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.

  • French jeweler Tiffany opens store in HCMC

    French jeweler Tiffany opens store in HCMC

    Luxury jewelry brand Tiffany & Co. has opened a store in Ho Chi Minh City, two years after opening its first in Vietnam in Hanoi.

    The store in District 1, which had a soft opening last week, is part of a strategy by the 186-year-old jeweler to increase its presence in Asia after being acquired by France’s LVMH in 2021.

    The store is run directly by the company as against the Hanoi one, which a distributor operates.

    According to residence and citizenship advisory firm Henley and Partners, HCMC had the ninth fastest growth rate globally in the number of millionaires last year.

    Vietnam’s biggest city saw their numbers rise by 84% to 7,700 individuals, it said in its 2023 World’s Wealthiest Cities Report.

    As of last year HCMC had 15 people with a net worth of $100 million and three billionaires.

    It is ranked the 67th wealthiest city in the world.

  • Levi’s launches its largest Asian store yet, in India

    Levi’s launches its largest Asian store yet, in India

    Iconic denim and lifestyle brand Levi’s today announced the launch of its largest store in Asia. Situated in Bengaluru’s bustling shopping hub of Brigade Road, the store advances Levi’s direct-to-consumer strategy and expansion focus in Asia. With this store, Levi’s continues to elevate brand experience to consumers through digital innovation, unique shopper experiences and an unmatched product assortment that is catered to the local consumer.

    Spread over a total retail space of 7521 square feet, the Levi’s Brigade Road store features the brand’s cutting-edge NextGen store format and retails some of its most beloved products – from its iconic 501 ,which celebrates its 150th anniversary this year, to its classic Trucker jackets. The store will also showcase the newest range of fits for both men and women, more relaxed silhouettes in line with the latest trends, and premium collections and collaborations.

    At the store’s heart is the Levi’s Tailor Shop helmed by skilled tailoring professionals, which seeks to allow consumers to personalize their purchases, especially with self-expression being key for today’s consumers. In addition to tapping on expert alteration and restoration services, customers can further customize their Levi’s apparel through embroidery, patches, pins, and more. From reinventing existing jeans to elevating a newly-purchased pair, the Tailor Shop unlocks a spectrum of personalization for Levi’s customers looking for unique pieces tailored to their taste and expression.

    “With consumer behavior shifting in the ever-changing retail landscape, we at Levi’s continue to prioritize how we deliver our iconic products and an impactful brand experience, especially to our growing base of young, savvy consumers in India and across Asia. With this year marking the 170th anniversary of Levi Strauss & Co., the Brigade Road store – our largest in Asia – aims to be a premium one-stop shop in one of the region’s most vibrant cities. It will allow us to engage with Levi’s fans who are looking to create a style statement and connect with one of the most well-loved apparel brands in the world,”  said Amisha Jain, Managing Director & SVP, South AsiaMiddle East & Africa at Levi Strauss & Co. “India, in particular, is a priority growth market for Levi Strauss & Co. “As we look to scale up our investments in Asia, the opening of the Brigade Road store signifies our commitment towards offering quality and innovation in the latest fashion to consumers in both India and the wider Asia region. ”

    The Brigade Road store in Bengaluru is yet another step in Levi’s inroads within Asia, and marks another milestone in the brand’s strategy of diversifying its business across geographies, apparel categories and distribution channels. It brings the brand closer to its goal of making its stores premium destinations worldwide by delivering premium shopping experiences to its customers across the globe.

    For the store’s launch weekend, Levi’s worked with artists Sachin BhattOsheen Siva, The Doodle Mafia and public art collective, The Aravani Project to create artworks that showcase the city from past, present, and future perspectives. Delving into the city’s evolution, the artworks blend vintage and futuristic elements to capture the local culture and subtleties of the city. These designs can be customized onto the store’s Levi’s trucker jackets & t-shirts.

