Blog

  • Hermes sales rebound

    Hermes sales rebound

    Hermes sales rebounded globally in the first quarter of this year, exceeding analysts expectations.

    But the best news seems to be from Hong Kong where the French luxury goods label reported sales had “stabilised” after last year’s serious decline.  Sales fell in Macau, Hermes said, without providing further details.

    In the broader picture, the company saw respite in its home market after shoppers began to return to stores following the nervousness fuelled by the terror attacks late last year.

    Hermes sales for the quarter rose 6.2 per cent on a constant currency basis, to reach 1.19 billion euros (US$1.35 billion)

    CEO Axel Dumas said during an earnings call that the fallout from the terror attacks – in both Brussels and Paris – was still hurting luxury goods retailers. Footfall had returned to normal in Milan and London, but remained down in Paris, causing a 9.2 per cent drop in sales of ties and silk scarves in the quarter.

    Leather goods was the only category to show a rise in sales – a healthy 15 per cent.

    “There’s a lot of volatility,” Dumas said. “We have to adapt to circumstance.”

  • Amazon Q1 profits surge

    Amazon Q1 profits surge

    E-commerce giant Amazon.com posted its fourth straight profitable quarter, boosted by a 28 per cent sales increase and a surging growth in its Amazon Web Services division.

    Amazon reported a net income of $513 million for the first quarter, or $1.07 per share, compared with the net loss of $57 million, or $0.12 per diluted share, in first quarter 2015.

    The Seattle online retailer saw a 28 per cent increase in its net sales for the first quarter compared with the $22.7 billion in the previous corresponding period. Excluding the $210 million unfavourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 29 per cent compared to first quarter 2015.

    “Amazon devices are the top selling products on Amazon, and customers purchased more than twice as many Fire tablets than first quarter last year,” said Jeff Bezos, founder and CEO of Amazon.com.

    “Earlier this week, the $39 Fire TV Stick became the first product ever — from any manufacturer — to pass 100,000 customer reviews, including over 62,000 five star reviews, also more than any other product ever sold on Amazon. Echo too is off to an incredible start, and we can’t yet manage to keep it in stock despite all efforts,” Bezos said.

    Bezos added they are building premium products at non-premium prices, and they are thrilled many customers are responding to their approach.

    Amazon’s retail business saw a 31 per cent increase for the quarter to $20.5 billion, up from the $15.6 billion from the previous corresponding period.

    Amazon Web Services, with customers that include Netflix, Airbnb, Yelp and Expedia, saw a 63 per cent increase to $2.6 billion, up from the $1.6 billion from the same period the previous year.

    For the second quarter of 2016, the company expects its net sales to be between $28.0 billion and $30.5 billion, or to grow between 21 per cent and 32 per cent compared with the previous corresponding period. Operating income is expected to be between $375 million and $975 million, compared with the previous period’s $464 million.

  • BritishIndia store closes with a flourish

    BritishIndia store closes with a flourish

    Thousands of BritishIndia Malaysia customers grabbed a bargain as they farewelled the fashion store in Suria KLCC over the past week.

    BritishIndia farewell sale

    The fashion brand’s farewell sale offered 50 per cent off all items, ending its presence in the mall since 1998.

    BritishIndia farewell

    Built from scratch in Malaysia more than 20 years ago, BritishIndia now has more than 40 stores, in shopping centres in Singapore, Thailand and the Philippines.

    There is still a presence in Malaysia, with stores in 1Utama Petaling Jaya, Bangsar Shopping Centre, Mid Valley Megamall, Pavilion Kuala Lumpur, Publika Kuala Lumpur, SACC Mall in Shah Alam and Sunway Pyramid.

    Meanwhile, the brand says it is seeking further expansion overseas.

    The brand has been embroiled in a long drawn-out court case with Suria KLCC management over it lease terms.

  • SM City San Jose opening brings SM malls to 57

    SM City San Jose opening brings SM malls to 57

    SM Prime is opening its 57th mall in the Philippines.

