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Children’s clothing retailer Pumpkin Patch, whose shares have lost two-thirds of their value the past year, is seeking formal proposals after receiving approaches to buy or refinance the company.
The Auckland-based retailer, which on Friday posted an improvement in first-half earnings, says third parties have indicated an interest in Pumpkin Patch since the company announced a capital review at its annual meeting in November.
It has a market capitalisation of NZD35.5 million (USD26.4 million).
Embattled Chinese sportswear brand Li-Ning is continuing to rebuild its massive Chinese store network as it works to return to profitability.
The company ended the year with 5626 stores, a net decrease of 289. But it boosted its company-operated store network by nearly 30 per cent as it continued to cull franchisees across the nation.
Li-Ning expanded its own network from 926 at the end of 2013 to 1201, and culled its franchisees by 565, or 11 per cent, 4424.
“In 2014, we devoted our efforts in improving retail capability among all channels,” the company said in its earnings statement.
“We focused on strengthening management on merchandising, retail execution, channel expansion and innovations. The higher overall efficiency as well as fast response to market and consumer appeals laid a solid ground for better retail results.”
Li-Ning reported a net revenue growth of 16 per cent to RMB6,728 million (US$1.085 billion) for the full year, but said its second half revenue growth rate was a higher 23 per cent.
It reported a pretax loss of RMB323 million ($52 million), although made a second half profit of RMB28 million ($4.5 million), suggesting the turnaround strategy is beginning to work at last.
Much of the rebuilding effort is focused on its retail strategy in the sportswear market, a retail category which is saturated with international and local brands and an oversupply of retailers, a situation dating back to the national sports craze fuelled by the Beijing Olympics in 2008.
Li-Ning says it has established a management team to standardise store opening and operations to ensure they become profitable within six to nine months.
“In 2015, we will continue to review some of the markets we lost while seeking opportunities to open new stores. One of the challenges we are still facing today is that many of our sub-distributors are single-store operators with low productivity and poor retail operations. Many of them have an outdated inventory mix which makes the store look stale and affects its revenue-generating capability, resulting in the threat of operating loss and store closure. In 2014, we identified multiple approaches to address sub-distributor revival, which have made some preliminary positive results.”
Behind the scenes, the Li-Ning retail revamp has seen a variety of processes implemented to improve store performance.
Its sales department worked closely with its product category department and distributors to classify stores by attributes of consumer needs, in order to drive better store assortment planning, which has greatly improved its order accuracy and effectiveness.
“We also started our efforts in making further segmentation and differentiation of commercial districts to align store assortment planning with product categories. Stores were grouped for management by city tier, commercial zone, consumer segments, sports/sports life relativity, etc. based on our product category strategy.”
A new ‘Resources Management Platform’ monitors and optimises inventory resources, helping predict forward order matching and in identifying warehouses, distributors and subsidiaries which have inventory excesses or shortfalls. That enables decisions on order rebalancing, merchandise allocation, sales promotion and clearance to be more accurate.
“We have been able to catch the opportunity to replenish the bestsellers since 2014 Q2 to distributors and sub-distributors with out-of-stock situation. Throughout the year, we also intentionally offloaded the seasonal slow- moving products to discount stores, to clear up the space in regular stores for the bestsellers.”
Li-Ning’s sales promotion strategy has moved actual retail prices more in line with the market needs and authorisation for price changes has been delegated to regional level to allow a more flexible response to competitors.
“These reforms on retail operation resulted in strong growth of more than 18 per cent in our current season product sales in regular stores in 2014, with over 80 per cent of our sales driven by our current and prior season products. Retail discount was improved across the stores, which helped increase gross margin of stores and profitability of distributors. Driven by the improving retail efficiency, our same store growth turned positive in the second half of the year and recorded a high single-digit growth in the fourth quarter.”
Li-Ning also focused on expanding its LNC (Li-Ning Collection) retail brand, which focuses on premium products in the sports life category to expand the middle and premium consumer market. The stores offer a mixture of cross-category products originated by Korean designers, with the endorsement of Jessica (a former member of the Korean pop group Girls’ Generation), which attracted fashion-minded consumers. More than 10 LNC stores have been opened which contributed sound results in the fashion mall channel, and more new stores are scheduled in 2015.
Li-Ning also worked with Korean Visual Merchandising Display specialists ESPEC to revamp its store look and visual displays. The result is a seventh generation store format which highlights sports attributes and introduces more fashion elements.
