Category: Fashion

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  • Pandora plans $100-mln jewelry plant in Vietnam

    Pandora plans $100-mln jewelry plant in Vietnam

    Pandora, the world’s largest jewelry company by sales, will set up a US$100-million production facility in Vietnam.

    To be situated in the Vietnam-Singapore Industrial Park 3 in Binh Duong Province, it will be built to LEED Gold green building standards and powered completely by renewable energy.

    Construction is set to start in early 2023, and production by the end of 2024.

    It will hire more than 6,000 craftspeople and have an annual capacity of 60 million pieces of jewelry.

    This is the company’s third production site and the first outside Thailand.

    “We scouted countries all over the world before deciding on Vietnam and Binh Duong Province,” Jeerasage Puranasamriddhi, the company’s chief supply officer, said.

    Pandora is a Danish jewelry manufacturer and retailer founded in 1982 by Per Enevoldsen.

    It sells its products in over 100 markets, and had revenues of $3.5 billion last year.

  • Owndays launches premium concept store in Singapore

    Owndays launches premium concept store in Singapore

    Japanese fast fashion eyewear brand, OWNDAYS, is pleased to announce the opening of a new store at Takashimaya S.C., Ngee Ann City. This will be the brand’s second premium concept store in the world and its 33rd store in Singapore. The new store will open to public on 20 May 2022 and will house a collection of made-in-Japan eyewear and premium ophthalmic lenses curated exclusively for its premium concept stores.

    The Takashimaya S.C. store mirrors the concept of “Japanese Luxury” originally introduced at its first premium concept store at Marina Bay Sands, offering a premium eyewear shopping experience topped with Japanese hospitality and an extended product offering. Drawing inspiration from Ryoanji Temple, an UNESCO World Heritage Site and a popular attraction in Kyoto, Japan known for its famous rock garden, the new store features a distinct Japanese-styled aesthetics that pays homage to the origins of the brand while incorporating a touch of luxury.

    The main retail floor is flanked by a dry landscape complete with rock arrangements, gravel, moss and shrubs to achieve the Zen Garden interior. Beige wood elements are also heavily featured in the store interior to emphasise a sense of traditional Japanese-ness.

    Také Umiyama, Managing Director/COO of OWNDAYS INC. said, “The Takashimaya S.C. store reflects the core value of OWNDAYS, which is to constantly evolve and innovate in order to deliver quality eyewear to consumers at the best value. With a store that is located right in the heart of Orchard Road, it allows us to make well-designed, good quality eyewear more accessible to our customers. Besides, the new store is a space where we hope local consumers could enjoy a complete Japanese experience without having to physically travel to Japan. We welcome customers to visit the store even when they are not looking to purchase any spectacles and just to feel transported to Japan.”

     

  • Zilingo on the brink as loan recalled, financial advisor appointed

    Zilingo on the brink as loan recalled, financial advisor appointed

    Creditors of Zilingo Pte have decided to recall all of their loan, prompting the company’s board to appoint an independent financial adviser for options for the troubled Singapore-based fashion tech startup.

    “Due to Zilingo’s failure to fulfill prior obligations under the loan agreement, the company’s lenders have made the decision to accelerate the repayment of the entire loan,” Zilingo’s board said in a statement on Friday. “Further, the board has appointed an independent financial adviser to explore options for the company.”

    The development underscores a deepening crisis at Zilingo after Chief Executive Officer Ankiti Bose, 30, was suspended from her duties on March 31 while the firm’s board investigates the startup’s accounting practices. Kroll Inc. has been appointed to carry out the probe.

    Bose, who denies any wrongdoing, said in a statement to Bloomberg News that no debt repayments were missed when she was still the CEO.

    “The first event of default notification was after my suspension,” she said, adding that the creditors recalled debt on May 11. “There were several means of curing the event of default. However, it seems that the interim leadership possibly did not act on them.”

    The investigation into allegations against Bose is close to being completed, according to the board’s statement.

  • Sportswear retailer Li Ning eyes in-store coffee brand

    Sportswear retailer Li Ning eyes in-store coffee brand

    As coffee gradually penetrates Chinese people’s daily life in recent years, some none-catering companies are starting to utilize the potential of this newly booming industry.