  • Nike launches Jordan World of Flight in Shibuya, Tokyo

    Nike launches Jordan World of Flight in Shibuya, Tokyo

    Located in the capital’s Shibuya district, close to the Harajuku trade zone and along Meiji Dori Street, the 9,200-square-foot space is a designed “as a tribute to basketball culture and Jordan Brand’s identity and heritage,” according to a press release.

    Inside, visitors will find Jordan brand footwear and apparel products across men’s, women’s and kids, as well as customizable products in the store’s ‘The Workshop’, including the AJ1 and the Renegade jacket.

    The Shibuya store will have a dedicated ‘Snkrs’ area for shoppers to pick up products from the app; ‘The Flight Lounge’, which offers an in-store space for members to immerse themselves in Jordan Brand history and basketball culture, as well as a ‘ Nike Member’ innovation center, providing an opportunity for visitors to test new offerings and experiences.

    The ‘Content Studio’ allows shoppers to film unboxings and reviews and create content to share through their social handles.

    Connecting to the region’s local culture, Jordan also commissioned local artists to present their work throughout the store. The Japan opening comes on the back of the Jordan World of Flight opening in Milan in December 2022.

    “Following the launch of Milan, Jordan World of Flight Shibuya provides another unique expression of basketball culture. Tokyo serves as the perfect backdrop, a city that is constantly pushing the edges of innovation, fashion, music and art,” said Craig Williams, president, Jordan brand.

    “Alongside a best-in-class retail assortment, World of Flight is a manifestation of the full potential of the brand. By connecting with people around the world through the values the Jumpman represents, we hope to create even deeper ties to our consumer and underline the culture that unites us all.”

  • Superdry sells Asia Pacific IP assets to Cowell Fashion Company

    Superdry sells Asia Pacific IP assets to Cowell Fashion Company

    UK-based clothing company Superdry has agreed to sell its intellectual property (IP) assets in certain Asia-Pacific (APAC) countries to the South Korea-based Cowell Fashion Company.

    The $50 deal will enable Cowell to own and use the Superdry brand in South Korea with plans to extend it to other countries in the region, including China.

    The agreement excludes Bangladesh, India, Pakistan, Australia, Sri Lanka and New Zealand.

    Superdry will retain its IP rights both in these countries and outside the APAC region.

    As part of the agreement, Superdry and Cowell will jointly develop relevant products that are consistent with the Superdry brand.

    In the first two years after the sale, Superdry will offer support and knowledge relating to the brand to Cowell.

    Cowell will pay an additional management fee of $1m, in two payments of $500,000, for the service it receives from Superdry.

    Superdry will receive the first instalment once the deal has closed, while the second instalment will be paid a year after its completion.

    Superdry CEO and founder Julian Dunkerton said: “This agreement offers the Superdry brand a fantastic opportunity to expand its global reach, while providing additional funding to help deliver our turnaround programme in the face of the challenging consumer landscape.

    “I’m absolutely thrilled by the opportunity to work together with Cowell to create inspiring products consistent with our brand heritage and build out across the APAC market.”

    The IP assets to be sold accounted for around 1.2% of total Superdry’s sales and contributed revenue of £7.4m ($9.1m) in the 12 months to 30 April last year.

    They also generated a profit before tax of around £2.5m.

    Cowell Fashion chairman Lee Sun-seop said: “With the two companies aligned together through explosive synergy, the plan to grow Superdry into a Superbrand across Asia is an exciting proposition as long-term partners.”

  • Spain’s Mango plans U.S. expansion after China retreat

    Spain’s Mango plans U.S. expansion after China retreat

    Chief Executive Officer Toni Ruiz said that Spanish fashion retailer Mango is focusing on U.S. expansion after turning its back on China.

    After two previous attempts failed, mango is returning to the United States to offer higher-priced clothes meant for special occasions and parties. It will target states where online sales are already strong.

    The brand is already gaining more recognition in the U.S., dressed actress Amber Valletta for the Oscars after-party on Sunday, Ruiz told Reuters.

