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Tag: Australia

  • AuMake sees online sales growing

    AuMake sees online sales growing

    Online sales now make up 30 percent of AuMake’s total sales, and they are continuing to grow.

    The daigou business announced its unaudited FY19 earnings in an investor presentation on Thursday, reporting an estimated $40-45 million in revenue for the year. That’s more than double the revenue it generated in FY18 of $21 million.

    The company said it is experiencing strong trading conditions even in the traditional low season of June and is anticipating significant growth from its recent Broadway acquisition, which will be effective next month.

    AuMake expects own-brand sales through the Broadway channel to reach $15 million to $20 million in FY20.

    In the presentation, AuMake said most of its online sales come from the Chinese social media app, WeChat.

    In April, the company reported that its online customer database had grown more than six times over from 20,000 in Q3 FY18 to 130,000 in Q3 FY19.

    It continues to invest heavily in its online infrastructure to maintain this growth. This includes a larger online customer service team, improvements to its various online sales platforms, such as WeChat and JD.com, and a new packaging facility.

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  • Maxi-Cash opens its first LuxeStyle outlet in Australia

    Maxi-Cash opens its first LuxeStyle outlet in Australia

    Singaporean pawnbroker Maxi-Cash has opened its first Australian LuxeStyle boutique.

    Located in downtown Melbourne, the flagship boutique offers a variety of pre-loved luxury timepieces, designer leather bags and branded jewellery, including gold, diamonds, precious stones and pearls.

    Shoppers can expect to find luxury items that are handpicked under the “strictest inspection to ensure authenticity and top notch quality”, including Rolex, Cartier, Bulgari, Chanel, Prada, and Louis Vuitton.

    Customers will also have the opportunity to bring in their pre-loved or unused bags, timepieces or jewellery to exchange them for cash or trade in on a newer style or model.

    “As an established and a trusted retailer in Asia, we specifically had our eyes set on one of the world’s most livable cities and the fashion capital of Australia, Melbourne, to open our first Australian Maxi-Cash store,” said Ng Leok Cheng, Maxi-Cash CEO.

    He said 24K and 22K gold, luxury jewellery and timepieces, which all retain their value for years to come, are in high demand the world over.

    “We were quick to recognise a gap and an opportunity for expansion into the Australian market. We look forward to continuing to build our reputation for excellence amongst local shoppers as well as international visitors on holiday in the city.”

    Established in 2008, Maxi-Cash was the first pawnbroker to be listed on the Singapore Stock Exchange. It has 47 boutiques across Asia, including in Singapore and Malaysia.

  • Australian barista Paul Bassett Expanding Coffee Bussiness

    Australian barista Paul Bassett Expanding Coffee Bussiness

    A decade after launching in South Korea, Australian Paul Bassett plans to make the most of a “positive evolution” in the local coffee culture, expanding his brand partnership with a local dairy company.

    Paul Bassett teamed with Maeil Dairies Co to launch a coffee brand named after him in 2009 – just at the time local consumers were starting to embrace specialty coffee. Their vision was to target the growing high-end coffee market.

    “Driven by a lot of curiosity for specialty coffee, the overall (Korean coffee) market has grown in the past 10 years and specialty components within the market showed some real healthy growth,” the 2003 World Barista Champion said in a recent interview.

    “I think it was the timing when we opened the (first) store and the location of the store was quite important. Had we been here 20 years ago, I am not sure.”

    South Korean’s craze for coffee has been described as dramatic in recent years. Starbucks and other premium coffee brands have sprawled into every corner of the nation’s big cities.

    South Korea’s coffee market was estimated at US$9.85 billion last year, and the specialty sector of the market is still growing.

    When Paul Bassett opened its first location in a department store in the affluent Gangnam district in 2009, it made a splash in the sector with a differentiated product lineup beyond typical Americanos and lattes.

    The brand made a name for itself with lungos, an Italian-style short black coffee with more water, a rather nascent item at the time. Lungos are weaker than espressos with additional hot water but more bitter than Americanos.

