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  • LVMH’s 2018 sales revenue hits record high

    LVMH’s 2018 sales revenue hits record high

    Following a record-breaking year of sales in 2017, LVMH recently announced that it has surpassed its earnings record in 2018. The French multinational luxury goods conglomerate revealed that it made an incredible €46.8 billion EUR (approximately $53.4 billion USD) last year. Additionally, the impressive feat comes with a record net profit growth of 18 percent.

    LVMH is noting that it was the profitability of Louis Vuitton and Dior that lead to its strong 2018 earnings. The fashion and leather offerings from the two labels has been credited with driving the double-digit increase in both revenue and profit.

    Moving into 2019, it is expected that Virgil Abloh and Kim Jones will be amplifying the popularity of the two houses.

    LVMH also noted a state of reorganization of the Marc Jacobs label, and looked back on the global response to Hedi Slimane‘s inaugural collections for CELINE.

    Aside from a mixed critical reception, LVMH is ambitiously looking towards Slimane’s place at CELINE.

    The results were roughly in line with analysts’ forecasts.

    Bernard Arnault, chairman and chief executive, said LVMH expected its brands and companies, which include Louis Vuitton, Christian Dior and Moët & Chandon champagne, to deliver continued progress in 2019 in spite of “an environment that remains uncertain at the start of the year”.

    Sales growth was steady in all regions in the fourth quarter except the US — similar to the performance earlier in the year, according to Jean-Jacques Guiony, finance director.

    Organic growth in Asia, excluding Japan, was 15 per cent compared with last year. Sales in Europe were up 7 per cent on the same measure, while in the US they climbed 8 per cent.

    “We see no particular sign of a slowdown in the China market,” he said, although purchases by Chinese customers had shifted slightly to the mainland from Hong Kong and other east Asian markets, perhaps because of a weaker renminbi. “The market sees the glass as half empty. We see it as half full.”

    Luxury goods companies and other exporters dependent on sales to China are bracing for the impact of the country’s economic slowdown and for possible fallout from any worsening of the US-China trade conflict.

    In recent days, companies including US chipmaker Nvidia and Caterpillar, which sells earthmoving equipment, have blamed China’s slowing growth for disappointing profit predictions.

    Mr Guiony said luxury goods consumers tended to be affected more by sudden shocks than by gradual changes in economic conditions. “If there was to be real trade war between the US and China — and we’re not there yet — that would have an effect,” he said.

    The company also performed well in Europe, Mr Guiony said. Although LVMH had to close early on several Saturdays because of the gilets jaunes protests in France, many customers had switched to Sunday shopping and there was no obvious impact on LVMH’s numbers in the latest quarter.

    LVMH said it was stockpiling champagne and cognac in the UK in case of severe disruption from a “no-deal” Brexit.

    “We’ve added four months of stock in the UK,” said Philippe Schaus, head of Moët Hennessy, the wines and spirits part of the group.

    Profit from recurring operations in fashion and leather goods, the core of LVMH’s business, rose 21 per cent last year, accounting for €5.94bn of the total. The highest growth in profit from recurring operations came from watches and jewellery, at 37 per cent, and the slowest from wines and spirits, at 5 per cent.

    The company said it planned to lift the total dividend by 20 per cent for the year to €6.

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  • Louis Vuitton celebrates the launch of Virgil Abloh’s SS19 collection

    Louis Vuitton celebrates the launch of Virgil Abloh’s SS19 collection

    For those that have been patiently waiting to get their hands on Virgil Abloh‘s debut Louis Vuitton collection, the highly anticipated Spring/Summer 2019 offerings are now available online. The online release comes shortly after Virgil opened up an exclusive pop-up at Chrome Hearts’ New York City flagship.

    The Yellow Brick Road Hand-Knitted Crewneck, Poppies Dorothy Graphic Windbreaker and colorful Calfskin Cut Away Vest serve as notable garments from the collection. Standout carrying options include the iridescent take on the classic Keepall Bandouliere 50, Soft Trunk Messenger Bag, Mini Polochon Messenger Bag and a host of holster-style utility pouches. Rounding things up is Virgil’s take on LV’s iconic Millionaire Sunglasses, early Jordan Brand model-inspired LV Trainer Sneakers, and the LV Creeper Ankle Boot Timberland homage.

    Check out some of the items above and head over to louisvuitton.com now to shop Louis Vuitton’s SS19 collection.

    In case you missed it, Virgil Abloh recently launched a comprehensive archive of his work.

