right direction in order to attune themselves to the tastes and preferences of today’s young shoppers. Among other things this has involved a less brash approach to marketing, a more minimalist and modern style in terms of clothing collections, a brighter and more inviting in-store experience, and a move into high growth categories like athleisure.

    These things have won back customers who defected and have also secured new shoppers. Most notably, the shifts have also allowed Abercrombie to secure custom from a slightly older demographic with higher spending power; something that is useful given that spending on apparel from younger shoppers remains muted thanks to the vast array of other products and services they now buy into.

    That noted, it is still far too early to say that brand loyalty has returned. At present many shoppers are rediscovering the brand and looking at it anew; as such their purchasing is patchy and occasional. While this is something A&F can improve on over time, it is unlikely it will ever regain the brand capital it once had: the market, consumers, and the competition have all shifted too much to allow that to happen.

    This is one of the reasons why A&F’s action on retooling its business model and reassessing its space and store requirements is sensible. To meet the new pattern of demand it will need fewer stores coupled with a good online offering. While there has been progress made in terms of reconfiguring the store fleet, growth from online is somewhat less encouraging.

    The upcoming year will continue to be one of reinvention. The current management team is strong and has the right mix of skills to make the necessary changes and reinvigorate the brand. However, they are up against a low growth, challenging environment which means that the play for the fiscal year as a whole is as much about holding onto current market share as it is about positioning the business for future growth.

  • Forever 21 To Open Second Hong Kong Store in Hong Kok

    Forever 21 To Open Second Hong Kong Store in Hong Kok

    US fast-fashion retailer Forever 21 will open its second store in Hong Kong this year, capitalising on the shift in consumer demand from luxury to non-luxury products.

    “Due to the demand of our consumers, we have continued our expansion throughout Hong Kong and mainland China. Hong Kong also has a vibrant history of international business and we saw a lot of potential for growth, which is why we wanted to bring a second Forever 21 store to this space,” the fashion retailer said in an email reply to Retail in Asia.

    The new store will be located at Pakpolee Commercial Centre on Mong Kok’s Sai Yeung Choi Street, trading over 18,804 square feet, people familiar with the matter told Retail in Asia.

    “Mong Kok offers a premier shopping experience and we believe it is a good fit for our second store in Hong Kong. We are very selective in choosing a location for any store. We make it a top priority when selecting a new location to ensure that it is accessible to customers and that it can house and properly represent our merchandise, staying true to our brand,” noted Forever 21.

    The fashion chain will pay a monthly rent of HKD2.5 million (USD321,000) to lease the three-story retail space with a ground-floor entrance, according to the source. The first floor and the ground floor were currently taken by cosmetic retailer Sa Sa with a monthly rent of HKD1.25 million. The second and third floors were leased to California Fitness for about HKD1 million per month. The fitness center moved out three years ago.

    The new store is estimated to open in late summer or early fall this year according to Forever 21.

    With a monthly rent of HKD2.5 million for its new store, Forever 21 made the largest retail leasing transaction in the fourth quarter of 2015 in key shopping destinations of Hong Kong, according to data compiled by Retail in Asia. It demonstrates the retailer’s confidence in the market’s potential for cheap chic fashion which also supports CBRE’s prediction that mid-range brands are set to expand in Hong Kong when luxury retailers are struggling with declining sales and leaving core retail locations.

    CBRE believes that Hong Kong will transform from a luxury goods oriented retail market to a mid-range market. “Mid-market retailers will benefit from the change in spending patterns and remain the main demand driver for retail space. Some of them will use this window of opportunity to re-establish themselves in prime locations and/ or expand their retail networks,” the real estate adviser said in its latest report Hong Kong Retail MarketView Q4 2015.

    With Forever 21 opening another store in Hong Kong, more mid-market retailers are expected to ride on the wave and expand their store networks in the city.

    Founded in 1984, Forever 21 now operates more than 730 stores in 48 countries. The brand debuted in Asia in 2008 by launching the first store in Seoul, followed by its second in Japan the next year.

    In 2012, the US retailer entered Hong Kong by unveiling a six-floor flagship store in the in the Capitol Centre of Causeway Bay. It paid a monthly rent of HKD11 million for the 51,188-square-foot space.