    Paul Bassett outlets, operated by M’s Seed Co, a wholly owned unit of Maeil Holdings, have also proven popular due to a variety of latte items and ice creams, with milk provided by Maeil Dairies.

    For example, its ice cream latte, similar to Italian espresso-based affugatos, is also a hit at the coffee house.

    Bassett said he has been deeply involved in selecting beans, deciding on the blending ratio and roasting profile, quality checks and product development. Baristas at Paul Bassett stores extract espresso and make drinks according to his manual.

    The 41-year-old barista says he works as a “gatekeeper of quality” to maintain quality and consistency of beans and other drinks at 96 stores, mostly located in the Seoul metropolitan area.

    “We can go into one store in one location and have the same result and same experience in all of the locations,” he said. “It’s a challenge, but it’s one of the things that is really important to us.”

    Starting with 500 million won in sales in the first year, Paul Bassett posted 93.8 billion won in sales in 2018 and aims to double the number of outlets to 200 by next year.

    Without a doubt, local coffee brands like Paul Bassett still lag far behind Starbucks. The US coffee giant generated 1.5 trillion won in sales last year and currently runs 1290 stores in Korea.

    Still, Bassett is optimistic about his brand’s further expansion on the back of a rising appetite for specialty coffee and its royal customers. To fuel growth, the barista, who makes regular visits to Korea to check the menu and train baristas, said he will work with the M’s Seed to educate South Koreans about the origin of beans and the chemistry behind coffee.

    Once consumers know every cup of coffee can tell a story from farms from Ethiopia, Guatemala and Brazil, they will crave specialty coffee more than blended coffee, he said.

    Growing up in a family that runs a restaurant in Australia and having found his true passion for coffee during his trip to Italy 20 years ago, Bassett says he wants to contribute to the Korean coffee culture.

    “I have a very intimate and personal relationship with coffee. I’ve been able to develop an understanding of coffee through so much experimentation that I understand all the little inputs and how they can impact taste,” Bassett said.

    “I feel like the journey has brought me to where I am now.”

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  • Bunnings to have full e-commerce offer by Christmas

    Bunnings to have full e-commerce offer by Christmas

    Bunnings managing director Michael Schnieder has announced he expects the homewares and DIY retailer will have its e-commerce operations online and fully operational nationwide before Christmas 2019.

    The business has trialled a more limited online offering in select locations, but has previously stated it would roll-out a more robust offering by September 2020.

    “We believe that, done right, our click and collect offer will be rolled out across Australia by Christmas – well ahead of schedule,” Schneider said.

    “This follows the successful introduction of click and collect in Tasmania in April. We’ve been really delighted with the progress and customers’ response to the offer.

    “This is a real testament to our team, who have worked hard to make this happen, ensuring we are building an offer that delivers choice and convenience when it comes to how people want to shop with us.”

    Schnieder also indicated that he expects lower interest rates and the Coalition’s incoming tax cuts to spur customers into spending, delivering some relief in a difficult retail environment – one which NAB chief economist Alan Oster said fallen to levels not seen since the GFC.

    Bunnings has the fourth most visited shopping and classifieds website in Australia, but only enabled online ordering of select items in June of 2018.

    The DIY retailer has previously said it will shift some of its focus toward first-time DIY customers to target the “next generation of customers”.

    The trends of high-density living and long-term renting have informed the business’ products moving forward, as opposed to its more traditional large-scale renovation focus.

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  • Target sales sagging further for Wesfarmers

    Target sales sagging further for Wesfarmers

    Wesfarmers says full-year earnings from its department stores could fall by as much as $103 million after sales at the struggling Target chain fell by 2.3 per cent so far in the second half.

    The Perth-based conglomerate, which reports its full-year results on August 27, says Target’s comparable sales for the five months to May fell 2.3 per cent on the prior corresponding period and by 0.7 per cent over the year so far.

    Although sales at stablemate Kmart have stabilised in the second half, Target dragged down the unit as a whole and Wesfarmers says the latter’s “current offer requires ongoing repositioning” despite continued efforts to turn around the chain.

