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Category: Fashion

Retail News Asia is committed to providing both local and global retailers with the latest Fashion news throughout the Asian market. This on a daily base.

  • Billionaire lifestyle of Hong Kong’s coloured diamonds collector

    Billionaire lifestyle of Hong Kong’s coloured diamonds collector

    Hong Kong property tycoon, Joseph Lau, has snapped up two rare diamonds this week for his seven year old daughter, Josephine.

    Joseph Lau is now the proud owner of the record breaking auction jewel, the Blue Moon sold at Sotheby’s Geneva, and the 16.08ct fancy vivid pink diamond auctioned at Christie’s.

    The billionaire made his fortune as the founder of the property firm Chinese Estate Holdings.

    Lau paid £19m for the rare, pink diamond on sale at Christie’s on November 10 and named the stone Sweet Josephine. It seems the pink gem wasn’t enough though and a day later he paid a record breaking £32m for the 12.03ct blue diamond which he has now christened the Blue Moon of Josephine. These stones will join a 7.03ct rectangular blue diamond named the Star of Josephine which was purchased for his daughter in 2009 when she was just a year old.

    Blue diamonds certainly seem to catch Lau’s eye as last November he bought a $33m (£21.6m) 9.75ct blue diamond for another daughter, Zoe, 13. This stone has been named Zoe Diamond and joins a $8.4m (£5.4m) ruby and diamond brooch weighing a total of 10.10cts called Zoe Red.

    For his eldest son, Lau Ming-wai, 34, his jewels come in the form of the family business. After studying at the London School of Economics at King’s College London, Lau Ming Wai took over as non-executive chairman of Chinese Estate after his father was convicted for crimes of money laundering and bribery in 2014. Although sentenced in Macau to five years, he was saved from jail time as Hong Kong does not have an extradition treaty with Macau.

    Lau is known as one of Asia’s richest men. In addition to a large diamond collection Lau is the proud owner of a Boeing 787 Dreamliner, over 10,000 bottle of fine wines, a wide range of fine art (including a £11.4m Andy Warhol portrait of Mao Zedong) and a £70m home in Belgravia, West London, complete with a gold-lined swimming pool. Lau also owns three quarters of Chinese Estates and is one of Hong Kong’s largest real estate investors.

    In Hong Kong Lau constantly makes the headlines, often referred to as Big Lau. He is known in the media for building Hong Kong’s tallest retail complex and charming several actresses and beauty queens following his divorce from his wife in 1992. Lau is the father of six children and is currently with his former assistant, Kimbie Chan.

    According to Forbes, Lau is the 114th richest person in the world with an estimated net worth of $9.8 billion.

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  • Fashioning Singapore labels

    Fashioning Singapore labels

    Within a short span of two weeks, two well-known Singapore fashion labels made the news for calling it quits. One is doing so for greener pastures – Jo Soh of whimsical women’s-wear label Hansel is folding her 12-year-old brand for better opportunities and exposure as head of fashion for Laura Ashley Asia.

    M)phosis, founded in 1994 and known for its women’s basics, folded because of “severe cashflow problems”, according to director Hensley Teh.

    In a tough retail climate, casualties are inevitable. But what makes the loss of these two especially regrettable is that they had carved out a niche for themselves and had a following for over a decade at least, more so than many other local labels here.

    At the height of its success in the early 2000s, M)phosis was Singapore’s most widely exported fashion label, with distribution in nine Asia-Pacific countries. Hansel was named as one of two Singapore brands worth being proud of and championing by Singapore Tourism Board chief executive Lionel Yeo in 2013. The other was Ong Shunmugam.

    So what went wrong? A large part is a lack of support for local brands, which just do not figure highly on Singaporeans’ radar when there are so many recognisable high-street brands.

