Retail News CRM

Tag: Furniture

  • Ashley HomeStore adds stores in Vietnam and more

    Ashley HomeStore adds stores in Vietnam and more

    American furniture store chain Ashley HomeStore has expanded globally with new stores in Vietnam, Thailand and New Zealand. In support of the move, the company has established a 400,000sqft consolidation warehouse in Vietnam’s Ho Chi Minh City. The new facility will allow a faster order response time.

    The firm’s president and CEO Todd Wanek said: “As a company, we’ve achieved many milestones this year. The largest has been the growth of our global footprint, which exceeds 900 HomeStores worldwide. This major accomplishment stands as a true testament to our global brand recognition.”

    HomeStore now operates in 54 countries with 310 locations.

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  • Asia becomes Laura Ashley’s last hope

    Asia becomes Laura Ashley’s last hope

    Fashion and home furnishings brand Laura Ashley will close 40 stores in the UK as it prepares to expand into the Chinese market. The firm has already gone through a round of 40 closures since 2015 against flagging interest from British consumers, which has seen a reported 14 shops closing every day in the territory.

    Laura Ashley runs a regional office in Singapore focused purely on e-commerce into China, with plans to look at physical stores rollout after establishing a significant foothold in digital retail there.

    According to Khoo, the company is “moving to Asia in a much bigger way”.

    The brand is wholly owned by Malayan United Industries (MUI), which is currently restructuring parts of its business and rationalising assets. The brand will be expanding the 120 British Laura Ashley stores that remain following the closures to better showcase the brand.

    MUI’s executive chairman Andrew Khoo Boo Yeow said: “It doesn’t really matter if [customers] buy online or offline, we just want them to get inspired … It’s a challenging environment and it could become more challenging”.

    In Australia, the remaining 16 Laura Ashley stores will close this month after the company failed to find a buyer for the business, which was run under a licence. It was placed in administration for the second time in two years on December 3.

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  • Nome Sweden revealed massive expansion plan in China

    Nome Sweden revealed massive expansion plan in China

    Swedish designer brand Nome has launched a new store at Guangzhou Baiyun Wanda. The brand plans to open more than 300 stores in China’s most central shopping centres within a year, with a projected total turnover of more than RMB2 billion (US$290.6 million).

    In the next three to five years, Nome plans more than 2000 stores in China and in excess of 1000 stores overseas. The global business scale is planned to reach RMB50 billion ($7.265 billion), creating a global brand of home furnishing.

    To mark the Guangzhou launch, the brand installed a modernised version of a traditional Guangzhou postal kiosk outside the store. The reimagined newsstand featured a translucent shell emanating blue and white lights to evoke a Nordic style, perceived by the brand as having become more popular amongst Chinese consumers in recent years.

    Swedish designer brand Nome covers 10 categories and more than 3000 SKUs in store, including lifestyle, home, furniture, clothing, digital, beauty, food, shoes, luggage and travel items.

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  • Lotte brings in The Conran Shop to Korea

    Lotte brings in The Conran Shop to Korea

    ondon-based high-end furniture and home furnishing store chain The Conran Shop will open its first South Korean outlet in the second half of next year in partnership with the country’s leading department store chain Lotte Department Store.

    Lotte Department Store said on December 13 it has signed a contract to run Korean stores of The Conran Shop with Conran Retail and Brand Holdings. They aim to open The Conrad’s first local outlet in the second half of next year on an area of 2,314 square meters in the affluent Gangnam district of southern Seoul.

    Founded by British designer Terence Conran in 1974, The Conran Shop is a leading luxury retailer offering various home interior products from some of the most iconic designers of the world. It now runs 10 stores in the UK, France and Japan.

    The partnership with The Conran Shop is part of Lotte Department Store’s push to bolster its living goods and home furnishing business at a time when the home interior market is burgeoning in the country.

    Korea’s major conglomerates have recently turned aggressive in expanding their presence in the home furnishing market that has rapidly grown since Swedish furniture and home furnishing giant IKEA landed in the country in 2014.

    Lotte Department Store expects the Conran Shop’s Korean operation will position differently from other home furnishing chains with its luxurious items and plans to add more the Conran Shop outlets in Korea later, according to a company official.