    Combined full-year earnings from two stores’ continuing operations are now expected to be between $515 million and $565 million, as much as 17 per cent down on last year’s $618 million.

    Wesfarmers managing director Rob Scott says the Kmart Group’s second-half performance had been disappointing, but that it would benefit from increased investment in online and digital initiatives.

    The company said on Thursday it was feeling the pressure from increased pricing competition and cautious consumer sentiment, and admitted various changes at Kmart had also resulted in a temporary shortage of goods on shelves.

    Mr Scott told investors in a separate briefing there had been no notable lift in consumer sentiment after the May federal election, though the onset of colder weather had been welcome boost for sales.

    “The seasonal changeover is a key driver of sales… (so) the cold weather has been helpful (even if) some of the cold weather took a while to arrive,” Mr Scott said.

    Wesfarmers announced in June last year it was scaling back its Target business, cutting the size or number of stores in the chain to achieve a 20 per cent overall reduction in footprint by 2023.

    Mr Scott said on Thursday the repositioning of the department store network, which will include the introduction of more Kmart stores, had allowed its chains to compliment each other instead of competing for space and customers

    Mr Scott told investors he expected further improvement after Kmart finishes cycling out DVD sales.

    Wesfarmers’ first-half profit soared to $4.5 billion from $212 million in the prior corresponding period due to $3 billion in one-off items following the demerger of supermarket Coles, and the sale of Bengalla, Kmart Tyre and Auto Service, and Quadrant Energy.

    The conglomerate has since embarked on a number of acquisitions, including a $776 move for lithium developer Kidman Resources, and a so-far unsuccessful approach for rare earths miner Lynas.

    This week it continued its spending spree this week with the $230 million acquisition of online retailer Catch Group, which will be rolled into the Kmart Group.

    Mr Scott told analysts the company felt “the time was right” to act on opportunities.

    “On the acquisition side, I know we’ve announced a few things in recent months, but I think it’s important not to get too carried away by that activity,” he said.

    “We’re talking a very very small proportion of out market capitalisation, and indeed capex.”

    Mr Scott said the proposed investment in Kidman was grounded in long-term advantages.

    “We don’t know what the long-term price of lithium is going to be …what we do know is that … (the proposed acquisition) is going to be one of the lowest-cost providers globally of lithium hydroxide,” Mr Scott said.

    Shares in Wesfarmers were worth $38.25 before trade on Thursday and have climbed by 18.72 per cent, or $6.03, so far in 2019.

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  • AirAsia Offers Cheap Perth to Lombok Flights

    AirAsia Offers Cheap Perth to Lombok Flights

    AirAsia has launched a four-times-a-week service between Perth and Lombok, with the inaugural flight touching down on Sunday night.

    With fares starting at just $99 one way, the flights are set to be popular with Aussie tourists keen to sample the destination known as “the new Bali”.

    Dendy Kurniawan, AirAsia Indonesia CEO, said the flights would introduce healthy competition for the region and an additional option to much-loved Bali.

    “Blissful beaches, top surfing and dive sites, and picturesque mountains are now easily accessible for Australians and I encourage those looking to book their next holiday to consider Lombok,” he said.

    Perth Airport CEO Kevin Brown said the new service consolidated AirAsia’s position in the Perth market by adding more than 74,000 seats annually.

    “AirAsia has been in the vanguard of a low-cost carrier revolution that has delivered more affordable and accessible travel options for many Western Australians,” Mr Brown said.

    “Western Australians have a great propensity for travel and Indonesia represents Perth Airport’s largest outbound market as it offers an easily accessible and attractive destination for travellers.

    “This new service also provides an opportunity to grow the Indonesian inbound tourism market for Perth and Western Australia.”

    Indonesia represents WA’s eighth largest visitor market. Last year 31,000 Indonesian visitors arrived, injecting more than $56 million into the WA economy.

    AirAsia operates 25 flights per week between Perth, Australia and Indonesia, which includes Bali, and Lombok.

