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Category: Fashion

Retail News Asia is committed to providing both local and global retailers with the latest Fashion news throughout the Asian market. This on a daily base.

  • Michael Kors launches design-your-own-bag service MK My Way

    Michael Kors launches design-your-own-bag service MK My Way

    US fashion label Michael Kors has unveiled a new customization service for its handbag range.

    The MK My Way service is making its debut on Alibaba’s e-commerce site Tmall today with a digital pop-up experience for Chinese consumers before a global rollout later this year – in place of its original launch plans, which were foiled by the coronavirus outbreak.

    Through the MK My Way pop-up, users can take a personality quiz and receive a message and product recommendation from the brand’s namesake founder and the designer himself. It then offers consumers the option of making hand-painted customizations on the brand’s bags.

    “I love meeting my customers, helping them find the perfect pieces for their lifestyle and talking to them about how they can express their personal style,” said Michael Kors. “The Tmall app allows me to style a wide range of people instantly. It’s like a trunk show for modern times.”

    As part of the MK My Way program, Tmall customers can also paint over their accessories using a co-branded selection of brushes and colours, created by Michael Kors and Californian leather-paint company Angelus Paints.

    The fashion house is also launching its first Super Brand Day, a smaller version of the company’s annual 11.11 mega-sale for a single brand. To warm-up for the event, the brand released a series of Livestream sessions and short videos featuring its customizable handbags carried by trendsetting celebrities. Chinese singer-songwriter Bibi Zhou also produced and performed an original song as part of the campaign.

    “Michael Kors is forging new, innovative ways to engage with Chinese consumers with activations on its Tmall Super Brand Day,” said Alibaba Group VP and GM of Tmall and Taobao marketing and operations Liu Bo.

    “Tmall has been at the forefront of working with brands to build elevated engagements for young Chinese consumers, and we look forward to continuing to partner with Michael Kors as they accelerate their momentum and growth.”

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  • Covid-19 blunts tremendous growth of footwear brand Skechers

    Covid-19 blunts tremendous growth of footwear brand Skechers

    US footwear brand Skechers has reported a modest 2.7-per-cent drop in first-quarter sales brought on by the coronavirus outbreak – and painted a rosy picture of life beyond the coronavirus crisis.

    “We are in unprecedented times, facing difficult decisions daily as we navigate this global pandemic that has negatively impacted every business throughout our industry and most others,” said Skechers CEO  Robert Greenberg.

    “We know from the triple-digit growth we are experiencing so far this month in our e-commerce business and the positive sales trajectory of our recovering business in China, that Skechers’ product continues to resonate with consumers. As our business begins to return to normal, we firmly believe that our retail partners and customers will look to a brand they trust that delivers comfort, innovation, style, and quality at a value.”

    The firm’s net earnings during the period were US$49.1 million, with adjusted net earnings $59.9 million, reflecting the impact of negative foreign currency rates and certain purchase price adjustments related to the company’s Mexico joint venture.

    “We experienced strong momentum throughout 2019, which continued into the first two months of 2020,” said Skechers COO David Weinberg. “However, due to significantly reduced economic activity in China after January, and the spread of the Covid-19 pandemic around the rest of the world in March, sales decreased 2.7 percent in the first quarter. Until then, Skechers’ business was on track for a new first-quarter sales record.”

    CFO John Vandemore said that despite “an extremely strong end” to last year and an equally strong beginning to this one, the company saw a notable slowdown in markets impacted by the Covid-19 pandemic.

    “We have taken decisive action to fortify our business for the duration of this crisis, including drawing down on our senior unsecured credit facility, actively managing operating expenses, inventory levels and production orders, and deferring non-critical capital expenditures. We are confident that the actions we have taken and will continue to take, combined with the global strength of our brand and balance sheet, will position Skechers to successfully navigate this situation, and poise us to return to growth in the future.”

