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Tag: crabtree & evelyn

  • Crabtree & Evelyn stores closed and brand moves to E-commerce

    Crabtree & Evelyn stores closed and brand moves to E-commerce

    Beauty-products brand Crabtree & Evelyn halved its losses in the first half of the year as parent, Hong Kong-listed Nan Hai Corporation continued its transformation from offline to online.

    Since January, Crabtree & Evelyn has closed all of its 150 traditional retail stores across eight countries, shifted its manufacturing and distribution to third-party providers and sold its Australian warehouse.

    Nan Hai Corporation CEO Liu Rong said that while traditional retail companies continue to struggle or close, “Crabtree & Evelyn is now ahead of the market in meeting the challenges of the current and future business environment”.

    Crabtree & Evelyn is the only retail activity business by Nan Hai Corporation, whose principal areas of focus are cinemas, news media, and property investment.

    The brand’s sales for the six months to June 30 reached HK$166.5 million (US$21.2 million), down from $288.5 million during the same period last year. The brand lost $185.1 million, down from $363.5 million.

    Liu said the decrease in revenue but lower loss were due to the effective execution of the innovative business restructuring initiated last November.

    Crabtree & Evelyn’s new focus on direct e-commerce drove online revenue to approximately $64 million, an increase of 69 percent compared to the corresponding period last year.

    Sales in Mainland China increased to approximately $8.2 million, up 93 percent year on year.

    Liu says Crabtree & Evelyn’s new strategy is to transform its business from one of traditional retailing to an “OMO operating model”, (which we believe refers to Open Market Operations), starting from e-commerce.

    In the current half-year, Crabtree & Evelyn is rolling out its new branding and business model internationally which comes off the back of two years’ research and development.

    “All of these products have been manufactured by third-party partnerships, the first result of a faster, more flexible, and lower cost global supply chain,” said Liu in Nan Hai’s half-yearly results analysis.

    “A new global digital platform with full e-commerce and social functionality will be introduced in 35 markets, with corresponding investment in internal teams and capabilities. The new products will also be launched on online shopping malls via exclusive arrangements with Tmall global, Amazon, and Feelunique. Initial feedback from both the new millennial consumer and retail partners has been extremely positive.”

    Liu said he expects the relaunch of Crabtree & Evelyn will inject new vitality into the brand. “We have prepared for this relaunch with the brand communication, product portfolio, digital communication and distribution model, and the transformation of the operating model along with business restructuring required to attract more users to become loyal customers.”

    Previously, the company had said it planned flagship stores in major cities in the future, but this was not referenced in the half-year results summary.

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  • Crabtree & Evelyn Singapore closes all stores

    Crabtree & Evelyn Singapore closes all stores

    Crabtree & Evelyn Singapore is in the process of closing all of its 12 stores on the island and will move exclusively online. The closures follow the placing of the Canadian business into bankruptcy protection last month, resulting in the closure of its 19 stores there as it liquidates its stock. Crabtree & Evelyn was founded in the US in 1972, expanding to the UK in 1980. It was sold to a Malaysian company in 1996, with its US subsidiary entering bankruptcy protection in 2009, resulting in the closure of about a quarter of its store network.

    The business was bought by Hong Kong investment company Khuan Choo International in mid 2012 for US$155 million before being sold to the current owner, another Hong Kong company, Nan Hai Corporation, four years later. Listed on the Hong Kong stock exchange, Nan Hai’s primary business focus is operating cinemas and digital entertainment services, mostly in Mainland China. It has no other specific retail or cosmetics investments.

    In March last year Nan Hai said it had invested in expanding and revitalising the Crabtree & Evelyn product range and that it would expand the brand into the mainland: “Crabtree & Evelyn will fully enter the PRC market in 2018 and the development of [an] e-commerce platform and membership system will be its business focus for 2018, thereby creating synergy with the e-commerce and membership strategies of the group’s cinema operations, which would be beneficial to the long-term development of the group,” the company said in a stock exchange filing.

    Online expansion was also planned in Australia, Singapore and Malaysia, but it made no mention of closing stores and it is not clear in which markets it owns its retail operations and in which it has distribution partners.

    According to a report, the business there filed for bankruptcy citing “significant losses” due to changing consumer demand, rising competition online and an ongoing decline in footfall in its stores.

    Crabtree & Evelyn Singapore is expected to continue trading from two stores in the city – Ngee Ann City and Paragon – until January 31, where it will honour gift vouchers. It has wound down its offline loyalty program in favour of a new online version.

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  • Exclusives for I.T’s 30th anniversary

    Exclusives for I.T’s 30th anniversary

    I.T has been in fashion retail in Hong Kong and China for over 30 years, offering a wide designer portfolio.It is renowned for curating collections across international womenswear, menswear, footwear, accessories, and lifestyle that is tailored meticulously for the Greater China customer.