    The fashion retailer currently has 16 stores in Greater China which include 12 stores in mainland China, 1 in Hong Kong, 1 in Macau and 2 in Taiwan.

    Aside from Hong Kong, Forever 21 also plans to expand its retail footprint into other markets in Asia although it didn’t disclose the details. “In 2016, we plan on expanding our store presence in Japan, Indonesia, China, and the Philippines,” the fashion retailer told Retail in Asia.

  • RFID system boosts efficiency for Decks Singapore

    RFID system boosts efficiency for Decks Singapore

    Fashion retailer and apparel supplier Decks Singapore has implemented an RFID inventory and stock-taking system that saves time while ensuring greater accuracy.

    Previously, 600 worker-hours were involved in the company’s annual stock-take, with 88 per cent accuracy. With the new system, it can achieve 99.8 per cent accuracy in just five worker-hours.

    To achieve this greater efficiency and accuracy, Decks consulted Tokyo-listed auto-ID technology company Sato, which recommended the inventory system. It involves tagging apparel with RFID labels, with all incoming and outgoing items being scanned.

    “With the retail industry growing more competitive and the rise of eCommerce and mCommerce changing the way consumers shop, retailers have to act fast to keep up and stay ahead in the game,” says Decks MD Kelvyn Chee.

    “Besides stock-taking advantages, the new RFID system also helps us achieve greater inventory data accuracy, enabling us to ensure stock availability.”
    Sato Asia Pacific GM Akihiro Ito says his company will continue working with Decks to implement other retail technology such as Anti-Theft and Self-Checkout.
    Launched 19 years ago, Decks is a fashion apparel supplier for departmental stores in Singapore. It also has several retail boutiques in major Singapore shopping malls and has distribution channels in Southeast Asia.

  • Vaniday app starts Asia foray

    Vaniday app starts Asia foray

    Beauty salon booking app Vaniday, backed by eCommerce giant Rocket Internet – the company behind fashion eTailer Zalora – has launched its first Asian platform in Singapore.

    Following in the footsteps of five other countries, the app now covers the city Vaniday co-founder and MD Robinson Blanckaert calls home.
    “Singapore is not that small actually,” says Blanckaert. “We have the most active spa-going population across the globe with more than 18,000 beauty salons.”

    With more than 800 salons signed up to the app, users can compare and review services as well as book appointments. Beauty businesses can use the app to manage staffing, appointment-making and invoicing through Vaniday’s free software.

    “From the launch in each country, we’ve learnt a lot of lessons. Now, for example, we send a professional photographer to every salon so each business benefits from professional images.”

    Vaniday has reportedly raised €15 million ($16.29 million) in funding.

    Meanwhile, AsiaOne says due diligence before stepping into a salon is worthwhile given that theConsumers Association of Singapore (Case) receives a sizeable number of complaints about spas and beauty-related businesses – almost 2000 cases of negative feedback were lodged in 2014 – and there has been an increase in complaints about unsubstantiated claims by beauty industry advertisements last year.

    In a parallel development, Case has signed a memorandum of understanding to jointly develop anaccreditation scheme for the hair and cosmetology industry in Singapore, following the signing of a memorandum of understanding with the Hair & Cosmetology Association Singapore (HACOS).

  • Bloom time for kids’ fashion

    Bloom time for kids’ fashion

    Mrs Madelaine Wong buys new clothes for her three children every fortnight.

    The 37-year-old, a regional director of sales, shops for them during lunch time or after work.

    While Mark, six, Lauren, four, and Jude, one, are at a stage of their lives where they outgrow their clothes quickly, Mrs Wong admits that she also buys them new clothes because she feels guilty about not spending enough time with them. She thinks that shopping for them is a way for her to show affection.

    She spends about $100 on each shopping trip and is a regular customer at mass market-label stores such as Cotton On and H&M.

    “I get suckered into shopping at Cotton On’s online store when the brand is having a 20 per cent discount storewide. I go online and think to myself, ‘Okay, I think they need some more pyjamas’, or I will see a pretty dress and add it to the shopping cart.”


