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.

  • Covid-19 Fashion impact may threaten Esprit’s future

    Covid-19 Fashion impact may threaten Esprit’s future

    As the world faces this pandemic in unified isolation, we at Fashion Revolution are focusing on how the unfolding situation is affecting the people who make our clothes. Retailers are shutting their doors around the world, encouraging their customers to shop online instead. Yet the reality is that as we are forced to stay in our homes many of us are financially burdened by layoffs or new childcare responsibilities, and the desire to buy new clothes feels like a distant dream.

    For Fashion Revolutionaries, this unique set of circumstances can hopefully bring about the #LovedClothesLast movement that we have been pushing for many years. Given the level of clothing overproduction that preceded this crisis, we hope that our days indoors can bring about revolutions in caring for our clothes better, mending and making clothing, and adopting a mindset of longevity when it comes to our wardrobes.

    While we have been encouraging an end to overconsumption for many years, we also know that in the face of this unexpected halt in manufacturing, it is the most vulnerable, lowest paid people in the fashion supply chain that feel the worst effects. IndustriALL, the global trade union which works to give workers around the world a voice, says that millions of garment makers have already lost their jobs as a result of the virus and have no access to social or financial safety nets to help them weather this storm. Bangladeshi garment manufacturer Mostafiz Uddin reminds us, “Poverty is a killer too, and many more people die from poverty than from COVID-19”.

    In the global fashion industry, brands typically pay their suppliers weeks or even months after delivery, rather than upon order. This means that suppliers usually pay upfront for the materials or fibres used to make the brand of the product buy from them. In response to the pandemic, many major fashion brands and retailers are canceling orders and stopping payments for orders already placed, even when the work has already been done, taking no responsibility for the impact this has on the people working in their supply chains. Factories are left with little choice but to destroy or keep hold of unwanted goods already made and lay off their workers in droves.

    About 1,089 garment factories in Bangladesh have had orders canceled worth roughly $1.5 billion due to the coronavirus outbreak. The AWAJ Foundation says that many factories in Bangladesh have been shut down indefinitely. Some workers were given less than a month’s salary as severance and many others have received nothing at all. Nazma Akter the executive director of AWAJ explains, “These workers now don’t know how they will take care of their families in the coming days – how they will manage costs for food, rent and other necessities. They can’t even imagine what they’ll do if they or a family member needs medical treatment for COVID-19. The meager income these workers earned was barely enough to cover their living costs, and as a result, they have little to no savings set aside to deal with a crisis such as this.” Meanwhile, Labour Behind the Label estimates that 10% of factories in Yangon, Myanmar are now closed.

    On the other side of the world a similar situation is unfolding. The Garment Worker Center describes how garment makers in Los Angeles are often not eligible for unemployment benefits. This is partly because the underground nature of the industry, such as “off the books” work, makes applying for paid family leave or disability insurance uniquely challenging in the face of the pandemic.IndustriALL reports that while many fashion brands are offering compensation packages for retail and office workers who face layoffs due to this crisis, they are failing to protect the workers in their supply chains who are also suffering from the loss of income. Furthermore, the Solidarity Center believes that the inability to meet together in-person will inhibit workers’ abilities to unionise and collectively bargain for their rights.

    Of course, fashion isn’t just created in factories. Fashion is craft, artisanship and things that are often made by hand in informal environments. According to the Artisan Alliance, artisanal craft is the second largest source of employment across the so-called developing world. WIEGO estimates there are around two billion informal workers around the world that lack basic labour, social and health protections. As a result of COVID-19 threatening global trade flows, workers cooperatives, artisan groups, local crafts-based communities, home-based workers, agricultural workers and farmers face desperate economic circumstances.
    At Fashion Revolution, we have always tried to be honest with our community about the  problems that persist within the global fashion industry. Having formed in response to major human catastrophe – the Rana Plaza collapse in 2013 – we are no strangers to exploitation or disparity within the industry. But we have been, and will continue to be, focussed on solutions and dedicated to finding ways for citizens around the world to make a positive difference. We’ve already seen several visionaries within the fashion industry pose the question: what kind of world do we want to see emerge after this crisis is over? For us, the answer lies in our Manifesto for a Fashion Revolution, and we’ll be spending the next months (and years) mobilising our community to take action to build this future of fashion.