    “Something has changed,” he said in an interview at the company’s headquarters near Barcelona. “They now have a different and better perception of European brands.”

    Mango’s U.S. relaunch began with opening a flagship store on New York’s Fifth Avenue in May 2022. That was followed by expansion in Florida. This year, it will open stores in Texas, Georgia and California.

    The company hopes to have 40 stores in the U.S. by 2024, compared with 10 at present. That would place the U.S. in its top five global markets.

    Growth will be supported by the extension of a logistics centre in Catalonia, allowing it to shift 160 million items a year to serve shops and online customers globally, the company said.

    In contrast, Mango closed its remaining two stores in China last year. It maintains four franchise outlets and online sales through Alibaba’s Tmall e-commerce platform.

    “We are divesting in China,” said Ruiz. “We find it unattractive and have decided that it is not the priority for the next three years.”

    Mango reported record sales last year, helped by selling more items at higher prices. Its biggest rival, Inditex-owned label Zara, is expected to report record sales on Wednesday, partly due to its aggressive U.S. expansion.

    The recent aggressive entry of Chinese fast-fashion brands Shein and Temu into the same market is not a concern for Mango, said Ruiz.

    “It’s not our war,” he said. “If you were fighting with these brands you would be constantly lowering prices.”

  • Reliance Retail opens first freestanding GAP store in Mumbai

    Reliance Retail opens first freestanding GAP store in Mumbai

    In this second phase, after opening over 50 Gap shop-in-shops since last year, Reliance Retail will help open a series of freestanding Gap stores across the country in the coming months.

    New Delhi: Reliance Retail, on Friday, has opened the first freestanding Gap store in India at Mumbai’s infiniti Mall, Malad, the company announced in a media release. This launch is in line with the long-terme partnership of the two firms as Reliance Retail is the official retailer for GAP across all channels in India.

    In this second phase, after opening over 50 GAP shop-in-shops since last year, Reliance Retail will help open a series of freestanding GAP stores across the country in the coming months.

    Akhilesh Prasad, President and CEO, Fashion & Lifestyle, Reliance Retail Limited, said: “While the opening of freestanding stores is an important driver of GAP’s long-term growth plan in India, it also gives us yet another opportunity to bring world-class brands and a differentiated shopping experience to our discerning Indian consumers.

    Currently, Reliance Retail is India’s largest retailer with established competencies in operating robust omnichannel retail networks and scaling local manufacturing and driving sourcing efficiencies. Through this partnership, Reliance Retail will bring Gap’s shopping experience to customers across India through a mix of exclusive brand stores, multi-brand stores, multi-brand store expressions and digital commerce platforms. The global lifestyle retailer Gap, founded in San Francisco in 1969, said it has a strong vision of doing more than selling clothes.
    Adrienne Gernand, Managing Director of International, Global Licensing and Wholesale at Gap Inc said, “Growing Gap’s brick-and-mortar business through the launch of freestanding stores and multi-brand store expressions enables us to increase accessibility for Indian customers and meet them where they are shopping.”

  • Coty SEA blends physical and digital space for limitless store access

    Coty SEA blends physical and digital space for limitless store access

    Coty SEA stores offer services that give the same customer experience online.

    There is no telling when one’s favourite perfume or go-to moisturizer runs out, which some shoppers can solve with a quick dash to the store. On days they are not so lucky, shoppers are left waiting for their next store-run, but this does not have to be the case as Coty Sea blends the physical and digital space.

    “If customers have already bought the product and it is running out, they can then just text our beauty advisors to get a replenishment, and the product can be sent to them,” Estella Lau, Country Manager, Singapore & Prestige Distributor, Coty said.

    She said Coty plans to launch a beauty concierge service through which customers can reach their beauty advisors in a call or chat for advice or makeup tips, even when their free-standing store has closed down for the day.

