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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.

  • Is Seoul Asia’s new fashion window?

    Is Seoul Asia’s new fashion window?

    Move over Hong Kong, Tokyo and Singapore. Seoul is emerging as Asia’s new fashion showcase, with the world’s top luxury firms seeking to cash in on the regional trend-setting popularity of South Korean pop culture.

    Fast-growing Asia is a key market driving the global luxury industry, with purchases by Chinese consumers accounting for one third of global sales, according to market researcher Bain & Company.

    And those consumers often take their style pointers from elsewhere, which is why many brand companies are increasingly focusing on the country described by Bain as Asia’s “trendsetter and influencer for fashion and luxury”.

    Over the past year, leading global fashion houses have upped their game in South Korea in a bid to reach those well-heeled Asians who take their fashion cues from popular Korean TV and pop stars.

    French powerhouse Chanel held its 2015/16 Cruise Collection in Seoul in May — its first show in South Korea.

    And in June, Christian Dior opened a six-storey flagship store — the largest in Asia — in the upscale district of Gangnam, made famous by the eponymous hit by South Korean rapper Psy.

    The world’s top luxury group LVMH, which owns Dior and Louis Vuitton, has gone a step further by directly investing in Seoul’s thriving K-pop industry.

    Last August, L Capital Asia — the investment fund arm of LVMH — bought shares worth about $80 million in YG Entertainment, a major K-pop agency.

    The deal made the French luxury empire the second-largest shareholder of YG, whose roster of K-pop acts includes Psy, G-Dragon and the boyband BigBang.

    “Global luxury firms have begun to realise that what’s popular in South Korea soon becomes popular across Asia,” said Lie Sang-Bong, a prominent fashion designer and head of the Council of Fashion Designers of Korea. Lie said luxury brands that had previously favoured Hong Kong or Singapore as the centre of their Asia business started to turn to Seoul about three years ago.

    China’s influence as a trendsetter will eventually catch-up with its importance as a market, but for now “Seoul is where they look to see the next big trend,” Lie said.

    Famed fashion critic Suzy Menkes picked Seoul as next year’s host for what will be only the second edition of the annual Conde Nast International Luxury Conference.

    “I think that (luxury brands) are thinking of this country as a hub, this city in particular as a hub, where people will go and buy things,” Menkes, the international fashion editor for Vogue, said during a visit to Seoul in July.

    The real attraction for the brand names is the promotional reach into the rest of Asia and beyond provided by the so-called Hallyu (Korean Wave) of Korean TV shows and pop music.

    The power of the Hallyu phenomenon was most recently demonstrated by the 2014 hit TV drama “My Love from Another Star” which was enormously popular in China.

    A pair of $625 Jimmy Choo shoes worn by the show’s heroine, Jun Ji-Hyun, sold out in shoe stores across Asia, while an Yves Saint Laurent lipstick she was rumoured to be wearing experienced a similar run in China.

    Rapper G-Dragon — a style icon followed by millions of fans across Asia and beyond on social media — is considered a poster child of the Hallyu boom.

    His favourite items, from Yves Saint Laurent jackets to Christian Louboutin sneakers, earn instant recognition among his followers and are discussed on dozens of websites dedicated to the styles of K-pop artists.

    Now the 27-year-old has become a front-row fashion show fixture, not just in Asian cities, but also Paris and London.

    Korean TV dramas have also proved to be a striking marketing device for the cosmetics industry, according to a May report by market researcher Euromonitor. Beauty products featured in top-rated shows or favoured by their stars fuel “rocketing demand for the relevant colour cosmetics and skin care products” in other Asian countries, especially China, the report said.

    And it isn’t only foreign brands that are benefiting from exposure in the South Korean shop window.

    A “cushion-compact” — a sponge soaked with liquid foundation — developed by AmorePacific has proved a major hit in Asia, prompting Dior to form a strategic partnership with the Korean cosmetics giant to use the “cushion” technology.

    Kate Ahn, Seoul representative of the British consumer research firm Stylus, said South Korea had effectively become a “springboard” for luxury brands to test consumer sentiment in the Asian market.

    “It’s a small country but a perfect starting point to tap into the Chinese market and beyond,” Ahn said, adding she had been bombarded with proposals from European and US firms hoping to invest in Seoul cosmetics makers in recent years.