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  • Jysk Thailand to open 30 stores in five years

    Jysk Thailand to open 30 stores in five years

    Scandinavian furniture and homewares brand Jysk has launched its first store in Thailand with local franchise partner Boonthavorn Group. Located in a Ratchapruk shopping centre, the opening is the first of a planned six Jysk Thailand stores, with 30 anticipated to open within five years. A flagship and a small subway station outlet are among the stores scheduled to open shortly.

    Jysk Nordic’s franchise director Frederik Kare Kroun said one of the strengths of Jysk is its ability to be close to its customers by having a widespread network of stores.

    “That requires a good franchise partner, and by partnering up with Boonthavorn Group, I believe that we have an extremely strong foundation for the operation in Thailand.”

    Boonthavorn Group CEO Sitthisak Tayanuwat said: “Boonthavorn, with 40 years of experience with home styling products, will now place Jysk in its 51st country. To achieve this no less than 30 branches are planned to open all over Thailand within the coming five years.”

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  • Ikea China biggest project revealed

    Ikea China biggest project revealed

    Swedish furniture group Ikea will build a US$1.2 billion, 430,000sqm shopping complex in Shanghai, to be completed by 2022. The new Ikea China centre will house an Ikea store and an additional 120,000sqm in retail area, hosting more than 300 businesses. It will also include 60,000sqm of office space.

    The move represents the largest single investment the firm has made in one location, and is its sixth complex to be announced or built in China. It will be constructed near the Hongqiao airport as the Shanghai Linkong Project.

    Ikea has completed three Livat-branded shopping centres in China, and has 26 stores across the country. Two other shopping center projects have been announced within the territory.

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  • Poltrona Frau has opened a new retail space in China

    Poltrona Frau has opened a new retail space in China

    Italian furniture maker Poltrona Frau has opened a new retail space in Ningbo, China. The new 340sqm, single-floor shop presents a range of living spaces that alternate between living area and bedroom, dining room and home office according to the Poltrona Frau philosophy.

    The retail concept is designed to convey the atmosphere of a real home.

    Pieces on display include classic and contemporary designs, from early 20th century armchairs to recent Chinese lighting collections. The store features an area dedicated to showcasing the brand’s leather bookcase.

  • Gome Retail sales free falling

    Gome Retail sales free falling

    Gome Retail has plunged US$64million into the red as its restructuring program takes its toll. The company took the unusual step of releasing third-quarter financial data, which shows group sales were down 11.2 per cent in the first nine months of the year, to $7.3 billion.

    Total gross merchandise volume (GMV) of the group for both online and offline grew by 4.83 per cent year on year, with its e-commerce business growing by 26.04 per cent.

    Gome’s consolidated gross profit margin was 18.06 per cent, up by one percentage point compared with the same time last year.

    But the loss for the period contrasted with a $31.7 million profit last year.

    Gome issued a profit warning early this month, with the actual figure turning out to be at the top end of its projected range. While yesterday’s statement did not include any commentary, the company has made considerable effort to keep shareholders aware of the scale of the task it faces and the short-term pain required to effect the restructuring plan.

    Gome Retail is integrating its online and offline business and promoting a new ‘Social + Business + Sharing’ shared retail model. As part of that strategy, the company is combining its electrical appliances, home decoration, household systems and supermarkets to create sizable “experiential stores” in tier 1 and 2 cities. The group is also optimising its platform to include the Xiaomei Net Cafe, VR Cinemas and Gome esports.

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  • Ashley furniture now available in Thailand

    Ashley furniture now available in Thailand

    US furniture retailer Ashley has launched in Thailand, partnering with local home furnishing and decor chain Chic Republic. The move is expected to help the brand capitalise on growing market demand and consumer purchasing power in the territory. Ashley president and CEO Todd Wanek said Thailand is a critical and potentially huge market for Ashley, due to its fast-growing middle-class affluence and population of 70 million.

    “There is huge demand for American contemporary and transitional looks in Thailand. This is why Ashley took the time to find the right partner, test the market thoroughly and made this decision after more than three years of finding the right fit.”

    Chic Republic’s strategy for expansion aims to target mid- to high-income consumers.

    It aims to sell Ashley’s products online via www.chicrepublicthai.com, and at four retail stores in Bang Na, Pradit Manutham, Ratchaphruek and Pattaya.

