Tag: asia

  • Reliance to open Pottery Barn in India

    Reliance to open Pottery Barn in India

    Williams-Sonoma and Reliance Brands plan to launch Pottery Barn and West Elm in India through a franchise agreement. The opening of the brands’ first stores will be in Mumbai in early 2020, along with the launch of e-commerce websites.

    President and CEO of Williams-Sonoma Laura Alber said the partnership with Reliance marks part of the company’s continued global expansion. “We are looking forward to opening our first stores in Mumbai and introducing our distinctive brands, excellent customer service, and exceptional products to customers in India.”

    Executive VP, Global of Williams–Sonoma Ronald Young said the company currently operates its own and franchised stores across the world with company-owned stores in the US, Canada, Australia and the UK.

    “Our franchise network includes countries throughout the Middle East, South Korea, the Philippines and Mexico. Adding Reliance to our franchisee network is a significant step in our continuing global expansion.”

    President & CEO of Reliance Brands Darshan Mehta said the company is confident of the  success of Pottery Barn and West Elm in India, believing the brands’ heritage and designs will resonate with Indian consumers.

  • Why you should adopt more diverse influencers?

    Why you should adopt more diverse influencers?

    Diversity, or lack thereof, is at the forefront of fashion industry discussions, with runways and advertising campaigns constantly—and rightly—scrutinised. Less has been said about diversity among prominent influencers, the new drivers of sales who are celebrated for their authenticity and ability to connect with customers.

    Thin, light-skinned women aren’t the only clothing shoppers, so why are so many of them the go-to for brands as they put together campaigns?

    Now several influencers, and a handful of talent agencies that represent them, are leading the charge to shake up the staid and stale landscape.

    They’re creating their own campaigns to highlight opportunities and content possibilities—along with #YouBelongNow, there are the hashtags #SupersizeTheLook and #ChicAtAnyAge — putting together initiatives to encourage and celebrate new voices in a greater range of ethnicities, sizes, and ages.

    The problem, many say, stems from the fact that the people organising the campaigns are not thinking about diversity when it comes to casting. It’s a continuation of the narrow view of beauty historically depicted in advertising, contends Jennifer Jean-Pierre Maull, a Haitian-American blogger and photographer from Washington, D.C with almost 16,000 followers on Instagram. “We need to change what we consider beautiful, we need to change what we consider marketable,” she said.

    Consider trendy online retailer Revolve: known for its influencer trips to far-flung corners of the globe, documented glamorously and exhaustively for its 2.6 million Instagram followers.

    Last January, as its squad took to the beach in Thailand, the attention turned from glowing to heated over the lack of diversity in its ranks. A shot of more than a dozen light-skinned swimsuit-clad slender women garnered more than 700 comments. A commenter tagged the picture #RevolveSoWhite.

    Revolve, which recently filed for an IPO and generated sales of $400 million last year, has never been a brand to highlight diversity, but whether or not that has had an effect on its sales is unclear.

    Revolve’s earned media value (EMV) dropped during the controversy to the brand’s lowest for the year, at $83.8 million. That cannot be solely attributed to the controversy, however, but “to the natural ebb and flow of events and campaigns.” And the dip was temporary: Revolve’s EMV bounced back to more than $140 million in each of the subsequent two quarters.

    In the firestorm, Valerie Eguavoen saw an opportunity.

    As the moment drew headlines, the North Carolina-based blogger and social justice advocate seized the chance to launch a new Instagram handle, @YouBelongNow, designed to celebrate people of all ethnicities, religions, sexualities and clothing sizes.

    “There are so many women who I could have seen on that trip, who belong in this space,” she said. “We have to get rid of this narrative that we don’t exist or it’s hard to find us.”

    Jean-Pierre Maull has kept tabs on what talent agencies she booked gigs with and which ones she hasn’t. In the latter camp was Fohr, based in New York and co-founded by James Nord. Over the summer, Nord addressed the Revolve controversy in a YouTube video, calling the retailer out for its practices while also suggesting it could be intimidating for brands to reach out to new influencers. Jean-Pierre Maull penned her response in a lengthy blog post. “Our POC (people of colour) community is not an alien force,” she wrote. “It is not hard to send a POC blogger the same pitch email that you send to others.”

    She emailed Nord, requesting to talk with him, one of many ongoing discussions Nord has had in recent months. “I leaned on this group of amazing women who did call me out,” he said.

    “Sometimes we just need to open up the conversation instead of just being angry,” Jean-Pierre Maull said. “Those in power must be self aware enough to see where they may be lacking or not doing enough.”

    One result of the chats Nord has had is a new mentoring program, called Freshman Class, to promote underrepresented influencers. More than 1,600 influencers applied, and 85 finalists were chosen. The ten winners include Alysse Dalessandro, queer plus-size fashion blogger; Ali Hemsley, a fashion influencer with a focus on chronic illness and mental health; and Destin Grayson, a menswear blogger. The winners will be flown to New York for three days of educational and networking opportunities.

    Nord hopes to help newer and lesser-known influencers build a network that can serve as sounding board, to discuss opportunities and pay rates.

    Jean-Pierre Maull said she was worried the initiative would seem like “someone need to swoop in and save” POC bloggers.

    The result, she says, has been anything but; it’s helping establish even more of a sense of community.

    “There is no lack of diversity in influencers, there is a lack of diversity in influencer campaigns,” Nord said.