    SM City San Jose Del Monte will open today. It is the third in the province of Bulacan after SM City Baliwag and SM City Marilao.

    The new mall will add 101,000 sqm in gross floor area to the total floorplate of SM Prime, SM Prime, the country’s largest integrated property company. Total retail space will add up to 7.4 million sqm, the largest footprint in the country.

    “We continue to expand in the provincial areas as we remain optimistic about their huge potential for growth. The opening of SM City San Jose Del Monte in Bulacan is a testament to this strategic direction as we remain steadfast in developing premier destinations around the country,” SM Prime President Hans Sy said.

    San Jose Del Monte is a second-tier city with predominantly middle income households, of which, 62 per cent have family members that are OFWs. The city contributes to one of the fastest growing residential and commercial hubs in the Northern Gateway of Metro Manila, covering 59 barangays and a population of almost 500,000 based on the 2010 census.

    SM City San Jose Del Monte opens with 70 per cent of space lease-awarded occupying its three floors with retail stores, dining outlets, recreation and entertainment facilities, and service centers topped with commendable architectural design making it the newest vibrant urban hub in the north of Metro Manila.

    The prime spaces are allocated to local and international retail brands, food outlets and anchor tenants such as The SM Store, SM Supermarket, SM Appliance Center, Ace Hardware, BDO, Surplus, Watsons and SM Cinema with four state-of-the-art cinemas.

    By the end of 2016, SM Prime is targeting to have 61 malls in the Philippines and six in China with an estimated combined GFA of 8.6 million sqm.

  • Raoul Singapore closes last store

    Raoul Singapore closes last store

    The last Raoul Singapore boutique has closed its doors as creator FJ Benjamin decides to focus on wholesaling.

    Raoul, positioned as an affordable luxury brand, began life as a menswear brand back in 2002 before expanding into women’s fashion – because women shoppers were buying smaller sized men’s shirts to wear themselves.

    At one point, it had boutiques as far afield as Melbourne and London and became a beacon for the Singapore fashion industry in a market dominated by European fashion labels.

    Raoul closed its Paragon store on Orchard Rd in February, unwilling to pay the rents demanded.

    The founding premise

    When your business model is built around retailing products designed by others – as FJ Benjamin has for more than 50 years – your fortunes rise and fall with those brands and the head office decisions in other countries. That was a major part of the motivation to launch Raoul, which met with success very quickly.

    Over its first 50 years, FJ Benjamin held Singapore or regional rights to brands as diverse as Gucci, Gap, Manchester United, La Senza, Fendi, Goyard, Celine, Givenchy, Banana Republic, La Perla, Naomi Campbell, Valentino, Nautica, Victorinox and Rado. But after the financial crisis, it pulled back from high end labels to focus more on lifestyle brands.

    “In business you have to be nimble. We thought ‘OK, lifestyle has done well for us. Let’s continue’,” Douglas Benjamin, the company’s COO, told a presentation attended by Inside Retail Asia back in 2010.

    The Raoul brand was conceived on a trip by Benjamin to London.

    “The company had always been franchising and representing brands from other companies. My father was a strong believer we needed to have our own brand. In 2003 we bought some shirts from some expensive stores and after three to four months I was wearing shirt and the cuffs were fraying, buttons coming off.”

    What if they could produce shirts that looked as high in quality, but actually lasted?

    “We decided to develop a men’s shirt label. We’d get the best quality material and make it in Asia and if you give a man a choice, he will buy.”

    So Raoul – the French name for Ralph – was launched through stores in Singapore, Malaysia and Indonesia. The first store combining both ranges opened its doors in 2007 and a flagship in the classic Paragon shopping centre on Orchard Rd in 2009. Later, stores would follow in Mainland China and the Middle East.

    Raoul is by no means finished despite the closure of the Singapore stores. A concession continues to trade at Robinsons department store on Orchard Rd and the company will now concentrate on wholesaling with a particular focus on the US, UK and Middle East. Among the UK stockists of Raoul are Harrods, Harvey Nichols and Liberty of London. Saks and Neiman Marcus in the US and KaDeWe in Germany also stock Raoul, further underlining the brand’s fashion cachet.