    Sportswear brand Li-Ning bursts into the coffee industry this year with Ning Coffee landing in its several offline stores in Beijing, Xiamen and some areas in Guangdong province.

    Li-Ning said it hopes to improve customers’ comfort level when shopping by optimizing its in-store services.

    In early February, China Post opened its first cafe in Xiamen, Fujian province, and will continue to open more stores in Beijing and Shanghai.

    Tongrentang, a traditional Chinese medicine pharmacy with a history dating back over 350 years, opened a shop featuring herbal coffee in 2020.

    According to market consultancy iMedia Research, China’s coffee market totaled 381.7 billion yuan in 2021, and is expected to maintain a high-speed development with a growth rate at about 27.2 percent.

  • Adidas lowers 2022 expectations amid China lockdowns

    Adidas lowers 2022 expectations amid China lockdowns

    Adidas lowered expectations for 2022 after a first-quarter slump as renewed COVID-19-related lockdowns in Greater China continues to hit the German sportswear company.

    First-quarter currency-adjusted sales shrank by 3% worldwide, to 5.3 billion euros ($5.58 billion), while profit from continuing operations fell 38%, to 310 million euros, it said on Friday.

    In Greater China, sales collapsed by 35% in the first quarter; for the year, revenue is expected to fall significantly due to store closures and strong traffic declines.

    The company now expects to come in at the lower end of its 2022 forecast for an 11-13% increase in currency-neutral sales as well as for net income from continuing operations of between 1.8 and 1.9 billion euros.

    Adidas also cut its operating margin forecast, saying it will remain at the previous year’s level of 9.4% instead of increasing to 11%.

    “In this environment, characterized by severe external challenges, it is imperative to stay focused on our strategic objectives,” said Chief Executive Kasper Rorsted.

    “While we will remain agile, we will not jeopardize our long-term growth opportunity for short-term profit optimization.”

    The company expects a return to growth in the second quarter despite the continued sales decline in Greater China and a 200-million-euro negative impact from supply chain constraints.

    In the second half of 2022, net sales are expected to grow over 20%, driven, among other things, by unconstrained supply, strong momentum in Western markets and major sports events.

  • Adidas seals long-term partnership with Foot Locker

    Adidas seals long-term partnership with Foot Locker

    Adidas, a global leader in the sporting goods industry, and Foot Locker, Inc. (NYSE: FL) (“Foot Locker”), the New York-based specialty athletic retailer, today announced a new and enhanced partnership built around product innovation, elevated experiences, and deeper consumer connectivity. This enhanced relationship will establish Foot Locker as the lead partner for adidas in the basketball category, accelerate energy and hype launches, as well as include the development and expansion of key franchises across women’s, kids, and apparel. Including all Foot Locker banners in North America, EMEA, and Asia-Pacific, the new strategic partnership will target over $2 billion in retail sales by 2025, nearly tripling levels from 2021. In 2022, adidas expects to generate incremental revenues of up to €100 million as a result of the new partnership.

    “We are delighted to be deepening our partnership with Foot Locker as we continue to execute our ‘Own the Game’ strategy,” said adidas CEO Kasper Rorsted. “Consumers will be at the heart of this exciting collaboration and will be able to experience the adidas brand and its key product franchises, as well as new product innovations, at Foot Locker, stronger than ever before.”

    “We are excited to build on our partnership with adidas as we continue our strategy to broaden our selection of footwear and apparel for the sport and sneaker communities,” said Richard A. Johnson, Chairman and Chief Executive Officer of Foot Locker, Inc. “This close partnership will enable us to bring consumers even more unique, pinnacle products from iconic brands, as well as accelerate our push into apparel, adding new dimension to our assortment and bringing more customers into our ecosystem.”

    Foot Locker will lead adidas’ basketball offering, led by Fear of God founder and designer Jerry Lorenzo, spanning the lifestyle and performance categories, and develop exclusive positions in both areas. In addition, the collaboration will focus on key Originals franchises including NMD, Superstar and Stan Smith, and on the adidas influencer partnership portfolio. It will also include a prominent role for Foot Locker in the launch of adidas’ new Sportswear product division targeting the lifestyle consumer.