    Relatability is a crucial part of influencer effectiveness, which is all the more reason why influencer campaigns should feature a more diverse range.

    Old Navy, a division of Gap Inc., looks for a range of sizes and family compositions in its influencer casting, then features them as models in its social feeds and digital marketing.

    “We’re looking for someone who people can see themselves in,” said Liat Weingarten, Old Navy’s vice president of brand communications.

    So far this year, Old Navy’s top two performing social posts featuring people (not just product), based on number of likes, comments and shares, are diverse group shots of influencers.

    One, highlighting dresses from its #SizeYES campaign, received more than 11,000 likes and more than a hundred comments. “My first thought when I saw this was: love this beautiful, diverse group of models!” wrote one commenter. “More of this, please!”

    And then there’s Revolve competitor Fashion Nova, which uses its Instagram account to highlight women of all ethnicities and sizes in its barely-there clothing.

    Its influencer hashtag, #NovaBabe, drove $54.1 million in earned media value from the second half of last year through the first half of this year.

    Mentions for @fashionnovacurve, the account for its plus-size line, generated $61.5 million in EMV.

    Followers are watching what brands are doing closely, too, said Scout the City blogger Sai De Silva.

    “When I go to events, I feel like there’s no one like me,” said Silva, whose followers have asked why she was the only woman of colour or woman with curly hair at a party “I live in New York City, how could there not be one other Puerto Rican [influencer]?”

    Influencers are finding that being proactive is the only way to move the conversation forward.

    Max Stein, founder and chief executive of agency Brigade Talent, said some of his clients will ask who else is participating before agreeing to a campaign, in the context of making sure a brand or company aligns on values—not just aesthetic. “It’s important to them that [diversity] is a value of the brand that they choose to partner with,” he said.

    However, not all brands are responsive in the way an influencer might want them to be.

    “There is sometimes a lack of cultural awareness and cultural sensitivities,” said Jaia Thomas, co-founder of The Presley Group, a management agency promoting diversity within the influencer space.

    Thomas, an entertainment lawyer, pointed to the time one of her African American clients was asked to do a post about watermelon. “There’s a long history of racial tropes and stereotypes associated with African-Americans, an affinity for watermelon being one of them,” Thomas said. “It’s important for there to be African-Americans in the room when creating social media campaigns so they can quickly and easily identify these stereotypes and ensure companies steer clear of them.”

    So, when will brands wise up? The enthusiasm that comes with a highly-engaged, targeted follower base is a big selling point in today’s noisy marketing field.

    “I don’t have a million followers,” said Katie Sturino, the force behind the handle and site The 12-ish Style. “What I do have is an audience that believes in what I’m saying and believe that if I’m showing them something, I like it.”

    Sturino’s best-performing content comes from two popular hashtags on her own account, both calling attention to sizing deficits within the industry. She recreates stars’ ensembles in #SupersizetheLook, with photographs of herself in similar outfits, performing 77 percent better than her average posts.

    Sturino also started the #MakeMySize hashtag, pairing pictures of herself in garments that are too small with captions asking brands to make a broader range of sizes, performing 65 percent better than her average posts.

    Sturino wishes more brands would take the time to find new personalities, and involve those newcomers earlier in the product-development process. “You pay them to wear the clothes, why don’t you pay them for their opinions, too?” she said.

  • Indonesia’s Garuda Shares Soar on News of Sriwijaya Deal

    Indonesia’s Garuda Shares Soar on News of Sriwijaya Deal

    National flag carrier Garuda Indonesia’s share price surged 19 percent on Thursday after the airline said it had taken over operational control of low-cost rival Sriwijaya Air. The move is seen as an effort to help Sriwijaya improve its financial performance, while potentially expanding Garuda’s market share to challenge Indonesia’s largest airline company, the Lion Air Group.

    Garuda announced the joint operation through its subsidiary, Citilink Indonesia, on Wednesday after signing an agreement with Sriwijaya Air and NAM Air – both under the Sriwijaya Air Group – on Nov. 9. The partnership could also be escalated to share ownership in the Sriwijaya Group, Garuda said in the statement.

    The joint operation will give the flag carrier a combined 46 percent share of the country’s domestic aviation market, while the country’s largest budget carrier, Lion Air, controls 51 percent, according to the Sydney-based CAPA Centre for Aviation.

    The remainder of the market is shared by the local unit of Malaysia-based AirAsia, charter service Susi Air and Jakarta-based Trigana Air Service.

    “The joint operation is intended to help the Sriwijaya Air Group improve its operational and financial performance to help Sriwijaya fulfill its commitments to third parties, including those within the Garuda Indonesia Group,” Garuda managing director Askhara “Ari” Dhanadiputra said in a statement.

    Sriwijaya Air planned to undertake an initial public offering last year, but its weak financial performance put a stop to that.

    The carrier suffered a loss last year due to rising fuel costs and the weaker rupiah after three profitable years. Most of Sriwjaya’s revenue is in rupiah, while the carrier’s expenses are mainly in US dollar, including fuel, aircraft maintenance and debt.

    According to Garuda’s financial report, Sriwijaya owed the flag carrier around $9.33 million as of Sept. 30 this year for the overhaul of 10 CFM56 turbofan aircraft engines.

    “We hope the partnership will help restore the financial performance of the Sriwijaya Air Group amid increasing competition in the domestic aviation industry. We believe the Garuda Indonesia Group has an excellent ability to manage the airline business,” Sriwijaya Air managing director Chandra Lie said.