“Currently, we have four stores of the seventh generation in operation. We believe that, fuelled by the new store image, our retail results will be positioned for effective improvement and enhancement.”
Li-Ning says its eCommerce business posted revenue growth of 48 per cent in 2014.
“Our flagship stores on major eCommerce platforms such as Tmall and JD have more than doubled in size, with wider and better assortment and excellent operations.
On the key November 11 trading day, Li-Ning recorded sales of RMB77 million ($12.4 million), ranking No. 2 in the sports/outdoor category and overtaking both Nike and Adidas.
In 2015, the company plans to further enhance its presence in the fast growing mobile channel, strengthen its digital innovations, build up an ‘O2O’ eco-system and customer relationship management platform and “provide a world-class Omni-channel shopping experience for customers”.
Actress Jessica Alba is contemplating taking her non-toxic consumer products brand Honest into China.
Honest is a growing range of non-toxic consumer products ranging from baby feeding products to shampoos, personal care lines, vitamins, diapers and blankets. Alba is the chief creative officer and Brian Lee, the CEO.
Now she is considering Honest China.
Last year, US-based Honest achieved $150 million in revenue. Despite being on the shelves of more than 3000 retailers, including Nordstrom, Target, Costco and Whole Foods, some 75 per cent of the brand’s sales are direct to consumer online, the majority of that in monthly subscription packs. Sales trebled in 2014.
“We’re looking at China in particular. We believe our brand will really resonate with the Chinese family looking for nontoxic lifestyle choices,” Lee said.
“We believe it’s a very large market for us.”
A growing number of Chinese consumers have lost faith in local Chinese suppliers of foods – especially products produced for babies and children. A growing middle class is seeking healthier products and don’t trust local suppliers to meet safety standards. So the concept of non-toxic product lines sourced from the US should resonate with a skeptical Chinese population.
Honest expanded its range from 450 to 625 products in 2014 and is showing no sign of slowing its development program in the year ahead.
This month, the brand launched baby feeding products which Alba told CNBC was “going really well”.
“Our customers are demanding that we go even further and offer solids and snacks and at a later stage, foods as well. And our customers have also asked us to do more personal care, so feminine care is a vertical we’re launching in the summer, and in the fall – beauty. Both of those verticals we’ve been working on for years, it’s just now that we’re at the point we can finally launch them.”
Honest China would most launch via an eCommerce model, but given the brand’s approach in the US, a partnership with Alibaba’s Tmall is not a foregone conclusion.
Honest won’t sell on Amazon because Alba believes in the importance of maintaining one on one relationships with customers and does not want to cede control of the customer experience to another etailer.
Alba said consumers should not consider Honest a non-toxic version of a consumer products company.
“[Honest] really is a lifestyle and a way of life. And we’re also an education platform. In so many ways, it’s a different idea.”
“The core of the business truly is to create a nontoxic world,” added Lee.
Iconix Brand Group has bought the 50 per cent stake in its China joint venture from partner Novel Fashion Brands.
Iconix paid Novel’s owners, the Chou family, $56.4 million for the share, of which $40.4 million was paid in cash and $16 million was paid in the company’s common stock.
“We view China as a major growth opportunity. Through Silas and Veronica Chou’s expertise and relationships, Iconix China has successfully launched nine of our brands with more than 900 standalone stores, shop-in-shops and counters throughout China,” said Neil Cole, chairman and CEO of Iconix.
“Now that our business has gained sufficient scale, we have decided to acquire management and control of the business, consistent with the next phase of our international growth strategy.”
Iconix China was formed in September 2008 and to date has successfully launched Candie’s and Marc Ecko Cut & Sew with Shanghai La Chapelle Fashion; London Fog with China Outfitters; Material Girl with Ningbo Peacebird; Ed Hardy with Landmark International; Ecko Unltd with Xi Ha Clothing; Badgley Mischka with Eve NY, Joe Boxer with Northeast Socks and Royal Velvet with Qingdao Hongfang.
The company’s operating model, different from the US parent company’s traditional licensing model, has been to attract entrepreneurs and fast-growing local Chinese companies, providing them with an Iconix brand in which they invest through the build-out of stand-alone stores and shop-in-shops, and in return Iconix China receives an equity stake in the newly formed venture.