    While not all local labels work, there are a number deserving of support, such as In Good Company and Aijek, because they have a clear identity and produce good-quality, wearable designs. Sure, they may cost more than Zara and H&M, but that is inevitable as they lack the scale of these retail giants. Singaporeans need to do away with prejudices such as “If it’s local, it should be cheap” – something local designers say they often hear.

    Designers also need to cultivate a clear style so Singaporeans will be proud to wear them, just as the Thais and South Koreans are of their own talents.

    So before SG50 draws to a close, consider giving local fashion some support. You may be surprised at what you find and you could save some deserving labels from the same fate as M)phosis and Hansel.

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  • Cosmoparis opens first Hong Kong store

    Cosmoparis opens first Hong Kong store

    French luxury footwear brand Cosmoparis has opened its first Hong Kong store at Pacific Place.

    Cosmoparis was founded in 2008 by Axelle Mathery and Hong Kong fashion blogButterboomdescribes the brand as making “stylish footwear designs that are always contemporary, glamorous and feminine for sophisticated ladies”.

    Cosmoparis Hong Kong Pacific Place

    The boutique, located on the first floor of Pacific Place, is a “bright cheerful place with gold table finishing with velvet-like beige coloured stools,” says Butterboom.

    “There are quite a few quirky designs including chic heels with fur, winter boots in different lengths and our favourite – the Angrycat heels that we would like to add to our shoe collection this winter.”

  • Mango stops partnership JC Penney

    Mango stops partnership JC Penney

    Spanish fast fashion retailer Mango is to close 450 points of sale in the US after deciding not to renew a partnership agreement with department store JC Penney.

    The two companies had a five year contract where Mango operated concessions in 450 of the department stores, but they collectively account for just 0.5 per cent of the label’s global sales.

    The stores will close in February, leaving Mango with just seven stand alone stores in the US.

    But a spokesman for the company said it would not be exiting the US market. Instead it will look to open more of its own stores over time, in selected key cities such as New York and Miami.

    Privately-owned Mango is struggling to hold its own against its larger rivals, fellow Spanish brand Zara and Swedish label H&M, internationally, despite a presence in 100 countries. Its profit fell 11 per cent last year.

  • LeSportsac to expand China footprint

    LeSportsac to expand China footprint

    Japanese trading house Itochu has formed a joint venture with Hong Kong based Novo Fashion Retail Group to ramp up the LeSportsac retail presence in Mainland China.

    Itochu signed an exclusive distribution agreement with Novo back in 2007 to supply LeSportsacs to outlets in major department stores and other retailers.

    This month, the two companies will launch a joint venture, its name not yet revealed,

    to focus on the LeSportsac range of casual nylon bags. Standalone stores are a possibility, given the brand’s strong appeal and name recognition in China.

    Itochu distributes the US-founded LeSportsac brand in 35 countries and Novo specialises in marketing western brands in Greater China.

    Initial plans are to double the network of stores selling LeSportsac to about 100 over the next three years, with a concentration on larger cities, and to broaden the bags’ online availability.

    The new venture is also likely to work on expanding the range to include products designed specifically for the China market, based on customer feedback.

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  • Habstore Korea plans New York pop up

    Habstore Korea plans New York pop up

    Habstore Korea is to open a pop up in New York City to help build its reputation as the go-to point for fashion created by young Korean designers.

    Habstore already features more than 100 Korean fashion designers – whose reputation and popularity are expanding rapidly thanks to the Korean Wave which is now spreading beyond Asia into urban US as well.

    CEO Hong Seong-jo says the company’s mission is to introduce products from new designers known for their unique design in South Korea to fashion-sensitive customers. “Some customers rejoice at finding new view on life through brands that they had not known before,” said Hong, 34, who founded the mall three years ago.

    “We are concentrating on finding various designer’s brands in order to make them happy at all times.

    “We are focusing on introducing more South Korean designer’s brands globally as we better our business”, said Hong. “We will open a pop-up store in New York introducing a variety of brand name products to expand our sales channel.”