  • Handsome markets brands in Paris Fashion Week

    Handsome markets brands in Paris Fashion Week

    Handsome, a Korean fashion brand owned by Hyundai Department Store, brought two of its labels to Paris Fashion Week in an effort to expand on the global stage. System for Women and System Homme, the two Handsome brands, showcased their fall and winter collections in a rented showroom for eight days starting from Jan. 17. The Handsome event included a presentation of the collections followed by showroom events, where item were modeled for clients.

    The brands are presenting their new collection one season early to major buyers in the fashion industry.

    In addition to 180 buyers, the event was attended by the Wall Street Journal, Vogue and GQ as well as by fashion influencers.

    It was the first time Handsome has taken its brands to a foreign showroom since being founded in 1987.

    System for Women debuted in 1990 and System Homme in 2008. The company has also introduced other names, including Time, Mine and SJSJ.

    Handsome was acquired by Hyundai Department Store Group in 2012.

    At the Paris event, which featured 200 items for men and women, around 40 department stores from 14 countries participated. Samples were purchased ahead of possible quantity orders.

    It was a buyers’ who’s who. The list included representatives from Bloomingdales, France’s Le Bon Marche, Hong Kong’s Lane Crawford, Japan’s Isetan and Shanghai’s 10 Corso Como. Inquiries also came in from parties in Switzerland and Israel.

    “We predicted the number of businesses that would visit our showroom would be 40 at maximum. But since System Homme was introduced via major media outlets and social media after the presentation on Jan. 18, a great number of fashion businesspeople visited,” said a source from Handsome.

    The company said that visitors appreciated the designs as being unique and set apart from other major Asian brands.

    “In the case of businesses that received the samples, they will decide on quantity purchases in February, and in June, the main products of System [for Women] and System Homme will be sold at department stores and in multibrand shops of each country,” said a source from Handsome.

    Handsome is planning to use the Paris showroom event as a stepping stone for its international expansion efforts.

    In line with the strategy, it will complete its product development earlier and present new design concepts to the market one season ahead.

    It is rare for a ready-made brand to utilize this sort of advanced development.

    “Our brand is still new in the global fashion market, but we will elevate awareness to the point where we could open an exclusive fashion show at a foreign fashion week,” said Kim Hyung-jong, the CEO of Handsome.

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  • Sandro parent unphased by trade spat

    Sandro parent unphased by trade spat

    The parent of affordable-luxury fashion labels Sandro, Claudie Pierlot and Maje appears unphased by the Sino-US trade spat, vowing to continue its expansion in the region. SMCP’s CEO Daniel Lalonde said in an interview that the company plans to continue to open new stores in Mainland China and invest in e-commerce across the region.

    “From our perspective, everything is still intact [in China]. Any slowdown in our business is related to the comparison base … and we still expect to grow that market by more than 20 per cent this year,” Lalonde said. “We’re still confident on the region.”

    France-based SMCP is controlled by Chinese company Shandong Ruyi. This week it reported an 8.1 per cent increase in fourth-quarter sales to €276.1 million.

    SMCP has doubled its annual sales during the past four years, reaching €1 billion last year, largely due to rapid expansion in Mainland China. Asia is now SMCP’s third-largest geographic market behind France and the rest of Europe, with China accounting for the bulk.

    However, he said sales in Hong Kong were “a little softer” as a result of currency fluctuations between the Hong Kong dollar and the renminbi.

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  • Kering faces €1.4 billion Italian tax bill

    Kering faces €1.4 billion Italian tax bill

    Kering is facing an Italian claim for €1.4 billion (£1.2 billion) in unpaid taxes. The company’s Swiss-based Luxury Goods International (LGI) subsidiary has been under investigation for allegedly avoiding tax on earnings generated elsewhere. The probe has largely centred on Gucci, Kering’s star brand and biggest revenue driver. Italy’s tax police carried out checks at Gucci’s Florence headquarters and Milan offices in 2017, and drew up the report that has now been handed to Kering, a source close to the investigation said.

    Kering has consistently denied avoiding tax, saying its activities were fully compliant with all tax obligations.

    In its statement on Friday, the group said the Italian tax authorities’ findings for the years 2011-2017 had yet to be finalised by their own enforcement team.

    “Kering challenges the outcome of the audit report both on the grounds and the amount,” the company said, adding that it “does not have the necessary information” to record a provision against any potential bill for back taxes or penalties.