    Price War

    Domestic air traffic in Indonesia more than tripled over the past decade as rising prosperity and lower fares made flying affordable for more people.With 129 million passengers in 2017, Indonesia is the world’s 10th-largest aviation market and it is projected to continue growing.

    Transportation Minister Budi Karya Sumadi expressed hope that the consolidation between Citilink, Sriwjaya Air and NAM Air would also help end a ticket price war among local airlines.

    “We hope this would end the price war and establish a new price equilibrium that covers the costs and margins to allow every airline to grow,” Budi said on Thursday.

    His ministry has long held the view that airlines’ race to the bottom in their price offerings would put pressure on their finances, which could make them more likely to neglect safety precautions.

    Budi said the joint operations between Citilink and Sriwijaya could also help to reduce redundancy on some of the country’s busiest routes and divert resources to other destinations.

    “There are many airports in eastern Indonesia that want to be served,” he said.

  • Xtep Sports opens sportswear store in India

    Xtep Sports opens sportswear store in India

    Hong Kong-headquartered Xtep Sports has opened its first Indian flagship store, in Bengaluru. The Xtep group, which specialises in footwear and sportswear, currently has 6035 stores in 31 Mainland China provinces as well as in Vietnam, Nepal, Saudi Arabia and Spain. The company was founded by Ding Shui Po, now its CEO, in 1999 as an original equipment manufacturers for global sports brands. It launched its own label in 2002.

    The company is reportedly planning to open five stores in India by the end of this year and will also sell through local online marketplaces.

  • Semen Indonesia Snaps Up LafargeHolcim Unit to Bolster Market Lead

    Semen Indonesia Snaps Up LafargeHolcim Unit to Bolster Market Lead

    Cement maker Semen Indonesia is buying the local unit of Swiss rival LafargeHolcim for around $917 million, as it seeks to extend its dominant position in Southeast Asia’s largest market. Semen Indonesia said in a statement it had signed a deal to acquire LafargeHolcim’s 80.6 percent stake in Holcim Indonesia, which is the third-biggest cement producer in the country.

    A fully owned subsidiary of the state firm would launch a mandatory offer for the remaining shares owned by public shareholders, it said.

    “In the competitive environment of the national cement industry, the combination between Semen Indonesia and Holcim will be stronger and larger,” Semen Indonesia president director Hendi Prio Santoso said.

    The company said the acquisition will boost its total cement capacity to 53 metric tons per annum. Analysts say this will give the combined entity a total capacity share of about 50 percent, in a market that has 15 companies.

    Sources familiar with the matter said Malaysian infrastructure company YTL Corp and privately owned Chinese firm Hongshi Cement had also been among the final bidders but the strategic fit with Semen Indonesia helped LafargeHolcim’s Indonesian unit to win the auction.

    The initial round of the auction drew interest from about a dozen companies, including from Japan, the Philippines and other countries, the sources said.

    YTL and Hongshi declined to comment.

    A spokeswoman for LafargeHolcim said it had received strong interest from bidders for its Indonesian business but declined to give details on the parties involved.

    Though President Joko “Jokowi” Widodo’s infrastructure push has fueled a boom in the building of airports, roads and housing projects, an aggressive expansion in the industry and entry of newer players such as Anhui Conch has created excess capacity and a price war in the last few years, analysts say.

    Semen Indonesia has secured financing from local, regional and international banks such as BNP Paribas, said the sources, who declined to be named as complete details of the deal have not been announced.

    “This secures Semen Indonesia’s position as a market leader for many years. Cement prices are improving and there is significantly less new capacity coming,” one source said.

    In an August report on potential consolidation in the Indonesian cement industry, Deutsche Bank analysts said: “A bull-case scenario would be that domestic consolidation reduces the number of players competing in the overcapacity market, supporting higher ASP [average selling prices] and a profitability recovery.”

    “A bear-case scenario would be a prolonged condition in which the industry loses its pricing power due to the new players’ strategy to overtake market share,” the report said.

    Semen Indonesia said the acquisition would give it significantly larger capacity and broader product portfolio and geographical footprint, while LafargeHolcim, the world’s largest cement maker, said in a separate statement that it was selling the business as it reviews its portfolio to improve its financial strength.

    LafargeHolcim’s local unit has four cement plants with a capacity of 14.8 metric tons per annum and 30 ready-mix plants, Semen Indonesia said.

    It was advised by BNP Paribas, while LafargeHolcim was advised by Citigroup.

  • Matching mom-and-daughter outfit is a new trend

    Matching mom-and-daughter outfit is a new trend

    The luxury childrenswear market is forecast to reach $6.6 billion in 2018, up by 3.8 percent year-on-year, presenting ample growth opportunities as spending power increases and parents dish out upwards of $500 for a pair of miniature Gucci loafers to match their own.

    Brands from Gucci and Balenciaga through to Burberry have their own multi-million dollar childrenswear lines (the latter made £117 million in revenue in 2017, about $153 million) which largely shrink runway looks from ready-to-wear collections to fit young children rather than designing them from scratch, hoping to bank on a mother’s desire to wear matching pieces with her daughter.

    But putting celebrity power to one side, as Kim Kardashian West signaled that mini-me dressing is once again big business by stepping out in a matching outfit with her daughter, what else is driving this phenomenon that seems to reappear every few years?