  • Burberry management take pay shave as luxury brand keeps staff on payroll

    Burberry management take pay shave as luxury brand keeps staff on payroll

    Senior management of British luxury fashion house Burberry has taken a voluntary pay cut and the company has opted to retain base pay for all its employees during the Covid-19 crisis, without relying on UK government support for jobs.

    During the past three months, the firm has temporarily closed retail stores and implemented strict social-distancing protocols.

    As reported last month, Burberry has converted its Castleford trench coat factory into a manufacturer of personal protection equipment (PPE) for medical and care workers during the pandemic.

    “While we continue to take mitigating actions to contain our costs and protect our financial position, we are also committed to safeguarding jobs and supporting the relief efforts during this global health emergency,” said Burberry CEO Marco Gobbetti.

    “I would like to thank our teams for their continued determination and resilience as we continue Thomas Burberry’s legacy of protecting others and caring for the community.”

    Savings on executive salaries between now and June will be contributed to support communities in need globally is additional to the financial donations Burberry has made to vaccine research and charities alleviating food poverty – with monies going towards procuring and distributing PPE, helping food banks and supporting healthcare charities around the world.

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  • Acne Studios open Hangzhou boutique

    Acne Studios open Hangzhou boutique

    Swedish luxury-fashion house Acne Studios has opened a new store in Hangzhou following its Nanjing launch.

    The new outlet is setting up a shop in Hangzhou Tower, situated in fast-developing Gongshu as part of a high-end mixed-use complex. With its all-glass facade, the corner store takes its place among other luxury brands poised to do business at the mall and features the architectural design work of Stockholm’s Christian Hallerod.

    The interior is punctuated by grand shelving columns that reach to the ceiling of a store otherwise marked by minimalist elements exemplified by steel shelves and clothing racks. The outlet features fine lighting fixtures by Benoit Lalloz and product display tables by UK designer Max Lamb.

    Acne Studio’s complete product range is available in-store, including its menswear and womenswear collections as well as bags, shoes and accessories.

  • Victoria’s Secret deal may be off as L Brands

    Victoria’s Secret deal may be off as L Brands

    Sycamore Partners’ rescue plan for troubled lingerie retailer L Brands is all but off with the two companies headed to court after the private-equity company unilaterally canceled the bid.

    Sycamore agreed to pay US$525 million for a 55 percent stake in L Brands, the parent of Victoria’s Secret, back in February in a deal most analysts at the time considered a bargain. But the subsequent advent of the coronavirus pandemic which saw most of the company’s stores shuttered, decimating sales, has made L Brands even less desirable, even at that price.

    On Wednesday, Sycamore notified L Brands it was terminating the deal, a move the target company described as “invalid”.

    Sycamore is claiming that by closing stores, laying off staff and withholding rent, L Brands was in breach of the sale agreement under which the retailer was obliged to continue to conduct business ‘as usual’ ahead of settlement.

    In a statement, L Brands said it would “vigorously defend the lawsuit and pursue all legal remedies to enforce its contractual rights, including the right of specific performance”.

    L Brands’ share price took a 20-per-cent hit in the wake of Sycamore’s actions.

  • Chinese Prestige Time Experience store opens in Hong Kong

    Chinese Prestige Time Experience store opens in Hong Kong

    Hong Kong’s first Chinese Prestige Time Experience store has launched in Yue Hwa.

    Opened by Sun International Concepts, the outlet serves as a platform to showcase multiple Chinese watch brands, aiming to promote Chinese watch culture against the backdrop of the coronavirus outbreak.

    As the first platform for Chinese watch brands in the territory, consumers can find long-established brands such as Seagull, Shanghai, Beijing and Peacock – all of which have a 60-year history – alongside modern brands.

    A “Lab Tourbillon” area within the store introduces a variety of designer watches highlighting and introducing advances in Chinese tourbillon craftsmanship to the Hong Kong market.

    The 80,000sqft Yue Hwa store has traded in fine Chinese products within Hong Kong since 1959.

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  • H&M tops fashion transparency

    H&M tops fashion transparency

    Fashion Revolution has crowned H&M the most transparent fashion business in the world in 2019, scoring 73 percent of a possible 250 points in its annual Fashion Transparency Index.