    Chic Republic CEO Kijja Pattamasattayasonthi said the outlook for furniture and home decor sales for the remainder of this year and into next is positive, due to demand from middle- to high-income customers, whose spending confidence has increased, as well as support from the increasing numbers of low-rise and high-rise high-end property projects.”

    Ashley has operated globally for more than 70 years, and has worked in the Asia-Pacific region for five years. It has more than 850 branches in 150 countries and brought in global sales of more than US$6 billion last year, accounting for 5 per cent of the brand’s total sales.

  • IKEA announces new retail direction globally; to hire aggressively in India

    IKEA announces new retail direction globally; to hire aggressively in India

    Ingka Group (Ingka Holding B.V and its controlled entities) is accelerating its transformation, stepping up investments in new and existing IKEA stores and fulfilment centres, developing city centre formats and focusing on its e-commerce platform, to better meet the needs of its customers and be more convenient and affordable to many more people.

    Building on many years of solid growth and as part of a transformation, Ingka Group is assessing all parts of the organisation and is simplifying to enable a greater focus on adding value to its customers. As a result, in the coming 2 years 11,500 new jobs will be created globally, through opening around 30 new IKEA touchpoints, investments in its fulfilment network and in digital capabilities. At the same time 7,500 jobs may become redundant globally, out of the current 160,000 jobs, mainly focusing on global functions and offices in 30 markets.

    Jesper Brodin, Chief Executive Officer, Ingka Group says: “We continue to grow and perform strongly. At the same time, we recognise that the retail landscape is transforming at a scale and pace we’ve never seen before. As customer behaviours change rapidly, we are investing and developing our business to meet their needs in better and newer ways. We will put greater emphasis on making our existing stores even better and taking the opportunity to renew and reinvent our business in a way that is inspired by our history, culture and values. Together these elements guide our work and build our inclusive, open and honest culture, and we’re going to support our co-workers in the best possible way throughout this change.”

    To support the biggest transformation in the history of the Ingka Group, IKEA India has already adopted its expansion approach. Through its expansion in India, it will create many more direct and indirect jobs. The number of co-workers is expected to grow from the current strength of 1,500 co-workers to over 15,000 co-workers in the future, out of which 50 percent will be women. Besides jobs in the stores and new city centres, the company will also create a lot of new roles in areas such as digital, data analytics, diversified fulfilment networks and personalisation. Certain existing roles will change and the company confirmed that all its co-workers will get to explore new opportunities in the new organisation. 3,000 new jobs are expected to be created in the next two years in line with its growth plans and transformation.

    Peter Betzel, Chief Executive Officer, IKEA India says, “We are in an exciting time at IKEA India. We have recently embarked on our retail journey here and have the unique opportunity to implement our new retail direction from the beginning itself. The India organisation will align with the new global structure and competencies to build a future ready organisation in terms of skill sets. IKEA India will hire many more people, both in terms of direct and indirect employment, and as we start our digitisation journey, we will add many more co-workers with different skill sets, while also creating avenues for our existing co-workers to grow in many new roles.”

    IKEA India, part of the Ingka group and one of its most recent retail markets is as one of its most important long term markets. It is on track to invest Euros 1.5 billion and aims to be present in many Indian cities in the coming years. Mumbai will be the first megacity in India to offer the full in India including city centre formats, large stores and a strong digital offering next year. IKEA intends to reach 200 million Indians in the coming three years through different channels. Globally in Ingka’s top 30 mega city strategies, three Indian cities – Mumbai, Bangalore and Delhi are included which reinforces IKEA’s belief in the potential of India.

    In August 2018, it opened its first India store in Hyderabad and will enter Mumbai next with online and stores.

    IKEA has been present in India with IKEA Purchasing and IKEA Foundation businesses. The purchasing organisation has been sourcing from India for close to 35 years for its global stores. Currently it has 55+ suppliers with 45,000 direct employees and 400,000 people in the extended supply chain. The long term goal is to maximise local sourcing to increase affordability and also tap into the many sustainable raw material India has to offer to create more sustainable products in its range. It also works with 1500 women artisans through two social entrepreneurs, one of who is based in Karnataka.