The largest brand in the Iconix China joint venture is Candie’s, which partnered with Shanghai La Chapelle in 2010. The Candie’s business in China expanded to more than 700 stores and shop-in-shops by 2014 and is poised for continued growth.
The company’s business platform in China also includes its three global brands of Peanuts, Umbro and Lee Cooper which have been managed outside of the joint venture.
China has been one of the fastest growing territories for the Peanuts brand. Today, Peanuts has over 2000 points of distribution across China including 20 Charlie Brown Cafe’s, and significant growth potential with the highly anticipated launch of the Peanuts movie.
Last year, Iconix partnered with Global Brands Group (a spin-off of Li & Fung) to build out the Lee Cooper and Umbro brands in China, both of which have strong brand recognition in the region.
Willy Burkhardt, EVP, MD international, said the transaction will take the company closer to the Chinese market, which is strategically important to the business.
“It will help us to identify potential brand acquisitions and develop new business opportunities for our unplaced brands.”
This transaction provides Iconix with full control and ownership of Iconix China, which also includes equity stakes in an additional six retail ventures of which four have plans to go public in the next five years and control over a portfolio of 15 unplaced brands.
Iconix Brand Group’s global portfolio also includes Rampage, Mudd, Mossimo, Ocean Pacific, Danskin, Rocawear, Charisma, Starter, Zoo York, Sharper Image, Strawberry Shortcake and partnerships in Billionaire Boys Club, Ice Cream, Buffalo, Nick Graham and Pony brands.
In 2014, the company signed a joint venture with Global Brands Group and is experiencing solid gains in both the top line and equity earnings.
Jimmy Choo China plans more stores as Asia drives the newly-listed brand’s global growth.
This week, Jimmy Choo posted its first results since floating on the London Stock Exchange last year – a small pre-tax loss, largely attributable to IPO costs.
About half of the nine new stores the company opened In 2014 were in China. Now it plans to open up to 15 stores a year for the foreseeable future.
“We are expanding in Asia and selected new markets where we are underpenetrated compared to our peers,” said CEO Pierre Denis in a statement.
“This has been a year of great financial, strategic and operational progress for the company.
With our unique DNA and experienced team we have continued to deliver products that resonate strongly with our clients. As a specialist brand we have invested to outperform in this attractive and complex category thus delivering operating leverage.”
Jimmy Choo’s designs are clearly resonating with Asian consumers, particularly those in China. Asia is its strongest growth region and when it launched its IPO the company said funds raised would help its strategic focus on the market.
Meanwhile, the company says men’s shoes and its Made to Order service helped drive a 5.7 per cent year-on-year sales increase in its retail operation to £192 million.
“We remain focused on executing our growth strategy and pursuing growth without compromising our brand or its luxury position despite the more challenging macroeconomic environment,” said Denis.
A Malaysia online fashion destination started by a local married couple has attracted serious capital investment led by US private equity investor Elixir Capital.
While the exact amount of the investment has not been disclosed by either party, the multimillion dollar injection will allow FashionValet to accelerate the expansion of its online reach through mobile e-commerce, big data strategies and original customer-centric content and to scale its operations into other Asian cities.
Elixir Capital is a global private equity firm based in Silicon Valley, California.
“The investment from Elixir Capital marks a significant step for FashionValet as we continue to really develop the brand beyond Malaysia and pave the way for retail e-commerce locally,” said the FashionValet’s co-Founder and CEO, Fadzarudin Anuar.
“We’ve seen substantial e-commerce growth already, yet there’s room for much more in Malaysia, where there’s less than one percent penetration of sales online, as compared to 10 per cent in China, US and Western Europe, and we want to continue to foster this trend as one of the pioneering brands in the industry.”
FashionValet tripled its revenue in 2014 on the way to becoming a leader in Malaysia’s online fashion sector. The company has managed to do this while keeping operations lean and reactive to community demand.
“We were approached to be funded by several other companies, but Elixir Capital shared the same vision we had to grow FashionValet into a multi-million dollar company that champions local designers in Asia – which is what really convinced us to work with them,” added Vivy Yusof, co-Founder and chief creative officer of FashionValet.
“FashionValet now forms the Southeast Asian centerpiece for Elixir’s multi-market investment platform in digital commerce, with accelerated enterprise growth and regional expansion serving as our investment thesis,” said Arshad Ahmed, MD of Elixir Capital.
“FashionValet has the makings potentially of a homegrown Malaysian IPO in retail e-commerce.”