    The index ranks the world’s largest fashion brands according to how much they disclose about their social and environmental policies, practices and impacts across a number of topics, including animal welfare, forced labor, gender equality, living wages, waste and recycling, and more.

    Following H&M was C&A at 70 percent, and Adidas and Reebok at 69 percent each. The average overall score across the 198 brands reviewed landed at 25 percent, 3 percentage points higher than 2019.

    However, an ongoing issue remains that brands tend to disclose more about the policies in a vacuum, and not touch on how these policies are put into action and detailing outcomes, results, and progress.

    And the types of information that is used on brand websites and documents are generally repeated and slightly altered for each document or page, generally with no substantive difference in what is said.

    “Some brands use a large number of filler words and fluffy explanations and details that obscure what information or data is actually relevant and useful for external stakeholders. We’ve even found instances of conflicting facts and statistics,” Fashion Revolution wrote.

    “It can be counterproductive to transparency and accountability. Not everyone has the hours and days it can sometimes take to decipher what brands are actually disclosing and how to use this information in an effective way.”

    After ranking 220 of the biggest fashion brands in the world, Fashion Revolution laid out actions to be taken in the industry over the next 12 months to improve transparency further.

    Firstly, brands should publicly disclose their suppliers beginning with the first tier, but should continue all the way down to the raw material level.

    Secondly, honoring contracts and paying suppliers through the COVID-19 crisis will help keep supply chain workers employed and supported.

    There should also be more information published about brands’ environmental impacts, including the number of carbon emissions, water consumption, pollution and waste created, as well as what is being done to address these concerns.

    And, finally, Fashion Revolution urges brands to answer customer questions on social media or email with practical information, not just with policy information and brand principles. This way, customers can join brands on their sustainability journeys and help to hold them accountable.

    “Transparency is the first step towards a different culture, one where brands become open and accountable, and customers are ready to become vigilant and ask, ‘who made my clothes?’,” said Fashion Revolution co-founder Orsola de Castro.

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  • Cath Kidston to close UK stores and stronger focus on Asia

    Cath Kidston to close UK stores and stronger focus on Asia

    British home-furnishings and apparel retailer Cath Kidston will permanently close all 60 of its stores in the UK, realigning itself as a wholesaler and online brand.

    The locations, currently shuttered due to the coronavirus lockdown, will not reopen once the crisis is over following its parent company Baring Private Equity Asia securing a pre-pack administration deal under which it bought back the brand and online operations.

    The firm’s stores in Asia, including Malaysia, will continue to trade as normal after lockdowns are lifted.

    The closure of physical stores in Britain has put 908 staff out of work, with only 32 positions spared.

    Measures to revive the flailing business were apparently working before the emergence of the coronavirus outbreak.

    “While we are pleased that the future of Cath Kidston has been secured, this is obviously an extremely difficult day as we say goodbye to many colleagues,” said Cath Kidston CEO Melinda Paraie. “Despite our very best efforts, against the backdrop of Covid-19, we were unable to secure a solvent sale of the business which would have allowed us to avoid administration and carry on trading in our current form.

    The brand will live on in the territory as a digital business.

    “Going forward we will continue to help the company grow through its e-commerce platform and international wholesale and franchise businesses,” said a spokesperson for Baring Private Equity Asia, adding that the firm’s management had established “a viable future for the business in the UK.”

  • Zilingo trims staff, refocuses on Asia

    Zilingo trims staff, refocuses on Asia

    Online fashion platform Zilingo has axed about 45 staff, including 30 in its Singapore head office, as it refocuses on Asia in the wake of the coronavirus pandemic.

    The layoffs represent about 5 percent of the company’s global workforce of 900.

    “Zilingo has had to make several tough decisions in line with this approach and last week we announced internally company-wide restructuring measures that reflect this strategic direction,” a spokesperson for the company told DealStreetAsia.