    Meanwhile, in this current crisis, we believe that our capacity for empathy is strengthened by our shared global experience. While we may be stuck indoors, using social media our voices can still be amplified, especially when we speak up together. That’s why we’re asking our global community to be louder than ever. To ask #WhoMadeMyClothes? and demand that fashion brands protect the workers in their supply chain just as they would their own employees, especially during this unprecedented global health and economic crisis.

    If we do nothing, the fashion industry will simply return to business as usual when this is all over. Instead, let’s come together as a revolution and build a new system that values the wellbeing of people and planet over profit. This means that right now we should stand together to protect and support the people who make our clothes.

    As Wangari Maathai said in her famous 2004 Nobel Peace Prize acceptance speech,

  • Indian lingerie model, age 52, hopes to inspire inclusivity

    Indian lingerie model, age 52, hopes to inspire inclusivity

    A 52-year-old Indian lingerie model is pushing e-commerce firms to hire older women for their advertising campaigns, challenging what she says are the ageist norms practiced by many companies.

    Geeta J, a former teacher who took to modeling when she turned 50, says she wants innerwear companies in India to be more inclusive and avoid featuring only younger women in their promotion drives.

    “Are women no more fit to become a lingerie model past a certain age?,” Geeta has said in an online petition on Change.org, captioned with the hashtags ‘#AgenotCage’ and ‘#LingerieHasNoAge’, which she started this year.

    Her job is bold and unusual in the largely conservative Indian society where religious and cultural norms limit women’s freedom to dress the way they want.

    Such norms are even more restrictive for women over the age of 40, Geeta told Reuters in an interview.

    More than 11,000 people have signed up to support her petition, which is addressed to the chief executive of the popular innerwear company Zivame.

    “This will lead to a change in the mindset of people in our country who think that after 40, women should dress and behave in a certain way,” Geeta said in the petition, adding that she hoped it would lead to more companies following suit.

    Geeta began her career after winning a runners-up prize in a beauty pageant for older women. While her family and friends had been supportive of her switch in careers at 50, however, she said she was aware many Indian women her age would find it hard to do so.

    “I want to tell this to all women that they should care about the dreams of their husbands and loved ones and support them, but they should never think that their own life is not important or their wishes are not important,” Geeta said.

  • Pre-owned Store Hula opens its first permanent boutique in Hong Kong’s Central

    Pre-owned Store Hula opens its first permanent boutique in Hong Kong’s Central

    Pre-loved designer brand, HULA will be opening its first boutique on Hollywood Road this Friday. The location will feature a curated selection of over 500 unique designer womenswear pieces. There is also a dedicated Chanel rail for fans of the iconic brand.

    The boutique is open daily and offers a range of new and vintage designer items including bags, clothing, shoes, and accessories. Each week new products will be added to the boutique, including pieces not available at its Wong Chuk Hang warehouse.

    For those looking for a tailored shopping experience, the boutique also offers a personalized styling session with its in-house stylists.

    Founded by Sarah Fung in 2016, HULA is an online marketplace that sells second-hand designer womenswear and handbags. The consignment store only sells items from invited sellers to guarantee their authenticity and quality. “If we aren’t sure, we don’t sell it,” says Fung.

    HULA previously hosted a pop-up on Hollywood road last year which encouraged Fung to think about a more permanent store. “After the success of our three-week pop-up on Hollywood Road last year, opening a permanent store space in Hong Kong Central was a no-brainer and we were lucky to have found the perfect location,” she says.

    The new shop will open on March 19 and is located at 56-58 Hollywood Road, Central. For more information visit HULA’s website and Instagram.

  • Nike sales crimped by pandemic and shipping issues

    Nike sales crimped by pandemic and shipping issues

    Nike’s quarterly sales missed estimates due to shipping issues and a pandemic-related slump at brick-and-mortar stores, and investors were disappointed by the world’s biggest athletic shoe maker’s full-year revenue forecast.

    Nike forecast “low-to-mid-teens” full-year revenue growth, falling just short of the 15.9% increase in sales that analysts were expecting, according to IBES data from Refinitiv.

    Nike shares were down about 3% in post-market trade.

    “I think the expectations for Nike into the call were very high with many analysts upping revenue and earnings expectations into the quarter,” said Ivan Feinseth, head of investment at Nike shareholder Tigress Financial Partners.

    Revenue rose to $10.36 billion from $10.1 billion, while analysts on average had expected $11.02 billion. The company said revenue from North America fell 11% on a currency-neutral basis because container shortages and U.S. port congestion held up inventory by more than three weeks.