    “They even want to invest in relatively small, little-known cosmetics firms … because they know many Asian women, especially Chinese, are closely watching beauty trends in Seoul,” she said.

  • Japan’s Owndays to enter Thailand, Cambodia

    Japan’s Owndays to enter Thailand, Cambodia

    Tokyo-headquartered Owndays will open its first stores in Thailand and Cambodia in October.

    The retailer, which produces and sells fashionable and trendy eyewear, already operates 130 shops in Japan, Singapore, Taiwan and China. It plans to open 100 new stores in Southeast Asia during the next five years.

    The first Thai store will open in Bangkok’s Mega Bangna shopping centre, the first Cambodian store in Aeon Mall, Phnom Penh.

    Owndays believes its pricing structure and speedy turnaround will set it apart from local eyewear retailers.

    Where most optical shops charge customers for frames and lenses separately, and require high optional charges depending on types of lenses, making pricing systems complicated and difficult to understand, Owndays keeps its pricing system simple. It has eliminated additional charges for all single-vision lenses and offers all glasses at set prices indicated on its frames – there’s no additional charges for lenses no matter what customer-required lenses are.

    “This is a very unique and very customer-friendly pricing system in the eyeglass industries of the region,” said a spokesperson.

    Every Owndays shop has a wide range of and large number of stock lenses, enabling staff to provide customers with spectacles in as little as 20 minutes after the payment.

    Owndays launched its business operations in Southeast Asia in July 2013, and now operates 14 shops in Singapore and six shops in Taiwan.

    The company has established its own overseas business model through its independent pricing system and services and is rapidly expanding its business activities.

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  • Perrin Paris Opens First Store In Hong Kong

    Perrin Paris Opens First Store In Hong Kong

    French leather product brand Perrin Paris opened its first store in Hong Kong.

    Perrin Paris was founded by Berthe Rigaudy and Victor Rigaudy in 1893. Though the brand has a long history, it only has four stores, which are located in Paris, New York, Los Angeles, and Hong Kong, respectively. Its other sales channels include dozens of sales sites and the online retailer Moda Operandi. In 2006, Michel Perrin, chairman of Perrin Paris, took over the company and started its expansion.

    Located at International Finance Centre, the new Perrin Paris Hong Kong store is only about 250 square feet, which is about 23 square meters. Though it is small, the new store is in a core retail market area and can better test the market response.

    Prior to this, Perrin Paris opened a sales site in SKP Beijing in 2014; however, the company did not reveal its sales performance in China’s capital city.

    In addition, the company revealed that they will not open independent stores in the Chinese mainland market in the near future.

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  • Future Group opens London design studio

    Future Group opens London design studio

    Future Group subsidiary Lifestyle Fashions has opened a design studio in London, which it describes as “the fashion capital of the world”.

    The studio will “infuse the company’s brands with global designs, trends and sourcing capabilities and also curate a globally-inspired fast fashion brand for the Indian market,” the company said in a statement.

    Located in Victoria, London, the Design Studio houses an international team of designers and merchandising experts. London’s Victoria district has emerged as the new fashion hub of the city. Tom Ford and Burberry have their headquarters in the suburb and Future Lifestyle Fashions’s neighbours will include Victoria’s Secret, Burberry, Dolce & Gabbana, Moet Hennessy, Richemont and Jimmy Choo.

    “As part of this vibrant fashion ecosystem, Design Studio will tap into global talent and  networks for identifying trends, fashion design and sourcing of materials and merchandise that will fuel its fast fashion brand,” the company said.

    “Its first collection will be launched in Spring‐Summer 2016.”

    Future Lifestyle Fashions MD Kishore Biyani said Indian fashion is evolving at a rapid pace and incorporating global trends and sensibilities.

    “Women in India today shop for fresh fashion eight to 10 times in a year. Our Design Studio in London will develop a fast fashion brand that responds to these needs and infuse our brands with global sensibilities and innovation in design and sourcing.”

    The Design Studio is led by Manjula Tiwari who joined Future Group from Jabong earlier this year. Tiwari has more than two decades of experience in the fashion industry and was previously involved in introducing global brands such as Esprit and United Colors of Benetton in India. The design team in London will be led by Ainsley Dart, who has been instrumental in directing and leading large design teams of multi product, fast fashion women’s wear for global retail brands and major suppliers such as Courtalds and Dewhirst.

