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.

  • Uniqlo Philippines opens in Cebu

    Uniqlo Philippines opens in Cebu

    Uniqlo Philippines will open its first store in Cebu on Friday (October 23).

    The new 1000 sqm store is located in SM City Cebu shopping mall, on the first level of the north wing.

    It will be Uniqlo Philippines’ 25th shop and its first in the Visayas region.

    “We have opened 24 stores in Metro Manila and Luzon, entering the Visayas market is a milestone in our growth strategy,” said Katsumi Kubota, COO of Uniqlo Philippines.

    A second Cebu store will open in November in SM Seaside City Cebu.

    Uniqlo’s Lifewear concept, Simple Made Better, advocates apparel that comes from the Japanese values of simplicity, quality and longevity made with elegance.

  • King Baby Studio Announces Five New Stores in China

    King Baby Studio Announces Five New Stores in China

    King Baby strengthens its presence in China by opening five brand new stores – for a total of seven – in China. King Baby is one of a handful of brands exporting “hand-made in the USA” products to China.

    About the new King Baby Locations:

    The Grand Gateway 66 (Shanghai) is in the heart of the Shanghai Xujiahui business and shopping district and contains 1.1 million square feet of retail and entertainment space. The mall adds a Western-style experience to the dynamic Xujiahui commercial district and is located above the subway making it a convenient location for customer traffic.

    The Wanda Plaza (Wuhan) is one of the most unique landmarks in the region, the Han street Wanda Plaza is located in the central part of Wuhan’s central culture area, known as the “Pearl of the crown”. Han Street houses shopping malls, restaurants, and cultural and recreational sites. Hanjie Wanda Square is a luxury-shopping plaza which houses international brand stores, world-class boutiques, catering outlets and cinemas. The shopping mall belongs to Wanda Group, which is the biggest shopping mall group in China.

    The Mixc (Hangzhou) is a luxury mall which has been built in a new Hangzhou Central Business District area along the Qianjiang river, which is surrounded by high-end apartment building, office building, service apartment and Hyatt Regency hotel.

    Joy City (Tianjin) opened for business in 2011. Measuring 530,000 m2, this Joy City in Tianjin is located at the convergence of three traditional commercial circles in Tianjin and is a one-stop urban shopping complex covering experiential shopping malls, international A-1 office buildings, hotel-style service apartments and high-grade residences. You can experience high-end services provided by the super five-star IMAX cinema, the all-star theatre skating rink, the role playing center for children (Babyboss) or the exquisite supermarket Ole.

    Hisense Plaza (Changsha) is the joint project of Hisense Plaza and China’s most well-known property developer Huayuan Property. It’s the podium building of “Huayuan-Hua center”’s city complex The project locates in central Changsha and occupies one-kilometer core river view. Hisense Plaza is devoted to becoming the top shopping center in Central China — the total planned area is over 130,000 square meters (the whole building is nearly 200,000 square meters).

    “King Baby is thrilled and excited to have the opportunity to share American handmade jewelry and accessories along with our passion and lifestyle to China. We believe that quality, tradition, and ‘Made in the U.S.A.,’ are worth their weight in gold,” says founder Mitchell Binder.

    King Baby’s collections capture the spirit of Americana with rock n’ roll sex appeal and includes sterling silver pendants, beaded bracelets, earrings, and accessories detailed with fossilized mammoth ivory, locally mined jet and turquoise.

    “Management is confident with the development of King Baby business in China and very happy to see the progress on this market. More stores will open in a near future,” says Mr. Ching, The Retail Group LTD.

    Los Angeles-based King Baby designs, markets and sells premium artisan jewelry. The collection consists of men’s and women’s sterling silver and gold pendants, bracelets, earrings, and accessories. The company has retail stores in Santa Monica, CA, Los Angeles, CA, Nashville, TN, and Las Vegas, NV. In the United States, the company also distributes merchandise to better department stores and boutiques, including, Saks Fifth Avenue, Harvey Nichols, and Kitson. The brand also sells directly and through distributors to better department stores and boutiques worldwide.

  • China wounds Burberry bottom line

    British luxury brand Burberry says Chinese luxury spending patterns have impacted on its sales in the six months to September 30.