    To execute the new plan, adidas will provide Foot Locker with a dedicated team to deliver an elevated consumer experience both in stores and online to help create demand and elevate the marketplace. This will involve partnership on product development, exclusive Foot Locker positioning, increased product allocations, shared marketing spend, and an elevated premium presence across Foot Locker’s entire portfolio of banners with a special focus on key cities and communities that the companies jointly serve. Lastly, to provide consumers with a seamless consumer journey, on and offline, both partners will increase their digital focus and accelerate the rollout of the adidas partner program at Foot Locker.

  • Shein unveils a purpose-led clothing range

    Shein unveils a purpose-led clothing range

    SHEIN, an online retailer of fashion, beauty and lifestyle products, today announced the launch of evoluSHEIN, a purpose-driven collection available to SHEIN customers around the world beginning April 29. With inclusive sizing, responsibly sourced materials, and the collection supporting women’s empowerment projects worldwide, the new line will be an affordable option for customers seeking to make a positive impact with their product choices.

    By shopping the evoluSHEIN line, customers can proudly say they are supporting the work of Vital Voices – a leading international non-profit that invests in women leaders taking on the world’s greatest challenges, including gender-based violence, the climate crisis, economic inequities, and more.

    The first release of evoluSHEIN clothing will feature recycled polyester – a fiber obtained from plastic waste. To produce the fabric, materials such as used plastic bottles are carefully cleaned, shredded into pieces, melted down, and spun into polyester fiber. Compared to virgin polyester production, the recycled polyester process requires less source materials and significantly reduces the amount of water and energy needed. Reducing waste and introducing recycled materials are key pillars of SHEIN’s vision of a circular economy and a sustainable future for accessible fashion. EvoluSHEIN will serve as a testing ground for new purpose-drive innovations SHEIN will be adopting throughout its greater collection.

    These evoluSHEIN recycled polyester pieces and packaging have been produced exclusively with suppliers certified to the Global Recycled Standard (GRS). This globally recognized certification supports traceability of recycled material through all stages of the supply chain, and sets strict social and environmental requirements. The GRS is managed by Textile Exchange, a global non-profit leading the apparel industry toward a more sustainable future. With more than 700 members representing leading brands, retailers, and suppliers in the industry, Textile Exchange is a force for collaboration and positive impact, and SHEIN is proud to be a member of this community.

    “We are committed to building a more responsible fashion ecosystem,” said Adam Whinston, Global Head of Environmental, Social and Governance at SHEIN. “Launching evoluSHEIN is one important step in our sustainability commitments this year, which touches on each of our key focus areas – protecting the environment, supporting communities, and empowering entrepreneurs. We invite all our partners and customers to join us in the journey.”

    Founded in 2012 as an e-commerce retailer with the mission of making the beauty of fashion accessible to all, SHEIN’s strategic small-batch production and digital retail model have helped the brand avoid many of the environmental impacts associated with traditional retail store footprints. Over the last ten years, SHEIN has advocated for a fashion revolution and developed tools to help suppliers with advanced technologies that support the planet. These collective efforts include turning traditional factories into agile supply chains with collaborative technology systems that drastically reduce inventory waste and help conserve natural resources in the production process.

    Customers worldwide are invited to join the evoluSHEIN starting April 29. The initial evoluSHEIN product line will feature women’s tops, dresses, and bottoms, with extended sizes dropping early this summer. SHEIN plans to expand the line to more than 1,500 product SKUs by the end of September 2022, with future evoluSHEIN styles featuring additional preferred materials options, including forest-safe viscose, consciously cultivated cotton, and additional certification programs for recycled fibers.

  • Hugo Boss the latest lux brand to launch resale offer

    Hugo Boss the latest lux brand to launch resale offer

    Luxury fashion brand Hugo Boss has committed to a premium resale platform, which is set to launch in the third quarter of this year, encouraging customers to buy pre-owned items.