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  • Australian dollar strengthens again

    Australian dollar strengthens again

    The Australian dollar has risen Wednesday, buying 69.62 US cents from 69.55 US cents on Tuesday.

    The local currency was on the back foot yesterday as its US counterpart continued to benefit from the trade truce with Mexico, even as Washington kept up the war of words with China.

    The Aussie was pinned at 69.56 US cents on Tuesday, having lost 0.6 per cent on Monday in the wake of the trade truce with Mexico.

    It had reached as high as 70.25 US cents at one stage before retreating.

    President Donald Trump’s decision not to impose tariffs on Mexico was taken as lessening the risk of recession in the United States and lifted 10-year Treasury yields up to 2.15 per cent from a  two month low of 2.05 per cent.

    It also led investors to trim expectations for interest rates cuts from the Federal Reserve, though futures are still wagering heavily on a move in July.

    Trump did not sound so conciliatory toward China, however, threatening another round of tariffs if no progress was made on trade at a Group of 20 summit later this month.

    China is Australia’s single largest export market and investors use the Aussie as a liquid proxy for positions on its economic outlook.

    The Aussie has troubles of its own as a survey of Australian business showed activity faltered in May even as confidence got a rare boost.

    The Reserve Bank of Australia has already cut interest rates to a record low of 1.25 per cent and markets imply around an 86 per cent probability of a further reduction by August.

    “Today’s survey again suggests increased risk that the unemployment rate will not make the further gains the RBA expects and strongly argues the case for further near-term easing in monetary policy,” said Ivan Colhoun, NAB’s chief economist, markets.

    “A weak outcome for unemployment would likely cement a July cut,” he added, referring to the official jobs report for May which is due on Thursday.

    Median forecasts are that employment rose a solid 17,500 in May, nudging the jobless rate down a tick to 5.1 per cent – an outcome that would likely lessen the urgency for a rate cut as early as July.

    Australian government bond futures were lower on Tuesday as risk appetite globally got a boost from the US-Mexico trade news. The three-year bond contract fell 2.5 ticks to 98.920, while the 10-year contract slipped 3.0 ticks to 98.5100.

  • Booktopia expires crowdfunding plans

    Booktopia expires crowdfunding plans

    Booktopia has pulled out of plans to raise $10 million from customers and everyday Australians after struggling to reach its minimum goal for investment.

    The business announced last year that it was looking to raise at least $3 million and up to $10 million through the crowdfunding platform Equitise.

    At the time, it was publicised as the biggest ever crowdfunding attempt through Equitise. But the company on Tuesday revealed that it is ending the crowdfunding round early after raising just short of $900,000.

    Booktopia founder Tony Nash said that while the funding never stopped coming in, the company decided to let the campaign peter out after it received significant interest from the wholesale investment community.

    “Taking a larger investment from one or two strategic investors right now is the best partnership we can secure for our customers and our future growth,” Nash said.

    “If we weren’t talking to the investors looking to invest $20 million to $30 million we would have done a big push to say the offer is ending, and probably got to the $3 million.”

    Nash confirmed the funds raised through the campaign are currently held in trust, and will be returned to equity investors soon.

    Booktopia may consider using the platform again in the future when the “time is optimal and we’ve been able to scale thanks to larger investment.”

    Nash noted that the business is successful enough as is, and that the purpose of the extra funding is simply to reach its goals faster.

    “We are happy to bring on some strategic partners who have experience in the area that we do not have, and that is a key component on taking on the extra funding,” Nash said.

    The equity funding would have been used to drive an expansion in warehouse automation, hold more stock (the business estimates it is only using 25 per cent of its space), and continue to fund the liquidity of the business.

    Booktopia’s Equitise campaign would have allowed 8.1 per cent of the business to be owned by everyday Australians, something Nash said he still likes the idea of.

    Equitise co-founder Chris Gilbert stated he ultimately agrees with the Booktopia board’s decision, noting he looks forward to working together with the book retailer again in the future. 