    Future Lifestyle Fashion markets leading international and domestic brands such as Lee Cooper, Converse, Indigo Nation, Scullers, Daniel Hechter, Giovanni, Urbana, John Miller, Jealous 21, aLL, UMM, RIG, Champion and Umbro, which are retailed through the company‐owned department store network, Central, other retail chains such as Planet Sports and Brand Factory. Most of these brands are also available at exclusive brand outlets, other department stores and fashion chains across India.

    The company also has investments in fast growing fashion brands such as Tresmode, Mineral, Desibelle, Mother Earth, Pepperone, Famozi and Turtle, and operates joint ventures with Hidesign and Clarks. With more than two dozen brands and 5 million sqft of retail space, Future Lifestyle Fashions aims to develop a globally benchmarked fashion business here in India.

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  • Girard-Perregaux Singapore flagship

    Girard-Perregaux Singapore flagship

    The new Girard-Perregaux Singapore boutique is the Swiss watchmaker’s first Southeast Asian flagship.

    The Girard-Perregaux Singapore boutique is a partnership with The Hour Glass, Singapore’s exclusive distributor of Girard-Perregaux in Southeast Asia.

    The boutique has opened at The Shoppes at Marina Bay Sands.

    “Girard-Perregaux is honoured to celebrate its exclusive partnership with The Hour Glass, with the opening of its first flagship boutique in Singapore. It is indeed a privilege to be the new addition to the prestigious lineup of luxury brands retailing at Marina Bay Sands. This is a significant milestone and a hallmark of the manufacturer’s watchmaking evolution and heritage,” said Antonio Calce, CEO of Girard-Perregaux.

    The Girard-Perregaux boutique houses the most comprehensive collection of Girard-Perregaux timepieces yet in Singapore. Unveiling the core collections in dedicated sections within the boutique, watch aficionados will be enticed by Girard-Perregaux timepieces ranging from Haute Horlogerie, to iconic collections such as GP 1966, the seductive feminine Cat’s Eye collection and the Vintage 1945 which celebrated its 70th anniversary this year, to name a few.

    Upon entering the boutique, customers’ attention will be caught by the Parisian custom-made chandelier cascading from atop, evoking a touch of lightness and artistry to the boutique environment. The interior décor of the Girard-Perregaux boutique features precious wood furnishing, emanating modern and discreet sophistication.

    “Girard-Perregaux is one of the rare manufacturers today who have amassed a rich heritage and watchmaking expertise of over two centuries. This is a rare gift. The partnership between The Hour Glass and Girard-Perregaux shares a common passion for respected watchmaking codes, combined with forward-thinking innovations.We are proud to unveil the authentic world of Girard-Perregaux in one of Singapore’s most dynamic retail landscape at Marina Bay Sands,” said Wong Mei Ling, MD of The Hour Glass.

    Girard-Perregaux by The Hour Glass is located on the Bay Level of The Shoppes at Marina Bay Sands.

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  • New Disney park in China to bolster sales, Uniqlo chief says

    New Disney park in China to bolster sales, Uniqlo chief says

    Fast Retailing Co. Chairman Tadashi Yanai said Walt Disney Co.’s new park in Shanghai will help his Uniqlo casual clothing brand expand in China, shrugging off concerns over an economic slowdown in the Japanese retailer’s largest overseas market.

    “The opening of the Shanghai Disneyland gives both of us, Uniqlo and Disney, a business opportunity,” Chairman Tadashi Yanai told reporters in Shanghai, where Uniqlo will open a new Disney-inspired concept store. “Our business is getting absolutely no impact” from China’s slowdown, he said.

    Starting Sunday, Uniqlo will devote an entire floor at its six-story China flagship store in central Shanghai to products jointly designed with Disney. A human-sized Mickey Mouse statue greets visitors to the store, where T-shirts and toys depicting characters such as Tinker Bell, Woody of Disney Pixar’s “Toy Story” animated films, and Darth Vader from the Star Wars movies are on display.

    Japan’s richest person, Yanai plans to open 100 stores a year in China as Uniqlo competes with Hennes & Mauritz AB’s H&M and Inditex SA’s Zara to win over consumers in the world’s most populous country. The retailer’s design tie-up comes as Disney prepares to open its $5.5 billion Shanghai theme park next year, its biggest foreign investment and a bet on the country’s booming middle class.