    According to the company, resale is a fast-growing market that helps reduce the fashion industry’s impact on the environment. Hugo Boss expects the initiative to extend its products’ life cycle and help limit its resource consumption.

    The online platform allows customers to return their used items to Hugo Boss in return for a credit that can be spent online on new or pre-owned items, or in-store. After a quality check, the pre-owned products will be sold on Hugo Boss Pre-Loved and ready for their second life in a new wardrobe.

    In addition, Hugo Boss will also launch a care and repair service to help customers cover the repair of their clothes and ensure the items can last longer.

    These are parts of Hugo Boss’s broader strategy unveiled on Earth Day to enhance its circular business model. The German fashion house also reports its circular products must meet three requirements: being made from renewable or recycled materials, being fully recyclable, and designed for longevity.

    “The high quality of our products allows them to have several lives, and our entry into the growing resale market is a natural step for us as a company,” said Heiko Schafer, COO of Hugo Boss.

  • Chinese shun foreign brands

    Chinese shun foreign brands

    Catwalks canceled, showrooms closed, stores shuttered: the pandemic has led to massive disruption across the fashion industry. Even in China, which has coped with the pandemic better than many countries, multi-brand store buyers have been forced to place orders online, rather than in the showroom. And they don’t like it much.

    All this has led many Chinese fashion buyers to order more conservatively this year or ignore international brands and opt for local Chinese labels.

    Olivia Chen, head of Assemble by Réel, a high-end store in Shanghai’s centrally-located Réel Mall, says that virtual ordering makes her feel like something is missing. “In a showroom, you’re immersed in an environment that conveys the season’s atmosphere. We can use a variety of sensory clues to gain insight into the story the designer wants to convey,” says Chen. “These elements create a certain kind of atmosphere, one that has a lasting and powerful influence. Images and other materials related to remote purchases can evoke some of that feeling, but it can’t achieve a high degree of resonance.”

    Chen emphasises the difference between an image of a product and the product in real life, whether it’s in the weight of the fabric or the way the fabric moves on the body.

    Eric Young, head of high-profile designer store Le Monde de SHC in Shanghai, agrees. “Many times you have no choice but to judge a product from a photo or small picture, but even with Zoom, the imaging quality of different showrooms is actually very different,” he says. In Paris, he points out, a whole series of brands can be viewed in the space of a day. By contrast, online ordering is a long repetitive process of frustration. “In the end, one grows numb to viewing things online,” he says.

    More buyers would prefer to make the long trip to Europe for a more immersive experience — it would let them buy more boldly, explore new hot brands and interact with designer brands on a more personal level. Frustrated that they can’t travel, some buyers have come up with alternative solutions: from the AW21 season, Shanghai buyer store Eth0s set up a small showroom for 15 foreign brands including Geoffrey B. Small, Marc Le Bihan and Antonio Marras.

    Chen also notes that extra materials are being provided to improve the online experience. “The main change since the pandemic started is that brands are providing auxiliary materials before a Zoom meeting, including introductions to a line, lookbooks and fabric samples,” she says.

    As Chen notes, a shift to online ordering already predated the pandemic to some extent. “Actually a lot of brands started doing online ordering before this,” agrees Jony, manager of Chengdu buyer store Clap. “But it’s a plan B at best. Physical ordering is still extremely necessary.”

    Like many Chinese buyers, Le Monde de SHC’s Eric Young is reluctant to take a risk with new foreign brands that he cannot physically touch and see for himself. That problem has encouraged buyers to play safe, making safer purchases. “It’s also an opportunity for local designers. As long as the lines they launch are good enough, they’ll definitely have a higher chance of getting orders than they would have before the pandemic. Shanghai Fashion Week this past April was more active than it’s ever been,” he says.

    At Eth0s, another leading Shanghai store, head Chen Fei has struggled to find the right Chinese brands that match his outlook. “We have been very committed to finding domestic brands, and we’ve met some good designers, but… we want a brand that shares our world view,” he explains.

    Chen Fei has not played safe, looking for bold special pieces to excite his customers. “Everyone was quite frustrated because of the lockdown, and we wanted to stimulate the pleasure they get from consuming. And we wanted customers to be happier.”