    Lau highlighted the role brick-and-mortar stores play for brands even amidst the acceleration of technological adoption of the industry. Coty SEA strived to use the physical space to complement the company’s digital channel to elevate the customer experience.

    “Brick-and-mortar is definitely not going away. It remains a key platform for us to engage the customers as we say we want to create a community space where customers can come and play with the product or enjoy a makeover or master class,” Lau said.

    Coty recently partnered with Chloé Atelier des Fleurs, which opened its first pop-up boutique in Singapore. The store replicated a Parisian florist’s boutique, where shoppers can mix and match 17 niche scents to whip their own unique fragrance, much like making a bouquet.

    In their Chloé Atelier de Fleur boutique, Coty SEA has assigned beauty advisors ready to help shoppers who prefer face-to-face interactions; whilst those who prefer to shop alone can play with a digital “Bouquet Finder,” which will likewise take customers to a fragrance layering experience.

    Lau said the company has observed a monthly increase in footfall since launching in October 2022. More than this, there is also a noticeable growth in their conversion rates amongst the shoppers coming through their doors.

    This brings to light the significance of having the right investments in place. Lau said retailers need to beef up their operations not just through investments in their digital technology infrastructure, but also by bringing the right people on board.

    “Technology is one thing, but behind all that technology needs competent people with very strong digital marketing skills, digital commercial skills, and someone who can understand consumer needs and consumer shopping behaviour,” Lau said.

    Whilst e-commerce development is critical, she said that retailers need to also invest in creating an experience that is more personal to the consumer; but businesses have to make sure that the experience is reflected in both the physical and digital space. At Coty SEA, stores have a “shop space” to take their clients through the same experience online.

    The Gucci Beauty Flagship store at ION Orchard, for instance, uses augmented reality to bring shoppers to the Gucci Beauty universe, where they can learn and play with beauty products. They also have the option to virtually try-on makeup using in-store gadgets.

    This will need a better understanding of consumers, which retailers can achieve with improved data analytics capabilities that could track the frequency of shoppers’ store visits, or determine the key promotion drivers that shape their behaviour.

    “For customers who want a more bespoke experience, we offer the art of fragrance layering with our ultra-luxe range, the Alchemist Garden, where customers can learn about how they layer fragrance oil with perfume water, and with the fragrance of their choice and really have a wonderful premium experience,” Lau said.

    Investing in people may also be internal as seen in how Coty SEA puts effort into training their beauty advisors. Lau said their people are not just skilled in making transactions, but also in personally engaging with customers through storytelling or even by making them feel more pampered.

    On top of these, Lau said retailers can no longer exist on their own, hence, they need to start looking at partnerships with other brands to offer a different, layered, and more interesting experience to customers. Through partnerships, they can develop limited edition products, or even create ones that shoppers can exclusively get online.

    “If we don’t keep up, we risk losing market share. Now it is not even a choice because this is what the shoppers want. They want to be shopping 24/7. They want to be shopping at their convenience, at their own time,” Lau said.

    “It is really imperative now for retailers to continue to connect and engage with all our multi-generational consumers and new audiences to stay relevant.”

  • Forever 21 returns to Japan with new upscale image

    Forever 21 returns to Japan with new upscale image

    TOKYO — U.S. fast-fashion chain Forever 21 returned to Japan on Tuesday, more than three years after pulling out of the country, aiming to break away from its former mass-production image with items tailored to Japanese tastes and an emphasis on responsible environmental practices.

    The store started selling products online on Tuesday morning through an e-commerce site operated by Japanese apparel company Adastria. It also opened a limited-time pop-up store in Tokyo’s bustling Shibuya district on the same day.

    “I feel like their prices have gone up, but the fabric seems durable so I could probably wear them for a long time,” said a woman in her 20s who visited the pop-up store, where people were lining up before the 11:00 a.m. opening. She had viewed the products online, but visited the shop to check the quality of the fabric.