FashionValet’s founders say they want to use the capital to better serve their customers and suppliers alike, and to improve the customer experience and product offering.
FashionValet offers a wide selection of ready-to-wear garments, including Muslimah attire, with customers throughout Malaysia, Brunei, and Singapore. It stocks homegrown brands and designer products, serving as an outlet for up-and-coming designers across Asia.
Burberry has opened its first freestanding store in Shinsaibashi, Osaka.
Set over two floors, the new flagship store houses the largest Burberry product assortment in Osaka, including the brand’s collection of Made in England trench coats.
In-store digital screens showcase Burberry content and broadcast live events directly from the brand’s global headquarters in London, enabled by the Burberry retail theatre concept.
The store showcases the Burberry Prorsum, Burberry London, Burberry Brit, Heritage, Accessories and Burberry Osaka Exclusive Collections and stocks womenswear, menswear, accessories, eyewear and watches.
To celebrate the opening, an exclusive range of men’s and women’s accessories was designed just for the Burberry Osaka store. This collection includes limited edition versions of key Burberry bag styles – The Mini Bee bag and The Petal bag for women.
Burberry has a long-term commitment to Japan where it currently has four mainline stores and 13 concessions in locations including Omotesando, Kobe, Ginza Marronnier Dori and Roppongi.
Burberry says it is beginning “a new chapter in Japan” in 2015. From June, the brand’s licensed products will be replaced with the Burberry global product offering including its British made heritage trench coats manufactured at its facilities in Yorkshire in the North of England and its scarves made in Scotland.
Troubled fashion group Giordano knows it faces a challenge restoring its mojo.
Last week Giordano reported falling sales in every single market globally – in the worst case, Australia, by 20 per cent year on year. Profit slumped 35 per cent.
But the Hong Kong-based fast fashion business also outlined to frustrated shareholders how it plans to restore growth and respectability to its trading results.
In a lengthy report, Giordano said it expected to see continuing volatility in demand across the group in the year ahead.
“We can see early signs of recovery in Mainland China with positive same store sales since the second quarter, albeit at a very low level. Taiwan is now showing modest sales growth as its marketing programs and local merchandising are starting to resonate with customers.
“The Southeast Asian business was slightly stronger in the fourth quarter of the year as Singapore started to get its merchandising mix right and Indonesia and Thailand sales strengthened modestly.”
Against this background the ability of the group to execute strategy is improving.
“We now have established a truly regional focus in mainland China, although teams still need to be improved and we have different levels of performance in different profit centres. We have also successfully launched a fast track management training scheme with over 20 young graduates from Hong Kong and Mainland China which will enable us to expand our operations in the medium to long term.”
Last year, Giordano developed improved disciplines over inventory planning, exercising tight control over buying budgets and inventory levels. “We will continue to enhance these processes and fine-tune them to further reduce inventory and to drive more accurate product selection and allocation going forward.”
A standout non-performer in the group in 2014 was the Giordano Women brand, which the retailer said declined sharply in profitability terms due to “poor design decisions taken in the past”.
Giordano Women contributed 24 per cent of sales in Giordano shops and the sales declined by 11 per cent – a more significant decline than for Giordano Men.
“The strategy to increase the variety of styles and collections was not successful, and the de-emphasising of core products has proved to be an error.”
The women’s product range is now being re-shaped to focus on core design values such as simplicity and function. As a result, sales volumes began to recover in the second half, and in the fourth quarter were only slightly down year on year. Giordano said this reflects heavy stock clearance and improved product, although the product development process is still being improved.
New GW standalone counters are being developed. Fifty-eight standalone counters in China and Thailand produced HK$4 million in direct profit in 2014.
The GW offer will now be “re-based” to a “modern basics” core, returning to “simple, functional products made from good quality fabric”.
“This new initiative is being executed by a dedicated team which focuses only on womenswear. We expect this will enhance the competitiveness of our women’s product range rapidly.
Mainland China
Giordano says growth in consumer demand in mainland China remains weak.
“On the other hand, supply of retail capacity, both online and offline, has not abated. New players, particularly international brands, continue to enter the market. This will further exert downward pressure on volume and margin for apparel retailers.”
The company says it is making progress with its self-managed stores in improving store ambience, closing loss-making stores and getting the merchandising right.