    The Disney collaboration should help Uniqlo boost sales in China “as buzz builds around the opening of Shanghai Disneyland,” said Bloomberg Intelligence retail analyst Thomas Jastrzab. “Expanding store-specific limited edition merchandise offerings should help Uniqlo increase regular foot traffic and improve customer loyalty.”

    Fast Retailing rose 3.3 percent to ¥46,800 ($388.09) at the close of trading in Tokyo on Friday. The shares are up by 6.3 percent so far this year, compared with the 3.3 percent gain in the benchmark Topix index.

    Uniqlo has about 360 stores in mainland China, the most in any country outside Japan, where it has almost 850 shops. The company plans to expand its Greater China network, including mainland China, Hong Kong and Taiwan, to 1,000 outlets.

    China is a key market for Fast Retailing as Yanai attempts to turn Asia’s biggest clothing retailer into the world leader, with a target of ¥5 trillion in sales by 2020 from its forecast of ¥1.65 trillion for the fiscal year ended Aug. 31.

    Yanai said demand for Uniqlo products will increase amid an economic slowdown in China. Everyday clothes with basic designs and advanced materials that Uniqlo sells at affordable prices fit well as China shifts its focus to consumer purchasing from manufacturing, he said.

    “An economic slowdown in China could boost Uniqlo’s sales, particularly as shoppers increasingly look for value-for-money when purchasing clothing essentials such as T-shirts and pants,” Jastrzab said.

    China’s apparel and footwear market is highly fragmented, with market leader Bestseller AS, owner of brands such as Jack & Jones and Vera Moda, holding a 1.7 percent market share by value in 2014, according to Euromonitor International. Uniqlo ranks eighth with 0.6 percent, while Inditex is ninth with 0.5 percent and H&M is out of the top 10 with 0.4 percent.

    “Our concept of manufacturing is fundamentally different and unique,” said Yanai. “We don’t chase trends, but we would rather want to incorporate fashion into our basic clothes.”

  • H&M plans to open another 240 stores by end of the year

    H&M plans to open another 240 stores by end of the year

    Hennes & Mautitz AB (H&M), Swedish multinational retail-clothing company, known for its fast-fashion clothing for men, women, teenagers and children plans to open an additional 240 new stores this year. In the third quarter, H&M opened 36 new stores, but in the fourth quarter 240 new stores are scheduled to open, most of which will be in China and the US. H&M already has 299 locations in China, but growth in the country’s apparel industry makes it a promising hotbed for retailers.

    China, in particular, will account for much of the expected growth, encompassing almost one-third of regional demand for clothing by 2018. As the Asian clothing and apparel sector is expected to grow rapidly over the next five years. Annual average expenditure growth on clothing and footwear, at 9.5%, will comfortably outstrip that of any other region, said PricewaterhouseCooper’s retail consultants in their 2015-2016 outlook report on the retail and consumer products sector in Asia.

    Beyond its traditional flagship brand, H&M also owns premium brand Cos. The company hopes to introduce Cos in China as well, catering to the country’s growing upper-middle class.

    Cheap prices and a continuous supply of new looks keep customers coming back to chains like H&M and Zara. And according to Ms. Paula Rosenblum, Forbe’s retail analyst. H&M’s success comes amid a growing demand for fast fashion.

    But despite fast fashion’s growth, chains including H&M are increasingly facing criticism over both environmental and social justice concerns.

    Though fast fashion offers consumers a wider variety of styles, the rising trend has also been tied to growing amounts of textiles in landfills. In the US alone, clothing, footware, and other non-durable textiles generated 12.4 million tons of landfill waste in 2013. Only about 15 percent, or 1.8 million tons of the textile waste was recovered for reprocessing or recycling, reported the US Environmental Protection Agency.

    Furthermore, many fast fashion retailers rely on cheap labor to produce high quantities of their products. Many laborers used to come from China, but with rising wage demands, companies have looked to Taiwan, Indonesia, Vietnam, and Bangladesh, among other southeast Asian countries instead.

    According to Bloomberg Business, H&M has seen significant growth this year, second only to the Spanish clothing retailer Zara in size. Third-quarter sales grew 16 percent, surging to nearly 46 billion Swedish kronor, with revenue coming in at 39 billion kronor.