    Lauren Wong may be only four, but her wardrobe is bursting at the seams, thanks to her mother buying her new clothes every fortnight. PHOTO: DIOS VINCOY JR FOR THE STRAITS TIMES

    While parents and grandparents may have grown up with a culture of saving as much as possible… they may now feel that they could be a bit freer spending on their children and grandchildren.

    DR SESHAN RAMASWAMI, associate professor of marketing education at Singapore Management University

    Thanks to indulgent parents like her, the children’s clothing market has become the one bright spot in the weak retail sector.

    The range of children’s clothes has expanded in recent years, with the arrival of new brands and the expansion of existing ones.

    Australian label Seed Heritage, which carries clothes for women and children (from babies to teenagers), debuted with a splash in Singapore last year by opening three stores in Parkway Parade, VivoCity and Wisma Atria.

    The label’s general manager, Ms Denise Haughey, says that the 16-year-old brand had received regular inquiries from mothers living here before it opened in Singapore. She declines to give sales figures, but says: “Singaporean parents really enjoy dressing up their little ones.”

    Seed Heritage clothes feature plenty of whimsical prints and stylish pastel colours and are priced between $7.95 for three pairs of boy socks and $59.95 for a girl’s embroidered dress.

    Israeli high-street label Fox, which carries clothing for women, men and children, has enjoyed an “overwhelming” response to its children’s and baby collection.

    A spokesman for Wing Tai, which distributes the brand here, says the good response can be seen from the large number of members who sign up to collect points for discounts. The brand has accumulated 120,000 members since opening here in 2004.

    The spokesman adds: “We’ve noticed parents are becoming more trend-conscious when it comes to dressing up their children and this has helped spur the childrenswear industry.”

    Popular Swedish high-street fashion label H&M revamped its flagship store at Orchard Building in 2014 to devote the fourth floor to its children’s clothing department.

    The department previously shared space with its men’s fashion.

    H&M’s clothes for children, aged from newborn to 14, include T-shirts, jeans and cotton dresses.

    Like in the adult range, the children’s clothes are priced competitively, ranging from $19.90 for a white lace top for girls to $59.90 for a cotton blazer for boys.

    Ms Abby Wee, public relations manager for H&M Singapore, says the brand has also expanded its childrenswear range to include sportswear, swimwear and dancewear because of strong sales in childrenswear.

    Japanese casual wear label Uniqlo carries children’s clothes in 20 of its 24 stores in Singapore.

    Another popular Japanese label, Muji, sells its children’s collection at three of its nine stores here.

    Ms Jasmine Sng, general manager for Muji (Singapore), says the label had received many requests to bring in childrenswear. Muji shirts and dresses for children range from $12.90 to $59.

    Ms Sng says the sales of children’s and babies’ clothes have grown from 7 per cent of total garment sales in 2014 to about 10 per cent.

    The expansion in children’s labels is also mirrored in the luxury end of the market.

    The Shoppes at Marina Bay Sands expanded its children’s section late last year.

    Italian label Dolce & Gabbana Junior opened a 1,400 sq ft space in October. The outlet is the brand’s first junior store in the region and its collection carries clothes for children aged newborn to eight years old.

    Designer multi-brand retailer Club 21 opened standalone Armani Junior and French label Bonpoint stores at Marina Bay Sands in December.

    Other children’s labels at The Shoppes include Baby Dior, which opened a 900 sq ft store in 2014 and Ralph Lauren Children, which opened its largest standalone store for childrenswear in South-east Asia in the same year. The flagship store for the American label spans 1,985 sq ft.

    The designer label clothes for children can cost $550 for a boy’s shirt and a couple of thousands of dollars for a party dress.

    Paragon shopping mall also has a floor populated with childrenswear stores, including French brand Petit Bateau, international brand Nicholas & Bears, British brand Burberry Children, Filipino label Gingersnaps and multi-label store Kids 21.

    Retail experts interviewed say growing affluence and smaller families have led to the strong growth in the childrenswear market.

    Mr Samuel Tan, course manager (diploma in retail management) at Temasek Polytechnic School of Business, says: “With fewer children a household, parents or even relatives are willing to spend more on the kids.

    “With generally higher disposable incomes and more affluent dual-income families, design, look and quality of clothes are prioritised over price.”

    He adds that parents who are loyal customers of a brand are also more likely to shop for their children at the same store.