    “We expect to capture this delayed revenue in the fourth quarter,” Nike Chief Financial Officer Matthew Friend said.

    U.S. container-freight traffic has slowed significantly in recent months due to COVID-19 outbreaks among dockworkers and safety restrictions aimed at stemming the spread of the virus. At the same time, ports are dealing with a cargo surge due to pandemic-led demand for bulk products.

    Nike’s net income nonetheless climbed to $1.45 billion, or 90 cents per share, in the third quarter ended Feb. 28, from $847 million, or 53 cents per share, a year earlier. Analysts were expecting earnings per share of 76 cents.

    In Europe, the Middle East and the Africa region, 45% of Nike-owned stores were closed for the last two months of the quarter. Currently, 65 percent of stores in EMEA are open or operating on reduced hours, Nike said.

    Rival Adidas ADSGn.DE said last week that it had reopened 95% of its stores after coronavirus lockdowns.

  • Tiffany & Co designer Elsa Peretti dies at 80

    Tiffany & Co designer Elsa Peretti dies at 80

    Elsa Peretti, the famed jewelry designer for Tiffany & Co., has died, according to a statement from the company. She was 80 years old.
    Peretti died in Spain on Thursday, March 18, according to a statement from her foundation.
    “Elsa was not only a designer but a way of life,” the statement from Tiffany & Co. said, describing her as a “larger-than-life” person who “touched everyone at Tiffany & Co.”
    “A masterful artisan, Elsa was responsible for a revolution in the world of jewelry design. Her collections of organic, sensual forms have inspired generations,” the statement said. “Elsa’s relationship with style and the natural world was profoundly personal and strongly reflected in her creations. Over the past nearly 50 years Elsa has created some of the most innovative jewelry and object designs in the world.”
    Peretti was born in Florence, Italy. By 1964 she’d begun modeling in Spain and later moved to New York and met the fashion designer Halston, whom she collaborated with and who introduced her to Tiffany & Co. leadership. She joined the company in 1974. Vogue reported that Peretti’s designs eventually accounted for about 10% of Tiffany & Co.’s sales.
    Peretti was also the president and founder of the Nando and Elsa Peretti Foundation, the company said, which supported projects related to human rights, environmental conservation, and arts and cultural preservation. She believed, Tiffany & Co. said, that protecting the planet was “a duty of all of humanity.”
    “We could do so much better,” she said. “I’m trying to do something good.”
  • Burberry Japan opening a virtual showroom in partnership with Elle

    Burberry Japan opening a virtual showroom in partnership with Elle

    The virtual and interactive experience will replicate the brand’s flapship Ginza store and will serve as a space to present its Spring/Summer 2021 collection. Customers will be able to purchase items from the collection by selecting the digital items in store for one month, beginning from March 19. The experience will live exclusively on Elle Japan and Ellegirl Digital Japan’s websites.

    Burberry is among the leading luxury players to have invested in digital innovation to merge digital and physical store spaces, with Louis Vuitton and Gucci also joining the market. As part of the new experience, Burberry has also collaborated with actress Elaiza Ikeda to create five styling videos that will appear throughout the virtual store and assist customer’s shopping experience.

  • Pomelo expands its online presence with localised Philippines store

    Pomelo expands its online presence with localised Philippines store

    The omnichannel fashion platform has launched a localized online store in the Philippines as part of its digital expansion across Southeast Asia.

    According to Pomelo, monthly orders from the Philippines currently account for around 10 percent of Pomelo’s total orders. Coinciding with the brand’s eight-year anniversary, the launch will help the brand strengthen their presence in Southeast Asia and increase its market share in the Philippines. Currently, the brand’s listing on Zalora Philippines has amassed more than 100,000 unique orders from locals.

    The Philippines’ online store will house Pomelo’s exclusive collaborations and fashion-forward apparel, including the brand’s new Spring/Summer 2021 Collection. The store will also feature the brand’s cashback reward and loyalty program, ‘Pomelo Perks.’

    This year in particular has seen the brand’s efforts to expand across the region increase with new stores launched in Singapore and Indonesia. The brand will also launch a flagship store in Malaysia this May.

  • New Levi’s store in Indonesia is its largest in SEA

    New Levi’s store in Indonesia is its largest in SEA

    The store represents the brand’s largest store yet in Southeast Asia, and features the brand’s new ‘Next Gen’ design concept.