    Chen Fei argues that the brands, rather than store buyers such as himself, have played it safer. “One thing that got more conservative was their style designs; another was their business decisions,” he says.

    In Chengdu, Clap has reduced its budget for foreign designer brands by 30 to 50 per cent — instead, Clap has bought local high-impact brands. Fashion pieces with strong graphics are often bestsellers, says Jony. “Such styles may excite customers more easily, because when you’re not sure about the line itself or the fabric, the easiest way to decide what you’re going to buy is through graphic design.”

    Olivia Chen of Assemble by Réel believes that if an effective purchasing programme is maintained, sales can be guaranteed. Post-pandemic, Assemble has maintained a sell-out rate of around 85 per cent.

    The current situation has some time to run yet. Even the most optimistic forecasts do not predict normal travel resuming before the beginning of 2022. That means at least another season or two of ordering online.

    With that in mind, Chen Fei believes brands should find better ways of presenting every detail of their clothes, especially more high-priced products. “If we can’t see the brand information clearly, it’s possible we’ll consider reducing our order, but where the information is clear, we feel quite confident about placing an order. For example, Rick Owens is very good — they have a representative in China and will try to provide very complete information. For example, if a style has five fabrics they’ll do their best to provide samples. We’ve bought from them for a long time. We even know the body shape of the model the brand uses, so there won’t be any big deviations in our orders.”

    Foreign showrooms are looking to enter the Chinese market. At Shanghai Fashion Week in April, Antwerp agency Up Next brought a number of brands, including Casablanca, Botter and Sweetlimejuice.

    Fresh design ideas and exciting new brands remain a driving force for the most fashion-forward stores. While easy-to-wear brands at attractive price points are likely to sell well in China, as in any market, the new generation of buyer-led stores are also serving the tastes of some increasingly sophisticated customers. “A lot of female consumers have gotten really niche in their tastes, and wear the clothes really well, better even than the brand’s own styling,” says Chen Fei. “They wear the clothes in ways the brand didn’t expect them to.”

  • Lush launches a 24-hour vending machine

    Lush launches a 24-hour vending machine

    Cosmetic brand Lush has opened its first 24-hour vending machine, located in Coal Drop’s Yard at King’s Cross in London.

    Lush said it aims to provide customers with a distinctive retail experience by allowing them to purchase its products at any time of the day.

    The machine is shaped like a circular kiosk. Customers walk around to and view the products, which include wrapped gift boxes. Moreover, it is sustainably designed, running on low energy.

    The Ilocker vending machine is designed by Anmac, whose owners are Andrew Alpine and his wife Gemma Jackson, a couple well known for designing numerous film and television series sets, including for The Piano, The Beach, Bridget Jones’ Diary and Game of Thrones.

    “Lush has always strived to dazzle our customers, from our product innovations through to bringing our core values into every aspect of our retailing,” said Charlotte Howe, a member of the Lush Group retail team.

    “Using the highest quality of automated retail machines with our partner, Anmac, we are able to surprise and delight with a micro store that is open 24 hours a day. It is a retail theatre that never sleeps – live glow on the go.”

    The London pop-up will run for six months during which time the company will change the product range and merchandising design to ensure ongoing customer interest.

  • M&Ms steps out with Adidas

    M&Ms steps out with Adidas

    Sportswear label Adidas has collaborated with confectionery brand M&M’s to launch a limited-edition sneaker called Originals Forum Lo 84, inspired by the chocolate brand’s distinctive packaging.

    The sneakers feature a yellow rubberized leather complemented by bounded TPU 3-Stripes branding and a high heel. Both are drawn on M&M’s Peanut variant packaging. The “M” letter is perforated on both toe boxes and a removable M&M’s brand flag is attached to the lacing.

    In addition, each pair of sneakers comes with a set of accessories: six pairs of laces, 19-lace jewels, three pairs of alternative straps and seven different Velcro chocolate candy lentils.

    According to Adidas, the sneakers are also packaged in a bright yellow co-branded box inspired by the famous M&M’s Peanut variant packaging to fit the playful look.