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  • Wesfarmers to purchase Catch Group

    Wesfarmers to purchase Catch Group

    Australian retail conglomerate Wesfarmers has entered an agreement to acquire Catch Group for $230 million.

    Should the deal be cleared by the Australian Competition and Consumer Commission, the online marketplace will continue to operate as an independent business unit under the leadership of Kmart Group managing director Ian Bailey.

    Bailey noted Catch has built a successful marketplace underpinned by leading technology and data capabilities, and that these capabilities would be leveraged to grow the capabilities and accelerate the consumer-driven, omni-channel initiatives across department stores Kmart and Target.

    “This will further drive best practice in supply chain, fulfilment and online execution across our brands, including opportunities for Target to secure online fulfilment capability and productivity benefits,” Bailey said.

    “Catch will also benefit from the support of Kmart Group’s scale and capabilities to drive its continued growth in its existing marketplace business.”

    Catch Group managing director and chief executive Nati Harpaz said the Catch team was looking forward to working with Kmart, and that the marketplace would continue to focus on delivering great value and savings to its customers.

    The merger, according to Wesfarmers managing director Rob Scott, is consistent with Wesfarmers’ approach to capital allocation, focus on improving its digital and data capabilities, and investment in opportunities adjacent to its existing businesses.

    “Catch Group has a high calibre management team and a leading e-commerce platform with quality fulfilment assets,” Scott said.

    “This acquisition represents an opportunity to accelerate Wesfarmers and Kmart Group’s digital and e-commerce capabilities whilst continuing to invest in the unique customer and supplier proposition provided by Catch Group.”

    Wesfarmers confirmed the acquisition will be funded by existing debt facilities, and is not expected to affect the business’ existing credit ratings. The business completed a demerger from Coles last year, providing further capital for investments, while retaining a minority ownership in the supermarket.

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  • Woolworths plans store restructure and addition of two new departments

    Woolworths plans store restructure and addition of two new departments

    Woolworths will revamp its store operating model for the first time since 2011, to put a greater focus on fresh food, convenience and customer service to suit changing customer needs.

    The supermarket briefed team members on Wednesday about the implementation of the store model which will see the creation of two new fresh food departments at stores in the coming months.

    Fresh Service will manage customer service at the deli, butchery and seafood counters while Fresh Convenience will cover dairy, eggs, pre-pack meat, branded bread and meal solutions.

    “Over the last few years our customers’ needs have changed, but the way we have been operating our stores has stayed the same,” Claire Peters, managing director, Woolworths Supermarkets said.

    “With customers’ ongoing expectations in fresh, and more shoppers looking for increased convenience, our stores need to deliver the best possible customer experience, every time.”

    Peters said the new model will allow team members to be “more customer focused than ever before”.

    Last week at the AFGC’s Food & Grocery conference, Woolworths highlighted the need for better convenience offerings for time-poor customers, as well as new and different choices that are good for health, wellbeing and the planet.

    While the number of team members required in the new structure will not change, some current roles will be made redundant. Woolworths said that it aims to provide “as many redeployment opportunities as possible”.

    Woolworths will invest more than $10 million in team training and development as part of the restructure and will add Assistant Team Manager roles to facilitate better management progression.

    The operating model has already been rolled out across a group of stores in New South Wales, with changes to other stores to be phased in over the coming months.

    The supermarket recently revealed plans to further reduce promotions and focus on everyday value in stores in an effort to gain better “price trust” among consumers.

    Shopper feedback revealed that price is the most important element of customer’s trust and is a key area of focus for the retailer.

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  • Singapore Airlines adds another Airbus A350 to Perth

    Singapore Airlines adds another Airbus A350 to Perth

    Singapore Airlines is continuing its rolling upgrade of flights to Australia, with Perth set to see a second Airbus A350 from July 1, 2019.

    The advanced jet, which boasts Singapore Airlines’ latest flat-bed regional business class seats in what the airline calls a ‘medium-range’ configuration, will slot into daily flights SQ214 (departing Perth at 5.10pm) and SQ223 (wheels up from Singapore at 9.30am).