    The new store is located in Grand Indonesia East Mall and features a range of technology features including Levi’s first associate ordering system, which is part of a broader omni-channel shopping experience. The new store also features a Tailor Shop where customers are able to customize their own items; options available include embroidery, hemming and alterations. Customers can also create their own t-shirt at the store’s print bar.

    Sameer Koul, Country Manager at Levi Strauss Indonesia, commented: “We are focused on bringing a highly personalized shopping experience to consumers and in a large format. This store can embody a bold brand image and vision for Indonesia. Levi’s Next Gen Store offers the most diverse products and brings our brand story to life with the feeling of being in a theatre.”

  • Fashion giant H&M’s sales recover in March as stores reopen after lockdowns

    Fashion giant H&M’s sales recover in March as stores reopen after lockdowns

    Sales at fashion group H&M fell slightly less than expected in the three months through February and rose in the first half of March as pandemic restrictions were eased in some markets, allowing hundreds of stores to reopen.

    The world’s second-biggest apparel retailer said on Monday net sales fell 27% from a year earlier, or 21% when measured in local currencies, to 40.1 billion crowns ($4.72 billion).

    Analysts had on average forecast a 30% decline in net sales for the period – the Swedish group’s fiscal first-quarter – according to Refinitiv SmartEstimate.

    “Sales development was significantly affected by the COVID-19 situation, with extensive restrictions and at most over 1,800 stores temporarily closed,” H&M said in a statement.

    “Since the beginning of February, a number of markets have gradually allowed stores to reopen and at the end of the quarter around 1,300 stores remained temporarily closed,” it said, adding that online sales had continued to develop very well.

    RBC analyst Richard Chamberlain, who has a “sector perform” rating on H&M’s shares, said the figures implied that online sales had provided a stronger-than-expected boost in February.

    H&M said sales in the March 1–13 period were up 10% in local currencies as many countries, including single-biggest market Germany, began allowing some stores to reopen. However, about 900 of H&M’s approximately 5,000 stores remained closed due to pandemic lockdowns as of March 13.

    Chamberlain said most stores should be open by mid-April bar new lockdowns in Europe, H&M’s main market.

    “As such, we see the potential for a strong sales recovery in the remainder of the year, with potential for gross margin to surprise on the upside, due to the weaker U.S. dollar,” he said.

    Market leader Inditex, the owner of Zara, last week forecast a return to healthy sales as soon as lockdown are lifted, as it reported a 70% fall in profit for its fiscal year through January. It predicted all its shops would be open by mid-April.

    H&M, whose full December-February earnings report is due on March 31, is bracing for a loss in the quarter after the pandemic slashed 2020 profits by 88%.

    Shares in H&M were up 3% in early trading, taking a year-to-date rise to 32%

  • Hermes opens giant store in Tokyo’s ritzy Omotesando

    Hermes opens giant store in Tokyo’s ritzy Omotesando

    Hermès is delighted to announce the opening of a new address in Tokyo’s Omotesando district on 28th February 2021. This new 488 square-meter home will be the house’s first free-standing store in Tokyo since the opening of Maison Hermès Ginza in 2001. A beautiful boulevard leading to Meiji Shrine, Omotesando Avenue is today lined on both sides with high-end boutiques and zelkova trees.

    Its intricate back streets are home to Tokyo’s vibrant street culture, attracting designers and artists from all around the world. It is here, on one of the city’s unique streets, adjacent to Shibuya and Harajuku, that the new Hermès store comes to life. The store’s distinctive façade opens directly onto Omotesando Avenue and incorporates the historic stone wall of one of the area’s most notable buildings, which has been preserved by the Parisian architecture agency RDAI.

    The façade is given a contemporary look with a copper-toned stainless-steel grid, adding depth and light to the exterior, just as light and shadows intermingle in a bamboo grove. Upon entering, visitors are greeted by the Ex-Libris in mosaic, inspired by the Hermès Faubourg SaintHonoré store in Paris. On the right side, they can peruse the colorful women’s silk collections, including the new carré Duo Cosmique designed by Kohei Kyomori, and presented exclusively here.

    The window display is also specially designed by this young Japanese artist to celebrate the opening. Further on, fashion jewellery, beauty, and perfume, including the latest men’s fragrance H24 are elegantly displayed. In the beauty corner, the Rouge Hermès lipstick collection will wait to encounter new customers from mid-April. On the left side of the entrance, home collections including tableware and men’s silk are introduced. A leather section at the back of the store welcomes bags, small leather goods, and equestrian collections.