“Progress in developing our franchise network has been slowed by a pessimistic economic outlook for mainland China. With the closure of 338 stores in the last three years, we will focus on stabilising our franchisee network and returning to modest growth. We will use volume rebates and renovation and marketing subsidies to execute this strategy. At the same time we will increase our participation in franchisees’ merchandising and buying.”
The store closures will continue in 2015. Last year it cut the number of stores in locations it considered damaging the brand from 358 to 162. This year more will close as it exits supermarkets and some street located stores.
During 2014 Giordano launched a new basic casual brand Beau Monde at “friendlier prices” in Guangdong and Shanghai and Taiwan, establishing 13 shops in supermarkets and other locations where the main brand was considered inappropriate.
“As with all newly launched brands, constant and fast modifications have been made to improve the look and feel of the store. In order to secure economies of scale, we will harmonise the supply chain between the two brands, focusing on synergy in common ‘basics’ production and fabric use. During 2015, we will develop this approach further and establish a significant number of new stores in Mainland China.”
Hong Kong and Taiwan
The Hong Kong market is becoming increasingly competitive for Giordano as the nature of tourism from Mainland China changes.
“We have responded to high rents for prime sites by focusing our business development more on residential areas. This will continue until we see rent pressure reducing, which we foresee in 2015 and 2016. Growth into high rent prime locations will therefore be very cautious as we protect profitability.
“In terms of merchandising, Hong Kong will follow the group direction and manage the mix more towards price competitive basic products than it did in 2014. The general strategy of differentiating our products and brand image from completion will persist but this will be balanced by strengthening our core brand values of simplicity, quality and value for money.
“In a culturally unique market such as Taiwan, we will develop the brand through marketing programs and local merchandising. Taiwan is also a mature market and we think we have our approach generally right. Nonetheless, we will refresh our store image; and ambience and look for innovative ways to enhance the customer experience.”
South East Asia
The Singapore business faced a number of challenges in 2014, both from tough market conditions and poor decisions in merchandising.
“We have started to correct this and we will see performance improve. Having said that, Singapore remains a difficult market which is currently seeing changes in tourism numbers and demographic.”
In other key markets such as Malaysia, Indonesia and Thailand, Giordano says it will continue to expand into regional locations to realise ‘first mover advantage’.
“During 2014, management teams faced new problems they have not encountered before – loss making stores and deteriorating same store sales. They responded well and in 2015 we expect to see these efforts pay off. Nonetheless, we see market conditions as challenging in these markets currently as macroeconomic factors soften consumer sentiment.”
The development of the Vietnam business in 2014 was positive with store numbers increasing from 15 to 21 and a new store opening in Cambodia. Myanmar is also an emerging market Giordano plans to make the most of and it will work with franchisees there to identify potential and opportunities.
“During 2015, we will establish a legal entity in Vietnam and we expect to see further growth in this market and Indo China in general as these markets develop.”
Middle East
The UAE was a challenging market for Giordano in 2014, with sales declining for the second year in a row. Consumer sentiment is good but significant increases in retail space have made this market highly competitive. Nonetheless margins have held up and inventory has been reduced.
“Saudi Arabia remains an exciting medium to long term prospect for the group. The population is young and the opportunities to grow tourist business from international pilgrims will be strong. The current market is soft reflecting geo-political instability and the impact of infrastructure improvements that are taking place. We will focus on operational excellence, closing loss makers and establishing the stores that we have recently opened.”
Giordano will also open its first stores in Africa this year,as reported by InsideRetail.Asia already, initially in Zambia. “These efforts do not generate strong revenue, but form the first steps in a strategy that will deliver sustainable growth in emerging markets.”
Digital Strategy
Giordano promises to embrace change which is increasingly seeing online and offline retail strategies converge.
“Technology is transforming the way customers behave. The old way of having different channels that exist in silos with separate accountability, will become increasingly less relevant.”
During 2014, the group introduced 318 in-store terminals to enable customers to buy online inside its stores. This “omni-channeling” practice will continue in 2015.
“Until now our focus has been to develop online sales in mainland China. In 2015 we will look to establish stronger e-shops in the rest of the group. Additionally we will look at how new technology can capture information on customer preferences and buying habits and we will establish pilot projects to enhance customer service using such technology.”
Anthropologie parent Urban Outfitters sales have finally turned around after a series of declining quarters.
In the three months to January, same store sales rose six per cent – the first quarterly increase of 2014. It was a significant turnaround from a 10 per cent slump in the third quarter.