    “With the growing popularity of brands such as H&M, Uniqlo and Cotton On, the line extension is a logical move.”

    Dr Seshan Ramaswami, associate professor of marketing education at Singapore Management University, says that retailers may be targeting the children’s fashion market to fend off online competition.

    He adds that today’s parents have higher incomes compared with those of previous generations and are more willing to spend on their children.

    “While parents and grandparents may have grown up with a culture of saving as much as possible and have grown used to spending less on themselves, they may now feel that they could be a bit freer spending on their children and grandchildren,” he says.

    Manager Jonathan Heng, 38, admits that he shops more for his two sons than for himself.

    “It is more because of necessity. They grow so fast and outgrow their clothes and shoes quickly,” says Mr Heng of Caleb, four, and Zachary, three months old.

    “My wife and I probably shop for them every other month. As parents, our lives are about our kids now anyway,” he adds.

    Ms Sharon Yeoh, a senior consultant at the Civil Service College’s Institute of Leadership and Organisation Development who has two daughters aged six and three, says she also shops more for her children than for herself. “It is more fun shopping for them. The clothes are so cute and pretty.”

  • Central Group sees flat spending in Thailand

    Central Group sees flat spending in Thailand

    As Thai retail conglomerate Central Group suffers a sluggish domestic economy, its owners the Chirathiwat family worry that premium customers are spending overseas rather than at home.

    “The upper class group is still spending money,” Chief Executive Tos Chirathiwat told reporters in Bangkok on Wednesday. “The problem is that they are spending outside of Thailand.”

    In 2015, roughly 7 million Thais travelled abroad, up 9% year on year. Tos said that these outbound travelers spent some 170 billion baht ($4.76 billion).

    “What’s worrying is that the figure is growing at 10% every year, while domestic consumption is expanding at only 2%,” he said. At this rate, the spending leak from Thailand will reach 300 billion baht in five years.

    The number of inbound tourists meanwhile hit a record 29.88 million in 2015, up 20% year on year from a low base in 2014 following political turmoil. But according to Tos spending has not kept pace, rising just 2% last year. He called for Thailand to promote domestic consumption and tourism.

    Central Group is Thailand’s largest retail company with subsidiaries including property development arm Central Pattana. Wearing another hat, Central is itself expanding overseas where operations now account for nearly 20% of group revenue. The company plans to more than double revenue in Europe to 2 billion euros ($2.17 billion) by 2020 — aided by custom from Asian tourists, including China and Thailand.

    Some 10.4 billion baht has been earmarked for renovating five department stores Central has acquired in the region. “We want the stores to be not only a shopping destination but also a tourism destination,” said Tos.

    Central began its shopping spree in Europe in 2011 buying Italy’s La Rinascente chain, which has a 150-year history. Revenue from Europe has been growing an average 40% each year since. This year, it is expected to jump 70% to 51 billion baht as three German department stores acquired in mid-2015, including KaDeWe in Berlin, start contributing.

    Tos said further mergers and acquisitions in Europe are being put off for now. “We have quite a large coverage in Europe now, and there’s a lot of work to do,” he said.

    A more immediate focus is Southeast Asia, particularly neighbors Cambodia, Laos, Myanmar, and Vietnam. In Vietnam, France’s Casino Group is selling off its Big C supermarket chain, and Central already has 25% of Big C in Thailand.

    “We are interested but we have not decided yet whether to join the bidding,” Tos said. “The acquisition will require a substantial amount of money which could be used to acquire something else.”

    TCC Group, the parent company of Thai Beverage, is also reported to be looking at Big C in Vietnam. It recently acquired Casino’s 58.56% stake in Thailand’s Big C for 3.1 billion euros.

    Bidding for Big C in Vietnam is expected to conclude next week. Tos said that if Central acquired the chain, its sales in Vietnam would double from $600 million at present. The company already has two Robins department stores there, and acquired Nguyen Kim, an electronics retail chain, last year.

    Tos said Central has no plans to reenter China after recently exiting. “China was a difficult market,” he said, noting the need for good government connections. “We learnt a lot.”

    Central’s group revenue in 2015 was over 283 billion baht, up 13.5% on 2014. It is targeting growth of 18.9% this year, with international sales contributing the lion’s share of the increase. Revenue from abroad will contribute 24% of the total, up from 18% in 2015.