    Walls are covered in wood paneling and bamboo marquetry, accented by fluid curves, and a selection of women’s shoes is displayed on wooden shelves extending from one of the large pillars. The floor is covered with two shades of greenstone, sourced in Asia and laid in a pattern resembling Japanese tatami mats. Custom rugs with a hue reminiscent of forest moss lend a softness to space. Behind the staircase is a refined area for watches and jewelry.

    Finally, customers can pause at a wide table, and enjoy books and a Leporello of unique drawings by French artist François Houtin, displayed in a specially made curved frame. As customers ascend the stairs, they will discover another piece of art, created by Japanese contemporary bamboo artist Shoryu Honda. Inspired by the shape of clouds and infinite Moebius strips, the bamboo sculpture is an example of the sophistication of Japan’s world-class modern bamboo artistry. The sweeping staircase is one of the most striking architectural elements of the store.

    The organic shapes of its vertical columns resemble tree branches, while the stairs call to mind pale green stepping stones. Light filters down from the upper level to the ground floor, just as sunlight glistens between the branches of a forest and invites customers upstairs to dive into the women’s and men’s universes. On the second floor, mobile partitions create an intimate space for each métier while giving the illusion of transparency. There are large fitting rooms for both men and women, with the former designed in order to incorporate made-to-measure orders in the future.

    Among the selection of special objects created for this opening are a skateboard and a surfboard, both revisited in a special edition with Jan Bajtlik’s design Cheval de Fête, and uniquely numbered Mega Chariot carrés and ties by Daiske Nomura. A newly unveiled Hermès bike made of ash wood will also be presented for the occasion. Paying tribute to local artists, materials, and know-how, this new store is a testimony to Hermès’ strong relationship with Japan and invites local customers and new visitors into a discovery of the house’s creativity and fine craftsmanship in a harmonious and warm environment.

  • Ted Baker appoints new Indonesian distributor

    Ted Baker appoints new Indonesian distributor

    The MENA deal is actually an extension to the current retail agreement Ted Baker has with Al-Futtaim Group but adds in new e-commerce and wholesale rights for the region. The all-new 10-year Indonesia dealx has been signed with PT Mitra Adiperkasa (MAP) for the retail license.

    The fellow-10-year Al-Futtaim agreement now means MENA will be Ted Baker’s first full omnichannel territory operated by a license partner. The complete integrated package across retail, digital and wholesale channels “is a key pillar of the group’s three-year transformation plan… which is designed to deliver a more profitable, more cash generative and higher return on capital employed business”, Ted Baker said.

    Al-Futtaim currently operates 24 Ted Baker stores and concessions across Bahrain, Egypt, Qatar, Saudi Arabia, and UAE. The addition of e-commerce and wholesale rights will aim to further strengthen the customer experience of the brand in the region, they said. Specific benefits to customers will include alignment of pricing and promotions across channels, and an improved e-commerce proposition with shorter delivery times, and ship-from-store and click-and-collect services.

    Meanwhile, under the terms of its retail and selective digital rights agreement, MAP has “committed to an ambitious store and concession opening plan and will sell via selective online platforms in Indonesia”. This expanded distribution will build brand awareness in the Asian region alongside the five other license partners and the group’s China JV, Ted Baker noted.

    Following these new license agreements, Ted Baker will have 17 retail license partners and 20 product license partners across the globe.

    Helen Costello, Group Commercial and Business Development Director at Ted Baker, said: “Having worked with the Al-Futtaim team for many years, we know they have an excellent understanding of Ted Baker and our customers. Al-Futtaim’s experience also means that they are particularly well-placed to fully realize the significant growth potential from the accelerating consumer shift to online channels in the region”.

    She added: “MAP is the leading retail expert in Indonesia, and they have the right team and experience in place to build on the strong foundations that are already in place. It is a testament to the strength of our brand that we continue to partner with the leading experts in their relevant categories across the world”.

  • Former Nike innovation chief joins speaker lineup for MarketingPulse 2021

    Former Nike innovation chief joins speaker lineup for MarketingPulse 2021

    A former senior Nike executive once named by Fast Company magazine as one of the most creative people in business, has been confirmed as a headline speaker at this month’s MarketingPulse 2021 virtual conference in Hong Kong.