    The company has said that LGI is a substantial firm in its own right, with 600 employees handling inventory, billing and supply-chain logistics, with a business model “known to French and other competent tax authorities”.

    According to reports by France’s Mediapart newspaper and Germany’s Der Spiegel, Kering’s wholesale activities – the sale of products to retailers such as department stores – have come under particular scrutiny.

    Some business carried out by Kering employees in locations including Milan and Paris was billed through the Swiss unit, incurring lower tax rates, according to those reports.

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  • Lanvin names Bruno Sialelli as its new creative director

    Lanvin names Bruno Sialelli as its new creative director

    Luxury fashion house Lanvin announced the appointment of Bruno Sialelli to the role of creative director. A relative unknown in the fashion world, Sialelli has worked for other luxury companies including most recently, Loewe, where he was head of menswear, under the guidance of the Spanish company’s creative director, Jonathan Anderson. Chinese conglomerate Fosun, who acquired Lanvin in 2018, said that the 31-year-old Frenchmen was hired to take the company in a “pivotal new direction,” a crucial call for the world’s oldest couture house.

    Lanvin’s chief executive Jean-Philippe Hecquet harmonised the sentiment.

    “We’re thrilled to welcome Bruno as the new creative director of Lanvin,” commented Hecquet. “His singular and very personal vision, his audacity, his culture, his energy and ability to build a strong creative team definitely convinced us. I can’t wait to discover Bruno’s first collections which will fully bring back to life this beautiful and unique fashion house, and once again inspire a passion among our customers.”

    In what has been a rollercoaster of a ride for the high-end French brand, Sialelli will take the top design spot as the fourth creative director to work at Lanvin in just four years.

    In 2015, Lanvin announced the shock departure of the label’s acclaimed designer Alber Elbaz, who was let go after disagreements with its previous owner, Taiwanese media magnate Shaw-Lan Wang. Elbaz had worked as Lanvin’s creative director for 14 years prior.

    Since then, it has been a tough slog for the 130-year-old company, which at its peak in 2012, was reportedly made 235 million euros, but sales have been steadily dropping ever since.

    In 2016, Lanvin reported a massive 18.3 million euro loss, after ten years of profitability.

    Following Elbaz’s departure, Bouchra Jarrar joined Lanvin, but quit as creative director after just a year-and-half, making way for Olivier Lapidus, who also quit, making way for Siaelli, the brand’s ray of hope.

    Before coming to Lanvin, Sialelli has also held design roles at brands like Paco Rabanne and Balenciaga. He is a fashion graduate of Studio Berçot in Paris.

  • Gucci adds 6 new intriguing Gucci Places

    Gucci adds 6 new intriguing Gucci Places

    Luxury fashion brand Gucci has labelled six international destinations as ‘Gucci Places’ – a list that includes Daelim Museum in Seoul. The Gucci Places were selected by the Italian Fashion House as destinations that “surprise, arouse interest, and inspire a creative response”, according to a report in Prestige Online. They were chosen in collaboration with well-known artists who were tasked with visiting the place and record their impressions, establishing a visual journey of photographs, travel notes and sketches.

    Daelim Museum was named for its association with Coco Capitan, an artist whose calligraphy has appeared on Gucci collections.

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  • Net-a-Porter launches kidswear with Gucci

    Net-a-Porter launches kidswear with Gucci

    After its Gucci and Dolce & Gabbana childrenswear pop-up e-shops generated a resounding “more!” from Net-a-porter.com customers, the retailer is launching a multi-brand kidswear collective. By “collective”, Net-a-porter.com means, quite simply, a tight edit of brands which have all created exclusive capsule collections for the website. Yeah Right NYC Kids, Alanui Kids, ATM Kids, Chinti & Parker Kids, Lingua Franca Kids, Golden Goose Deluxe and Veja make up the list of seven labels for girls and boys ages one to 12.

    “The new year felt like the perfect time to launch this collective,” Elizabeth von der Goltz, Net-a-porter.com’s global buying director, tells Mini Vogue. “It’s January – kids are back to school but there’s this idea of cosiness and wanting to feel comfortable.”

    The capsules, accordingly, reflect this: cashmere sweaters, comfy cardigans, track pants and trainers populate the new section. “Whether it’s for ourselves or for our kids, we are always thinking about wellness in January so this this an extension of that – it’s luxe athleisure for kids!”

    If the list of brands feels more offbeat than the global labels Net-a-porter.com first dabbled in the kidswear market with, this was intentional.