Overall revenue increased by 11.6 per cent, to US$1.01 billion.
Urban Outfitters operates retail chains under the brands Anthropologie, Free People and its own name. The company says demand rose most strongly in Urban Outfitters and Free People stores.
CEO Richard Haye said the company was pleased to report what was its first billion dollar quarter, fuelled by positive retail segment ‘comps’ across all its brands.
“It is encouraging to see this sales trend continue into Q1.”
Paris-based fashion brand Isabel Marant will expand across Greater China after entering into a partnership with Lane Crawford subsidiary ImagineX Group.
The two companies have entered into an exclusive strategic partnership to develop the Isabel Marant brand as well as its second line, Isabel Marant Étoile, to open a 12 points of sale within five years.
The first free-standing Isabel Marant boutique will be launched in Hong Kong at On Lan St in July 2015. Rollout plans include high profile stores in Hong Kong, Beijing, Shanghai, and Macau.
Isabel Marant started designing jewellery and knitwear in 1990 and established her collection of ready-to-wear four years later. She opened her first store in Paris in 1998 and today her designs are located in 18 Isabel Marant boutiques and more than 800 luxury multi-brand retailers worldwide.
Isabel Marant CEO Sophie Duruflé said Isabel has always remained true to her design DNA with each of her collections and has never compromised on her vision.
“Our partnership with ImagineX is in line with this spirit and we have great confidence in their management of the brand, the collections and our growth in Greater China.”
Since 1992 ImagineX has built a portfolio of 21 international luxury and contemporary fashion, beauty and lifestyle businesses in the region, including Salvatore Ferragamo, Marc Jacobs, Donna Karan, Paul & Shark, Paul Smith, DKNY, Tumi and Scotch & Soda.
Executive director Alice Wong described the addition of Isabel Marant to its brand portfolio as “a coup”.
“It is also strategic for our continued appeal to both luxury and contemporary consumers. Her eponymous brand, Isabel Marant caters for our luxury clientele and for those consumers seeking value, her diffusion line, Isabel Marant Étoile is ideal.
“This fresh and effortless urban style is very appealing for the Chinese consumer who is looking for an inspirational look worn by many style icons such as Kate Moss or Gisele Bündchen. We just see the brand having enormous potential in this market due to its heritage of carefully constructed design and eclectic essence of Isabel herself,” she added.
Prada has opened its first store in South Korea selling only menswear.
The new shop is hosted inside the Shinsegae luxury department store in Seoul, but features its own distinctive entrances.
The new space, designed by architect Roberto Baciocchi, covers about 165 sqm and houses the men’s ready-to-wear, leather goods, accessories and footwear collections.
The internal façade, clad in Saint Laurent marble, is characterised by two large corner entrances. Slim strips of steel frame the window and the light box.
The entrances lead to an area where the leather goods and accessories collections are displayed.
The next area features masculine materials and finishes and hosts the ready-to-wear and footwear collections. The space is defined by ebony floorboards and walls, dark brown carpeting and cotto-coloured leather sofas.
The Clean Clothes Campaign says it has confirmed authorization of another round of compensation payments to victims of the Rana Plaza clothing factory collapse.
Rana Plaza, in the Bangladesh town of Savar, was the scene of the 2013 disaster where 1129 workers were crushed to death in the collapse of sweatshops producing clothing for western fashion brands.
The Rana Plaza Coordination Committee has this month approved compensation payments to 5000 claimants, who are dependents of the deceased and injured workers. This round of payment is sufficient to pay an additional 30 per cent of each award, making the total amount received by each eligible beneficiary only 70 per cent of the amount they are entitled to.
The Clean Clothes Campaign has singled out Italian fashion house Benetton for failing to make a promised payment, inferring the company is largely responsible for the short payment.
“Other companies such as Children’s Place, Inditex (Zara), Mango, Matalan, and Walmart have failed to contribute a significant and proportional amount.
“With this payment the majority of the funds received into the fund will be distributed and the payment of the final 30 per cent of each compensation claim will only take place once more donations are made to the Rana Plaza Donors Trust Fund, which remains at a US $9 million shortfall,” the campaign said in a statement.
In the past year, the fund, set up by the International Labour Organisation in January 2014, has received around US $21 million in donations from global brands, the Bangladeshi Prime Minister’s Fund, trade unions and civil society.
Benetton released a statement at the end of February confirming its intention to donate to the fund, but since then Benetton has remained silent on the matter.