    “Childrenswear is increasingly trend-oriented,” says Nathalie Christen-Genty, the founder of Paris-based Melijoe, the luxury e-commerce site dubbed “the Net-a-Porter for childrenswear.” “A few years ago, childrenswear was dictated by just a few kids-only brands and parents’ motivation to buy was first and foremost driven by practicality,” meaning pieces for children were designed specifically for them with a timeless and classic design in mind.

    In the recent past, matchy-matchy ensembles were considered passé, reminiscent of bygone eras like the 1960s when women would make garments for themselves and their children from the same piece of fabric.

    When luxury brands began launching childrenswear lines in the 2000s, “they didn’t think it would be big business,” says Giuliana Parabiago, a consultant at Pitti Bimbo, a key international childrenswear trade show where the latest trends are often discovered. They would use past-season styles that would be delayed by six months or a year, she says, but now childrenswear and ready-to-wear runs at the same speed. “This new generation wants to be young — and matching.”

    Chloé launched its children’s line in 2010 with licensee Children Worldwide Fashion (CFW), which also makes lines for Givenchy, DKNY and Little Marc Jacobs.

    For the current season, stand-out pieces include a velvet bomber jacket with horse embroidery and a pair of suede ankle boots — mini-versions of products creative director Natacha Ramsay-Levi sent down the runway.

    “The pieces which are obviously Chloé, [for instance] the horse pattern, tend to perform better,” says Geoffroy de la Bourdonnaye, the brand’s chief executive who credits the success of mini-sized versions to the fact that some “mothers take pride in seeing their daughters look like themselves” and that others want “to share the brand’s DNA of being ‘free’ with their children.”

    “The [childrenswear] business has consistently grown for the last eight years,” he adds. “The countries that spend a lot of money to dress their kids tend to be Russia and the Middle East, along with China. Countries in Latin America also invest in their kids.”

    While Chloé’s relationship with its licensee means there is constant contact with the ready-to-wear design studio and the capacity for CWF to select the runway pieces it wants to adapt for children, Dolce & Gabbana’s approach was to take its line in-house allowing it to have complete control like Ralph Lauren, Burberry and Dior Baby who also go it alone.

    However, such arrangements are still unusual; most luxury brands sign with a handful of specialist licensees. Simonetta produces childrenswear for Balmain and Fendi Kids; Kidiliz Group has the license for Kenzo Kids, Paul Smith and Levi’s Kids; and Brava Kid takes care of the brands under the OTB umbrella which include Diesel, Marni and Trussardi Junior.

    The reason that the license route is so popular is that childrenswear requires an expert hand since it is not as simple as it may seem to scale down a garment pattern to fit the body shape of a child. The specialist experience on offer by the licensed manufacturers means they also understand intuitively how to make an outfit appropriate for children.

    The movement has also helped drive childrenswear into the same trend cycle as womenswear as brands respond to demand by bringing out more novelty.

    “Children’s lines [now] have their long-awaited collections as much as the ready-to-wear for the parents,” says Emi Ozmen, the mother of one of the child vloggers behind Silver and Lux.

    Source: @beyonce

    Dolce & Gabbana launched a four-week kids pop-up at Net-a-Porter, including a £1,100 tiered fil-coupé silk-blend dress for ages two to six, a £775 satin-trimmed brocade suit for ages two to five and an array of handbags and footwear.

    “When [the mini-me trend] is executed well, it’s incredibly fun and expressive,” says the site’s global buying director Elizabeth von der Goltz. “It’s performed particularly well in the Middle East.” Having launched Gucci and Dolce & Gabbana capsules, Net-a-Porter’s next collaboration is with Moncler for miniature-sized puffer jackets.

    However, not everyone sees the trend as a harmless way for kids to bond with their parents; some find it incredibly uncomfortable and question the subtle messages it seems to underscore.

    “Two troubling phenomena converge in this mommy-and-me thing,” said Natalia Mehlman Petrzela, an associate professor at the New School in Manhattan. “There’s the infantilisation of women to look like little girls and, on the flip side, [the pressure] for young girls to always look older— to wear bikinis and crop tops.”

    Some mini-me dressing is criticised as a gimmick; there is a fine line between matchy-matchy dressing and ill-fitting clothing to be worn once and thrown away.

    “It’s clever marketing and appeals to emotional values,” says Jane Lewis, the founder of womenswear line Goat.

    In August, the brand launched a mini-me line of dresses for girls with the design remaining unmodified bar reducing the size — the crepe dresses have a timeless feel to them. “Again, it depends — I’m not going [to do] a pink bomber jacket. There’s going to be a distinction between viable mini-me childrenswear and the theatrical element.”

    Foraying into theatre is something SemSem founder Abeer Al Otaiba is also weary of.

    The Emirati entrepreneur launched the brand after seeing a gap in the market — there was an absence of stylish yet understated occasionwear for mothers and daughters. “It’s more of a lifestyle, and mothers in [markets like Russia and the Middle East] enjoy elegant pieces for themselves and their daughters all within one brand. It’s unique to find a brand that caters to both,” she says.

    SemSem’s Spring/Summer 2019 collection features matching lamé mother-daughter dresses and shirt dresses made from the same cotton fabric. Rather than shrinking women’s dresses to children’s size, Al Otaiba prefers to play around with fabrics and silhouettes.