    At the turn of the century, I.T opened its first China flagship in Shanghai, one of China’s fastest growing markets.

    In 2017, the company launched its multi-brand fashion lifestyle platform ITeSHOP.

    “I.T now sets sight on creating a seamless omni-channel experience that will define the future of fashion” said Kar-Wai Sham, Founder and Chief Executive Officer of I.T Group.

    To envisage the digital landscape that will shape the next 30 years, I.T took the opportunity to invite its community of brands partners and creative talents to share their vision of the future.

    Their perspectives are expressed through a series of exclusive designs, capsule collections, artistic compilations and digital exhibitions that bids the viewer to visualise the future.

    I.T’s 30 th Anniversary Exhibition integrates a see-now-buy-now approach, with live digital kiosks and a shoppable app for exhibition-goers to fully immerse in an authentic digital shopping experience.

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  • US investor buys into Mitra Adiperkasa

    US investor buys into Mitra Adiperkasa

    US private-equity company General Atlantic has made its first investment in Indonesia by buying into lifestyle retailer Mitra Adiperkasa (Map).

    It has subscribed for Rp1.08 trillion (US$80.5 million) in bonds issued by Map which are convertible into shares in its F&B subsidiary Map Boga Adiperkasa (MBA), which runs Cold Stone Creamery, Godiva, Krispy Kreme, Pizza Express and Starbucks in Indonesia. It has more than 300 stores across 24 cities, and has more than doubled its store count over the past five years.

    Map runs multi-channel retail concepts in Indonesia across a diversified portfolio of department stores, sportswear, specialty fashion, F&B, and lifestyle products. It has nearly 2000 retail stores.

    “We believe the rapid rise in Indonesia’s middle and young working classes, the increase in this population’s disposable income, and the continued rural-to-urban migration represents an opportunity for us to strengthen our international food brands and cement our leadership position in the F&B market,” says Map CEO V.P.

    Sharma. A portion of the investment money will be used to accelerate the F&B division’s network expansion.
    “Indonesia’s domestic consumption comprises more than half of gross domestic product, and consumption patterns are increasingly shifting toward modern and aspirational lifestyle brands,” says General Atlantic Southeast Asia head Wai hoong Fock. “These secular trends position MBA’s food & beverage portfolio well for further expansion.”

    Regional commitment

    The partnership, General Atlantic’s first investment in Indonesia, indicates its commitment to long-term market prospects in South-east Asia,” says Fock, who joined General Atlantic from CVC Capital Partners last year to lead its South-east Asia investing program. He is based in the firm’s Singapore office.
    General Atlantic has 18 investment professionals in Asia, based in offices in Beijing, Hong Kong, Mumbai and Singapore. The firm opened its Singapore office in 2011, investing three years later in Singapore-based online mobile entertainment/communication Garena platform. It has also supported the growth of retail and F&B companies including lifestyle brand Tory Burch, luxury fashion brand Zimmermann, restaurant group Barteca Holdings, urban juice-bar concept Joe & The Juice, community accommodation marketplace AirBNB and transportation network company Uber.

    Map has 1921 retail outlets in 68 cities throughout Indonesia. Its retail concepts include department stores (Debenhams, Galeries Lafayette, Seibu and Sogo), fashion and lifestyle (Crabtree & Evelyn, Kipling, Lacoste, Marks & Spencer, Massimo Dutti, Nautica, Sephora, Swarovski, Topman, Topshop and Zara), sports (Converse, Golf House, Oakley, Payless ShoeSource, Reebok, Rockport, Skechers, The Athlete’s Foot and The Sports Warehouse), F&B (Burger King, Cold Stone Creamery, Domino’s Pizza, Godiva, Krispy Kreme and Starbucks), kids (Kidz Station and Oshkosh B’Gosh) and bookstore Kinokuniya.

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  • Nan Hai plans big China push for Crabtree & Evelyn

    Nan Hai plans big China push for Crabtree & Evelyn

    Nan Hai Corp. is planning a big push in the mainland China market after acquiring a company that manufactures and sells skincare products under the Crabtree & Evelyn brand.

    The Hong Kong-listed firm has received leasing invitations from several shopping malls in the mainland, and is planning to open its first Crabtree shop in a first-tier city, the Hong Kong Economic Journal reported.

    It aims to leverage the brand image and establish points-of-sale in various retail locations, including movie theater complexes and food and beverage outlets, the report said, citing Yu Xin, managing director of Nan Hai’s subsidiary Dadi Digital Cinema.

    Nan Hai plans to set up sales spots at its 270 movie theaters across the country to promote cross-sales and electronic commerce.

    Crabtree & Evelyn has 30 retail shops in Hong Kong and an aggregate of 4,000 sales spots around the globe.

    The brand’s sales in Asia and North America declined last year.

    Yu expects profitability to improve due to integration of resources and supply chain, as well as fresh marketing initiatives, once the acquisition is completed.

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