    Despite its high profile globally, Singapore seemingly cannot sustain a flagship store. As a saddened fashion designer Sabrina Goh of fellow home-grown brand Elohim By Sabrina Goh told the Straits Times this week: “Raoul has always been seen as a sound brand with years of industry experience, and financial and production clout. It really just illustrates how tough the current Singapore retail market is.”

  • Multi-brand Korean cosmetic shops thrive

    Multi-brand Korean cosmetic shops thrive

    Korean cosmetic shops that sell various brands under one roof have steadily expanded their presence across the country, giving sophisticated customers more options, according to industry sources.

    AmorePacific, South Korea’s No. 1 cosmetic company, operates about 1350 multi-brand stores, called Aritaum nationwide, which offer a wide selection of its products, including such mass brands as Laneige and IOPE. The company also operates single brand shops such as Innisfree and Etude House in the lower-end and Sulhwasoo and Hera in the higher-end segment as part of a two-track strategy.

    Also showcasing multi-brands are beauty and health care stores, such as CJ’s Olive Young and its smaller rival Watsons, which have expanded and enjoyed growing popularity among urban youngsters.

    To catch up with the latest trend, local cosmetic companies have launched multi-brand cosmetic shops in major retail strips.

    LG Household & Health Care Ltd., the nation’s second-largest cosmetic maker, launched a multi-brand shop called Nature Collection, in February, operating 11 stores in major retail strips in Seoul. The store features brands that focus on a natural look, including The Face Shop and Beyond.

    “Nature Collection is promoted through word-of-mouth, with various products and promotional events,” a company spokesman told Yonhap news service.

    Able C&C, which created the boom for the single brand shop with Missha, has recently opened a multi-brand shop called Beauty Net on a popular street in Seoul to display a wide range of select products.

    Beauty Net Korea store

    Industry officials say multi-brand shops are effective in improving customer convenience and brand management and promotion, providing easier access to new brands.

    “Expansion of these multi-brands provide the other brands with more chances to be introduced to customers,” said an Able C&C spokesman.

  • Apple India stores a step closer

    Apple India stores a step closer

    A government panel has recommended the removal of a trading obstacle that would free Apple India to open single-brand retail stores across the country, one of its few growth markets.

    A three-member panel has recommended the waiving of the mandatory 30 per cent local sourcing condition for Apple, which earlier this year asked the government to consider the exemption. The reason for the waiver is said to be the cutting-edge technology the company would bring to India, reports The Tech Portal.

    With the committee’s finding, Apple is just a step away from a final decision. The Department of Industrial Policy and Promotion (DIPP) will send the proposal for final approval to the Finance Ministry.

    Apple has retail stores across the world, including China and Japan. In India, it sells its products through exclusive reselling arrangements with chains such as Imagine and iStore.

    In November last year, India scrapped the condition of 30 per cent local sourcing for overseas companies seeking to invest more than 51 per cent equity in the single-brand retail segment, if certain other conditions are met.

    Chinese tech retailer Xiaomi has also applied to open single-brand stores in India while seeking the sourcing exemption for a range of products including Wi-Fi amplifiers, Bluetooth speakers and power banks.

  • New lifeline for sagging Rocket Internet fashion sites

    New lifeline for sagging Rocket Internet fashion sites

    Investors have injected US$339 million lifeline into GFG, which owns the struggling Rocket Internet fashion websites.

    Rocket Internet and others have sunk the euro 300 million into its Global Fashion Group, raising GFG’s valuation to €1 billion – which is about a third of what it was worth hardly a year ago, when it raised €150 million.

    Launched in Luxembourg in 2014, GFG is a holding company formed from a merger of five eCommerce fashion companies – India’s Jabong, Latin America’s Dafiti, Russia’s Lamoda, Middle East firm Namshi, and Zalora (Southeast Asia and Australia).

    GFG acting CEO Romain Voog says the financing will provide the group with the capital it needs to continue with its strategy of “building out its leading position” in the online fashion sector in emerging markets.