    The company plans to open its first permanent store in Osaka in April. It aims for 15 stores in the country by February 2028, with sales including online totaling 10 billion yen ($74.5 million).

    Forever 21 made a full-scale entry into Japan in 2009, operating about 20 stores at one point and leading the fast-fashion boom in the country. But the rise of online shopping and changes in consumer tastes cut into sales, leading the American parent company to file for Chapter 11 bankruptcy protection in September 2019.

    The retailer withdrew from Japan in October of that year. In 2022, Japanese trading house Itochu bought the rights for the brand in the Japanese market from a U.S. investment fund that acquired Forever 21 in 2020. Itochu signed a sublicense agreement with Adastria.

    About 80% of the company’s new collection was developed by Adastria for Japanese consumers, with the average price of items set around 4,000 yen. Forever 21 aims to position itself as a brand that offers both affordable prices and high fashion sense, focusing on women in their teens to 30s.

    The company is taking environmentally friendly initiatives such as improving inventory control, collecting used clothing and reducing the amount of water used during denim processing, hoping to move on from fast fashion’s image of producing, selling and disposing of mass quantities of clothing.

    The Tokyo pop-up store is open until Sunday, and most items on display must be purchased online. In March, another pop-up shop will open at a mall in Yokohama, south of Tokyo.

  • Fashion brand Unhidden brings clothes made for all bodies to LFW

    Fashion brand Unhidden brings clothes made for all bodies to LFW

    Fashion designer Victoria Jenkins unveiled stylish and practical clothes made for people with disabilities on the runway at London Fashion Week on Friday, in a collection intended to address a gap in the market.

    “Unhidden is an adaptive fashion brand… primarily targeted at inclusion within the fashion of people with disabilities,” Jenkins told Reuters.

    During a hospital stay when another patient raised it, Jenkins, who has reduced mobility, first discovered a gap in the market for clothes designed with all bodies in mind in 2016.

    Surprised that only a few brands, including Tommy Hilfiger, offer such fashion for all, she decided to use her previous experience as a garment technologist to set up her own brand.

    A model presents a creation during the “Unhidden: A New Era in Fashion” catwalk show, with designs presented by models who all live with a disability, chronic condition or visible difference, during London Fashion Week in London, Britain, 17 February, 2023.

    “When I had this idea, it was like a light bulb and just everything changed,” she said.

    “It helps me personally… but also I see the impact around me of people being able to dress how they need to.”

    Jenkins demonstrated a royal blue shirt with pop snaps that open and close easily, as people who have had strokes can struggle with buttons.

    “It also has openings all down the arm,” she said, so that anyone going through treatment “can access their arm without taking any clothes off. It’s about dignity.”A model presents a creation during the “Unhidden: A New Era in Fashion” catwalk show, with designs presented by models who all live with a disability, chronic condition or visible difference, during London Fashion Week in London, Britain, 17 February, 2023. Model and content creator Jessica Ping-Wild, who uses a prosthetic leg and struggles to find suitable trousers, said a brand like Unhidden makes all the difference.

    “A designer taking into consideration the fact that bodies are different… it’s almost breaking that mould of beauty that has been so ingrained in society for centuries,” she said.

    Jenkins’ collection also includes shirts with longer backs for wheelchair users as well as tailor made suits. She hopes her clothes become even more readily available in the future.

    “Diversity without disability isn’t diversity. It feels like it’s the last taboo. People are still scared of the D word. You know, disabled is not a bad word,” she said.

  • Fendi opens first flagship boutique in South Korea

    Fendi opens first flagship boutique in South Korea

    Fendi has opened the doors to its first flagship boutique in Seoul, South Korea. Dubbed “Palazzo Fendi Seoul,” the 715 square meter (approximately 7,696 square feet) store is located in the Cheongdam-dong neighborhood of the city and houses the brand’s women’s and men’s ready-to-wear and fur collections, shoes, accessories, leather goods, and home accessories across four levels.