    “As an online global retailer known for our distinct fashion point of view, we wanted to take this and bring it to the kidswear market, creating something different from traditional retailers.”

    Von der Glotz is particularly excited about the patterned cardies from Alanui Kids collection and the mini-me versions of Golden Goose and Veja sneakers – two of Net-a-porter.com’s best-selling shoe styles.

    The e-tailer is confident it has quietly developed a recipe for success: “Our customers have been highly engaged with all of our kidswear pop-ups with most styles selling out within just a matter of weeks of launching,” she continues.

    Four out of five of the Gucci products sold were logo T-shirts, and the fifth was the belt bag. “It’s so interesting to see, as the pieces are in such high demand in our adult range too.” Starting them early is certainly paying off for the business.

  • Sergio Rossi redefines the power pump

    Sergio Rossi redefines the power pump

    “It is a new definition of the power pump,” is how celebrity stylist Elizabeth Stewart describes styles from her capsule collection with Sergio Rossi. Stewart, who counts Julia Roberts and Viola Davis among her clients, celebrated the launch of the collaboration Thursday in Los Angeles at the Italian luxury brand’s pop-up store at Westfield Century City.

    Pumps and sandals in black, red and light pink are emblazoned with empowering words like “strength,” “hope,” “kindness” and “sharing.” The messages are meant to give women a chance to embrace style, substance and solidarity, with 100 percent of sales supporting Time’s Up, an organization dedicated to women’s safety and equality in the workplace.

    “I wanted the shoes to be a sort of a talisman for the wearer,” Stewart told Footwear News at the event. “First it was ‘strength’ and ‘power’. The idea being you can go on a job interview and you put them on and it gives you strength, but also I don’t want to forget things that women want to be, like kind and sharing. It’s a reminder and source of strength.”

    Sergio Rossi Group CEO Riccardo Sciutto said working with Stewart on the collection was an organic process as she has had a longtime relationship styling her famous clients in the brand’s shoes.

    “When you get trust, the relationship is stronger and it’s easy to do something together all the time,” Sciutto said, adding that it’s the label’s first time supporting a social movement issue.

    Though the words and messages on the shoes were easy to conceive, rendering them on the shoes proved to be a challenge. Initially, Serigo Rossi designers tried to emboss the verbiage, but the production technique used to pull the leather material made the words unreadable, Sciutto explained. To achieve the desired effect, the designers created a special technique to print the words in a slightly different but matching color on the material.

    Along with Stewart’s capsule, which is sold exclusively at the store through March 6, the space also features 37 different styles from Sergio Rossi’s resort ’19 and spring ’19 collections, as well as a customization bar.

    The temporary digs are a part of Sciutto’s retail expansion strategy in the American market. “Half of the business is in Asia, and the rest is split between Europe and America. America is the opportunity. It’s the smallest market for us,” he added.

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  • Burberry sales saved by Mainland China

    Burberry sales saved by Mainland China

    A mid-single-digit rise in Burberry sales in Mainland China in the third quarter helped produce a solid result for the luxury fashion retailer. The strong China performance helped mitigate reduced footfall in the Americas and a subdued European market where tourist spending showed only a small improvement. Global same-store sales rose just 1 per cent.

    However, CEO Marco Gobbetti said the company was buoyed by improvements and ongoing customer excitement ahead of new product delivery – the launch of new creative director Tisci Riccardo’s first runway collection which will hit stores next month.

    “I am pleased with our progress in the quarter as we continued to build brand heat around our new creative vision and shift consumer perception of Burberry. Excitement is growing ahead of next month’s launch of Riccardo’s debut collection,” said Gobbetti.

    “We will continue to manage the business dynamically as we reposition the brand. We confirm our outlook for the full year.”

    He said the company was seeing a continued shift in consumer perceptions of the brand, driving increases in digital engagement and drawing endorsements from key influencers. Increased Burberry sales can only follow.

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  • Calvin Klein seeking a New Creative Lead

    Calvin Klein seeking a New Creative Lead

    Less than a month after announcing the departure of Raf Simons, Calvin Klein is looking for a new creative lead, said a person with knowledge of the business. Chief executive officer Steve Shiffman said in a separate statement on Thursday that the brand will close its 654 Madison Avenue flagship store, which Simons renovated in 2017, relaunch its ready-to-wear line and consolidate some teams in North America.