    Greg Hoffman, global chief marketing officer at Nike from 2016-2018 before moving into the role of VP of global brand innovation until last year, now leads Modern Arena, a brand advisory group he founded for Fortune 500 brands, startups, and non-profit organizations.

    At MarketingPulse 2021, Asia’s premier marketing and branding conference, Hoffman will be drawing on his 27-year career with Nike to explain how innovation drives consumer experiences, envisioning the future of storytelling and the role of tomorrow’s CMOs.  Hoffman was a major strategic and creative influence for Nike at every major global sporting event, overseeing the launches of signature Nike products and innovations, and building the brands of its contracted athletes.

    A major part of Nike’s global marketing success was the strength of its experiential-anchored strategies which helped establish the iconic sportswear brand as one of the world’s pre-eminent storytellers. Hoffman was seen as a leading innovator in digital and physical brand experiences and broadly recognized for his role in the rise of marketing and design through that period.

    Under Hoffman’s leadership, Nike drove themes of equality, sustainability, and empowerment through sport. He was a member of the advisory board of the Nike Black Employee Network and as a member of the charitable Nike Foundation’s board.

    Another drawcard at MarketingPulse 2021 is Alves Huang, CEO, Qianxun (Hangzhou) Holdings, considered the current leading live-streaming e-commerce company in Mainland China.

    Huang founded Qianxun E-commerce in 2017 and in just four years his team has built the company into the country’s largest e-commerce live-streaming broadcasters. Among Qianxun’s successes was being recognized by Taobao Live as its number one e-commerce live-broadcasting agency, as manager of popular Taobao anchor Weiya Viya, who has more than 130 million fans on Chinese platforms.

    The company has long-term cooperative relations with more than 20,000 domestic and foreign brands and has already trained close to 40 anchors. At MarketingPulse 2021, Huang will explain the reasons why live-streaming e-commerce and short-video marketing is proving so successful in Mainland China.

    Putting purpose at the core

    Another high-profile speaker at MarketingPulse 2021 is Bryan Meehan, executive chair and CEO at Blue Bottle Coffee.

    A recent arrival to Hong Kong, Blue Bottle is a specialty coffee roaster and retailer headquartered in Oakland, California with cafes throughout the US, Japan and South Korea.

    Besides his passion for coffee, Meehan has always pursued a personal mission to do good for the environment. Both of his previous companies placed a premium on eco-consciousness – Fresh & Wild was one of the first organic food chains in the UK and Nude Skincare was an all-natural cosmetics business. While Blue Bottle maintains meticulous standards for roasting and brewing coffee (its Oakland location has a full lab to train new baristas), it is equally committed to sustainable business practices.

    At MarketingPulse 2021, Meehan will explain how to put purpose at the core of a business to connect brand values with today’s consumers, and share his success in marketing a globally renowned lifestyle coffee brand disrupting the industry.

    Register now to enjoy the privilege offer 55 percent discount (discount code: MPR02K5P) for Inside Retail readers.

  • US luxury jeweller Hoorsenbuhs opens first overseas store in Japan

    US luxury jeweller Hoorsenbuhs opens first overseas store in Japan

    Los Angeles-based fine jewelry and lifestyle brand Hoorsenbuhs opened its first overseas store at the Ginza Six mall in Tokyo, Japan on Friday, March 5th.

    The 1,050 square foot space in Tokyo comes to life through the eyes of founder Robert Keith. For the store, Keith designed custom chairs, tables, lights, and jewelry cases featuring the brand’s signature tri-link chain motif. Artist Damien Hirst is among the brand’s most notable collectors and collaborators. Celebrity fans of the largely-unisex handmade jewelry collection include Brad Pitt, Gwyneth Paltrow, and Lenny Kravitz.

    To celebrate the opening, the brand will offer exclusive, one-of-a-kind pieces of jewelry, apparel, eyewear, and lifestyle goods at the new boutique.

    “We’ve built a very strong and successful retail business in Japan, since our first partnership in 2011, including Ron Herman, Umeda Hankyu, and Isetan,” said Kether Parker, brand director. “The opening of our first Hoorsenbuhs store at G6 will be a destination for our extremely loyal customer base to discover and immerse themselves in all things Hoorsenbuhs.”

