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Tag: Club Monaco

  • Handsome by Hyundai heading for China

    Handsome by Hyundai heading for China

    Handsome, the fashion unit of South Korean retailer Hyundai Department Store Group, has signed a deal to help accelerate its move into the Chinese consumer market.

    An agreement between its fashion label The Cashmere with Hong Kong’s retail/brand-management/distribution firm ImagineX Group involves supplying five coat styles to Club Monaco outlets in China.

    ImagineX represents such brands as DKNY, Jo Malone and Salvatore Ferragamo, and has more than 250 points of sale throughout Asia including Singapore and Taiwan.

    Thehandsome.com

    Handsome has previously taken its System and System Homme brands abroad. It has also clinched a deal with Artifacts, a boutique store in Taiwan that has six outlets in Taipei and Taichung. Earlier this year, the two clothing labels were picked up by department stores and shopping malls in China as well as the Galeries Lafayette department store in Paris.

    Handsome entered the Chinese market early this year by partnering with Hangzhou Zhiheng Industrial.

    Founded in 1987, Handsome was bought by Hyundai Home Shopping Network in 2012. It owns a string of fashion labels including Mine, System and Time.

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  • Hyundai buying SK Networks’ fashion sector

    Hyundai buying SK Networks’ fashion sector

    South Korea’s Hyundai Department Store is buying trading company SK Networks’ fashion business for KRW326.1 billion (US$284 million).

    When the purchase is complete, probably by February, SK Networks (SKN) will no longer have interests in the fashion industry.

    The two companies have signed a deal to merge SKN’s 12 fashion brands into Hyundai’s Handsome fashion unit, which has annual sales of KRW750 billion. With SKN’s KRW600 billion added in, the merged group becomes the fourth-largest fashion company in South Korea behind E-Land, Samsung C&T and LF.

    Hyundai says it will retain SKN’s 400 designers, merchandisers, marketers and production staff, guaranteeing their jobs for five years.

    Analysts say the two businesses are a good fit and are unlikely to cannibalise each other’s trade as Handsome is known largely for its local womenswear brands while SKN is a major importer of global labels such as American Eagle, Club Monaco, DKNY and Tommy Hilfiger.

    Its house brands  include Obzee, O’2nd and Rouge & Lounge.

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  • Ralph Lauren sales tumble

    After a slight uptick in performance at the close of last year, Ralph Lauren sales have tumbled.

    Compared to 2015 – when total revenues declined by 5 per cent, wholesale by 9 per cent, and retail by 3 per cent – the latest sales figures are decidedly weak.

    In the first quarter of the new fiscal year, net revenues fell for a fifth straight quarter, dropping 4 per cent to US$1.6 billion

    The wholesale numbers are wholly understandable and are thanks, in large part, to the car-crash that is the American department store channel. While Ralph Lauren has representation in stores like Macy’s the fact that its sales areas look like a flea-market do nothing to help the brand or its revenues. This is further exacerbated by the generally weak customer traffic at department stores across the past few months.

    The retail numbers are much more of a disappointment, and a concern given that this division delivers the largest chunk of revenue. Ralph Lauren has been keen to emphasise its Way Forward Plan, which it says is changing the operational structure of the business so that it can deliver growth. As much as many of the actions are prudent, it feels like the company has been turning itself around in perpetuity. At some point, these actions need to deliver growth – something they are currently failing to do at either the sales level, or on the bottom line where the company posted a $31 million operating loss for the quarter.

    Decisive action is needed to put the brand on the right track. This includes withdrawing from department stores like Macy’s which are now actively damaging the Ralph Lauren brand, and focusing only on more upscale department stores like Nordstrom and Neiman Marcus as sales channels.

    A proper brand review is also needed as Ralph Lauren has become muddled and confused and is simply not competing effectively against brands like Vineyard Vines, which have good traction with younger, high spending consumers. Some action has already been taken to simplify the brand structure but much more clarity is needed in communicating the various parts of the offer to consumers. At present the various parts of Ralph Lauren are too hit and miss.

    Reconnecting with younger consumers is also a priority. Rather like Tiffany, Ralph Lauren is seen as an older, established brand that, while not actively disliked, is less relevant than it was a generation ago. Spin-offs like Club Monaco and RRL have helped to remedy this, but the company needs to put more energy and effort around extending and expanding their reach.

    That said, current plans should deliver some cost savings over the course of this fiscal as operations are streamlined. However, expect the plan’s impact on revenue to be negative across at least the next quarter.

    • Håkon Helgesen is a retail analyst at Conlumino.
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  • Pop up stores change Korea retail face

    Pop up stores change Korea retail face

    More and more specialised retailers or service providers – ranging from barbershops to paint stores – are making appearances inside Korean department stores.

    These special shops are appearing as pop up stores rather than taking up permanent residence. The phenomenon is the result of retailers choosing pop up stores to publicise their brands, which allows them to avoid sales pressure that comes with leasing permanent space in a department store.

    Lotte Department store has opened a Club Monaco Men’s shop. The barbershop Herr’ has been added to the already existing select shop, offering consulting services related to style and haircuts. The barbershop is also offering customers a traditional English wet shaving. It is the first time for a barbershop to enter an apparel store, which makes the ‘special store’ extra special.

    A pop up store called Men’s AGIT gathered many popular hobby goods such as cameras, camera accessories, drones, plastic figures and RC cars in one spot.

    Another notable pop up store is the ‘Home and Tones’ shop at Hyundai Department Store. Since the number of people redecorating their homes by themselves has increased, Samhwa Paint has been managing a pop up store since September 7. Eco friendly paints, as well as paint that turns into a blackboard when applied are exhibited, and paint that can be mixed on-site through toning machines, are drawing the attention of consumers.

    The ’99 Avant’ pop up store sells the creations of young artist Han Seung-woo. Hyundai department store officials say that the pop up store is gaining positive reaction from customers as they can communicate with the artist in person.

    Shinsegae department store made space on its sixth floor just for pop up stores. Many brands including whiskey brand Balvenie’s ‘craft lounge’, shoe care brand ‘Resh’, and BMW’s Mini cars and bicycles have all opened pop up stores at the location.

    Shinsegae officials mentioned that the sales of pop up stores are threatening sales at official stores.

    “Now, already existing brands are also using popup stores as a method to introduce their new products. Department stores are also benefitting from the pop up stores because various brands can be presented so customers have no time to be bored.”