    “The M&M’s brand has long been committed to bringing people together by creating colorful fun for all, as part of our mission to create a word where everyone feels they belong,” said Jane Hwang, global marketing VP at Mars Wrigley.

    “Mars is proud to celebrate fans from all communities through this collaboration, which is also customizable, allowing sneaker and candy fans … personal expression.”

    The new Adidas sneakers Originals Forum Lo 84 M&M’s are available to purchase globally through the Adidas website and from selected retailers.

  • Singapore sneaker reseller Ox Street to launch in Australia, NZ

    Singapore sneaker reseller Ox Street to launch in Australia, NZ

    Singapore-based online sneaker resale marketplace Ox Street is launching a trans-Tasman expansion, opening an e-commerce store in Australia.

    “Australia is a perfect fit for the community we want to build in the long-term,” said Gijs Verheijke, founder and CEO at Ox Street. “We see a big supply gap when it comes to Australian buyers having access to the most coveted sneakers, whether they’re hot new drops or all-time classics.”

    Verheijke said the company, which was acquired by Carousell last October, has already built a large network of resellers across Australia and New Zealand during the past few years. Ox Street said the emphasis is on enabling faster delivery times and greater access to supply in an industry dominated by US and European megabrands.

    The Australasian launch is part of Ox Street’s ambition to build a “global hub for sneakerheads,” Verheijke said. The company’s short term plan is to build brand equity and a large part of that is being trusted to robustly authenticate the products before they reach buyers.

    Founded in 2019, Ox Street operates across eight Southeast Asian countries, targeting Gen Y and Z investors, collectors and fashion-conscious consumers. The brand reported sales growth surging more than four-fold during the past year.

    As part of the Australia launch, Ox Street has partnered with Sneaker Freaker in an Instagram-based sneaker giveaway worth more than $2000.

  • Uniqlo owner sees big profit drop in China due to Covid restrictions

    Uniqlo owner sees big profit drop in China due to Covid restrictions

    Clothing brand Uniqlo’s Japanese owner said on Thursday its China operation would report a large profit decline in the current fiscal year owing to the country’s Covid-19 restrictions.

    Fast Retailing < is a bellwether for how major global retailers are being impacted by Covid-related shutdowns in China, one of the biggest growth markets for many Western brands.

    China is Fast Retailing’s biggest foreign market, with 863 stores on the mainland and almost 90 outlets in Shanghai, where stringent lockdown measures, introduced in late March, remain in place to contain the country’s worst outbreak of the pandemic.

    The fast fashion retailer said it expects revenue declines and a large drop in profit in its Greater China segment in the second half and for the whole of fiscal 2022 due to Covid restrictions.

    Sales in Greater China region which includes Hong Kong and Taiwan struggled in March, as up to 133 stores were temporarily shut down.

    Fast Retailing has more Uniqlo stores in China than in its home market of Japan. It opened a flagship store in Beijing in November, its third megastore in mainland China, and plans to open 100 locations in the country each year going forward.

    The weakening yen and higher costs for raw materials and shipping have forced Fast Retailing to consider price hikes, a major shift for a company that has long competed on the inexpensiveness of basic items like socks and underwear.

    The company reported a record half-year profit on Thursday, buoyed by sales growth in North America, Europe, and other parts of Asia, while revenue and profit declined in China.

    Operating profit climbed 18 per cent to 189 billion yen ($1.51 billion) in the six months through February from a year earlier.

    The company maintained its full-year profit forecast at 270 billion yen. That compares with a consensus forecast for a

  • Uniqlo owner sees big profit drop in China due to Covid restrictions

    Uniqlo owner sees big profit drop in China due to Covid restrictions

    The owner of Japanese clothing brand Uniqlo on Thursday flagged a big profit drop in China due to COVID-19 restrictions, while its chief executive sounded alarm about the weakening yen’s potential to drive up costs.

    Fast Retailing is a rare bellwether for both global retailers in China, its biggest foreign market, and consumer demand in Japan, where it has carved out a dominant position by offering casual clothing to famously price-conscious shoppers.

