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  • Tracking the dynamics of India’s gym wear market

    Tracking the dynamics of India’s gym wear market

    Whether or not one shows dedication in maintaining their gym routine is debatable, but it is an undeniable fact that gyms are doing well when it comes to their membership registers being filled. India’s waking up to being healthy and this means tons of gym memberships. This also means that when one takes a gym membership, the very next thing they do is head off to stores that deal in gym wear. Or they just log on and buy gym clothes and accessories. The demand for gym and active wear is growing in India because of a desire to stay fit and healthy. IMAGES Business of Fashion takes a look at the market dynamics…

    Setting the context for the story, Pallavi Burman, Head – Marketing, HRX shares, “The Indian active wear industry is currently estimated at a whopping Rs. 8500 crore. It is expected to continue growing at CAGR 12 percent and touch expected sales of approximately 6X at Rs. 54,000 crores by 2020.”

    Burman attributes the reason for this to growing health and wellness trend in India along with an increase in the number of sporting clubs, increased interest in sporting activities like football, basketball, tennis, badminton and cricket, the Indian active wear industry is fast proliferating. She says, “More disposable income and general inclination towards fitness is rising and resulting in the growth of this industry.”

    Another major reason for an increase in demand for gym wear is having Bollywood celebrities being spotted in gym gear, especially the likes of Hrithik Roshan, Malaika Arora and Kareen Kapoor Khan. It isn’t uncommon to see Page 3 pictures of these celebrities in their gym wear. The glamour magazines often have pictures and articles of how celebrities are taking gym wear to the streets and this eventually does give a fillip to the demand for workout clothes in the country.

    Market Overview

    Perhaps the above well explains the emergence of active wear in the country. Where dedicated gym wear is opted for only by a handful few, those opting for working it out in the gym clubbing their active wear or sportswear as gym wear. No wonder then that brands in India too offer gym clothes under the category of ‘active wear’.

    Pallavi Burman decodes the difference between the often clubbed together categories of active wear, athleisure wear, sports / performance wear. “By definition, athleisure and active wear clothing are those which can be worn from studio to street. Sportswear or performance wear, however, is clothing which help athletes or sports persons enhance their performance specially items like shoes, technologies like compression, socks in some sports etc.”

    Nivida Kohli, Design Manager, Numero Uno shares her views, saying, “As of today each distinct category is reinventing itself. This is a phase where the consumer market is changing since there is a generic shift towards more flexible lifestyles. Once this change settles in, I believe there will be clearer newer distinct definitions for sportswear and athleisure.”

    However, a lot many online players have an exclusive category for gym wear and some have gone a step further to have their portals dedicated to offering nothing else but gym clothing.

    The emphasis is more on offering men’s gym wear than having something specialized for women and unfortunately in India, gym wear still consists of mostly leggings and sports brassieres, although bigger brands have started innovating for women as well now.

    Taking note of this gap, brand Mojostar in association with Bollywood actor Jacqueline Fernandes, recently launched their exclusive portal www.justf.in that is dedicated to women’s active / gym wear.

    Just F was launched after Jaqueline and CEO Mojostar, Abhishek Verma, realized the gap in the market for women’s gym / active wear.

    “Sportswear needn’t be super masculine, so we are introducing fusion elements, florals, and may even add lace to some designs,” says Jacqueline Fernandes in a media interview. She has actively participated in the designing of the brand and has ensured that little things are not given a miss like pockets in fitness wear, the positioning of the straps and hooks and the materials used for leggings.

    According to Abhishek Verma, the focus for the brand for now would be functionality and support. The brand is also going quite aggressive with their collection of sports bras.

    The research by the brand indicated that most of the international brands that are present in this category design their range keeping in mind the target audience of western countries, which don’t fit the average Indian woman. Another reason for launching Just F was to give Indian women appropriate exercise clothing at reasonable costs, especially since most international brands come with a hefty price tag.

    Growing Demand

    Pallavi Burman says that with Indians becoming more health conscious and image sensitive, their pursuit for fitness has increased. “The average age bracket for Indian fitness enthusiasts is 20-35 years, which makes for the majority population of young Indian students and professionals. This target set loves to experiment with their wardrobe. Office wardrobe has drastically changed – we don’t see dress pants and brogues and oxfords anymore. Jeans and trainers have smoothly replaced these items. Everything in today’s clothing spells comfort and chic,” she says as way of explanation of why there a fillip in the performance wear category in Indian retail has been noticed.

    She explicates that to be able to tap into this big chunk of the Indian population with available disposable income and the affinity for fitness, brands and minimalistic wardrobe brands have to focus hugely on active wear and the athleisure segment.

    Gym Wear Essentials in India

    According to Pallavi Burman, a pair of leggings and shorts for women and men respectively –usually a loose tee and a pair of decent walking shoes – constitute for basic gym wear in India.
    “But this isn’t enough if the exercise routine includes more than walking. While almost 50 percent of Indians still prefer traditional ways of staying active like walking and running, the other 50 percent are inclined to swimming, cycling and other sports and training means. For targeting this kind of segmentation one needs to delve deeper into sub categories.”

    What makes gym wear more intricate for women is the inclusion of a high-performance sports bra. Without a well-designed sports bra, the gym wear ensemble for women remains incomplete. Quite a few Indian brands that have taken note of this and the range available online as well as offline is exhaustive. It is interesting to see brands like Triumph launching exclusive brassieres for gym wear considering they are a premium lingerie wear brand. The option they have is bounce control certified by world renowned Research Group in Breast Health, the University of Portsmouth. Elaborating on the same, Jennifer Kapasi, Commercial Director, India & Sri Lanka, Triumph International shares, “Triaction by Triumph is a stylish, high-performance sportswear collection that gives modern women the freedom to train how and when they like. Boasting the best bounce control levels on the market, three versatile fits and superior comfort, Triaction supports women throughout the day—on the go from the gym or studio in complete style.”