    A year ago, Zilingo raised US$226 million in Series D funding saying at the time it wanted to invest in long-term value building across the supply chain, building new and deeper relationships with manufacturing partners in Vietnam, Cambodia, Sri Lanka and China, and expanding into new markets such as the Philippines, Indonesia, Australia and the US.

    Another $100 million was raised last September to fund growth in Europe, Australia and the Middle East.

    However, with fewer people buying fashion during the Covid-19 pandemic, the five-year-old company has decided to rein in its global reach, to concentrate on Asia and developing markets, shelving operations in the US and Europe.

    “As we continue with the internal reorganization and move forward, we seek the support and cooperation of our merchant partners, sellers and the Zilingo family at large in our combined efforts,” the spokesperson said.

    Zilingo has previously revealed its platform links 60,000 retail partners and 6000 factories spanning 17 countries.

  • Vestiaire Collective raises US$64 million in fresh funds

    Vestiaire Collective raises US$64 million in fresh funds

    Vestiaire Collective has raised US$64.1 million in its new funding, with new investors Korelya Capital backed by Korean technology giant Naver, operator of Line.

    Managed by Fidelity International, Vaultier7 and Cuir Invest, the funds will be used to accelerate Vestiaire Collective’s international business beyond the countries where the company’s community is already well established, the company said in a statement.

    With Korelya Capital as a new investor, which is backed by Korean conglomerate Naver, the company hopes to expand its network to Japan and Korea next year.

    “I am personally convinced that this unprecedented period of disruption will not only challenge where we shop but how we shop,” said Max Bittner, CEO of Vestiaire Collective. “Vestiaire Collective was built during the 2008 crisis, and proves today how it can help people in their daily life to make the most out of their belongings, but also to access fashion in a sustainable and conscious way.”

    The round will also be used to expand its direct-shipping service launch in the US this summer followed by Asia later this year, after its successful launch in Europe last year with the growing rate of more than 60 percent month on month.

    “As we all take a step back and contemplate the way we live, we believe consumption patterns are on the verge of a deep structural evolution, and C2C platforms have a strong role to play here,” said Paul Degueuse, general partner of Korelya Capital.

    During the Covid-19 pandemic, Vestiaire Collective launched coronavirus charity sales in the US, European and Asian countries, including Hong Kong and Singapore recently.

    Founded in Paris in 2009, Vestiaire Collective is an online platform offering pre-owned luxury fashion items with the ambition to change the fashion industry to a smarter and more circular system. Vestiaire Collective now has more than 9 million members from more than 90 countries across Europe, the US, Asia and Australia, with 60,000 new items submitted every week.

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  • Zalora pursues sustainable fashion ecosystem in Southeast Asia

    Zalora pursues sustainable fashion ecosystem in Southeast Asia

    Zalora is positioning itself as the first online fashion retailer in Southeast Asia to create a sustainable fashion ecosystem, achieving positive change in environmental impact, and inspiring customers to shop in a more conscious way.

    The firm’s new strategy aims to make commitments to customers, brands, vendors, and employees during 2022–2025 period.

    “As a leading fashion e-commerce player that serves millions of customers in the region, we recognize the impact we can have in creating a better future through a sustainable fashion ecosystem in Southeast Asia,” said Zalora CEO Gunjan Soni.

    “We want more consumers today to buy sustainable products and participate in the circular economy. We want to inspire our customers to contribute to these sustainable practices by making it easy for them and educating on benefits.”

    The firm is committing to reducing the impact of its packaging, warehouses, and transportation along its entire supply chain, ensuring that 100 percent of delivery and internal packaging incorporates sustainable materials within two years. It also plans to achieve complete carbon offset from its operations and transport by the end of 2025.

    Zalora is also aiming to help customers shift towards conscious shopping and extending the life cycle of fashion items, aiming for 50 percent of its products to meet its sustainability criteria, with 30 percent of active consumers participating in circular fashion initiatives within the period.