    Hong first saw the viability of an online mall after successfully introducing a fashion watch brand in Korea. He went on to expand items to clothing and fashion accessories.

    Habstore gives special priority on brands with definite character and competitive strength, yet without attention from the public. For example, when introducing a new brand to the rest of the world, CEO Hong chooses more Eastern style or K-Style designs that Korean Wave stars have used.

    Habstore is also engaged in the production of its own fashion items. Following the launch of the fashion watch brand, ‘Paul Vice’, it also launched the watch strap brand, ‘Straps’.

    The Habstore mall,which was developed by South Korea’s largest eCommerce solution brand, cafe24, features interfaces in both Korean and English.

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  • Coccinelle Asia Pacific travel retail expansion gathers pace

    Coccinelle Asia Pacific travel retail expansion gathers pace

    Published: 17/11/15

    Source: ©The Moodie Report

    By Helen Pawson, Brands Editor

    Italian accessories brand Coccinelle has opened a pop-up store on Jeju Island in partnership with Bluebell Korea.

    Located in Jeju Tourism Organization’s duty free shop, the 20sq m space opened on 23 October and features the brand’s new store concept.

    Open displays and bright steel feature heavily in Coccinelle’s minimalist store

    The store features open displays to showcase bags and accessories as well as wall display modules and bag stands made from bright steel, said to give the interior a “timeless elegance”.

    The pop-up highlights Coccinelle’s Autumn/Winter 2015 collection which includes key piece the Arlettis bag.

    A big board with the Autumn/Winter 2015 campaign, which features American-Italian model Emily DiDonato as the face, dominates the back of the pop-up.

    Coccinelle Head of Travel Retail Emanuele Mazziotta commented: “We are honoured to be on Jeju Island at Jeju Tourism Organization Duty Free Shop with Bluebell and we thank them for their support with this opening. Jeju Island is a well known tourist destination in the Asia Pacific region and represents another key location in our expansion plan. Another important opening will happen soon in the region.”

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  • Asia curbs Richemont sales

    Asia curbs Richemont sales

    Richemont – Swiss parent of luxury brands like Cartier, Dunhill and Montblanc – is blaming a Hong Kong sales slump for a tough half year ahead.

    Reporting its half year figures on Friday, the company said it expected a “challenging second half” which led to an immediate nine per cent fall in its share price.

    Hong Kong accounts for about 16 per cent of Richemont’s global sales and the Mainland a further eight per cent. Asia, excluding Japan, accounted for 34 per cent of the group’s total revenue.

    “The significant sales decline in Hong Kong and Macau during the period was partly offset by positive developments elsewhere. In particular, Mainland China resumed growth with strong retail sales, largely offsetting challenging wholesale sales,” the company said in its trading statement.

    Japan reported strong momentum, both from local and tourist demand, helped by the favourable exchange rate movements.

    Richemont said its global sales through its company-owned stores – which account for just over half its turnover – rose 13 per cent in the first half year at constant currencies. However, wholesale sales fell six per cent. Combined sales increased by 15 per cent at actual exchange rates or by just three per cent at constant exchange rates.

    Shipments of Swiss watches to Hong Kong fell 20.5 per cent in the first nine months of this year, due to falling demand. And Richemont, with such a large part of its global operations in the territory, is very exposed to such a drop.

    The company’s CGO Gary Saage said its margins had fallen in the first half to September – and in October demand had slowed even further. However there was a small upturn in the mainland last month

    “It’s been a long time coming. Mainland China in total grew one per cent and, clearly, within that our own retail grew significantly,” he told analysts in a briefing.

    “Wholesale is still extremely challenging and we don’t know when that will get better, but we take comfort in that our retail networks in both watches and jewellery are performing.

    “Headline numbers in watches will take time to recover,” Saage said.