    Rocket claims GFG’s performance has improved in the past year, easing its losses and raising its adjusted EBITDA margin. But it has been struggling to gain market share, and pulled out of Thailand and Vietnam, one of the fastest-growing eCommerce and internet markets in Asia.

    And GFG’s Jabong business in India, considered the next big market after China, has reportedly been up for sale for months with its valuation eroded by a tenth in just a year. Meanwhile, rival eCommerce companies like Flipkart and Snapdeal have soared in value.

    Voog is optimistic the reduced losses combined with this funding round will help accelerate the GFG’s path to profitability while it expands. A third of the €300 million raised came from Rocket. Swedish investor Kinnevik was also involved, along with existing shareholders.

  • Fossil Asia all set to enter wearable segment

    Fossil Asia all set to enter wearable segment

    As a part of its exercise to strengthen its foothold in the Indian market, watch and accessories brand Fossil is looking not just at penetrating with mono brand retail stores but also introducing its wearable lines which marries technology and fashion.

    The company said it is also going from strength to strength in increasing its presence in the third party e-commerce sites even as it considers setting up its own e-commerce platform following the government’s recent change in rule regarding FDI in e-commerce.

    “Retail and especially, e-commerce, is growing in India. It is only a matter of time when a large chunk of purchases will happen through it. We are piloting our platform but it will be non-transactional for the time being. We may look at transaction from it after regulatory approvals sometime later this year,” Jack Quinlan, Senior V-P, Asia Pacific, Fossil Asia Pacific.

    The company said it is also looking to scale up its mono brand retail stores.

    Aims for 25 stores

    “Our own stores here have struck growth for us. Indian market is growing in double digits. In India, we have 14 mono brand stores. We are looking to take that to 25 in the next few years,” he added.

    Fossil India is the 100 per cent subsidiary of the global brand. It had previously sold through multi-brand retailers. However, following approval of its single brand retail licence, the company had set up its mono brand stores. It has so far committed an investment of $4.5 million (₹30 crore) in the Indian market for retail, Quinlan said. To attract consumers into the affordable luxury brand, the company is will be introducing its wearable line by August-September and it will be priced around $275, he added.

    According to data, smart watches and smart brands is a growing market. Gartner predicts that by the end of 2016, smart watches will constitute about 40 per cent of wearable devices for the wrist. It is estimated that seven out of the top ten smart phone vendors have either entered or are planning to enter the wearable space. Several watch makers have also joined the fray.

    In India, Fossil sells its watches, leather goods and jewellery. “We are also looking at multi-brand retail to bring in more products,” he added.

    Asked if the company is looking at sourcing or manufacturing in India, Quinlan said the company has a sourcing for its leather goods, and factory in Himachal Pradesh for its watches.

     

  • Why Singapore is deemed as the failure market for Decathlon

    Why Singapore is deemed as the failure market for Decathlon

    French sporting house Decathlon is a relatively young player in the local retail scene, opening up its store earlier this year. The brand entered the retail scene at a point many established players were pulling out.

    The launch came after it had already established an e-commerce practice for nearly two and a half years to “painstakingly” understand and collect consumer data from the market. It is safe to say when Decathlon started up in Southeast Asia, the public did not really know it was a sports retailer.

    This, admits Clarence Chew (pictured) , head of marketing and communications at Decathlon, was one of the biggest problems.

    “E-commerce is not easy and was a struggle when you are selling products that people don’t actually need. People didn’t care about us. If they saw online that the product was too cheap, they would think it isn’t of quality; too expensive, and they wouldn’t want to spend. So our problem was how do we tell customers we are here?” he said, at a recent event hosted by OgilvyOne called “Delivering consumer value in an era of Disruption”.

    The brand decided to be part of the discovery process using a multi-channel approach. It was wherever consumers were looking and ensured it was part of the consumer journey.

    What also helped Chew in this process was the senior management was able to see e-commerce as part of the customer journey and not as a separate entity from the retail function. As such the goal was more synergistic.