    A far cry from Kardashian’s more literal matchy-matchy approach.

    Yet, social media and Instagram influencers continue to be the main driver of mini-me mother-daughter dressing.

    While the trend has long been popular in the Middle East and Russia, it has rapidly expanded to the US thanks, in part, to celebrities like Beyoncé, whose Instagram in matching Gucci with her daughter Von der Goltz cites as an example of celebrity culture popularising mini-me.

    Indeed, mommy-and-me looks drive likes and engagement, becoming good reasons for multi-brand retailers such as The Tot, a Dallas-based childrenswear store founded by Nasiba Adilova, to approach companies and ask for small-sized pieces of womenswear best-sellers.

    “The era when childrenswear was entirely functional is over,” says Christen-Genty. “It’s now firmly in the territory of fashion.”

  • BreadTalk Opens New Concept Store In KL

    BreadTalk Opens New Concept Store In KL

    Boutique bakery franchise BreadTalk Malaysia has opened a new concept store in Kuala Lumpur’s Avenue K Shopping Mall. The new outlet is situated opposite the KLCC LRT station and is offering a promotional tote bag to early customers spending more than RM20. It opens from 8 am to 10 pm daily.

    BreadTalk Malaysia is preparing to launch several more concept stores in other Kuala Lumpur locations, including KLIA2, before opening a flagship at Star Boulevard on Jalan Yap Kwan Seng next year.

    The Singaporean brand has spread throughout Asia and the Middle East since opening in 2000, basing its products on premium ingredients such as Japanese-milled flour and New Zealand butter.

  • Malaysia Aviation appoints Philip See as Firefly CEO, as Ong out

    Malaysia Aviation appoints Philip See as Firefly CEO, as Ong out

    Malaysia Aviation Group (MAG) has appointed Philip See as the new CEO of Firefly, effective Jan 1, 2019. Philip will replace Ignatius Ong who joined Malaysia Airlines as group chief revenue officer in June 2018. Ignatius has been double-hatting as CEO of Firefly and group chief revenue officer.

    Philip, whose appointment was announced internally earlier, is currently the Head of Strategy and Network for Malaysia Airlines, reporting directly to the group CEO. He joined the airline in 2015 from consulting firm McKinsey & Company, where he was an associate.

    He is however, no stranger to the group having previously served in the Turnaround Management Office (TMO) in Malaysia Airlines, back in 2004. Under the TMO he was responsible for implementing the Business Turnaround Plan and consequently the Business Transformation Plan. Philip left the airline in 2010 and rejoined Malaysia Airlines in 2015 as a Network Planner.

    In his role as group chief revenue officer, Ignatius oversees Sales and Revenue Management for the entire group. Ignatius has almost 15 years of professional experience in the aviation industry and is no stranger to revenue management having previously covered route and revenue under the then Turnaround Management Office. He has also headed the whole portfolio of Sales, Distribution and Marketing under the Project Management Department of Malaysia Airlines.

    Other changes in the management also include Ibrahim Mohamed Salleh as CEO of MABKargo effective Sept 1, 2018 and Hazman Hilmi Sallahuddin as CEO of Project Amal effective Oct 1, 2018.

    Ibrahim has over 20 years of experience in various fields within Cargo Handling with the company. Prior to his appointment as CEO MABKargo, he was COO of PT Jasa Angkasa Semesta (a subsidiary of SATS Limited, Singapore).

    Hazman was with Khazanah Nasional Bhd where he served in various roles across the organisation. This included Senior Vice President of Khazanah Europe Investment Limited based in London.

    Malaysia Aviation Group CEO Izham Ismail said, ”I am confident that the new leadership will bring new energy and purpose to the business. The diversity of our new leaders, their backgrounds and experience will help us reach our goals as a group.”

  • Who is Hong Kong’s new luxury shopper?

    Who is Hong Kong’s new luxury shopper?

    As one of Asia’s leading retail hubs, Hong Kong has long been a mecca for luxury shoppers. Despite being home to APAC’s most expensive retail real estate (second globally to New York City’s 5th Avenue), there’s a reason why large, sprawling luxury shopping malls continue to dominate in a crowded city.

    Hong Kongers will be glad to know, though, that it holds its own when it comes to homegrown luxury spending, which recently overtook foreign consumption at 55% of total purchases.

    This figure is staggering when considering the total population of Hong Kong is roughly 7.3 million people, less than a quarter of the 60 million visitors it hosts each year.

    For these locally based consumers, luxury isn’t a one-off, aspirational purchase — it’s an innate part of their lifestyle, which explains why 93% of shoppers intend to maintain or increase spending in luxury goods in the next five years.

    This holds true especially for the younger millennial shoppers who will be driving the majority of the growth going forward.

    Source: Think with Google

    The evolving nature of consumers is a common challenge for many marketers, and the luxury industry is no exception.

    The task at hand for brands in Hong Kong is to understand this distinct group of younger customers and the behaviors that shape their expectations when it comes making high-value purchases.

    A curious and demanding bunch

    Reportedly, 90% of luxury shoppers conduct research online before making a purchase, and brand websites and search engines are the two most popular sources people turn to. In fact, they’ve become the digital storefront for this generation of digital natives.

    Source: Think with Google

    Having grown up with readily available information online, millennial and Gen Z consumers spend more time on research than ever before.