     

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  • Uniqlo Magic For All to debut in Shanghai

    Uniqlo Magic For All to debut in Shanghai

    Uniqlo will open its Magic For All store on the fifth floor of the Uniqlo Shanghai Global Flagship store on Huai Hai Rd on September 27.

    Uniqlo Magic for all 4

    It will be the first execution o fthe new partnership between the Japanese clothing brand and entertainment giant Walt Disney which will see many Disney characters feature on apparel sold by Uniqlo.

    Uniqlo Magic for all 1

    The Magic For All line of LifeWear is part of a global collaboration with Disney Consumer Products that aims to surprise and delight customers of all ages.

    Uniqlo Magic for all 6

    Customers begin their Magic For All journey at the store’s main entrance, where a 1.8 metre Mickey Mouse statue and 100 Mickey Mouse figurines await. Known as the Mickey 100 Series, the inspiration for the figurines was taken from 100 exclusive new designs for Mickey Mouse, which will be on display for the first time in Shanghai. Fifteen of the designs were reproduced on colorful UTs (Uniqlo T-shirts), including five designs for children.

    Uniqlo Magic for all 3

    Inside the Magic For All store, customers are treated to a series of “unique and immersive experiences” found only at Uniqlo in Shanghai. Tinker Bell can be seen flying across wall monitors accompanied by music, and in a world first, the store features Shout Mickey, a special area that captures joyful moments. When a customer shouts ‘Mickey’ toward the lens of a digital camera, the moment is captured and a digital image can be sent to the customer’s mobile device as a memento of the visit. The store also features a Future area, showcasing Uniqlo’s UT range of fashions, and the Colorful Fairy Tale realm for little princesses.

    Uniqlo Magic for all 2

    Unique and innovative being central to the overall shopping experience, the store is the first in China to offer Magic For All options for UTme!, a custom T-shirt design service, and for MY Uniqlo, which enables customers to add special touches to items of clothing.

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  • Esprit ‘on the right track’

    Esprit ‘on the right track’

    Hong Kong listed fashion group Esprit says its full year financial loss masked a positive phase of its turnaround program.

    Full year turnover fell 11.5 per cent (or 19.8 per cent in Hong Kong dollars) and the company posted a loss of HK$3.683 billion, largely due to impairments.

    In its profit announcement the company described the year as “exceptionally challenging” with trading affected by both internal and external factors.

    “Nevertheless, from a strategic perspective, it has been a year of significant achievement as the group completed the most vital and demanding phase of our turnaround plan. We have successfully installed the foundation enabling us to enhance our products and optimise sales performance across all channels (online, offline, retail and wholesale).

    “It is encouraging to see the first signs of a positive sales trend for our new Vertical Products’, which gives us confidence we are on the right track to restoring the competitiveness of Esprit.”

    The group blamed the sales decline on reduced store numbers (down 8.8 per cent), an unusually warm winter in Europe which impacted on Autumn/Winter sales volume and prices; declining apparel sales in Germany (the total market shrunk in nine of 12 months);  internal restructuring and unfavourable exchange rates.

    Group CFO Thomas Tang said that although the challenging market had considerable impact on Esprit’s turnover, its gross margin remained stable and savings were achieved in most cost lines of our regular operations.

    “With our priority on cash preservation over the past two years, the Group is on a sound financial footing, with a healthy balance sheet that we intend to leverage to decisively execute the strategies that shall drive top line growth in the near future.”

    Esprit is debt free.

    Tang said the last financial year was devoted to the implementation of the most demanding, yet vital, part of the group’s strategic plan: the ‘Transformation’ phase. During this phase, a vertically integrated business model (‘Vertical Model’) was introduced within Esprit to enhance the speed and efficiency of its product development and supply chain processes, and thereby significantly improving the design and value for money of its products.

    More specifically, the following have been implemented:

    • Lean supply chain management (from over 350 to below 230 suppliers).
    • Category management teams (all product divisions transformed).
    • New merchandising model (buying and merchandising fully centralised).
    • Reduction in product range (30 per cent to 40 per cent reduction of options).
    • Seasonal product calendar (from 12 monthly collections to four seasons).
    • Fast-to-market product development (two to three months lead time in the Trend Division and the fast-reaction capsules in all other divisions).
    • Stock management optimisation (pending additional stock replenishment capacity and capabilities in the central distribution center).