    He added, “It wasn’t a push but rather a pull factor for us that drew customers.”

    Another big sigh of relief for Chew was when he was able to successfully convince the senior management to make Singapore a “failure market” for the brand and  use it as a test bed for all things new and shiny in the digital landscape. After all, failure is vital to any great discovery and innovation. He said:

    “In Singapore, I can do whatever I want with any budget I want. And I will not be blamed if it fails.”

    Chew explained the country was chosen for its dense and diverse population. The city-state structure worked to the brands’ benefit and there was a healthy mix of old and young and locals and expatriates. This helped the brand see the contrast between old school marketing tactics and new shiny toys and figure out what really works.

    “Singapore  is a nice drawing board. Chances are if it works here, all the other countries like Malaysia and Indonesia will all eventually embrace it,” he added. But for every other country, clarified Chew, he would still need to meet the regular KPIs and carry out customised marketing.

    Bringing change internally

    Another challenge Chew faces, is getting people on board to try new ideas. He said:

    “Even if you have a CEO willing to adopt stuff, you have many other people in the organisation who don’t know and don’t care or won’t agree.”

    Agreeing with him was panelist Tony Menezes, VP of Cognitive Solutions at IBM, who also added that the country’s safe nature helped companies come up with creative solutions and ideas without as high a fear of intellectual theft. Ultimately even if technology is available, companies need to be willing to embrace it.

    “Companies need to recognise the disruptive idea will come from day to day interaction with customers and employees. Figure out how to tap into that source,” Menez said.

    For IBM, even today, the company is holding a new contest cognitive bill where employees came up with ideas to make the company a cognitive company across industries. IBM has 50 ideas from it which will come down to 10 to potentially explore.

    Ultimately if the culture of innovation has to be embraced across all levels from top to front-line in a company. When asked by the audience if building relationship is tough in a disruptive world, he said:

    “Brands that have an affiliation with consumers and communicate clearly how they plan to protect personal data, will earn the trust of consumers.”

    He explained that the commonalities amongst the many brand hacks and online breaches in recent years show that leading companies address the problems head on and share a direct strategy  with consumers rather than sit idle.

    “If consumers know that when they opt in they will get something in return from the brand and the brand is clear about it, they will get more trust.”

    And sometimes the best way to do this is to ask. As Todd Kurie, VP of marketing at RedMart, who was also on the panel said:

    “Even relatively old-school tactics like surveys can go a long way to show you are listening”

    He added the brand is a huge believer in simply asking consumers what they want.

  • Korea’s Lotte opens cinema in Hong Kong

    Korea’s Lotte opens cinema in Hong Kong

    Tucked away in a nondescript corner of Shau Kei Wan, on the eastern tip of Hong Kong Island, is the city’s newest movie house, L Cinema.

    The first theatre in Hong Kong from Lotte Cinema – South Korea’s second-largest movie-theatre chain – the complex, which opened in February, comprises two auditoria of 87 seats each.

    A visit to the second-floor theatre is like taking a trip back in time: there’s a simple counter serving snacks and a few posters on the walls but that’s about it. And while it looks out of place among the key cutters, launderettes and domestic-helper agencies around Mong Lung Street, an area not big on entertainment or retail, it’s a welcome addition, according to movie-goers who visited one wet Monday night.

    “It’s a really convenient location for people living in the Eastern District,” says 14-year-old Shau Kei Wan resident Felix Ho. “I’ll be coming a lot.”

    “I just watched Zootopia and it was a really comfortable experience. Plus the ticket prices are really good!” says Janet Ho, who is accompanied by two school friends. “The staff are friendly and the sound was fine, though it wasn’t as good as some cinemas, but that doesn’t bother me.”

    Daily screening schedules can be found on the L Cinema Shau Kei Wan Facebook page.

  • City’super was born in Hong Kong after Japanese department store Seibu exited the market

    City’super was born in Hong Kong after Japanese department store Seibu exited the market

    Many customers buy imported food and wine at Hong Kong’s City’super but few would know the group of founders were closely involved with a chain of Japanese department stores.