    Another feature of Zalora’s planned sustainable fashion ecosystem is a focus on enhancing supply chain ethical standards and transparency, including the launch of a private label capsule made from sustainable materials. Forty percent of its products will use sustainable materials by 2025.

    It is also asking Zalora employees to contribute to 20,000 community volunteering hours per year by the end of 2025.

    In December last year, the firm partnered with luxury marketplace reseller Style Tribute in Malaysia and Singapore, allowing consumers to purchase pre-loved fashion luxury items on Zalora’s website and mobile app.

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  • Resilient LVMH caps sales decline during coronavirus

    Resilient LVMH caps sales decline during coronavirus

    LVMH has reported a sales decline of 15 percent for the first quarter of this year, a staggering achievement given its most lucrative market, China, was shut down for most of the period.

    “Thanks to everyone’s commitment and the strength of its brands, the LVMH group maintains good resilience in the face of this worldwide challenge,” said Bernard Arnault, chairman and CEO.

    Nevertheless, the company has trimmed its previously announced dividend and Arnault and other executives will work for free during April and May as the company works through the next stage of the coronavirus crisis.

    “For several weeks, our teams have once again demonstrated that excellence, creativity, and responsiveness will allow us not only to overcome this crisis but, above all, to emerge even stronger when it fades,” he said.

    Group-wide revenue reached €10.6 billion for the quarter, with all divisions in the group recording sales declines.

    Worst hit were the watches and jewelry business and selective retailing (including Sephora and DFS) which both fell by 26 percent, largely linked to enforced store closures in Greater China.

    Bvlgari, Tag Heuer and Hublot were particularly hit by store closures in Asia and while all Sephora beauty stores were closed in China for a major part of the quarter, those located in Europe and the US have been closed since mid-March. However, online sales rose “significantly”  over the quarter and shopping in stores has gradually picked up in China since the end of the quarter, the company said.

    DFS experienced “a significant decline” in activity in most destinations as a result of the suspension of international travel.

    A positive currency effect and a policy of firm increases in prices partially offset a decline in volume sold, resulting in a 14-per-cent year-on-year decline in sales for the liquor business group. “The US market demonstrated its good resilience over the period, supported by advance orders from distributors,” the company said. Sales of Hennessy cognac slowed in China due to lower demand linked to the coronavirus pandemic, and the timing of Lunar New Year.

    Sales by LVMH’s perfumes & cosmetics division fell by 19 percent as retailers reduced their inventory levels, however, online sales grew rapidly.

    And the fashion & leather goods business group recorded a 10-per-cent decline in sales, again impacted by store closures, but mitigated in part by strong online growth.

    “LVMH has proven its ability to be resilient in an economic environment disrupted by a serious health crisis that has led to the closure of stores and manufacturing sites in most countries in recent weeks, as well as the suspension of international travel,” the company said in a statement.

    “In a very turbulent context, the group will maintain a strategy focused on preserving the value of its brands, based on the exceptional quality of its products and the responsiveness of its teams. In the current situation, the group will further strengthen its policy of controlling costs and being selective in its investments. The closures of the group’s manufacturing sites and stores in most of the world’s countries in the first half will have an impact on the annual revenue and results. This impact cannot be precisely evaluated at this stage without knowing the timetable for a return to normal business in the different areas where the group operates.

    “We can only hope that the recovery happens gradually from May or June after a second-quarter which will still be very affected by the crisis, in particular in Europe and the US.”

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  • Giordano sales drop 34.6 per cent in March quarter

    Giordano sales drop 34.6 per cent in March quarter

    Fashion group Giordano says its March quarter sales fell by 34.6 percent as the outbreak of the coronavirus pandemic saw stores shuttered in key markets.

    Comparable same-store sales growth was a negative 30.2 percent.

    “Since the outbreak of the Covid-19 pandemic, many countries have implemented public health measures and ‘lockdowns’, often resulting in the halting of social and commercial activities,” the company said in a stock-exchange filing.

    “Moreover, the outcome of the Sino-US trade conflict remains unclear. All of these factors have adversely and significantly affected consumer sentiment and also foot traffic at our shops in various markets.”