    “More importantly, the group has observed progressively positive developments in terms of product sales performance following the introduction in February 2015 of the Spring/Summer 2015 collections, the first ones developed under the Vertical Model: Retail turnover decline has narrowed consistently over each subsequent quarter during the year (Q1 -15.0%; Q2 -10.3%; Q3 -8.3%; Q4 -6.8%).

    Same store sales rose 4.1 per cent in the quarter to August and sales in Germany, its largest market, outperformed the market in each of the last three months.

    Retail sales of the Esprit Women divisions recorded 5.3 per cent year-on-year growth for the last three months and the Trend Division (representing 2.6 per cent of group turnover), reported full year turnover growth of 29.7 per cent.

    Esprit chairman Raymond Or said the group maintained a clear focus to execute the most complex and critical phase of its transformation in the year past, and made good progress despite a difficult operating environment.

    “The growth phase that we are now embarking upon is not without its challenges, but there is much hope and excitement across all levels of our organisation as we leverage the strong foundation that we have laid over the last two years. Every successful journey takes time, and we believe that we are nearing our final destination – which is to restore the long term competitiveness of our group.”

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  • Lao Feng Xiang plans 20 Hong Kong stores

    Lao Feng Xiang plans 20 Hong Kong stores

    Lao Feng Xiang, the Chinese jewellery brand few in the west have ever heard of, is planning to open 20 stores in Hong Kong.

    Lured by the prospect of cheaper rents in high profile locations as Hong Kong’s luxury sector enters a decline, Lao Feng Xiang sees the foray as an opportunity to build its brand awareness outside the mainland.

    Lao Feng Xiang, controlled by the Shanghai Government, has a 167 year history in the mainland – and has a 3000 strong store network. It entered Hong Kong in May and now has two stores trading. Marketing manager Wang Ensheng told Bloomberg that as many as 20 will be trading within a few years.

    “The fact that Lao Feng Xiang opened stores in Hong Kong boosted our reputation,” Wang told Bloomberg in a telephone interview. “Mainland consumers know that we are now a player in this international jewelry hub.

    “This year is the best time to enter Hong Kong, an opportunity that we have waited for years.”

    The first Lao Feng Xiang store opened in Tsim Sha Tsui, an 80sqm boutique which sold more than HK$100 million of jewellery on its opening day.

    Shanghai flagship store in the year 1999

    “Hong Kong is a key market in our internationalisation strategy. We provide more diversified selections at the Tsim Sha Tsui store than any of our 2800 stores on the mainland,” said Wang at the time of the opening.

    “The logic is simple – we want to attract more young people to our fold,” he said.

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  • Lacoste India targets flyers

    Lacoste India targets flyers

    French apparel brand Lacoste hopes to score more impulse sales by opening stores in Indian airport terminals.

    Lacoste India plans to open three new stores this year in Mumbai and Hyderabad airports and another five in shopping centres as it gradually builds its footprint in tier one cities.

    “We will be opening one outlet at the Hyderabad domestic terminal and at Mumbai airport,” Lacoste India director & CEO Rajesh Jain told PTI in an interview.

    “The new retail stores at airports would start contributing up to seven per cent of our total sales from next financial year.”

    Lacoste already operates a store inside Bangalore Airport. It is eyeing Kochi and Delhi as well.

    The company currently operates 46 stores in 18 Indian cities.

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  • Denim brand joins Global Brands portfolio

    Denim brand joins Global Brands portfolio

    Hong Kong-based Global Brands Group has signed a 10 year licensing agreement covering two North American denim brands.

    In a joint venture between Iconix Brand Group and Buffalo International Global for the Buffalo David Bitton and i Jeans by Buffalo labels.

    Under the agreement, Buffalo David Bitton and i Jeans by Buffalo will join Global Brands’ portfolio of fashion and lifestyle brands, with Global Brands to design, produce and distribute products across both brands’ core categories.

    Global Brands CEO and vice chairman Bruce Rockowitz said with the addition of the Buffalo brands, “we have taken another significant step to establish Global Brands as a leader in the denim category”.

    “We are focused on categories where we want to be a key player and achieve scale.  Denim is one such category which we are excited about and where we see excellent potential for growth. We’re seeing a revival of denim as a fashion essential and believe that it will continue to trend strongly,” he said.