    While the brand’s global retail sales rose two per cent to £1.105 billion in the half year, CEO Christopher Bailey described the market as “increasingly challenging” for luxury customers, especially in China.

    “The external environment became more challenging during the half, affecting luxury consumer demand in some of our key markets. In response, we have intensified our focus on driving sales and productivity, while taking swift action on discretionary costs.

    “While mindful of this external volatility, our plans for the festive season position us well to return to a more positive sales trend in the all-important second half. Looking further ahead, we maintain our focus on – and confidence in – the long-term growth opportunities for our business across channels, regions and product categories.”
    Retail revenue was £774 million, up one per cent on a same stores basis.

    But it was a different story in Asia.

    “Asia Pacific delivered a mid single-digit percentage comparable sales decline in the half, impacted by a further year-on-year deceleration in Hong Kong in the second quarter compared to the first, as footfall continued to drop,” the company said in a statement. “Mainland China comparable sales decreased slightly in the half, in the context of weakening consumer sentiment in the market in the second quarter. Excluding Hong Kong and Macau, comparable sales were broadly unchanged year-on-year in the first half.”

    Japan, however, was a standout.

    “Japan saw comparable sales growth well in excess of 50 per cent, albeit off a small base (with total sales now accounting for around two per cent of global retail/wholesale revenue).

    “Good progress was made during the half in expanding our retail presence, with the addition of our sixth free-standing store, in Shinjuku, Tokyo and the opening of a further six department store concessions, bringing the total to 19. We also assumed operation of 10 childrenswear concessions.”

    The company also expanded its beauty distribution, through Sephora globally and with Shiseido in Japan.

  • Ishtara Jewellery plans expansion into Europe

    Ishtara Jewellery plans expansion into Europe

    Ishtara Jewellery, a Singapore business with origins in India, plans to expand within Asia and into Europe and the Middle East.

    MD and owner Parthiban Murugaiyan says Ishtara is marketing Indian-made gold jewellery in Singapore and its sister company Luvenus Jewellery is retailing international brands overseas.

    The company has been importing Indian gold and diamond jewellery into Singapore for 20 years under its previous name India Jewellery Pte Ltd. It has just completed a rebranding.

    Now Ishtara is planning to open retail stores and showrooms in Hong Kong, India – and further afield in Europe and the Middle East. It will also focus on airports, with a Mumbai airport contract already reportedly signed..

    “We are catering to the younger generation of South Asian diaspora with fashionable jewelleries by setting up showrooms and retail outlets globally, especially starting with airports,” Murugaiyan said in an interview.

  • Stelux warns of looming loss

    Stelux warns of looming loss

    Hong Kong headquartered watch retailer Stelux has warned shareholders it expects to post a loss in the first half year.

    Stelux owns the City Chain network of watch stores along with eyewear brands eGG and Optical 88.

    In the first quarter of this year the company reported a 7.1 per cent decline in sales. But despite a decrease in turnover due to a decline in tourist spending in Hong Kong and Macau, the company achieved an 85.8 per cent increase in sales of its fashion eyewear chain eGG in the China Mainland, a 23.4 per cent increase in City Chain sales there, and a more modest 0.2 per cent gain in its Optical 88 chain.

    Fast forward to last Friday, however, and it warned interest charges, exchange rate losses and weakening Hong Kong and Macau sales will see it record a loss for the full six months.

    It reported “a decrease in turnover and gross profit caused by weak retail sentiment… particularly in Hong Kong, Macau and Southeast Asia (with moderate turnover growth recorded in Mainland China).”

    In the six months to September 30 last year it posted a profit of more than HK$105 million (about US$13.5 million).

    “Despite the anticipated loss, the group is expected to report a positive operating profit, an improved gearing ratio (with a reduction in bank borrowings of approximately HK$130 million) and stable liquidity in the reporting period,” the statement concluded.

  • Brooks Brothers, Walton Brown seal China JV

    Brooks Brothers, Walton Brown seal China JV

    Brooks Brothers Group, America’s oldest retailer, and Walton Brown Group, have signed a 10 year joint venture to market the brand in Greater China.