    Shiffman said the brand will relaunch the 205W39NYC ready-to-wear line under a different name and a new creative direction. He kept the details vague, stating that the business will be “designed to evolve the traditional luxury fashion model by connecting with a diverse range of communities, offering an unexpected mix of influences and moving at an accelerated pace.”

    Some had speculated after Simons’ departure that Calvin Klein would not hire another creative face of the company, but instead take a collaboration approach similar to Moncler‘s recent strategy. But the search for a new design lead indicates otherwise.

    The source with knowledge of the business also said that several of Simons’ longtime collaborators have exited the business, specifically Pieter Mulier, creative director, and Matthieu Blazy, the design director of women’s ready-to-wear. Michelle Kessler-Sanders, president of the 205W39NYC business, will stay on in an executive position.

    Shiffman’s statement also announced the formation of a new consumer marketing division focused on consumer engagement and shopper experience. According to the source, this department is led by chief marketing officer Marie Gulin-Merle.

    Calvin Klein in North America will see further changes: Shiffman said the brand will consolidate the men’s sportswear and the Jeans businesses, and also integrate the retail and e-commerce teams.

    “Our industry is witnessing a historic transformation in consumer behavior which presents a significant growth opportunity as we look to grow the brand to $12 billion in global retail sales over the next few years,” said Shiffman.

  • Rihanna to launch a fashion house with LVMH

    Rihanna to launch a fashion house with LVMH

    WWD reported that, according to multiple sources, the Rihanna is working with French luxury conglomerate LVMH to launch a luxury house under her name. It would be the first time LVMH has launched a brand new label since Christian Lacroix in 1987. No word on an official launch date, but perhaps that is why Rihanna is suing her father now over the ‘Fenty’ name as he could be holding up proceedings with LVMH.

    The pairing makes sense. In 2015, Rihanna appeared in Christian Dior’s “Secret Garden IV” ad shot at Versailles, the first Black woman to front a campaign for the French fashion house. She also created a line of Dior sunglasses in 2016.

    What is more, she launched Fenty Beauty by Rihanna under the Kendo, LVMH’s incubator to produce products that ultimately end up in Sephora, or in this case, change the way beauty products are marketed.

    WWD reported that Fenty Beauty made close to $100 in a matter of weeks — a great sign for Rihanna’s impending luxury offering.

    Sources tell WWD Rihanna is a “hands-on type” who is very involved in the range’s product development (she was reportedly said to be the same way while creating for Puma and Savage x Fenty).

    It is believed LVMH started forming a team six months ago, handpicking employees from Louis Vuitton and Celine to work on the fashion house’s ready-to-wear, leather goods and accessories. And hold on to your Fenty x Savage hats here, the line is to be released in tandem with her ninth album expected to drop later this year.

    We already cannot wait to be fresh off of Rihanna’s runway.

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  • How to be a successful KOL in China?

    How to be a successful KOL in China?

    Why luxury brands willing to expand in China seems to never get enough of  so-called KOLs (key opinion leaders) Tao Liang, nickname “Mr bags”, is a graduate of the University of Southern California and Columbia University. Although he is only 26-year-old, he has already become one of the most successful digital influencers in China, in terms of the ability to drive sales.

    People call him Mr Bags because Liang has an unapologetic love for handbags. So, he has worked on capsule collections with different luxury brands such as Givenchy, Longchamp and Montblanc, boasting a huge following on WeChat and Weibo, which are two of the largest social media networks in China. And he also knows how to sell them to his over 3.5 million readers on China’s biggest social media platform Weibo and more than 850,000 followers on WeChat, a microblogging messaging app.

    In just six minutes, Liang helped Tod’s sell 3.24 million RMB worth of handbags on his new Mini Program shop within WeChat, called “Baoshop.” The second collaboration between the Beijing-based fashion blogger and Tod’s, 500 pieces of the limited-edition “Wave” backpacks were created — double the amount from last year’s capsule collection.

    But how did Liang become a sort of “bag whisperer”? He says that when he was studying in the universities in Los Angeles and New York, he fell in love with luxury bags and loved going on shopping sprees with his friends. It didn’t take long for him to realize that he could turn his passion for handbags into a full-time job but even after he started getting some traction while still in the US, his parents were not entirely happy with his career choice. “Only after I started working with big brands and celebrities like Fan Bingbing they thought that perhaps this was a real business,” he says.