    In fact, 89% of shoppers aged 18-34 spend up to three weeks researching a luxury purchase. And they’re not alone: 64% of consumers over 45 will spend the same amount of time on research leading up to a purchase.

    Source: Think with Google

    Retailers may have once treated online as a separate channel to physical stores, but this notion is quickly becoming outdated.

    Whether customers are online or offline is a distinction made by businesses, not consumers.

    Online and offline consumer behaviors are increasingly blurring, and the respective experiences need to follow suit, particularly when it comes to the inspiration and research phases.

    In short, consistency across the two worlds is key.

    It’s hard to imagine a luxury label leaving a customer linger unattended to in its boutique, so, by the same token, a customer should never be left unanswered or ignored on Google, YouTube, or social.

    More is more

    With a more exploratory consumer mindset, brand loyalty may be more elusive for brands targeting younger shoppers.

    Engaging potential millennial and Gen Z luxury shoppers constantly by trying to stay top of mind and being always on will be crucial to gaining consideration.

    In today’s environment of fast fashion and overnight style sensations — while couture brands used to produce two collections per year, they now produce five to six — one of every three consumers surveyed said they make luxury purchases to keep up with trends.

    The tendency to shop more often is evidenced among shoppers aged 18-34, of whom 52% reported making premium purchases once every three months, compared to just 41% of shoppers 35+ who did the same.

    Source: Think with Google

    In addition to a higher frequency of purchase, our research also shows that millennial and Gen Z shoppers are likely to consider a wider breadth of brands. On average, this group owned products from a repertoire of four to six brands; compared to more brand-loyal 35+ shoppers, who owned between one and three brands.

    Source: Think with Google

    Inspiring online with offline

    When it comes to in-store shopping, the aspects that customers value most are: 1) guaranteed authenticity, 2) the ability to touch and feel the product, and 3) personalized customer service.

    How might these values translate online? With 63% of people expecting the same high-touch brand experience online and offline, the challenge is to emulate these qualities and provide satisfying digital experiences.

    Offering free shipping on returns, for example, gives peace of mind to customers wary of counterfeit goods. Similarly, detailed product videos on the brand site or as a pillar of content on YouTube can help shoppers inspect items for quality while engaging them in a rich experience.

    Leveraging customer data, such as previous purchases, to create individualized interactions and recommendations is no longer a nice-to-have, but a must. Just as consumers expect personalized customer service in store, personalization is fundamental for designing a top-notch digital brand experience.

    Source: Think with Google
    The shopping experience begins online for Hong Kong’s luxury consumers.
    Search and brand sites are key because 90% of purchases are digitally influenced.

    Millennial and Gen Z consumers spend the most time on research, so it pays to provide as much information as possible to this group. They also purchase more frequently, and they consider more brands when they do so.

    To stay top of mind, brands should ensure that they are present at as many touch points as possible and that their media strategies are always on.

    Expectations for online shopping are growing higher by the day, and this is especially true for premium brands.

  • Ikea to open first Japanese Tokyo store in 2020

    Ikea to open first Japanese Tokyo store in 2020

    Ikea Japan is preparing to open its first central Tokyo location. The 2500sqm store is planned for the fashionable Harajuku district, a central focus point for young local shoppers and tourists.

    Threatened by the rise of raw materials costs, Ikea is expected to struggle to maintain its low price points against strong online competitors such as Amazon. The brand’s parent recently registered a significant drop in annual profits as a consequence of the price increases in wood and metals.

    The new store is scheduled to open in the spring of 2020.

  • LG U+ IPTVs get Netflix in Korea

    LG U+ IPTVs get Netflix in Korea

    Netflix content will be available on LG U+ internet protocol TVs (IPTV) today. Under an exclusive IPTV deal inked with LG U+, Netflix content, including Netflix Originals, will be aired through LG’s platform, the carrier said Wednesday.

    LG subscribers won’t have to replace their existing set-top boxes as they will be automatically upgraded, though services will be first offered to the 1.07 million users of LG’s latest set-top box, dubbed UHD2, and gradually rolled out to other set-top boxes.

    Considering Netflix offers over 22,000 movies and television shows, including its big-name original content like “House of Cards,” “Stranger Things” and “Orange Is the New Black,” this is a good chance for the smallest carrier in Korea to steal some subscribers.

    By next month, the carrier will also reform the user interface of its IPTV so users have easier access to Netflix content as well as its own kids’ content platform, dubbed “Kid’s World,” that is gaining popularity among customers in their 30s and 40s with children. LG is banking on both services for the further growth of its IPTV business, according to Song Gu-young, senior vice president and head of home and media business at LG U+.

    The revamped interface could look similar to the Netflix app. When a user selects a video, an image related to the video will fill up the whole screen and a preview will run automatically, which is similar to how video previews are played on the Netflix app.

    The partnership between LG U+ and Netflix is no surprise as the market has long been expecting the announcement, but what’s still not clear is whether the carrier will offer a phone plan centered on Netflix. Without a useful plan, existing users of Netflix might not feel the urge to migrate to LG just for the IPTV service because it would only mean they get better access to Netflix content on the LG platform, but for the same monthly fee.

    LG is reportedly planning to roll out phone plans with a Netflix discount, according to an industry source, but it might take some time as new plans need government approval.

    For the time being, LG U+ is giving out free three-month Netflix trials to new subscribers of its IPTV plans worth at least 15,400 won ($13.50) per month until the end of this year.