    A 50/50 joint venture company has been established which will launch in January 2016 for an initial period of 10 years. It will take over the management of Brooks Brothers’ existing retail network of 90 stores in the market territory and plans to open more than 10 points of sale in the first two years across key cities in China, Hong Kong, Macau, and Taiwan.

    In addition to freestanding stores, the JV will invest deeply in a multi-channel distribution platform providing wholesale, outlets, travel retail and eCommerce channels to bolster brand presence and fuel business growth in the region.

    The move comes several months after the announcement by Hong Kong’s Dickson Concepts it would not be renewing its partnership with Brooks Brothers when it expires on December 31.

    The two companies in the new JV believe the arrangement will leverage the strengths and capabilities of Walton Brown, a subsidiary of The Lane Crawford Joyce Group, with experience in strategic retail brand management in Greater China with the global appeal of Brooks Brothers, “one of America’s most iconic clothing brands,” augmenting its dynamic growth across the Greater China region.

    The partners say that building on the success of Brooks Brothers’ ready-to-wear menswear and accessories collections, the product offerings within its women’s collection and accessories lines will be enhanced with the appointment of influential US designer Zac Posen as the creative director for women’s wear. His first women’s collection will debut in Spring/Summer 2016 and will be available worldwide.

    Claudio Del Vecchio, chairman and CEO of Brooks Brothers, said the JV will enable Brooks Brothers to develop long-term growth strategies across multiple online and offline distribution channels especially in China, one of its most important growth markets for the global business.

    “We are confident in China’s growth prospects in the premium sector for the coming years and this is the optimal time for us to position Brooks Brothers for long term sustainable growth,” said Del Vecchio.

    “With Walton Brown’s in-depth local market insights and extensive distribution capabilities and network in retail, we believe we can capture new opportunities to further deepen our relationship with Chinese consumers.”

    Walton Brown president Thomson Cheng said that in the 12 years since Brooks Brothers entered China, the brand has built a strong following of customers.

    “With the foundation in place, we believe the brand has enormous potential with the new generation of sophisticated and prosperous consumers in China and with the launch of the online business in 2016 we will be able to significantly increase reach with this consumer segment.”

    Following the formation of the joint venture, Brooks Brothers and Walton Brown will establish a corporate office and showroom in Hong Kong in early 2016.

    Brooks Brothers today operates more than 460 stores worldwide including over 130 retail stores in the Asia Pacific region, 90 of which are in Greater China.

  • Hilary Tsui of Liger boutiques on her passion for fitness and fashion

    Hilary Tsui of Liger boutiques on her passion for fitness and fashion

    Marathon runner, designer and co-founder of Hong Kong’s Liger boutiques, Hilary Tsui Ho-ying talks about her two passions – fashion and fitness.

    You’ve just got back from Paris Fashion Week. What was that like? “This was the busiest fashion week I have ever had! I was in Paris to run a race as well as for showroom appointments, buying and attending fashion shows. I also took my Oh My God collection there for a trade show.”

    How would you describe Hong Kong style? “We have different kinds of style influences here. Korean is very trendy at the moment and there are lots of people still loyal to Japanese fashion. For me and my store, we still tend to be more European.”

    How have falling retail sales in Hong Kong affected plans for your Liger boutiques? “We have to be more careful in choosing brands. Actually, everyone is going through a hard time in retail, especially in the fashion industry. I hope landlords can be more considerate of their tenants when deciding on rents. If that happens, the road will be easier for everyone.”

    How can Hong Kong fashion become more competitive globally? “Quality is important. For example, a friend who founded local label Jourden now has many clients all over the world, including influential stockists like Colette and Barney’s. One of the reasons she can attract these international buyers is that she chooses high-quality fabrics.”

    How do you juggle your passions for fitness and fashion? “Our store now has a sports corner where I can display my favourite brands, trainers and sportswear. Running is not only a sport, it helps release stress – one of my favourite moments is when I can be alone and clear my mind. People always say that marathon running is a kind of meditation. And people want to be stylish when they are doing yoga, running or other exercise.”

    What is the one thing you can’t live without? “My family!”

  • Daphne International sales slump

    Daphne International sales slump

    Hong Kong-listed shoe retailer Daphne International has reported a third quarter same store sales slump of 19.7 per cent as it continues to cull its store network.