  • Moynat Tokyo store opens

    Moynat Tokyo store opens

    French luxury trunk-maker Moynat is about to open its first store in Japan, with the ribbon to be cut by Japanese actress and singer Miho Nakayama.

    Moynat’s history goes back to 1849, when trunk-makers Octavie and François Coulembier opened their first atelier in Paris.

    After Paris and the Bon Marche, the house has established presences in London, Hong Kong and Beijing. Family holding company Groupe Arnault, which owns Moynat, aims to have stores in the 10 major cities of the world.
    The new 45 sqm Moynat Tokyo boutique was designed by local architecture firm Curiosity. It offers a fresh look, featuring vintage Moynat trunks – including its iconic vintage red-car trunk from 1925 – alongside current collections. it will be on the ground floor of the Seibu Department Store in Ikebukuro, the same floor as Louis Vuitton and Hermes (most other luxury brands are grouped on the store’s sixth floor).

    For its first two weeks, Moynat will present several workshops in painting and marquetry. Two creations will also be previewed, the Flower Bag and Charlotte Imagined by Ramesh Nair. These are small bags that are lightweight, refined and suitable for Japanese women to carry while wearing their kimono, says Moynat president Guillaume Davin.

  • Tumi plans more stores globally

    Tumi plans more stores globally

    US luggage retailer Tumi plans more stores internationally this year after a solid 2015.

    The company reported a net sales increase of 3.9 per cent to US$547.7 million in the year to December 31, or 6.7 per cent on a constant currency basis. Gross profit increased 6.8 per cent to $326.9 million, gross margin rose from 58 per cent to 59.7 per cent and net income was $63 million

    CEO and president Jerome Griffith said the company expects sales to increase a further 4 per cent to 6 per cent in the current year, assuming a constant exchange rate.

    “We are committed to growing our direct-to-consumer distribution worldwide through store openings, particularly in the international markets, as well as through the expansion of our global eCommerce platform. In 2015, we opened 27 new stores, and expanded our eCommerce platform to 18 countries globally.”

    This calendar year, the company expects to open between 15 and 20 stores, with an increasing focus on international markets.

    “Finally, we will focus our marketing programs and brand building initiatives on creating a deeper connection with our core customers and on extending our global reach,” said Griffith.

  • Canadian entrepreneur takes male make-up line Formen to South Korea

    Canadian entrepreneur takes male make-up line Formen to South Korea

    A Canadian entrepreneur who sells a dedicated line of skin care and make-up products online is preparing to launch onto the South Korean retail market, according to a report published by Canada’s Metro News.

    Andrew Grella conceived the line after his mother helped him to conceal his acne on prom night, and launched while a student at Ryerson University. The products, which include concealer, an under-eye mask and mattifier, are now set to make their debut on the South Korean market, with a launch in Canadian stores slated for next year.

    “A lot of buyers and people interested in skin care for their stores will go to South Korea to see what’s happening and what’s coming down the pipeline,” Grella told Metro News. “Being in South Korea will give you clout as a product or technology that’s on its way.”

    Formen has eschewed the traditional marketing model for male grooming products – highly masculine packaging and the suggestion that use will increase their chances with the opposite sex – instead employing a matter-of-fact approach including make-up tutorials and simple monotone packaging.

  • How smaller retailers are thinking beyond Fashion Week for #fashion to compete

    How smaller retailers are thinking beyond Fashion Week for #fashion to compete

    Increasingly easy-to-use technology has enabled smaller retailers to speak and deliver to their niche customer sets across all channels with the same voice as they would in a shop in Hong Kong. So what is driving their success?

    This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter’s approach.

    Like many reading this, I’m always intrigued by the small business owners I meet across the world, many running generations-old boutiques selling one-of-a-kind treasures. These shop owners, with their warm welcomes and time-honored craftsmanship, can quickly endear themselves to even the most casual shopper. A storefront with a history or an intriguing story can quickly turn a browser into a loyal customer, as has been my experience time and time again.

    This sort of personalized experience has always been the key to success for small retailers in the fashion and luxury goods sector.