    It and other multi-national retailers are now being forced to deal with lockdown measures in China. Fast Retailing has 863 stores on the mainland and almost 90 outlets in Shanghai, where strict measures, introduced in late March, remain in place to contain the country’s worst outbreak of the pandemic.

    McDonald’s and Starbucks, which each have dozens of outlets in Shanghai, have also been impacted as has production for retailers such as H&M, and Nike.

    Fast Retailing said it expects revenue declines and a large drop in profit in its Greater China segment in the second half and for the whole of fiscal 2022 due to COVID restrictions.

    Sales in the Greater China region, which includes Hong Kong and Taiwan, were hit in March, as up to 133 stores were temporarily shut.

    It has more Uniqlo stores in China than in Japan. It opened a flagship store in Beijing in November, and plans to open in 100 locations in the country each year.

    Separately, luxury brand Hermes said it had a strong start of the year in China until the beginning of March and is confident stores closed in Shanghai will reopen quickly.

    But the weakening yen and higher costs have forced Fast Retailing to consider price rises, a major shift for a company that has long competed on price.

    “There’s absolutely no merit to a weak yen,” Chief Executive Tadashi Yanai told reporters.

    “Japan is engaged in the business of importing raw materials from all over the world, processing them, adding value to them, and selling them. In this context, there is no advantage if the value of a country’s currency weakens.”

    The yen has been hammered this year, falling to the weakest level in almost 20 years against the dollar. For many Japanese companies that manufacture offshore – like Fast Retailing – the weak yen is less of a benefit than for traditional exporters.

    The company reported a record half-year profit on Thursday, buoyed by sales growth in North America, Europe, and other parts of Asia, while revenue and profit declined in Japan and China.

    Operating profit climbed 18% to 189 billion yen ($1.51 billion) in the six months through February from a year earlier.

    The company maintained its full-year profit forecast at 270 billion yen. That compares with a consensus forecast for annual profit to total 278 billion yen, according to a Refinitiv poll of 11 analysts.

    The Ukraine crisis has created another headwind, leading the company to close its 50 stores in Russia, after it initially resisted calls to exit the market along with other major brands.

    Prior to the earnings release, shares in Fast Retailing closed up 2.1%, versus a 1.2% gain in the broader market.

  • Levi Strauss sets up its own operation in Thailand

    Levi Strauss sets up its own operation in Thailand

    Levi Strauss & Co, the trademark owner of Levi’s denim, has established its own operation in Thailand after a 25-year distribution contract with DKSH ended last month, allowing the brand to connect directly with Thai aficionados.

    According to Sameer Koul, the company’s general manager for Southeast Asia, the business of Levi’s in Thailand would from now on be handled by LS&Co Thailand, the firm’s own subsidiary.

    Thailand is the second country in the Southeast Asian market in which Levi’s has decided to run its own business 100%, following Singapore. This is a strategic move to accelerate its growth, reach a wider customer base and cope with the competitive environment.

    “Thailand has a huge opportunity to grow our business due to a favorable customer demographic. Levi’s has very strong brand recognition among Thai fans. Moreover, Thai customers love to express themselves,” Mr Koul said.

    According to Mr Koul, the company expects that running its own operation rather than it being run by a distributor would ensure the brand would directly reach generations of local customers, particularly those aged between 18-30.

    Members of this age group typically buy 1.5-2 pairs of jeans per year, compared to an average of one pair per year among others not included in this group.

    Product characteristics are also being adjusted while brick-and-mortar stores will be refurbished under a new store format known as “NextGen Indigo Stores”.

    At present, there are eight NextGen Indigo Stores in Thailand including outlets at Siam Paragon, Emporium, Central Lat Phrao and Central Festival Chiang Mai.

    At Levi’s Lat Phrao shop, customers are able to customize their own products in terms of design and decoration. The company also launched an inaugural Thai version of its website allowing consumers to access its products more easily.

    Mr Koul said during 2019-2020, the global fashion industry faced a 20% decline in terms of sales due to the pandemic.

    Nonetheless, Levi reported strong financial performance in 2021, with net revenue of US$5.8 billion, which was similar to the figure for 2019.

    Of the total, 55% of revenue was from the international market, up from 49% in 2016.