    In the 1980s high-end retail fashion and food markets were dominated by those Japanese operators. In 1990 Seibu department stores under a group management led by Masashi Ishikawa established its flagship store in the Admiralty district.

    city super

    Japan’s economic downturn during that decade, however, led Seibu to leave Hong Kong and its other overseas markets. Ishikawa, though, had fallen in love with Hong Kong and did not want to leave.

    He and other Japanese management, along with 14 local senior staff decided to create start-ups of their own in the city.

    They considered too many other stores were selling luxury-brand clothes and too few were selling good food and wine. So the City’super concept was born.

    But the 20-member founding group still needed a financial backer before their high-end mega stores could be launched.

    It did not take long to find a supporter.

    They convinced Masaaki Ogino, a Hong Kong-based Japanese businessman with textile manufacturer Fenix Group, about the future of their project. Ogino and his partners took just three days to back it.

    The rest is history.

    Twenty years on and City’super has become a household name for lifestyle stores selling top-quality meats, fruits and vegetables along with wine, beverages and other lifestyle products. It has brought in new concepts to shopping; it was the first adopt a bank queueing system, in which all customers form a line to be served by the next available cashier, and allows them to pay faster.

    But such innovation and always trying something new may not always prove successful.

    In 1998 Hong Kong Telecom introduced interactive TV for shopping on demand and City’super joined the project as a service provider to sell its products on demand through TV. That proved to be too much ahead of its time because internet speeds were slower 20 years ago and the it was not popular. The company exited the venture some years later and suffered a significant loss.

    “The Lesson learned was that we might think twice jumping into new technology. But we don’t regret doing it. It was just a bit costly lesson,” City’super president Thomas Woo said.

    The company’s current hot product, Cha Cha soft cream, had a bumpy start.

    It formed a joint venture with Japanese partners to launch a traditional Japanese confectionery counter selling authentic Japanese sweets and ice-cream but it drew few customers. It lost money for a few years and the company once wanted to close it.

    But a staff member suggested it should be given a six-month period for a final chance. The team eventually developed the popular Japanese green tea soft cream and launched it as a brand — Cha Cha — which now always draws a long queue of customers.

    The company’s first batch of shops opened in Times Square in 1996. It now has four shops in Hong Kong, three in Shanghai and six in Taiwan.

    Besides City’super, it has Log-On brand which sell stationery, travel accessories and beauty products. There are now 12 such outlets in Hong Kong, three in Shanghai and six in Taiwan.

    It also operates the CookedDeli dining stores which offer international cuisine in Hong Kong and Shanghai.

  • Maui Jim to introduce new glass styles in Singapore

    Maui Jim to introduce new glass styles in Singapore

    Premium sunglass company Maui Jim will introduce four new super-thin glass styles to its collection at next month’s TFWA Asia Pacific exhibition.

    The company said the new glasses were 20% and lighter than conventional glass lenses, comfortable to wear, boasted excellent scratch and solvent resistance and offered the best optics available.

    Maui Jim Ocean is available in various colour combinations: Tortoise with Peacock nylon frame and HCL Bronze lenses; Tortoise with Raspberry and Maui Rose lenses and Grey Tortoise Stripe and Neutral Grey lenses. The lenses in this style only are MauiGradient, lighter at the bottom than top. This is to protect the eyes and make reading easier.

    Popoki, is a similar shape but slightly smaller and constructed in Satin Monel metal. The vintage silhouette is complemented by acetate temples in burgundy, green and blue mottled colour combinations. The frame base colours are satin dark gunmetal with Maui Rose lenses; satin chocolate with HCL bronze and satin black with neutral grey.

    With a trendy oversised frame to suit men and women with slightly larger faces, Rising Sun is crafted in lightweight nylon for comfort. Three colourways are offered: Burgundy stripe with Maui rose lenses; matte tortoise with HCL bronze; classic matte black with neutral grey.

    The more masculine Snapback is a classic wayfarer sunglass style, constructed in light nylon with the same high clarity ST lenses. Available in matte black, matte tortoise, grey tortoise and green stripe with complementary lens colours, this style is designed to suit every face shape, indicated Maui Jim.