    Gross profit increased by 13 per cent and accounted for 65 per cent of sales. The 100 basis points margin decrease versus the prior period largely reflected the impact of the Swiss franc’s appreciation and lower capacity utilisation, partly offset by the positive effects of other exchange rates and the growing proportion of retail sales, the company reported.

    Richemont also owns the Baume & Mercier, IWC International Watch, Jaeger-LeCoultre, Piaget, Roger Dubuis and Vacheron Constantin.

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  • UNIQLO and Toray Announce Third Stage of Strategic Partnership

    UNIQLO and Toray Announce Third Stage of Strategic Partnership

    Uniqlo and Toray Industries, Inc. (company headquarters registered in Tokyo) today jointly announce the third stage of their strategic partnership for the next five years. First established ten years ago, the newest stage of the partnership between the two companies aims at strengthening collaborative efforts further and creating a new industry centered the future.

    Uniqlo, leading apparel retailer and originator of LifeWear clothing that is made for all, and available in 841 stores in Japan and 798 stores abroad (as of August 31, 2015), and the Toray Group, global top business group of advanced materials, with its 98 subsidiary companies in Japan and 155 companies abroad (as of March 31, 2015), are accelerating globalization and digitalization to achieve the initiatives listed below. From 2016 through 2020 the total number of transactions between the two companies is expected to reach 1 trillion yen.

    Acceleration of globalization and digitalization to create a new industry:

    – Realize an end-to-end business model by utilizing the Internet of Things (IoT)

    – Reduce production lead times further

    – Increase globalization of production sites and locations further

    – Optimize production in each location

    – Expand production sites to support business growth in Greater China (China, Hong Kong and Taiwan)

    Maximize LifeWear that is made for all:

    – Improve comfort and functionality of current products

    – Conduct research and development of products that offer completely new added value

    – Develop new sportswear to enhance people’s daily lives

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  • Fashion chain M)phosis shutters stores

    Fashion chain M)phosis shutters stores

    Singapore-founded fashion retailer M)phosis is reportedly closing all its Southeast Asian stores due to financial challenges.

    The Straits Times has reported the chain is in the process of closing remaining stores in Vietnam, Malaysia, the Philippines and Indonesia – more than 10 in all. Its last Singapore store, in VivoCity, ceased trading at the end of August. Only its China stores will continue to operate.

    The company has not updated its Facebook page since August, but some disappointed fans of the brand have posted messages on the page, ranging from sadness at the retailer’s apparent demise to anger over being left with vouchers which can no longer be redeemed or cashed in.

    Director Hensley Teh confirmed to the Straits Times the brand remains in the China marketplace.

    “We were having a severe cash flow situation. We were not able to continue, despite wanting to. We did everything we could. We thank our customers, who have supported us all these years.”

    M)phosis made its debut in 1994, targeting women aged 18 to 35. At one stage it operated in Australia, Hong Kong, Dubai and Japan and had a network of 30 stores, but it has since retrenched from those markets.

  • Parkson to launch fashion brand LOL

    Parkson to launch fashion brand LOL

    Malaysian department store retailer Parkson Retail Asia is to launch a new fashion brand LOL, in partnership with a newly established company Super Apparel Supply, jointly owned by Chong Yan Kit and Lim Kin Ann.

    Together the two companies will establish a chain of retail stores branded LOL and selling fashion apparel and accessories, with Parkson owning 70 per cent of the business. Their venture will be established under an existing non-trading Parkson entity.

    Parkson says the JV will give it platform for selling men’s, women’s and children’s apparel, shoes and accessories ”to the mass market”.

    No other information has been released to date, including when and where the first stores will open or whether the brand will be launched outside Malaysia.

    Based on its name and the company’s wording, LOL appears to be a fast fashion or outlet concept, perhaps taking the fight back to Uniqlo which is expanding rapidly in Southeast Asia on a value offer.