    The impressive façade combines geometric diagonals in stainless steel finishing and central glass windows that converge towards the corner of the building, through a modern and urban reinterpretation of classic Roman patterns.

    The façade is emphasized by LED arches, Fendi signature element recalling those of Palazzo della Civiltà Italiana – Fendi’s Rome headquarters.

  • Diesel partners with Jaspal Group to expand in Southeast Asia

    Diesel partners with Jaspal Group to expand in Southeast Asia

    s to distribute and market the Italian fashion brand Diesel in Thailand and Vietnam, according to the Bangkok Post.

    Jaspal Group has opened Diesel’s first flagship store in Thailand inside Bangkok’s giant shopping mall CentralWorld, taking Diesel’s store count in the country to four.

    The new store was designed under the ‘Sunshine’ concept, featuring the brand’s signature red and white colour scheme. Located on the mall’s first floor, Diesel CentralWorld is home to the brand’s full range of ready-to-wear collections and accessories.

    Jaspal Group has also opened Vietnam’s first Diesel store inside the Takashimaya department store in Ho Chi Minh City. The company has a presence in three countries with 70 stores across different brands, including Lyn, Mango, Champion, CC Double O, and Superdry.

    LVMH-owned luxury fragrance house Maison Francis Kurkdjian has also opened a flagship store in Thailand at the luxury shopping complex IconSiam after five years of operation in the country in partnership with Prestige Products Thailand.

    The luxury fashion market in Vietnam and Thailand has experienced significant growth as demand for high-end products soars, especially now China’s border reopening has bolstered tourism there.

    Vietnam’s luxury fashion operator Imex Pacific Group Fashion, whose portfolio of brands includes Cartier and Christian Louboutin, has rece

  • H&M to shut high-profile Singapore store

    H&M to shut high-profile Singapore store

     H&M’ s two-storey Ion Orchard outlet is closing in March, after a run of more than a decade.

    Opened in 2012, the store’s last day of operations is on March 12, according to a Facebook post by the Swedish fast-fashion brand on Feb

    The post added: “But don’t worry. We’ll meet in other places.” The retailer, which currently has nine outlets in Singapore, shuttered two outlets in recent years.

    H&M’s Tampines Mall outlet was shut in August 2020, while its Waterway Point outlet in Punggol closed in January 2021.

    The Straits Times has contacted H&M for comment.

    H&M entered the Republic in 2011 with a flagship store at Somerset.

    The world’s No. 2 fashion retailer – behind Inditex, which owns Zara – has had a spate of closures in Europe, spurred by factors such as the Ukraine-Russia conflict and high inflation.

    According to media reports, one in five of its Britain-based stores had closed in the past few years, with four more stores earmarked to close this year citing “a rapid change in customer behaviour”.

    In October 2020, the retailer said it planned to cut 250 of its stores globally. As at Nov 30, 2022, it had 4,465 outlets worldwide.

    Luxury brands have weathered factors such as the Ukraine-Russia conflict far better than their high-street counterparts.

    While H&M saw its net profit fall 68 per cent from 2021 to 3.6 billion Swedish kronor (S$450 million), French multinational LVMH – which owns brands including Tiffany & Co, Christian Dior and Sephora – had a record year in 2022, raking in a 23 per cent jump to hit €79.2 billion (S$112.9 billion) in 2022.

  • Amorepacific Group’s net profit halved last year

    Amorepacific Group’s net profit halved last year

    On April 28, Amore Pacific Group announced key figures for Q1 FY2022, with the Korean beauty giant reporting sales of $997 million, down 9% year-on-year, operating profit of $136 million, down 13.4% year-on-year, and net profit of $104 million, down 25.2% year-on-year.

    The earnings report noted that domestic sales in Korea continued to account for the largest share of sales at 62.9%, down 9.9% year-over-year, while overseas sales fell 6.1%. In addition, in its fiscal 2021 earnings report, it noted that the Korean beauty giant’s sales rose 8% to $4.26 billion in 2021, which ended on December 31 last year, while operating profit soared 136.4% to $286 million, with sales up 8% year-over-year to $4.2 billion and net profit of $240 million , a 1224% jump compared to 2020.