    One issue that often comes up with KOLs is authenticity. When you work with different brands, how do you maintain your integrity without alienating your fans, who trust your opinions to be genuine and unbiased? “This is key for me and I really try our best to maintain that,” says Liang. “One of my advantages is that until not long ago I was based in the US so I wasn’t exposed to all the brand partnerships and advertising that the KOLs were doing in China so my content was 100 per cent pure editorial, but then I started working with brands and get first hand information while also giving my followers the right information and guidance.”

    So how does Mr Bags, a young man with an innate fashion sense and an encyclopedic knowledge of handbags, guide his followers and win their trust? He only works with brands that his fans “naturally love” and turns down offers all the time. Liang’s fan base is mostly female, and he feels that being a man is not a hindrance. On the contrary, by virtue of being a guy, he is able to provide useful and unbiased advice.

    “My name is Mr Bags and lots of people find this name interesting but also confusing because generally bags are for women,” he says. “Normally when girls shop for a bag they don’t think too much and buy it right away, on impulse, so I help them think more rationally. For example, I categorize all the bags and tell them which ones are the classic pieces and the ones that have more staying power and the most iconic ones so I provide some logic behind their purchases. I think that as a guy I’m more objective and I can give them useful tips. I tell them that if you buy a bag that you can use in your life and enjoy it then you feel that your money is well spent and worth it.”

    Liang believes that his editorial work must come first.“Many people think that KOLs just have fancy lives and go everywhere for fun but in China we have so many channels, like WeChat and Weibo, so it’s really a lot,” he says. “I was just updating my channels on the way here. Editorial content is more important for me; 60 per cent of what we do is still editorial.”

    Achieving the right balance between authentic content and remunerative ad-driven projects is the key factor for being a successful KOL, something that is not always as easy as it seems but Liang has already mastered so far.

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  • Jaspal unveils collection joined by Lynnie Z

    Jaspal unveils collection joined by Lynnie Z

    Thai fashion brand Jaspal has opened a new flagship store featuring its limited edition collaboration with London-based artist Lynnie Z. The partnership with Jaspal’s Hi Life collection marks the opening of the brand’s new IconSiam flagship. It is one of a series of partnerships between Jaspal and global artists to ensure that unique styles emerge each season.

    The Hi Life collection for men and women features stars, hearts, lips and faces as motifs with strong colour themes referencing Africa.

    “I was so honoured to be a part of such a wonderful project,” said Z. “Thailand has an outstanding heritage and Thai people love art and fashion, which is the reason why I decided to come on board. Also, I think Jaspal and I share the same artistic soul, and, more importantly, the brand fully understands the story relayed behind my works,” she said.

    “To me, this project was really wonderful, allowing me to create a masterpiece collection with a famous local brand, and communicate my inspiration, passion, and uniqueness through the collection. This is one of the best works I’ve ever created. As for the process in making this collection, for the most part, I came up with ideas and colours from my sketchbook. These are organic and abrupt but they reflect a liveliness that I wanted to communicate through the collection.”

    View the images of the collection below (6 images) :

  • Ikea to open first New Zealand store in Auckland

    Ikea to open first New Zealand store in Auckland

    Ikea will open a store New Zealand in the coming years, opting for the city of Auckland to bow its debut store. The Swedish firm, known for its buy-and-assemble furniture, will open up a pop-up shop in the coming months in the lead up to a fully-fledged flagship store, which would create 400 jobs in the city, according to local media reports With no an exact time frame for the megastore launch, Ikea’s New Zealand manager, Will Edwards, said that Ikea would open a pop-up shop in central Auckland, as a physical store would take a number of years to set up.

    “It does take time to build a truly big blue and yellow iconic Ikea store, it will take a number of years to get the full offer up and running but we don’t want to keep people waiting,” Edwards told media on Friday at a press conference, which also saw the attendance of Ikea’s global chief execute, Jesper Bodin.

    “It makes sense to be in Auckland where many people are living and also commuting in and out of. We’d like to give a piece of Ikea before the full meal comes along,” added Edwards.

    Ikea requires some 300 to 400 employees to run the Auckland store, as well as several hundred more staff to support logistics.

    Bodin said that New Zealand will get the “whole shebang”, with a product range of about 7000 items at least in the warehouse store.

    While price-points weren’t disclosed, Bodin said that “our ambition is always to be affordable for people and competitive with other retailers in New Zealand.”

    Ingka Group, Ikea’s largest franchisee and operator of Ikea stores in 30 markets around the world, was granted exclusive rights to explore options to expand into New Zealand.

    Founded in 1943 in Sweden, Ikea sells furniture and homewares to 1.2 billion customers around the world.

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