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  • Ralph Lauren profits tumble

    Ralph Lauren profits tumble

    US fashion label Ralph Lauren’s operating profit has tumbled almost 39 per cent year to date as it continues to restructure its operations.

    The latest quarterly numbers just released show a solid sequential improvement on the prior quarter, with the strength of the US dollar responsible for most of the headline deterioration. When reported on a constant currency basis, net revenues look more respectable, rising four per cent over the prior year.

    “Despite the fall in profits, Ralph Lauren has taken steps to help ease up its bottom line over the medium term,” comments Håkon Helgesen, retail analyst at Conlumino.

    “These include the global reorganisation into a centralised structure run by six global brand groups which, by the end of 2017, should yield an annual $100 million in terms of efficiency savings. This measure has, however, come with short term costs attached – $38 million of which were recognised during this quarter, and more of which will filter through into subsequent quarters.

    “Despite the squeeze this exerts on profits, we believe that Ralph Lauren is to be applauded for taking the long term view.”

    The global launch of Polo Sport was completed during the quarter and initial indications suggest it has been well received.

    “In our view this activewear brand gives Ralph Lauren a much more significant presence in a lucrative – and rapidly growing – part of the apparel market and will be a solid contributor to future growth,” said Helgesen.

    Geographically, although international growth was deflated by the unfavorable exchange rate, it remains in double digits when expressed in local currency terms.

    “The same cannot be said of Ralph Lauren’s home market where the company struggled to generate sales momentum. Stores in big city locations – which make up about half of the total fleet – have the legitimate excuse of reduced tourist spend, again related to the relative strength of the dollar. This has inevitably acted as a drag on growth.”

    Helgesen says despite sluggish growth and a more promotional retail environment, Ralph Lauren continues to be conservative about discounting.

    “Although this has likely cost it some sales in the US, it has helped to protect margins and, ultimately, brand equity. Again, this is an example of Ralph Lauren being confident enough to take the long term view.”

    Responsibility for the day-to-day running of the company will now fall to Stefan Larsson, who takes over as CEO from its founder Ralph Lauren this month.

    “While some have questioned Larsson’s background – he previously worked at the distinctly mass-market retailers Old Navy and H&M – this is, in our view, to ignore the skills he brings to the table. While these may not have been honed in a luxury brand environment, the operating disciplines of both fashion businesses are points of learning for Ralph Lauren as it continues its quest for efficiency.

    “In any case, Ralph Lauren – and his design prowess – will still be on hand as he takes up his new role of chairman and chief creative officer,” concluded Helgesen.

  • Muji unveils the Muji Hut

    Muji unveils the Muji Hut

    Anti-brand department store Muji has opened a pop up store in Japan to unveil a prefabricated cottage it calls the Muji Hut.

    With a cult following throughout Asia for its simple, clean, brandless designs of homewares, its development of ‘Vertical Houses’ in Japan has drawn widespread attention for their innovative, quirky designs.

    This week the company unveiled the new Muji Hut concept at a pop-up design event in Tokyo.

    Muji Hut Japan 1

    The concept goes like this: In Japanese cities, people have learned to live in a compact home. But on the weekend, it’s time to get outside, enjoy nature, and cozy up inside a cabin.

    Muji Hut cork

    “We gather around the fireplace, enjoy each other’s company,” the exhibit’s welcome sign says. “Muji now invites you to slip away from the hustle and bustle of the city to a place where you can feel instantly at home and at ease.”

    Muiji Hut Japan 2

    Muji demonstrated three huts, ranging in size, complexity and materials. One has cork exterior, one wood and one aluminium.

    The largest, a cork hut, was designed by Jasper Morrison, who has long collaborated with Muji. The mini house includes a main room with fireplace, a bathroom with shower and a kitchen with a stove.

    Muji Hut

    Take a look at the concept on the website which features a full screen animated presentation. (Scroll down to see the Muji Huts).