    The company said: “All Maui Jim sunglasses have PolarisedPlus2 lenses which wipe out 99% of glare, manage 95% of HEV and block 99% of harmful UV while boosting colours to unmatched levels. They have been recommended by The Skin Cancer Foundation as an effective UV filter for the eyes and surrounding skin.”

    Maui Jim will be located K9 Basement 2 at TFWA Asia Pacific.

  • Hermes retail sales rose 8pc in Q1

    Hermes retail sales rose 8pc in Q1

    French leather goods maker Hermès Group’s revenue was up 6 percent in the first quarter of 2016, despite a challenging luxury landscape.

    Consolidated revenues for the house were 1.19 billion euro, or about $1.35 billion at current exchange rates. Even with the negative effects of the Paris terrorist attacks, Hermès’ European sales grew 9 percent compared to the same period the previous year, with strong performances of its brand-owned boutiques.

    Trying times
    Japan sales were up 13 percent compared to last year, which Hermès attributes to selective distribution. The rest of Asia saw sales rise 4 percent, with growth in China offset by challenges in Hong Kong and Macao.

    Hermès’ leather goods and saddlery business grew 15 percent in the quarter. The group has recently established new facilities for leather production, with the fifteenth opened on April 1 in Héricourt.

    All other areas of Hermès’ business saw a decline.

    With a slowdown in the United States, Asia and France, ready-to-wear and accessories sales were down 2 percent. Silk and textile sales were down 9 percent, attributed to the recent events in Europe.

    Perfume sales dipped 4 percent, while watches declined 3 percent.

    Its other business ventures, including silvermaker Puiforcat and bespoke shoemaker John Lobb, balked the trend, rising about 30 percent to about $65.6 million in sales.

    Hermes shoe fw 2014
    Hermès fall/winter 2014

    Hermès says that its goal of 8 percent revenue growth at constant exchange rates for 2016 may be out of reach due to economic, geopolitical and currency fluctuations.

    The brand is planning to celebrate the horse this year, with an effort that focuses on its longstanding connection to nature through equestrian arts.

    Other luxury brands are feeling the pinch of current events.

    French conglomerate Kering’s luxury sales in the first quarter of 2016 were buoyed by Western Europe, Japan and emerging markets, as it managed growth in a challenging environment.

    Bottega Veneta’s sales were down 7.6 percent as reported, or 8.3 percent on a comparable basis. The brand was mostly hurt by the strength of the U.S. dollar and by Asian tourists avoiding Europe and other parts of the globe following terror attacks

  • Hanoi Telecom taps Infinera to expand backbone

    Hanoi Telecom taps Infinera to expand backbone

    Vietnamese wireless operator Hanoi Telecom Corporation has expanded its backbone network using equipment from Infinera.

    Hanoi Telecom extended its existing Infinera TM-Series metro network with the vendor’s DTN-X technology for its backbone connecting Ho Chi Minh City and Vung Tau.

    The new technology is allowing Hanoi Telecom to deploy 500Gbps super-channels – a first for the Vietnam market.

    Infinera’s Instant Bandwidth is also being used to allow optical capacity to be easily software-activated in 100Gbps increments.

    “We intend to advance the deployment of high bandwidth solutions to our customers in the Vietnam market by using the DTN-X XTC Series based on the innovative PIC technology,” Hanoi Telecom chairwoman and CIO Trinh Minh Chau said.

    “Infinera’s Instant Bandwidth allows us to differentiate our services through pre-deployed capacity which can be delivered on-demand via software defined activation. In addition, Infinera’s platforms have demonstrated the type of reliability and quality we are looking for in our network.”

    Infinera’s local partner Nissho Electronics Vietnam oversaw the rollout.

    Hanoi Telecom provides carrier and wholesale services focused mainly on wireless, broadband and VoIP services, as well as retail operations under the Vietnam Mobile brand. The company is one of Vietnam’s lagest wireless operators with more than 13 million subscribers.