    For the reason that its revenue decreased 10%, Amore Pacific Group said pure domestic (Korean) revenue increased from strong online sales growth (over 20%) but travel retail revenue declined by double digit (24% of total revenue).

    In the first quarter of 2022, group revenue in Asia fell 10% to $300 million due to revenue decline from resurgence of COVID-19 and restructuring of offline stores.

    Notably, in Asia, Amore Pacific’s premium brand Sulwhasoo contributed accounting 35% in its Luxury Subsidiary. Sulwhasoo strengthened representative anti-aging solution line of Sulwhasoo strengthened its representative anti-aging solution line of “Concentrated Ginseng Renewing Serum Ex, eye cream”.

  • Uniqlo parent says profit slipped as Japan, China drag growth

    Uniqlo parent says profit slipped as Japan, China drag growth

    Japan’s Fast Retailing Co, owner of clothing brand Uniqlo, said on Thursday that first quarter earnings slid 2%, reflecting weakness at home and continuing COVID-19 restrictions in China.

    A day after announcing plans for big wage rises, the company said operating profit had been 117.1 billion yen ($889.82 million) in the three months to the end of November, compared with 119.4 billion yen a year earlier.

    The consensus forecast was for 135.3 billion yen, according to the average of five analyst estimates collected by Refinitiv.

    Domestic results were hit by warmer weather in November that stifled sales of fall and winter wear, while COVID curbs continued to weigh on China, including the temporary closure of 247 stores in Beijing and Guangzhou.

    “Once ‘with corona’ lifestyles take root, we think a normal operations will come back on the Chinese mainland,” CFO Takeshi Okazaki told reporters.

    Sales and earnings in all other regions increased. The company held its full-year operating profit forecast at 350 billion yen.

    The company, Japan’s biggest retailer, sent shockwaves through the country on Wednesday by saying it would lift its employees’ wages by as much as 40%. That greatly satisfied policymakers, who had been urging employers to raise wages to help offset the highest inflation in a generation.

    “From a macro perspective, this move highlights that it is becoming increasingly difficult for Japanese companies to attract and retain workers,” said Mark Chadwick, an independent equities analyst who publishes on the Smartkarma platform.

    Fast Retailing, which operates more than 3,500 clothing stores worldwide, reported record profit last fiscal year, as growth in North America and Europe compensated for a slump in China.

    The company is seen as a bellwether for the Chinese market, where it produces many of its goods and operates almost 900 Uniqlo stores, more than in Japan.

    Fast Retailing’s share price slid 2% in Tokyo trade, compared to a flat benchmark Nikkei index.

  • LVMH names new CEOs for Louis Vuitton and Dior

    LVMH names new CEOs for Louis Vuitton and Dior

    LVMH Moët Hennessy Louis Vuitton SE, Europe’s most valuable company, is embarking on one of its biggest management shake-ups in years, elevating Pietro Beccari to lead Louis Vuitton and tapping Delphine Arnault, daughter of Chief Executive Bernard Arnault, to run Christian Dior.

    The changes announced Wednesday, effective Feb. 1, involve two of the luxury giant’s largest brands and some of its best-known managers. Both Louis Vuitton and Dior have been on a tear, most recently riding a postpandemic boom in luxury spending that so far has shown little sign of easing.

    LVMH emerged from the pandemic as Europe’s largest company by market value, far ahead of the continent’s industrial stalwarts such as Shell PLC, Airbus SE and Volkswagen AG. Mr. Arnault, meanwhile, has recently usurped Elon Musk as the world’s richest person.

    This year, loosened Covid-19 restrictions in China—one of the luxury industry’s biggest markets—have further boosted LVMH’s shares, which rose as much as 2% on Wednesday to hit a record intraday high, bringing year-to-date gains to 13%.