    However, as the worlds of fashion, luxury and media descend upon Paris for Fashion Week, these experiences and transactions seem increasingly quaint and inconsequential. Amid all the dazzle, glitz and glamor, one can be forgiven for thinking that high fashion continues to be the realm of global retailers and big-name luxury brands.

    Yet remarkably, more and more fashion retailers are starting to embrace being ‘small’ as a strategy for success and growth. Increasingly easy-to-use technology has enabled smaller retailers to speak and deliver to their niche customer sets across all channels with the same voice as they would in a shop in Hong Kong. So what is driving their success?

    They’re tech-savvy

    With e-commerce growth projected to double the retail industry average at least until 2017, half of all shoppers discovering new products when searching with smartphones, 82 percent of smartphone owners looking online for product information when shopping, and smartphones already accounting for over 40 percent of ecommerce transactions in Japan and South Korea it is no wonder that small retailers are realizing that they need to be as tech-savvy and flexible as their customers. That means engaging and delighting shoppers on mobiles, social media and online channels. 

    They’re highly personal

    Technological advancements and the democratizing power of the Internet have allowed retailers to scale up without sacrificing intimacy and personal service. As customers no longer think about retailers’ brands in a silo, neither does the small retailer. They analyze insights from website visitor traffic, social media interactions, and newsletter click-through rates to better understand their customers. Any retailer with a Facebook page can now easily discover that their average customer is, for example, female, aged between 16 and 24, and listens to One Direction, and by using this data to precisely tailor their sales and marketing strategy, they can more effectively engage and delight their customers.

    They look for ways to cultivate and engage a community

    It is much more profitable to sell to loyal customers than to constantly look for new ones. A Bain study showed that just a five percent growth in customer retention could boost profitability by 75 percent.

    Small retailers are starting to use this insight to build loyal online communities, which do the selling for them. No wonder a brief Google search on the words ‘e-commerce’ and ‘social media’ turns out 101 million results, with articles such as ’12 Social Media Tactics to Drive Traffic to your E-commerce Site’ being the most visited. Another way is through loyalty programs, which 30 percent of independent retailers are planning to implement in 2016. This is on top of the quarter of independent retailers who already have a loyalty program in place.

    They find the right support 

    Finally, one cannot ‘grow small’ without a reliable network of business partners, whether it’s like-minded companies to cross-sell services and expand the product offering, or other companies to provide operational support in areas where expertise is lacking.

    One example of this is logistics. According to a recent FedEx study, about 70 percent of consumers surveyed listed shipping-related factors as the most influential in their decision to buy from online retailers in other markets. That is why small retailers look to third-parties for their expertise and capabilities in potentially complex areas, such as the implementation of a policy that allows customers the option to return items purchased online to a physical store.

    #fashion is a game changer

    As global product availability is almost a non-issue these days, smart small retailers in the fashion and luxury sector need to constantly rethink their strategies, find ways to stand out, grow, and engage their customers without compromising the essence of their appeal.

  • Tom Tailor Launches Its First Online-Shop in China on JD.com

    Tom Tailor Launches Its First Online-Shop in China on JD.com

    Tom Tailor has launched its first online shop in China on the e-commerce platform JD.com, China’s largest online direct sales company. The launch marks another important milestone inTom Tailor’s expansion in China, following the opening of the firstTom Tailor retail store in Shanghai in November 2015.

    TheTom Tailor online shop on JD Worldwide features products from across theTom Tailor Denim and Tom Tailor CONTEMPORARY ranges. Building on JD.com’s brand marketing, payment, logistics and after-sales support,Tom Tailor will ensure that the brand’s customers across China enjoy a world-class online shopping experience.”In order to expand our online presence with the umbrella brandTom Tailor in China, JD.com, as China’s largest e-tailer, is an excellent partner,” said Erika Kirsten,Tom Tailor’s Manager of Corporate Communications.

    “JD.com has a high-value user base. With 155 million active consumers across the country who appreciate its versatile product range and superior customer service, JD.com provides the optimal platform for launchingTom Tailor in the Chinese online market.”“We’re delighted to welcomeTom Tailor to JD.com, and look forward to supporting their growth in China,” said Josh Gartner, JD.com’s Senior Director of International Communications. “Apparel is one of the fastest growing categories on our platform because customers know that only JD.com can provide reliable and convenient access to the latest fashions from local and international brands with a 100% guarantee of product quality and authenticity.