    SQ226/SQ213 already hosts an A350, with a Boeing 787-10 Dreamliner rostered onto SQ216/SQ215.

    This leaves just one daily flight on the Star Alliance member’s older Airbus A330, and its days are surely numbered.

    The Airbus A350’s 40 business class seats are arranged in a 1-2-1 layout, providing every passenger with direct aisle access, with access to inflight WiFi if you need to work rather than rest – or luxuriate over your Book the Cook meal – on the quick five-hour hop.

    Singapore Airlines intends to roll out lie-flat beds across its entire fleet from 2020, from the longest of globe-spanning trips to short hops such as Singapore-Kuala Lumpur on SilkAir, which will be adopting new flat-bed business class seats on its factory-fresh Boeing 737s.

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  • ACCC checks APRA’s “near-monopoly” on music licences

    ACCC checks APRA’s “near-monopoly” on music licences

    The Australian Competition and Consumer Commission (ACCC) wants to enforce stronger conditions on the Australasian Performing Right Association (APRA), after questions have been raised about its transparency.

    The changes could lead to lower fees for businesses using APRA’s music licences Australia-wide.

    APRA holds the performing rights for the majority of music played or performed in Australia. It earns royalties from these rights and sells licences which allow businesses to play this music publicly – with fees paid by businesses being distributed to the association members.

    But the lack of transparency into APRA’s fees and its near-monopoly on music licences in Australia have prompted the ACCC to propose several changes to the way APRA operates.

    “We are… proposing to grant authorisation for a further five years with conditions that require APRA to be more transparent about licence fees and the way it pays royalties to members, in order to mitigate APRA’s market power and its impact on songwriters and businesses,” ACCC deputy chair Mick Keogh said.

    Under the proposed conditions, APRA would be required to publish information about how it calculates its fees; produce a plain-English guide to its distribution policies; publish an annual transparency report with information on rights revenue, operating costs, and payments to members; and to continue the “resolution pathways” alternative dispute resolution scheme set up in responses to a previous ACCC condition.

    These changes have been proposed based on responses gathered by the ACCC during a consultation process, in which APRA members and businesses that use the service expressed concern around the way the association collects fees and questioned its accountability.

    “It’s more efficient for APRA members to collect royalties jointly, rather than every artist having to collect their own royalties and monitor compliance,” Keogh said.

    “However, APRA already has a near-monopoly, and the exclusive provisions it has with artists makes its position even stronger.

    “This raises the risk of higher prices for businesses that play music, and other inefficiencies or restrictions for APRA members.”

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  • Toys ‘R’ Us returning to Australia with online focus and small-format stores

    Toys ‘R’ Us returning to Australia with online focus and small-format stores

    Toys ‘R’ Us and Babies ‘R’ Us are returning to the Australian market through an exclusive licensing agreement with Hobby Warehouse.

    The agreement allows Hobby Warehouse to sell through the Toys ‘R’ Us and Babies ‘R’ Us websites in Australia and New Zealand, including private label products owned by parent company Tru Kids Brands – such as Fastlane, Imaginarium, Koala Baby, and Koala Kids. This is the first time Toys ‘R’ Us and Babies ‘R’ Us have had a presence in the New Zealand market.

    Launching on June 12, the offering will initially be online-only, but Hobby Warehouse plans to launch smaller-format ‘experience centres’ for Toys ‘R’ Us and Babies ‘R’ Us beginning in 2020.

    “We are delighted to bring the much-loved brands of Toys ‘R’ Us and Babies ‘R’ Us back to Australia and introduce them to New Zealand,” Hobby Warehouse chief executive and Toys ‘R’ Us Australia director Louis Mittoni said.

    “Our mission is to encourage children to engage with as many forms of play as we possibly can. Hobby Warehouse is a digital native with a keen understanding of how to accelerate and match the requirements of the modern shopper.”

    Tru Kids executive vice president of global licensing and general counsel James Young said that Mittoni and his team have a strong digital vision, and understand the heritage of the Tru Kids brands, as well as how to evolve this heritage for the modern consumer.