    As earlier reported, Daphne issued a profit warning in July after reporting a fall in same store sales of 16.9 per cent in the first half of 2015, and by 17.7 per cent in the second quarter.

    In the first six months of the year, Daphne closed 181 stores – 117 directly-managed and 64 franchised stores, the majority in the second quarter. But it still has 6221 points of sale.

    Daphne operates the Daphne and Shoebox retail brands in Mainland China.

    During the third quarter, same-store sales of the group’s core brands business recorded a decline of 19.7 per cent year on year, but the company explained that was from a high base effect of 6.3 per cent growth during the same period last year.

    Overall, the same store sales decline of its core brands for the first three quarters of 2015 was 17.9 per cent.

    “The same-store sales decline was more driven by the lower average selling price, although both ASP and sales volume recorded a decrease,” the company disclosed.

    “The group continued the consolidation of the sales network, with a net closure of 219 points of sale during the third quarter (a reduction of 191 directly-managed stores and 28 franchised stores), and therefore had a total of 6002 POS under its core brands business as at September 30.”

    The one bright spot was an undefined growth in sales in its eCommerce sales during the third quarter.

  • US, Asia weigh down Hugo Boss

    US, Asia weigh down Hugo Boss

    Deterioration of the market environment in Asia and a slowdown in the Americas weighed on sales and earnings performance of German fashion brand Hugo Boss in the third quarter of 2015

    The company said its sales were marked by “high levels of volatility” in the third quarter to September 30. The group’s own retail business in particular developed unevenly over the period.

    “While performance in Europe remained strong and in line with original expectations, momentum in Asia and the Americas deteriorated considerably towards the end of the period. This was due to sales declines in China as well as a negative development in the Group’s US own retail and wholesale businesses,” the company said in a statement.

    “Weaker demand from tourists contributed to the slowdown in the US.”

    Third quarter group sales declined one per cent, excluding currency effects. Expressed in euros, they increased by four per cent to euro 744 million. Own retail same store sales remained stable year on year in local currencies.

    “Due to particularly challenging sales trends in the group’s directly operated stores as well as continued investments in the medium- and long-term growth potential of Hugo Boss, EBITDA before special items declined by eight per cent to euro 168 million in the third quarter, on a preliminary basis,” the company reported.

    “In addition, the group’s financial result was impacted by a negative charge of around euro 16 million related to adverse exchange rate movements of the Brazilian Real and the Swiss Franc in particular.”

    In light of weaker than expected trading in the third quarter, the group now forecasts sales and EBITDA to both increase between three and five per cent on a currency-adjusted basis in the full year.

    “This outlook is based on the assumption that fourth quarter retail comp store sales will remain stable or develop positively compared to the prior year quarter.”

  • Mitra Adiperkasa to launch in Sri Lanka

    Mitra Adiperkasa to launch in Sri Lanka

    Indonesian multi-brand retailer Mitra Adiperkasa is planning a foray into Sri Lanka, attracted by the opening economy and a growing middle class.
    Mitra Adiperkasa (MAPI) describes itself as a lifestyle retailer in its home market with retail businesses in the clothing, sportsgoods and toy categories as well as operating department stores, cafés and restaurants. It boasts 1900 stores, selling more than 150 brands and employs more than 23,000 people in 65 cities.

    MAPI operates Starbucks cafes across Indonesia and has the national Zara rights, among others.

    The Sri Lankan move was not announced by the company, instead revealed by Jatinder Biala, outgoing president of the Sri Lanka and Indonesia Business Council who identified MAPI as one of a group of Indonesian businesses interested in making the most of the opportunities opening up in the island nation.

    “They have already taken steps to promote their products in Sri Lanka,” Biala told a local newspaper. “Very soon they are opening a subsidiary in Sri Lanka.”

  • Grana Hong Kong, a store with no stock

    Grana Hong Kong, a store with no stock

    In this world of the digitally empowered consumer, is inventory a threatened species?

    Are classic retailer metrics such as stock hold, stock turn, stock intensity per square metre and working capital ratios yesterday’s news?

    After all what is a classic retailer’s largest cost of business? Well one could argue it’s inventory, certainly such that range, width of range, and its management is a strong determinant of both cash flow and profitability.