    In taking the helm of Louis Vuitton, Mr. Beccari succeeds Michael Burke, who has led the fashion brand for a decade. Mr. Burke is one of the most trusted lieutenants of Mr. Arnault—LVMH’s CEO and controlling shareholder—having worked with him since the 1980s. LVMH said Mr. Burke, 66 years old, would now assume new duties, reporting directly to Mr. Arnault.

    Mr. Beccari currently leads Dior, where he will be succeeded by Delphine Arnault, the eldest of Mr. Arnault’s five children.

    The management changes mark a homecoming of sorts for Ms. Arnault, who worked for 12 years at Dior before joining Louis Vuitton as No. 2 in 2013. It is also the first time she takes on a CEO job at one of LVMH’s brands. At Louis Vuitton, Ms. Arnault was in charge of all product-related activities. She was recently responsible for a collaboration between the brand and Japanese artist Yayoi Kusama for a major new collection.

    Ms. Arnault’s elevation will be closely watched in Paris business circles, where monitoring the progress of Mr. Arnault’s children with a view to potential succession is a favorite pastime. All of Mr. Arnault’s children have responsibilities at the luxury conglomerate that he has built over decades. Last month, Mr. Arnault named his eldest son, Antoine Arnault, CEO of the family holding company that owns the bulk of the family’s stake in LVMH.

    The challenge for both Ms. Arnault and Mr. Beccari will be to keep the growth humming at Louis Vuitton and Dior as the global economy confronts challenges ranging from high inflation to Covid-related disruption in China and the war in Ukraine. In November, consulting firm Bain & Co. forecast that sales of personal luxury goods would rise between 3% and 8% in 2023, a sharp slowdown on last year’s growth that it estimated would be 22%.

    The strength of Louis Vuitton and Dior, which in recent years have both proved popular with shoppers regardless of the fashion trends of the day, have been instrumental in helping LVMH become the world’s biggest purveyor of luxury goods, extending its lead over rivals such as Gucci-owner Kering SA and Cie. Financière Richemont SA, which owns Cartier.

    In returning to Louis Vuitton, Mr. Beccari rejoins a leather-goods juggernaut that he first joined in 2006. In recent years, the Italian executive has overseen remarkable growth at Dior, where analysts estimate revenue has more than tripled over the past five years. At Dior, Mr. Beccari’s achievements include the opening of a huge new flagship store in Paris’s luxury shopping district that extends over five levels.

    Mr. Beccari has also become known for pushing an array of high-visibility projects around the globe. Recent examples include a fashion show last month in front of Egypt’s ancient Giza pyramids as well as a major partnership with Harrod’s, the luxury British department store, for the Christmas season.

    Mr. Beccari now takes responsibility for LVMH’s biggest brand. LVMH doesn’t disclose revenue for individual brands, though analysts at Citi estimate that revenue at Louis Vuitton rose to 21.8 billion euros, equivalent to $23.40 billion, last year. “Vuitton has become one of the strongest and most resilient luxury brands,” they said Wednesday.

    That rise has come under the leadership of Mr. Burke, whose tenure at Louis Vuitton included the brand’s much-hyped collaboration with cult streetwear brand Supreme in 2017 as well as tapping the late Virgil Abloh as menswear artistic director the following year.

    On Wednesday, Mr. Arnault credited Mr. Burke with extending Louis Vuitton’s lead over its competitors and promoting the brand’s heritage while anchoring it in modernity.

    A dual French-U.S. citizen, Mr. Burke has worked for Mr. Arnault since graduating from business school, initially on real-estate investments in the U.S. before taking the helm of Christian Dior USA in 1986.

    He also oversaw the integration of U.S. jeweler Tiffany’s into LVMH. As part of the organizational changes announced on Wednesday, Tiffany’s—which LVMH bought for more than $15 billion in 2021—will now be housed in the group’s watches & jewelry division.