“Benetton claims it is delaying to allow time for a consultant to advise it on a fair amount of payment, but refuses to disclose any information about who will carry out this work, the methodology with which they will determine the amount, or a date for when a donation will be announced,” said the campaign.
“The Clean Clothes Campaign urges Benetton to make an immediate payment of at least $5 million to the Rana Plaza Donors Trust Fund – an amount believed to be proportional according to Benetton’s ability to pay, the size of its relationship with Bangladesh and its relationship with Rana Plaza.”
The campaign says compensation payment amounts are calculated “in line with international standards”. Despite this, brands continue to be reluctant to make “meaningful payments” to ensure that the victims of the Rana Plaza collapse receive full and fair compensation.
“Now that the next round of payments have been authorised, the fund urgently needs more donations. There will be no more money in the fund, which means that families will then be placed in a precarious situation of not knowing if they will ever receive the full compensation that they are entitled to”, said Sam Maher of the Clean Clothes Campaign.
“Every single brand has the responsibility to ensure that the victims receive full and fair compensation. Until this is accomplished, brands should recognise that their responsibility to the victims has not been fulfilled.
“The $9 million shortfall is totally unacceptable, and we need to see all stakeholders involved, particularly Benetton and other brands, step up and fulfill their responsibility”, said Maher.
“In the immediate aftermath of the disaster, when the industry made all sorts of commitments to the victims of Rana Plaza, we never imagined that full and fair compensation would still be an issue almost two years later. Any of the companies – Benetton, Walmart, Inditex, Mango – have the ability to fill the gap. All earn hundreds of millions of dollars in profit each year; money earned on the backs of the workers like those who died in the Rana Plaza collapse.
“Its time for these brands to stop playing politics with people’s lives, and fill the gap immediately.”
Prada Hong Kong has opened its ninth store – inside the prestigious Plaza 2000 in Causeway Bay.
The space, designed by architect Roberto Baciocchi, covers a total area of 1320 sqm and features women’s and men’s ready-to-wear, leather goods, accessories and footwear collections three floors.
A stunning external facade pays tribute to French-Venezuelan artist Carlo Cruz-Diez. The large entrance, light boxes and windows are inserted into the lower part of the facade, which is clad in black marble and crowned by an imposing bronze and steel-coloured aluminium structure backlit to create a unique kinetic effect both day and night.
Overall, the facade stands 15 metres tall and stretches 45 metres in length on both sides of the building, located on the corner of Russel St and Canal Rd East.
The entrance on the ground floor opens up on an area dedicated to the women’s leather goods, accessories and travel collections. The space is characterised by the signature black- and-white marble chequered flooring and green fabric-clad walls with alcoves heroing the product. Ultra-slim polished steel cases and display counters with drawers covered in coloured saffiano leather complete the furnishing.
An imposing black elevator leads to the upper floors.
The second floor houses the women’s ready-to-wear and footwear collections. The area is defined by beige carpeting and green fabric-clad walls with polished steel-framed display niches. Transparent perspex display cases, crystal and steel tables and green velvet sofas enrich the space.
An elliptical black Marquinia marble staircase leads to the upper floor, where the men’s ready-to-wear, leather goods, accessories and footwear collections are displayed. The space wields masculine materials and finishes: ebony floorboards and walls, and palladium display counters. Ostrich leather sofas and lush pony skin carpeting in the area dedicated to footwear complete the setting and lend an elegant atmosphere to the entire floor.
Gap Inc. reported stronger-than-expected fourth-quarter results on Thursday as sales continued to improve for Old Navy, its largest brand.
Gap reported net income of USD319 million, or 75 cents per share, on USD4.71 billion in revenue. A year earlier the retailer earned USD307 million, or 68 cents per share, on USD4.58 billion in revenue.
The company said sales at Old Navy stores open at least a year grew 5 percent for the year, including growth of 11 percent in the fourth quarter. Sales at locations open at least a year are considered important measurements of retailer health because they strip out results from stores that recently opened or closed.
Furla reports 13pc sales increase for 2014
https://www.cpp-luxury.com/furla-reports-13-percent-sales-increase-for-2014/
Leather-wear maker Furla reports rising sales in 2014 of EUR258 million (USD288.2 million), a +13 percent increase on 2013. “This growth is the result of hard work, both in terms of product distribution. We are growing in all segments and in all regions in which we operate.