    IKEA Foundation, its philanthropic arm has been working with the communities for 18 years. It has partnered with public and private organisations for the DISHA skill development program to empower one million marginalised Indian women to join the retail workforce. The IKEA Hyderabad store that recently opened has employed around 100 women from this program.

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  • Ikea to open world’s largest store in the Philippines

    Ikea to open world’s largest store in the Philippines

    Ikea Philippines says its first store will take up an enormous 65,000sqm space, making it the world’s largest. The current largest Ikea store globally opened in Seoul in December 2014 and takes up 59,000sqm. Local franchisor Inter Ikea Systems, which operates the homewares and furniture retailer in Malaysia, Singapore and Thailand, chose to partner with SM Malls for its Philippine launch. The store will become an anchor of the giant Pasay mall, and its largest tenant when it opens in 2020.

    The size of the store reflects the huge consumer catchment: more than 5 million households within 60 minutes drive.

    Inter Ikea says the store will stock 9000 products and host a warehouse to fulfil online orders and an integrated call centre. A Philippine-specific website will launch prior to the store opening to help build brand awareness and offer design inspiration.

    “The Ikea vision is to create a better everyday life for the many people, so we are excited to be bringing our offer to a country where millions of people share our passion for home,” said Ikea Southeast Asia MD Christian Rojkjaer.

  • 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.

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  • 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.

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  • Foreign names dominate Vietnam’s high-end home interiors market

    Foreign names dominate Vietnam’s high-end home interiors market

    Foreign home interior brands and designers are present in force and dominating the increasingly affluent Vietnamese market. Brands like Cassina, Badari Lighting, Cantori, Diemme Cucine, Formitalia, and Versace Home have entered the high-end interior market in recent years.

    According to the Vietnam Chamber of Commerce and Industry (VCCI), some 80 percent of luxury woodwork and interior decoration items is imported from Europe, with local players making up the small remaining portion. The market is valued at $2.5 billion.

    Ly Qui Trung, general director of AKA Furniture Group, said the expansion of the “middle and affluent class” has boosted demand for luxury interior items.

    “It is no wonder that many high-end international interior brands have started rushing into the Vietnamese market.”

    The middle and affluent class, categorized as those earning $714 a month or more, would double to 33 million, about a third of the population, between 2014 and 2020, the Nikkei Asian Review reported recently citing a study by the Boston Consulting Group.

    Market research firm Nielsen estimates the number of middle and affluent class Vietnamese to reach 44 million by 2020 and 95 million by 2030.

    Paolo Lemma, Italian trade commissioner to Vietnam, believes there will be higher demand for interior design items in future due to the booming real estate market.

    According to the HCMC Handicraft and Wood Industry Association (HAWA), woodwork furniture consumption last year was estimated at over $3.2 billion and that number is expected to reach $4 billion this year.

    Huynh Van Hanh, vice chairman of HAWA, said the industry’s average growth rate has been 8 percent in the last seven years, and his association encouraged domestic manufactures to enter this growing market.

    Trung said his company would seek to tap the growing high-end segment in future, and expected fierce competition between domestic and foreign brands.

    Last year Vietnam exported $8 billion worth of wood and forestry products and has a target of $9 billion this year.

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  • Dubai’s Danube Home makes debut in India

    Dubai’s Danube Home makes debut in India

    Danube Home, part of Dubai-based diversified business conglomerate Danube Group, has forayed into India by opening its first store in Hyderabad in October 2018. The brand has high hopes for the Indian market. In an exclusive interview with IMAGES Retail, Shubhojit Mahalanobis, General Manager, Danube Home says, “We see India as a country with huge potential, offering an incredible opportunity for growth. The real estate sector is at its peak in India with numerous properties, towers, communities and complexes coming up for both residential and commercial purposes. This directly contributes to a rise in demand for home furnishing products and solutions. Moreover, demonetization and GST has made operating in India much easier for international brands.”

    “Reports say India is expected to see a faster expansion of urban population consisting of aspirational millennials and middle class families with spending power that will trigger the growth in demand for affordable home furnishing products and solutions. For a brand like Danube Home that offers home furnishing products and solutions, this is a very promising time to enter the country,” he adds.