    Founded in Montreal, Canada and with a 30-year heritage, the Buffalo brands are known for a long-standing tradition of trend right, quality clothing and accessories. The brands are leaders in their respective channels of distribution, offering multiple denim styles and a full fashion collection that spans a range of men’s, women’s and children’s products, including denim jeans, pants, shirts, sweaters, jackets, dresses and other apparel, as well as accessories, suits, bags, sleepwear and small leather goods. The products are distributed through multiple channels, including better department stores, as well as fine specialty stores throughout North America.

    Gaby Bitton, chairman, Buffalo International, said: “This long term strategic partnership with Global Brands will strengthen the Buffalo David Bitton and i Jeans brands around the world. The JV will continue its extensive marketing support that have helped make the brands leaders in the category.”

    This is the second long-term licensing agreement signed by Global Brands in the denim space, following a similar agreement with the Joe’s brand this month.

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  • Chinese shoppers still spending on luxury goods

    Chinese shoppers still spending on luxury goods

    China’s share market plunge and currency devaluation have not resulted in Chinese shoppers cutting back their spending on luxury goods as had been feared, a top-ranked HSBC analyst said this week.

    Mr Erwan Rambourg, HSBC Global’s co-head of consumer and retail, said the declines in stock prices and in the yuan need to be put in context.

    “The Shanghai composite index has been down roughly 40 per cent since its peak. On a 12-month view, if you had invested 12 months ago, you would still be up about 30 per cent,” he said.

    And while the yuan’s devaluation of about 2 per cent last month instantly made everything more expensive for travelling Chinese shoppers, the currency is still up in value relative to the euro compared with last year, he noted.

    “Purchasing power of the Chinese in Europe is still a lot stronger today than it was just 12 months ago,” said the Hong Kong-based Mr Rambourg, who has been covering the luxury and sporting goods sectors for 10 years.

    “The reason we look at euro-yuan and not (the US) dollar-yuan is because Chinese consumption abroad is mostly taking place in continental Europe, places like France and Italy. So obviously I don’t see that as a big negative.”

    It is the appreciation of the euro that could be a bigger issue than the decline in Chinese equity markets, Mr Rambourg said.

    He said the recent correction of the equity markets in Asia “has had a much bigger impact on Hong Kong than it has had on mainland China”.

    Reuters reported last month that Hong Kong retail turnover fell for the fifth straight month in July, as a slowdown in tourist arrivals further battered sales of big-ticket items such as jewellery and watches, while a plunge in the stock market hurt consumer sentiment.

    Mr Rambourg believes that luxury sales fell in Hong Kong because Chinese spenders have moved to more “fashionable” destinations such as Japan, South Korea and Taiwan.

    HSBC Global Research’s latest report estimated about 70 per cent of luxury revenue in Hong Kong comes from Chinese consumers.

    One of the issues in Hong Kong and Macau is the lack of diversity – Hong Kong is all about shopping, Macau is all about gaming, and there is not a lot that is offered beyond that, said Mr Rambourg.

    But when Chinese tourists go to Japan, they return home to tell people about the culture, creating a snowball effect which goes beyond just the price arbitrage, where some destinations become fashionable and other destinations become less fashionable.

    About 10 per cent of luxury revenue in Japan now comes from Chinese tourists and Mr Rambourg believes this figure will rise as it did in South Korea, which saw an increase from 10 per cent to 30 per cent.

    About 25 per cent of luxury revenue in Singapore comes from Chinese tourists.

    Mr Rambourg suggested that Singapore should look at providing more diversity in terms of the brands represented here in order to draw in more Chinese shoppers.

    While there will be ups and downs, he foresees Chinese consumers becoming dominant over the next decade.

    About 35 per cent of today’s luxury consumers come from China and the figure could double over the next 10 years, he said.

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  • Siyaram announces joint venture with Italian lifestyle brand Cadini

    Siyaram announces joint venture with Italian lifestyle brand Cadini

    Domestic textile player Siyaram Silk Mills today announced joint venture with leading Italian lifestyle brand Cadini.

    “We have entered into joint venture with leading Italian lifestyle brand Cadini. We have bought ownership rights to manufacture and market Cadini brand for its fabric segment in India, Sri Lanka and few other countries in Middle East,” Siyaram Silk Mills Chairman and MD Ramesh Poddar told PTI here.