    “This is an exciting milestone for our company as we continue to grow Toys ‘R’ Us and Babies ‘R’ Us around the world,” Young said.

    The Toys ‘R’ Us Australia management team. Left to right: Toys ‘R’ Us marking manager Tristan McLindon, Toys ‘R’ Us Australia director Louis Mittoni, Mittoni Pty Ltd general manager Lian Yu and Toys ‘R’ Us Australia chairman Kevin Moore

    Tru Kids Brands president and chief executive Richard Barry confirmed in February that the company had begun discussions with partners in Australia, and that the brand would focus on serving customers through all retail channels.

    Prior to its demise, Toys ‘R’ Us was the largest toy retailer in the country with a market share of over 20 per cent, according to IBISWorld senior industry analyst Kim Do.

    The retailer will be returning to a very different market, however, with its collapse changing the way consumers shop for toys.Adtech Ad

    “The company’s decline… accelerated the rate at which department stores and online-only retailers have captured market share, as consumers have shifted their spending away from industry retailers,” Do said.

    The shift away from physical retail, and towards a more online-centric offer, should make the retailers re-entry smoother.

    “Previously, the Toys ‘R’ Us and Babies ‘R’ Us business model in Australia was focused primarily on large physical retail stores which had high fixed costs and extended periods of relatively low sales due to seasonal factors,” said commercial advisor Kevin Moore, who helped negotiate the agreement.

    “Going forward, the business model for Australia and New Zealand will be online focused, with smaller and fewer physical ‘experience centres’ that allow children and their families and friends to see and touch our products.”

    According to IBISWorld data, the toy and game retailing industry is expected to see a revenue drop of almost 16 per cent over 2019, with the market expecting to generate around $740 million – down from the $880.2 million seen in the prior year.

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  • Australian brand house Gazal bought by PVH

    Australian brand house Gazal bought by PVH

    PVH has finalised the acquisition of Gazal Corporation, the Calvin Klein and Tommy Hilfiger-owner’s long-term partner in Australia, showing an increased commitment to the region.

    The acquisition gives PVH ownership of the Calvin Klein, Van Heusen, Nancy Ganz, Pierre Cardin, Fred Bracks, and Paramount brands in the region, and supports the group’s strategy to have a more direct hand in the direction of its brands in the Asia-pacific region – having recently re-purchased the licence in Hong Kong, Macau, Singapore, Malaysia and Taiwan.

    “Our decision to acquire Gazal is aligned with PVH’s strategic priority to expand our worldwide reach by assuming more direct control over our brands’ regional licensed businesses,” PVH chairman and chief executive Emanual Chirico said in a statement.

    “By joining forces now, we believe we’re well positioned to capture the significant growth in the Australia and New Zealand markets.

    “We are pleased to welcome Gazal into our PVH family and continue driving our business forward together.”

    As part of the acquisition, four key members of Gazal’s executive team are expected to remain in their respective roles for at least two years, having entered new employment agreements.

    According to Tommy Hilfiger global chief executive Daniel Grieder, this strategy will allow the brand to introduce a wider range of product lines, as well as offer an elevated and more immersive brand experience.

    “Building on our strong existing regional foundation, we plan to accelerate the growth of the Tommy Hilfiger business and invest further in driving the expansion of the brand,” Grieder previously said.

    Calvin Klein has also been expanding its focus in Australia, opening its first multi-brand store in Queensland’s Sunshine Plaza – the brand’s 32nd in Australia – as well as a more directed digital strategy.

    Steven Shiffman, chief executive officer at Calvin Klein, recently unveiled a number of initiatives meant to push the brand forward, while tailoring it to changing consumer wants and needs.

    One of these initiatives is a dedicated, regional e-commerce strategy, as well as the potential for as many as 100 stores opened across Australia and New Zealand.

    This decision was made in order to minimise the brands’ reliance on the Australian department store sector.