    We are excited to expand our portfolio of brands to includeTom Tailor’s stylish designs and we’re confident that customers will respond very positively.”Tom Tailor is represented in China currently with a retail store and 14 shop-in-shops.

  • Currency, tourism hits Bossini profit

    Currency, tourism hits Bossini profit

    A strong Hong Kong dollar and fewer tourists to Hong Kong and Macau hit profits for Hong Kong-listed fashion group Bossini International Holdings for the six months to December 31.

    Revenue dipped 13 per cent to HK$1146 million (US$147 million) from $1319 million for the same period in 2014. The gross profit was $543 million ($665 million in 2014), with the Bossini profit attributable to owners sliding from $87 million to just $14 million.

    However, the group says its financial position is still healthy despite an unseasonably warm winter in several core markets and more fierce competition within the apparel retail industry.

    In Hong Kong and Macau, same-store sales declined by 14 per cent, opposed to a 5 per cent growth for the 2014 period. Same-store sales in mainland China dropped by 8 per cent (as against 2 per cent growth), while Taiwan and Singapore same-store sales declined 14 per cent (2014: 8 per cent growth) and 1 per cent (2014: flat) respectively. Overall, same-store sales for the group fell by 12 per cent, following 4 per cent growth for the same period in 2014.

    At reporting date, the group had outlets in 33 countries and regions – 267 (down 10 on June 30, 2015) directly managed stores and 678 (681) franchised stores, giving a total store count of 945 (938).

    Its export franchising business continued to expand with 15 new franchised stores, taking the total to 615 stores across 29 countries. The group also continued launching its licensing programs, a major strategy, including a Star Wars collection and a further collaboration with the Ocean Park Halloween Bash.

    CEO and executive director Edmund Mak says the group expects the demand for value-for-money apparel to grow as economies slow globally.

    “To cope with this, we intend to offer more items that are easy for mix-and-matching, as well as products with better functions under a more competitive pricing strategy over the coming years.

    “The group will also continue to implement further cost-control measures and focus on expanding operations further afield of Hong Kong and Macau to achieve a more balanced portfolio.

    “We will also continue to devote energy to expanding our apparel lines for kids, which has consistently been our competitive edge and would also perfectly complement the recently announced end to the one-child policy in mainland China. Furthermore, we will launch Bossini eyewear in mainland China through franchise arrangements.

    “Going forward, the Group will continue to create appealing, competitive and quality everyday wear that drives sustainable growth, profitability and customer satisfaction. With a firm focus on our “be happy” core brand value, we will continue to strengthen our competitive edge and endeavour to enhance the value that we offer to our shareholders.”

  • Singapore’s First Online Store for Luxury Aussie Fashion Launched

    Singapore’s First Online Store for Luxury Aussie Fashion Launched

    TheWellDressedSociety.com began with one dream– to evolve the Singapore fashion scene by bringing the best of Australian designers to Singapore and the rest of Asia.

    The site has launched with leading Australian designers that are few to be seen in the Asian market. In fact – the site is the sole distributor in Singapore for global success stories such as Sass & Bide, Camilla and Marc, FELLA Swim and Bec and Bridge – four of the most renowned brands in Australia known for their unique design and quality.

    Pieces were carefully selected to fit the South East Asian climate – breathable, light and chic. A combination of swim, resort, evening and work wear is on offer, so there’s something for every occasion. As the year goes on, the online store will be adding more brands to their portfolio so watch this space!

    The website was founded by a Sydney-sider now living in Singapore, with the aim of providing easy access and a seamless shopping experience to Asia’s discerning fashionistas. ‘Having lived in Singapore for over 3 years, it became apparent that the most loved brands from home were not available or easily accessible in Singapore. Friends would often go back home for shopping trips and bulk buy clothes for the next few months,” says Catherine Shen, founder of The Well Dressed Society. “There had be an easier way to shop!”

    With the world shifting more towards online shopping, The Well Dressed Society aims to deliver a simple and seamless shopping experience with same and next day deliveries in Singapore so buyers will always be able to get the outfit for that special occasion in time.