    Korea’s mobile carriers have shifted their focus to the IPTV business as sales from traditional mobile phone subscriptions faltered after the government pressured them to make monthly phone bills cheaper last year.

  • Hanoi revives $500 million horse racing, entertainment complex

    Hanoi revives $500 million horse racing, entertainment complex

    A $500 million complex including horse racing in Soc Son District is off the shelf after 10 years. Hanoi authorities have approved the addition of the long-delayed Soc Son multi-purpose entertainment complex and horse racecourse project to the city’s master plan on socio-economic development to 2020 with orientation until 2030.

    The total investment for this project is currently estimated at about $500 million. The project is expected to go into operation after 2021.

    The planned site is mostly agricultural land. Once put into operation, the project will employ an estimated 5,000 direct laborers and 20,000-25,000 indirect laborers, generating a relatively large, regular revenue for the city’ budget.

    The project, which will be built in a planned tourist area about 40 kilometers north of Hanoi, will add a high-quality tourism product to Soc Son District in particular and the capital in general, the city stated.

    According to Hanoi authorities’ data, the capital has received over 26 million visitors this year, including 5.7 million foreign visitors, which are a 9 percent and 16 percent increase compared to last year respectively.

    The project to build a horse racecourse in Hanoi was first researched in 1999, with the racecourse’s proposed location in the southern districts of Hoang Mai and Thanh Tri.

    However, as Vietnam’s legal framework for sports betting and horse racing was incomplete at the time, the city’s foreign partner eventually withdrew from the project.

    The project was then revived in 2007 when the travel company Hanoi Tourist and South Korea’s Global Consultant Network asked for the city’s permission to research it, and was told by the government that it would be approved once the legal framework for sports betting is completed.

    Vietnam’s legislative body, the National Assembly, approved a bill legalizing sports betting last year and the government earlier this year promulgated a decree regulating the sports-betting business, throwing open opportunities for foreign investors to build racecourses in the country.

    In addition to the racecourse in Hanoi, foreign firms are also said to be pursuing plans to build horse racecourses in the northern provinces of Bac Ninh, Vinh Phuc and in Ho Chi Minh City.

  • Number of Cinema Screens in Indonesia Expected to Double Over Next 3 Years

    Number of Cinema Screens in Indonesia Expected to Double Over Next 3 Years

    The head of the Creative Economy Agency, or Bekraf, said he expects the number of cinema screens in Indonesia to double over the next few years, amid growing interest in the national film industry.

    “We expect to see at least 3,000 screens – twice what we have today. This is because local films thrive in small towns, but that’s also where we face a lack of theaters,” Bekraf chairman Triawan Munaf said on the sidelines of the World Conference on Creative Economy in Nusa Dua, Bali, last week.

    According to the agency’s 2019 Creative Economy Outlook, there are currently nearly 1,700 screens across the country. Triawan expressed hope that this could be nearly doubled over the next three years.

    The report further states that film is currently the fastest-growing subsector of Indonesia’s creative economy.

    However, as imported films still drive demand among moviegoers, the industry must figure out how to get local films to compete with those from abroad in terms of screening and scheduling.

    Triawan said the national film industry is growing rapidly, as illustrated by the fact that 40 percent of films screened in the country are local.

    This year, teen drama “Dilan 1990” attracted more than 6.3 million viewers nationwide, making it the second best-selling Indonesian film of all time after the 2016 reboot of the popular 1980s comedy franchise, “Warkop DKI Reborn: Jangkrik Boss! Part 1,” which boasted more than 6.8 million viewers.

    The number of moviegoers in the country has meanwhile also increased to more than 42 million by 2017 from around 16 million in 2015.

    More screens in other parts of the country can therefore facilitate this growth, as 183 of Indonesia’s 488 theater complexes are located on Java Island, Bekraf said.

    Cineplex 21, CGV Cinemas and Cinemaxx currently dominate the movie theater industry in Indonesia with 1,003, 275 and 203 screens, respectively.

    In her speech at last week’s conference in Bali, Finance Minister Sri Mulyani Indrawati also highlighted the importance of more vocational training to support the creative economy, of which the film industry is part.

    Despite the large number of moviegoers, many of them are less enthusiastic about local films because there are limited choices in terms of storyline and variety, which shows that there is a need for more quality screenwriters.

    “Indonesia has huge potential when it comes to writers and screenwriters, and this is an area we must explore further,” the minister said.

    Sri Mulyani also said that she was keen to learn more about the creative economy and how she could assist in its development.

  • “Falling Stars Challenge” has striked Asia

    “Falling Stars Challenge” has striked Asia

    The Falling Stars Challenge, a meme that has rocketed through Asia, features people posing as if they’ve fallen out of their luxury cars, with the luxury contents of their luxury bags spilling out on the pavement for all to see. The expensive goods are meticulously arranged so followers can admire the makeup, jewelry, shoes and other items that have oh-so-embarrassingly been laid bare.

    But the meme has become democratized, spreading from its beginnings as a way to take the humble out of humblebragging.

    It now encompasses any number of chosen identities, becoming a way to display the physical items and pursuits most closely associated with oneself.

    It’s popular among beauty and photography bloggers, fitness and food enthusiasts, and artists of all sorts.

    Hospital workers have shown off the tools of their trade, while others, with a touch of self-deprecation, have offered their more accessible collections of yoga mats, junk food and trash. They don’t even need to fall out of cars.