    Now a growing number of retailers are enhancing their offer by investing far less in inventory and far more in their digital interface, customer databases and social communities.

    Their advocates and fans are being increasingly conditioned and motivated to the customised offer that brings all channels to the fore. Not seeking to purchase on the spot, far more motivated by the various caches that a true digital-inspired omnichannel retail business offers. Aware that a physical store is crucial to the overall offer yet doing so in a way that maximises both the customer experience and resultant experience.

    Is this the store template of the future?

    Disrupting the standard retail format certainly seems to be on the agenda for many of today’s innovative fashion start-ups. Online retailer Kent & Lime have created a successful retail model out of providing online style advisors to hand select items in the right size and sent directly to your door. Your home becomes your personal fitting room where you have three days to try on your items, show your friends and then return those you don’t wish to keep, only paying for what you keep.

    Another success story in this area and a personal favourite of ours is Australian innovator Sneakerboy, as mentioned in previous posts. This week we visited another disrupter in this field, Grana.

    Aiming to combine the world’s best fabrics at disruptive prices, Grana is all about high quality garments at a lower price point. Founded in 2013, Australian-born Luke Grana, realised that achieving this goal meant re-thinking the traditional fashion business model, and focusing on ‘outstanding logistics’ rather than design, to give the fashion retailer an edge on the competition.

    Being based out of Hong Kong, the world’s largest logistics hub, allows the brand to ship internationally at almost the same cost of shipping locally in Australia with Australia Post. Working directly with fabric mills, all products are shipped direct to the warehouse and then straight onto the customer, cutting out the middle man, once again saving costs to provide ultimate savings to customers.

    Last year the core team members of the company, including founders Luke Grana and Pieter Paul Wittgen set up a shipping container pop up shop in and around Sydney, which reportedly was well received due to the quality of the products. They have now returned to Sydney’s Queen Victoria Building with a ‘zero-stock’ concept pop up store set to last until January 2016. When speaking of their first concept store in their channel in Hong Kong which followed a similar concept allowing customers to try on apparel and have their orders shipped to their door, founder Luke Grana said, “our customers can receive the tailored customer service and interaction that only a brick and mortar location can provide, but with the ease of online purchasing.”

    The Sydney store this weekend was buzzing, with consumers naturally adopting the new way of shopping. While some were a little confused at first, while we were in the store, once the concept was explained by an approachable and enthusiastic team member, all customers were taking items to the fitting rooms, and exploring the full range on the instore computers. The garments were attractively displayed within their styles, with place cards detailing where the fabrics had been sourced. From Peruvian Pima t-shirts priced at $22, to Chinese Silk Dresses from $99, it is refreshing to have such a transparent view of the supply chain communicated through the store experience.

    We are interested to see what the future holds for Grana, and whether we may begin to see more Australian retailers start to adopt this model of retailing in the future.

  • Western retail giants restrict travel to Bangladesh after attacks

    Western retail giants restrict travel to Bangladesh after attacks

    Business executives from global clothing giants H&M Inditex and Gap have canceled trips to Dhaka this month after the killings of two foreigners, industry sources said, causing anxiety for Bangladesh’s $25 billion garment export sector.

    Bangladeshi suppliers to the world’s top brands said they didn’t expect the disruptions to hurt their orders for the year-end Christmas season.

    But the attacks, claimed by the Islamic State, increase the pressure on an industry which faces competition from other low-wage countries and is trying to repair its safety image after several fatal accidents.

    The United States and Canada have asked their diplomats to restrict their movements, and Britain warned of more attacks after an Italian aid worker and a Japanese man were shot dead a few days apart. Australia canceled a cricket tour.

    Bangladesh’s government, however, rejected the claim by the Islamic State and blamed the growing violence in the country on its domestic political opponents trying to show it in poor light. The attacks on foreigners, while rare, follow the killings of four Bangladeshi bloggers this year by machete-wielding assailants, and have spawned fear among the foreign community.

    Shahidullah Azim, a garment exporter who supplies to Sears, Loblaws and Perry Ellis among others said one of his buyers asked him to come to Dubai instead, along with the clothing samples.