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  • RedBalloon parent’s newest brand targets purpose-driven customers

    RedBalloon parent’s newest brand targets purpose-driven customers

    Naomi Simson’s Big Red Group has partnered with US experience retailer IfOnly to launch the brand of the same name in Australia.

    Like RedBalloon, Big Red Group’s flagship website, IfOnly offers a range of experiences that customers can buy online, from cooking classes to archery lessons to chopper tours of the Yarra Valley.

    The difference is that every listing on IfOnly benefits a cause, with up to 80 per cent of the proceeds going to an associated charity.

    The decision to launch IfOnly in Australia reflects consumers’ rising interest in supporting businesses that do good, according to Big Red Group co-founder Naomi Simson.

    “People in Australia are choosing [based on] what an organisation stands for, not just what it sells. They want to believe that they’re using their consumer dollar for good,” Simson said.

    This trend, sometimes referred to as conscious consumption, is part of the experience economy, which is defined by consumers’ interest in having experiences over buying things.

    “We know there’s a trend of access over ownership, there’s a trend of sustainability. There’s a slight melding, an overlap, between this and the experience economy, but they’re not yet one and the same thing,” Simson said.

    IfOnly taps into several of these trends by combining unique experiences with charitable causes. The site offers a range of experiences with local and world-class experts, celebrities and other noteworthy personalities, from ultra-luxury, bucket list-type offerings to more accessible special outings, with a portion of the proceeds from every experience going to a charity of the luminary’s choosing.

    Some of the listings include a 5-day stay and rhino conservation experience with Kevin Pietersen at the Umganu Lodge in South Africa, which costs $190,000 for eight people and benefits Care for Wild Africa, a meet-and-greet with popstar Ariana Grande and VIP tickets to her Sweetener tour, which costs $5,223 and benefits the GoodCoin Foundation, a $150 donut decorating class with Morgan Hipworth, which benefits the Australian Red Cross, and a $250 private archery lesson from Australian Olympian Alec Potts, which benefits the Movember Foundation.

    “Yes, there are celebrities and thought leaders, but really it’s a groundswell of incredible artisans that are using their skills for good,” Simson said.

    “The experiences don’t all have to be expensive…it’s not about being elitist, or unattainable,” she said.

    More than 20 local charities are set to benefit from the purchase of experiences on IfOnly, including Cancer Council, R U OK?, Starlight Children’s Foundation, OzHarvest and The Sony Foundation.

    Simson herself is offering a $1975 private whisky lesson on a vintage cruiser in Sydney Harbour to support the Cerebral Palsy Alliance, which she is a governor of.

    “My role is to be an ambassador and to raise funds, but there are limited ways to do that. [IfOnly] provides a way for luminaries to support chosen charities,” she said.

    According to IfOnly CEO John Boris, the website has raised millions of dollars for charities in the US and is looking forward to doing the same in Australia through its partnership with the Big Red Group.

    “By combining the Australian experiences market leader with the leader of premium experiences in the US, we are able to bring our unique offering to new audiences and support more causes,” Boris said in a statement about the launch.

    Big Red Group plans to build awareness about the new brand by unlocking access for Australian residents to enter a global sweepstakes to win an experience with The Who and Pearl Jam’s Eddie Vedder at Wembley Stadium in London this July.

    Simson said the company does not plan to promote IfOnly to RedBalloon’s customer database.

    “Just because one person buys something on RedBalloon doesn’t mean they will be an IfOnly customer. We can’t presume they want to hear about it,” she said.

    “Nobody wants to be bombarded with something they didn’t ask for. It’s about respect.”

    The launch of IfOnly follows Big Red Group’s acquisition of the adventure-focused experience marketplace, Adrenaline, in November 2018.

    The company’s brand portfolio now includes RedBalloon, Adrenaline, IfOnly, Marketics, the exclusive distributor of ‘Albert’ AI in Australia, and Redii, a platform to reward employees.

    As a $100 million company, Big Red Group is the largest online aggregator of experiences in Australia and the third largest globally, according to HitWise’s 2018 research.

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