    Danube Home, which will be sourcing 30 percent from India to complement the government’s initiatives, has done an extensive study on Indian consumers, their buying behaviours, color and lifestyle patterns. Based on the research, the store that spans across 60,000 sq. ft offers more than 20,000 products under one roof targeting the middle and upper-middle segment of pyramid.

    The USP

    The Danube Home store in Hyderabad has all the key features and benefits that global consumers are experiencing across the Middle East. However, its India product portfolio will be a lot different from the Middle Eastern market.

    “We have handpicked collections to cater to the well-travelled modern Indian consumer with products from various parts of the world such as US, Netherlands, Spain, Italy, Russia, Malaysia, Turkey, Egypt, UK and China, to name a few, giving customers a great opportunity to shop the best quality products at value for money price,” states Mahalanobis.

    “In addition to this, customers will enjoy free interior designing services and seamless payment solutions with consumer financing options,” he states. These key features ensures 90 percent of repeat customers.

    Danube Home, which starts as an online player and plans to go Omnichannel eventually as traction picks up, aims to offer complete home solutions, for instance other brands who sell sofa or beds do not sell wall paper or customized curtains, but Danube offers end-to-end solutions that include everything from outdoor furniture to sanitary ware.

    “We focus a lot on our customer service standards and ensure both pre and post sales is a memorable experience which is why we have been awarded the No. 1 furniture retailer by the Dubai Government. We have a dedicated post sales team that makes direct calls to ensure everything goes smoothly post sales. This is an important step of the whole brand experience,” explains Mahalanobis.

    Their customers also experience Augmented Reality, Virtual Reality, Online Seamless Shopping and many new technologies that Danube offers in its markets abroad. Customers will also be able to walk through their dream home in Virtual Reality.

    “Danube Home offers global quality products at local price. We source our products from across the world and design our collections looking at customers behaviour and needs. Gradually, the Indian consumers shall experience various innovative and engaging little touches which we hope will be unique to us. That is what the brand is all about,” he adds.

    Marketing Plans

    As far as marketing plans of the brand is concerned, Danube Home has mixed conventional and unconventional mediums to connect with the brand’s ethnicity. The brand has taken the ATL, BTL, social and guerrilla marketing routes.

    “We have added fun, interactive elements and image build up activities. We are targeting middle class and upper middle class millennials, double income no kids section and nuclear families. Our key focus remains with builders, architects and the designers’ segment, who shall be amazed to see our collection and price offerings for their projects,” says Mahalanobis.

    The brand will be using all the mediums – print, TV and online – to advertise itself in India to get the maximum ROI.
     
    Human Resources

    Besides, the entry of the brand in the Indian market will not only create 1,500 direct jobs, but also support local industries that will benefit from the supply chain as it will deepen, sourcing products from every nook and corner of India.

    “This will also help us to create a greater demand for Indian designed home décor and home furnishing products and export them to other markets – such as the GCC – where we have a strong presence,” states Mahalanobis.

    Each store of the brand will employ around 85-100 direct employees and 50 indirect employees, logistics department will have 50-75 employees during the initial days and gradually with the increase in strength of stores, the count will also increase.

    “We hire the best from the industry, train them rigorously sharpen their skills aggressively and keep them motivated for a long period of time to deliver great results. The India team will also experience our team bonding and training methods, and hopefully, they will also deliver miraculous results,” he says.

    The brand believes in flexible work culture driven only by performance based rewarding, empowering the team and giving them enough freedom to bring success.

    Apart from this, Danube Home has a plethora of employee engagement activities like multiple outbound training programs at various levels, product launches at off-sites involving the power sellers, runs reward programs and engage in healthy competition atmosphere within each peer group.

    Future Plans
     
    Danube Home plans to set up 10 large format showrooms, a large logistics hub, transport network and associated facilities in the next 5 years.

    “We have identified potential locations across the North and South Indian States. Once the properties are signed, the plan would be disclosed,” says Mahalanobis.

    The average store size in India will be between 40,000 – 50,000 sq. ft depending upon the space and layout of the store. Depending upon the size of each store, average investment per store will be Rs 40 crore. The brand is already in talks with few big mall developers and hopes to partner with them for aggressive pan India expansion.

    “We target to grow 15 percent like-for-like each year for the initial 5 years. We don’t want to be bullish about the growth unless we settle down and understand the market deeply,” he concludes.

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