    Year on year, Girodano’s global net store count has reduced by 128, most of the closures in Mainland China, where the network has shrunk from 623 to 572. In Hong Kong and Macau the retailer has shuttered a net seven stores.

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  • Debenhams begins liquidation of Hong Kong business

    Debenhams begins liquidation of Hong Kong business

    British multinational department store Debenhams has begun liquidation of its operations in Hong Kong, along with its operations in Ireland and Bangladesh.

    The move comes a week following filing for administration in the UK, according to a report in Retail Gazette.

    All of Debenhams’ Hong Kong staff will have their positions terminated as the liquidation process commences in Asia. In Ireland, liquidators have been appointed.

    The firm has continued operations in Denmark under the Magasin brand, where it currently trades online despite temporary closures of its physical stores. It is intending to reopen as many of its 142 locations in England as possible once business restrictions are lifted.

    The majority of Debenhams’ furloughed staff in Britain are receiving government support during the coronavirus pandemic. The firm’s administrators have said that if a court finds Debenhams responsible for staff wage liabilities, many positions may be made redundant.

  • LVMH caps sales decline with 15 percent

    LVMH caps sales decline with 15 percent

    LVMH has reported a sales decline of 15 percent for the first quarter of this year, a staggering achievement given its most lucrative market, China, was shut down for most of the period.

    “Thanks to everyone’s commitment and the strength of its brands, the LVMH group maintains good resilience in the face of this worldwide challenge,” said Bernard Arnault, chairman and CEO.

    Nevertheless, the company has trimmed its previously announced dividend and Arnault and other executives will work for free during April and May as the company works through the next stage of the coronavirus crisis.

    “For several weeks, our teams have once again demonstrated that excellence, creativity and responsiveness will allow us not only to overcome this crisis but, above all, to emerge even stronger when it fades,” he said.

    Group-wide revenue reached €10.6 billion for the quarter, with all divisions in the group recording sales declines.

    Worst hit were the watches and jewelry business and selective retailing (including Sephora and DFS) which both fell by 26 percent, largely linked to enforced store closures in Greater China.

    Bvlgari, Tag Heuer and Hublot were particularly hit by store closures in Asia and while all Sephora beauty stores were closed in China for a major part of the quarter, those located in Europe and the US have been closed since mid-March. However, online sales rose “significantly”  over the quarter and shopping in stores has gradually picked up in China since the end of the quarter, the company said.

    DFS experienced “a significant decline” inactivity in most destinations as a result of the suspension of international travel.

    A positive currency effect and a policy of firm increases in prices partially offset a decline in volume sold, resulting in a 14-per-cent year-on-year decline in sales for the liquor business group. “The US market demonstrated its good resilience over the period, supported by advance orders from distributors,” the company said. Sales of Hennessy cognac slowed in China due to lower demand linked to the coronavirus pandemic, and the timing of Lunar New Year.

    Sales by LVMH’s perfumes & cosmetics division fell by 19 percent as retailers reduced their inventory levels, however, online sales grew rapidly.

    And the fashion & leather goods business group recorded a 10-per-cent decline in sales, again impacted by store closures, but mitigated in part by strong online growth.

    “LVMH has proven its ability to be resilient in an economic environment disrupted by a serious health crisis that has led to the closure of stores and manufacturing sites in most countries in recent weeks, as well as the suspension of international travel,” the company said in a statement.

    “In a very turbulent context, the group will maintain a strategy focused on preserving the value of its brands, based on the exceptional quality of its products and the responsiveness of its teams. In the current situation, the group will further strengthen its policy of controlling costs and being selective in its investments. The closures of the group’s manufacturing sites and stores in most of the world’s countries in the first half will have an impact on the annual revenue and results. This impact cannot be precisely evaluated at this stage without knowing the timetable for a return to normal business in the different areas where the group operates.

    “We can only hope that the recovery happens gradually from May or June after a second-quarter which will still be very affected by the crisis, in particular in Europe and the US.”

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