    “We want to give Indian consumer the Italian feel at a reasonable price by customizing it to our market. Some products will be imported from Italy, but a major portion will be from India. We will bring the Italian innovation and manufacture it over here,” Poddar said at the launch of the brand in India without disclosing the consideration.

    He added, “Siyaram’s currently has annual revenue of around Rs 1,550 crore and expects to grow by 10-15 per cent annually this year. We expect Cadini to contribute around Rs 100 crore of our total revenues in the next financial year.”

    Cadini will also help Siyaram’s in sourcing and designing. The brand will be available in India in superior fabrics followed by garments and accessories, while the company also plans to open its Cadini exclusive outlets and shop-in shop in the near future.

    Expecting a great response from the humongous and fast growing Indian market Cadini Brand Director Daniella Nicolle said, “This venture has not only provided us a platform to showcase our collection to the Indian consumer but has also helped us to discover various avenues in terms of global marketing.”

    Cadini derives 95 per cent of its revenues from international market and only 5 per cent from Italian market, Faralli said.

    Siyaram’s has spent Rs 80 crore to modernize its manufacturing facility this year and will spend around Rs 70 crore next year funded through internal accruals as well as government incentive Textile Upgradation Fund Scheme (TUFS), Poddar said.

    He added, this will enable the company to add 10-15 per cent more to its monthly sales of 65 lakh metres of fabric per month.

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  • Superdry to launch in China

    Superdry to launch in China

    Superdry was paraded down a catwalk in Beijing to officially launch the company in China.

    The launch event showcased some of the key product lines at the British Embassy Residence.

    The Rt Hon Sajid Javid MP, Secretary of State for Business, Innovation and Skills was at the event, as well as a strong representation of a number of current and former Chinese government officials.

    Mr Javid said: said: “We are delighted to see British brand Superdry join forces with Trendy International Group as they continue to further their international expansion in mainland China.

    “For decades, fashion has been at the core of British culture, something Superdry knows only too well. 2015 marks the UK-China Year of Cultural Exchange and both markets have a great deal they can share with each other.

    “Chinese consumers have a huge appetite for British brands so Superdry is well placed for success. Good luck to both SuperGroup and Trendy International as they embark on this auspicious partnership.”

    The agreed partnership to bring Superdry, the premium British lifestyle brand to China, will see an investment of up to £18 million (180 million RMB), on a 50:50 basis across a minimum period of 10 years. The joint venture was evolved from an initial introduction from the UKTI.

    The Chinese apparel market, with a current total retail value of $351 billion, presents an immense opportunity for the Superdry brand, particularly as it is forecast to become the largest apparel and footwear market in the world, overtaking the US this year.

    Euan Sutherland, CEO of SuperGroup, said: “Today marks a significant milestone in our joint venture with Trendy.

    “We are excited at the prospect of entering this market with such an established and experienced partner. We look forward to gaining a deep understanding of the Chinese market and customer, and this launch marks another significant step in Superdry becoming a global lifestyle brand.”

    The partnership with Trendy, a highly experienced retailer which already operates 3000 stores across China, will offer invaluable market insight and knowledge.

    Trendy will utilise their expertise and knowledge of the Chinese market and consumer to manage the joint venture, with a focus on operations and logistics in China, whilst SuperGroup will provide support from the UK, concentrating on brand guidance and merchandising.

    Both Trendy and SuperGroup believe Superdry has the potential to flourish in this market as it already has the appropriate product offering, pricing model and infrastructure for effective delivery in China.

    For Superdry customers it is about attitude, not age nor demographic. The Superdry product is contemporary and fuses vintage Americana and Japanese-inspired graphics with a British style. With an increasing demand for British brands abroad, Trendy sees Superdry as well-placed.

    Jacky Xu, founder and chief executive of Trendy International Group said: “We are delighted to be working with the SuperGroup team to launch Superdry in China.

    “Superdry is an innovative British brand, which we believe will sit well amongst our existing brands and have great appeal in the Chinese market.

    “Today, there is an increasing shift in consumer tastes in China, as individuals are moving away from the luxury brands to those more influenced by pop culture.

    “We believe Superdry is well placed to take advantage of this shift, presenting an excellent opportunity for our new partnership.”