    Other foreign business executives asked for video conferences with their Bangladeshi counterparts, saying they couldn’t travel to Dhaka because of the warnings issued by their governments.

    “We are monitoring the situation in Bangladesh closely and we are taking the appropriate security measures. We are also in close dialogue with other brands regarding the situation,” H&M spokeswoman Anna Eriksson said.

    Marks & Spencer said the firm stopped travel to Bangladesh for seven days a few weeks ago. Travel has since resumed, a spokeswoman said, and added there was no impact on business orders.

    MASKED MEN ON BIKES

    Bangladesh has deployed paramilitary soldiers on nighttime patrols in the diplomatic quarter of Dhaka and issued a nationwide ban on people riding pillion after the two attacks were carried out by masked men riding bikes.

    Home Minister Asaduzzaman Khan, who has dismissed claims that the Islamic State was operating in the Muslim majority country of 160 million, said on Wednesday that police were close to a breakthrough on the killings.

    “We have taken these attacks very seriously. We won’t spare the killers,” he said.

    Prime Minister Sheikh Hasina has blamed the rising tide of violence on the opposition Bangladesh Nationalist Party and its key ally, Jamaat-e-Islami, many of whose leaders are being prosecuted for war crimes during the 1971 war of independence.

    The opposition denies any involvement.

    A Dhaka-based garment manufacturer said the government had increased security in the area where foreigners lived, police had spoken to them and confidence was returning. Business was strong, but if there is another attack on a foreigner, it could hurt the sector.

    Azim warned of an even broader impact. “If this Islamic State issue persists for long it will not only hurt our businesses, it will destroy the country’s image,” he said. “The government should act promptly to bring the perpetrators to justice and let the world know that Bangladesh is safe.”

    The readymade garments industry is the economic lifeblood of the country, employing around 4 million people, most of them women. It is in the midst of a massive safety overhaul after the collapse of the Rana Plaza in 2013 in which more than 1,100 workers were killed and exposed the unsafe working conditions.

    In recent years, Bangladesh has also faced competition from Vietnam, Cambodia and Myanmar, although its wages remain low.

     

  • Burberry shares down 12% following China slowdown

    Burberry shares tumbled 12 per cent, the largest drop in three years, as theluxury group warned that its sales had been hit by a slowdown in China.

    In an example of how the global luxury market is struggling, Burberry said that retail sales were affected by “an increasingly challenging environment for luxury, particularly Chinese customers”.

    Total retail sales grew just 2 per cent to £774 million in the six months to the end of September, while like-for-like sales slowed to 1 per cent. Crucially, in the Asia Pacific area, sales experienced a “mid-single digit percentage decline” while “Hong Kong

  • Bauhaus sales slide

    Bauhaus sales slide

    Denim retailer Bauhaus International says its same-store sales in Hong Kong and Macau fell seven per cent in its second half year to September 30.

    The Hong Kong-listed street fashion retailer had 211 self-managed stores at the end of the first half year – 96 in Taiwan, 86 in Hong Kong and Macau and 29 in the mainland.

    Bauhaus International told the told the Hong Kong Stock Exchange that its same-store sales generally had slipped eight per cent overall.

    It has not released same store sales data.

    The company sells a range of imported denim and t-shirt brands including Desigual, Evisu, Superdry, True Religion and Red Pepper.

  • Roger Dubuis Hong Kong plans more Macau stores

    Roger Dubuis Hong Kong plans more Macau stores

    Luxury watch brand Roger Dubuis says it will open more stores in Macau and Hong Kong despite the recent contraction of the market.

    Roger Dubuis Hong Kong has four stores and there are a further three in Macau. The Swiss brand debuted here in 2000 and is aiming to be one of the world’s top five luxury watch retailers by 2020.

    Despite price tags ranging from HK$150,000 to HK$10 million, Roger Dubuis is unconcerned by the broader trend and is eyeing the longer term growth opportunity in the SARs and the mainland as the number of Chinese with high disposable income grows.

    Two new stores will open in Macau next year and potentially another in Hong Kong.

    CEO Jean-Marc Pontroué told the Hong Kong Economic Journal a new store will open in Nanjing in the mainland next year as well. That follows the opening of its first mainland store in Beijing last July.