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  • Michael Kors Japan sales soar

    Michael Kors Japan sales soar

    Michael Kors Japan sales continue to soar as rising US fashion player expands its global success.

    Revenue in Japan for the last quarter rose 60.7 per cent on a constant currency basis.

    While that figure was carved back to 36.1 per cent after the exchange rate was taken into account, it shows stellar growth in the Asian nation, which is now Michael Kors’ second largest market behind the US.

    Globally, although still in positive territory, sales growth at Michael Kors continues to slow. Total revenue was up by 6.9 per cent during the quarter, a sequential worsening of the 7.3 per cent growth posted during the first quarter, and a long way down on the double digit increases recorded across the prior fiscal year.

    But while some of this is due to currency fluctuations, according to Conlumino CEO Neil Saunders, this does not explain away all of the decline.

    “Of particular concern are the same store sales numbers which were down by a sharp 8.5 per cent over the same period last year. While this represents a slight improvement on the 9.5 per cent dip recorded last quarter, it is still a dismal outcome and one which has diminished productivity and profitability. At total level retail sales remained in positive territory, saved only by the addition of some 116 new stores over the past year,” he said.

    “All that said, while Michael Kors is now feeling some pressure on the bottom line, with net income falling by 6.8 per cent over last year, it remains in a much better financial position than a number of its luxury rivals. Indeed, its return on invested capital is over 10 percentage points higher than Coach and some 20 percentage points higher than Ralph Lauren,” noted Saunders.

    “Margins, while having weakened due to both exchange rates and discounting, remain comparatively robust. As such, Michael Kors’ capacity to weather the slowdown in demand for its products is, in our view, reasonable.”

    But demonstrating it is capable of dealing with slowing demand does not mean Michael Kors wants to be in such a position, said Saunders.

    “One of the current issues for the company is that its brand simply does not have the cachet that it once did and is, to some extent, suffering from over-exposure. Nowhere is this truer than in the North American market where the proliferation of the brand over recent years has diluted its value.

    “Steps have been taken to remedy this, including lessening the reliance on traditional products like handbags by introducing more contemporary accessories like oversized wallets and cross body satchels. However, while these are helpful additions which balance out the range, they do not necessarily address the problem of ubiquity that the brand faces.”

    While Michael Kors can look to overseas for growth, as it is successfully demonstrating in Japan, the problem is that with unfavorable exchange rates this translates into a less helpful boost than it once did.

    “Europe is a case in point: here sales on a local currency basis rose by a fairly good 20.6 per cent. However, when exchange rates are factored in this growth is reduced to a paltry 2.3 per cent.

    “Given these dynamics, it is difficult to see how Michael Kors can return to strong growth in the near future,” concluded Saunders.

  • Prada Macau opens men only store

    Prada Macau opens men only store

    Prada Macau has opened its fourth store – a menswear-only boutique at Studio City.

    The new space, designed by architect Roberto Baciocchi, covers about 500 sqm on a single level and houses the men’s ready-to-wear, leather goods, accessories and footwear collections.

    A succession of light-coloured stone pillars and light boxes inserted into black granite volumes sets the rhythm of the external facade.

    The internal facade is clad in black granite, while slim burnished steel profiles frame the entrances, windows and light boxes.

    The two entrances open on an area defined by a succession of spaces, each featuring a different atmosphere.

    The area dedicated to the leather goods and accessories collections is characterised by Saint Laurent marble floorboards, ebony-clad walls and polished steel display cases and counters.

    An elegant sitting area, defined by cotto-coloured leather sofas, leads to the space where the men’s footwear and ready-to-wear collections are showcased.

    The space housing the footwear collections is defined by ebony floorboards and polished steel and crystal cases and counters with drawers covered in coloured saffiano leather exalting the product display. Cotto-coloured leather sofas complete the furnishing.

    The Last Room, dedicated to the ready-to-wear collections, is characterised by walls featuring orange encaustic painting, creating an elegant atmosphere.