  • Prada bags sales boost from China rebound

    Prada bags sales boost from China rebound

    Italian fashion group Prada’s sales and profits rebounded at the end of last year from a first-half slump due to the coronavirus pandemic, boosted by a strong performance in China and elsewhere in Asia, and the positive trend has carried on into 2021.

    Luxury fashion companies have been hit hard by the impact of the crisis on tourism and travel, but an improving backdrop in China, one of the world’s biggest luxury markets, has helped some companies to bounce back.

    Milan-based Prada, famous for its luxury bags and clothes, also benefited from a surge in online sales.

    The pandemic has accelerated the luxury goods industry’s move towards digital sales. Prada’s e-commerce sales more than tripled in 2020 versus 2019 levels, the Hong Kong-listed company said.

    Last year, Prada launched e-commerce in new key markets and revamped the Prada website.

    “We are just at the beginning of our growth trajectory and there is still a huge potential to unlock,” said marketing head Lorenzo Bertelli, son of Prada’s founders Miuccia Prada and Patrizio Bertelli, who are co-CEOs.

    CEO Patrizio Bertelli said: “We have 130 stores that are still closed due to the pandemic and group’s performance in early 2021 is quite good anyway. That give us the confidence to face the upcoming rebound, as soon as the most critical phase of the pandemic will end.”

    The first months of 2021 have seen a slight growth in sales compared with the early part of 2020 and are up from 2019 levels, CFO Alessandra Cozzani said conference call after the group’s results were published on Wednesday.

    CEO Bertelli said Prada had responded quickly to market changes, strengthening the relationship with local customers whose consumption in the second half of the year almost fully offset the absence of tourists.

    “All of these initiatives led to a full recovery in the second half to pre-pandemic profitability levels,” he said in a statement.

    The recovery in retail sales, which account for around 90% of Prada’s total, was driven in the second half by mainland China (+52%), Taiwan (+61%), Korea (+22%) and also by the Americas (+4%). Japan and Europe suffered from the lack of tourists and prolonged lockdowns.

    Full-year revenues fell by 24% to 2.42 billion euros ($2.9 billion) thanks to an improvement in the second half after a 40% slump in the first six months.

    Lockdown measures to stem the spread of coronavirus led to around 18% of the group’s store network being closed on average during the year and the restrictions also hit tourism.

    Earnings before interest and taxes (EBIT) totalled 20 million euros in the full-year, following a 216 million euro EBIT in the second half, broadly in line with the same period of 2019, after a 196 million euros operating loss in the first six months.

    Analysts had expected revenues at 2.44 billion euros and an EBIT of 13.8 million, based on a Refinitiv analyst consensus.

    Analysts did not expected any dividends, but Prada’s board decide

  • Adidas expects strong rebound, takes Reebok hit

    Adidas expects strong rebound, takes Reebok hit

    German sportswear maker Adidas AG predicted a strong rebound in sales in 2021, particularly in China, the rest of Asia, and Latin America, although its profits will be trimmed by costs associated with divesting the Reebok brand.

    The outlook for 2021 is part of a five-year strategy that Adidas is due to present on Wednesday.

    Fourth-quarter sales rose a currency-neutral 1 percent to €5.55 billion ($6.59 billion), while operating profit slipped slightly to €225 million, ahead of the €5.47 billion and €202 million expected by analysts.

    About half of its stores were closed in Europe in the period, but online sales grew 43 percent.

    Now that more than 95 percent of its stores have reopened after lockdowns, Adidas expects sales growth at a mid-to high-teens rate on a currency-neutral basis in 2021, rising by up to 30 percent in greater China, the rest of Asia, and Latin America.

    Rival Puma said last month it expects the financial impact from lockdowns to last well into the second quarter but believes global growth in running should help to support a strong improvement after that.

    As part of its new strategy, Adidas will manage greater China as a separate market from the rest of Asia, and has integrated Europe, Russia and emerging markets into a new Europe, Middle East and Africa (EMEA) region.

    For EMEA, Adidas expects sales growth in the mid-to high-teens, but only a high-single-digit rate in North America.

    Net income from continuing operating is set to rise to between €1.25 billion and €1.45 billion.

    However, Adidas said it expects a hit of around €250 million to the operating profit level and €200 million to net income due to costs to set up Reebok as a stand-alone company, with a third of that in 2022, but none in 2023.

    Adidas said last month it plans to sell or spin-off the underperforming brand, 15 years after it bought the U.S. fitness label to help compete with arch-rival Nike Inc .