    The challenge originated in Russia and has spread throughout Asia, especially in China, where thousands of people have participated on Weibo, a popular social network.

    Even rigid government departments have joined in.

    The Consular Protection Center of China’s Ministry of Foreign Affairs posted a photo that showed a worker falling into a pile of paper.

    A police school photographed a fallen officer surrounded by bullets.

    The challenge has spread beyond Russia and China, with tens of thousands of posts from various countries appearing on Instagram.

  • Vaping Maker Juul Sounds Out Asia for Expansion

    Vaping Maker Juul Sounds Out Asia for Expansion

    United States-based Juul Labs is exploring selling its compact vaping devices in Asia and has sounded out government officials in Indonesia, one of the world’s most smoker-friendly countries, although gaining approval there could face significant hurdles.

    Expansion into Asia would provide the fast-growing firm with new markets at a time when it faces increased regulatory scrutiny in the United States and Israel over the potential health risks of its products’ high nicotine content.

    Juul representatives held discussions with the Indonesian government last month about introducing its vaping devices, finance ministry officials said.

    Indonesia has one of the world’s highest rates of smoking among adults and teenage boys and imposes no penalties for selling cigarettes to minors. Its population of 260 million also makes it a highly attractive market for tobacco and vaping firms.

    A person familiar with Juul’s plans said executives for the San Francisco-based company are concerned authorities may be reluctant to grant approval due to likely opposition from the traditional tobacco industry, which provides much of the country’s tax revenue.

    Tobacco taxes accounted for nearly Rp 150 trillion ($10.2 billion) or about 11 percent of national tax revenue in 2017, government data showed. Each province also imposes taxes on cigarettes.

    Juul also worries its argument that vaping is healthier than smoking will not hold much sway in Indonesia, which is not as concerned as other countries about health issues, said the person, who declined to be identified as the discussions were not public.

    Juul representatives reached out to the Ministry of Finance to discuss how it would be taxed on any sales of devices there, the officials said.

    The government needs to examine the domestic e-cigarette market to determine how a foreign player such as Juul could hurt local small and labor-intensive e-cigarette firms, said Sunaryo, a senior official at the Directorate General of Customs and Excise.

    “We will need it to study it,” he said, adding that he was not sure Juul would comply with a regulation that requires e-cigarette devices and liquids to be sold separately.

    Juul also would need approval from the Food and Drug Monitoring Agency (BPOM). Officials at the agency said Juul had yet to be in touch.

    Other Asian countries the three-year-old firm is actively considering for expansion include India, South Korea and the Philippines, the person familiar with Juul’s plans said.

    In addition to Indonesia, Juul filed trademark applications for those countries between April and October this year, as well as in Malaysia and Singapore, according to a review. It opened its first Asia office in Singapore in July.

    So far Juul, currently valued at $16 billion, is available only in the United States, Canada, Britain and Israel. It has plans to enter Russia later this year.

    Juul said in that it is “proactively learning more” and engaging with local officials in Asia “to understand and hear their views.” It does not have immediate plans to launch in any Asian country, it said. Juul spokeswoman Victoria Davis declined to elaborate.

    A Taxing Question 

    Indonesia is one of only a handful of United Nations member states that has not signed on to the World Health Organization’s global treaty that sets standards for tobacco control.Roughly two-thirds of Indonesian men smoke tobacco daily, and more than 21 percent of boys aged 13-15 smoked cigarettes regularly, according to a WHO report last year.

    E-cigarettes, available in Indonesia since at least 2013, is a small but growing market. The customs office estimates that there are about 300 unsupervised liquid makers, known as brewers in Indonesia, producing various liquid products to more than 4,000 vape stores and 900,000 smokers.

    Philip Morris International, maker of Marlboro cigarettes, which now controls about a third of Indonesia’s market through its stake in Sampoerna, does not offer any of its noncombustible cigarette products in Indonesia.

    That includes its IQOS device, a heat-not-burn tobacco product, according to a company spokesman, who declined to comment on why it has not introduced the product.

    In October, the government imposed a 57 percent tax on e-cigarette liquids, on par with taxes on traditional cigarettes. But tax collection, particularly from smaller companies, is difficult in Indonesia and new rules are often ignored.

    Juul now commands a nearly 75 percent share of the US e-cigarette market, up from 13.6 percent in early 2017, according to a Wells Fargo analysis of Nielsen retail data.

    Its products, like most electronic cigarettes, vaporize a liquid containing nicotine. One Juul pod contains as much nicotine as a traditional pack of 20 cigarettes, according to the company’s US marketing.

    Juul liquid in the United States has a nicotine concentration of 59 milligrams per milliliter, much higher than the liquids typically sold in earlier versions of e-cigarettes and nearly three times the allowable limit in the European Union.

    In August, Israel banned Juul devices with nicotine concentration of more than 20 mg/mL, citing “a grave risk to public health.” Juul is appealing that decision and currently offers a lower nicotine-strength electronic cigarette in Israel.

    In September, the US Food and Drug Administration opened an investigation into Juul and other electronic cigarette companies, citing the rising number of teens who appear to be using Juul and other vaping devices. This week it is expected to issue a ban on fruit and candy-flavored e-cigarettes sold in convenience stores and gas stations.

    In its statement, Juul said its products are intended for adult use only, and that it aims to “improve the lives of the world’s one billion adult smokers” by providing an alternative to cigarettes.