    Innovative Fabric Play

    Anything that stretches and helps absorb sweat yet keeps the fabric dry is the most preferred fabric when it comes to performance wear. Reiterating the same, Pallavi Burman says, “The fabric we use is always stretchable “wicking” blend made up of polyester and lycra. We also use a breathable mesh fabric as design and utility elements and several other performance enhancing features like anti-microbial layering, UV protection, rapid dry etc.”

    When you go through the collection, what catches your attention is interesting mélanges for both men and women. She says, “Color blocking and coordinated sets are finding a big audience in this space now.”

    Adding in a safety feature to go along with their sportswear, Numero Uno uses reflective N1 ACTIVE prints that act as safety alerts along with digital and high-density prints for a futuristic fashion flare. Kohli further adds, “For our sportswear/active wear, we are using fabrics that have technically advanced finishes with features like Anti-Static, quick dry, moisture wicking, Windproof, water repellent, Anti-microbial, odour control, easy care etc.”

    Triumph has developed two series of specialized brassieres that use innovative fabrics for the woman on the go. Their Dynamic Lite series with 3D Powertech material is made from the innovative fabric Dynamic Lite, which offers flexibility that keeps its shape over time. It fuses three innovative fabrics in one, is a two-way stretch fabric, has a strong lightweight mesh and soft moisture management lining which are insightfully laminated together, allowing the bras to stay very light and adjustable to all body shapes. These features make the bra light and comfortable to wear with its functional unpadded fabric combination. This innovation received an honorable mention at the 2016 Red Dot Deign Awards.

    Elaborating on the second innovation, Jennifer Kapasi says, “Our Magic Motion series is made from the most comfortable fabrics. Powered by LYCRA sport technology, these bras have stay dry properties, bacteria-reducing fabric with moisture management mesh. Extremely elastic fabric using LYCRA, guarantees unique freedom of movement.”

    The next generation LYCRA® SPORT technology combines the proven stretch performance of LYCRA® fibre with demanding testing standards that measure fabric performance descriptors on a simplified 1-10 scale. The three indexes measure Power, Comfort and Energy (PCE™). Triumph has gone ahead to combine these indexes to create performance levels tailored to fit each garment’s end use.

    The range at Just F is made using polyester-spandex or polyester-cotton blend which well suits the Indian climate.

    Promoting Gym Wear

    Since gym wear is a part of the performance wear / active wear category, brands don’t actively engaging in marketing and promotion initiatives targeting gym goers. However, on the other hand, some brands like HRX go the extra mile to reach to their target audience right at the place they are at – i.e. the gym!

    Pallavi Burman reveals, “Ours is the first homegrown, successful fitness brand in the country. We have multiple partnerships for various verticals all-leading to and adding up to fitness. We have our active wear and athleisure collection exclusively available on Myntra, we have the signature HRX Work out available at all Cult gyms, we have HRX Athlete meal packs selling at Eat.fit and we have our Mi HRX fitness bands available with Xiaomi. Across the three partners we have active communication all around the year on Digital, TV, OOH and Cinemas. Needless to say Hrithik is the face of HRX and this is the biggest draw for building customer engagement.”

    On whether there is a genuine demand for gym / active wear in the country, especially by women, Jennifer Kapasi says, “Women who regularly work out and those who lead an active lifestyle desire sport specific garments designed to help optimize performance. They pay a lot of attention to the fabric when buying a sports bra. In general, they will tend to look for hi-tech fabrics with ‘moisture-wicking’ and ‘stay-dry’ features. One of the most important qualities women look for is a high percentage of Elastane which not only makes the bra comfortable to wear but also retains its shape after multiple uses.”

    To launch their Autumn/Winter ‘18 Triaction – a collection by Triumph – took a digital approach through the launch of an online campaign ‘Team Triaction’, featuring four inspiring women, undertaking a fitness challenges to test both mind and body.

    “Team Triaction is led by actress and fitness enthusiast Mandira Bedi. She is joined by celebrity fitness instructor and owner of a Pilates studio Namrata Purohit; popular yogi and influencer Yogasini (aka Radhika Bose); and lifestyle and beauty influencer Juhi Godambe. The campaign also included a weekly contest with four rounds for Instagram and Facebook fans,” states Jennifer Kapasi.

    Getting Future Ready

    While there are a lot of dedicated online portals for gym wear, it remains to be seen how these enterprises survive over a period of time with their niche offering. With fitness being seen as a goal on everybody’s to-do list, especially with the new year approaching, all the gyms will experience a full house and so the sale of gym wear eventually is going to go up, but it is completely upon these brands to maintain the tempo for after all.

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  • Vietnamese prefer fresh food by far to processed items

    Vietnamese prefer fresh food by far to processed items

    Vietnamese citizens spend three times more on fresh food than fast-consumer moving goods (FMCG), a new survey says. A family in urban Vietnam spends about VND1.1 million ($47.12) on fresh food a month, according to the recent survey by market research firm Kantar Worldpanel Vietnam.

    The survey polled over 2,000 households in Hanoi, the central city of Da Nang, Ho Chi Minh City and southern Can Tho City, and over 1,000 households in various rural areas across Vietnam.

    Fruits top the spending category in fresh food, accounting for 19 percent of the total, while vegetables come second at 11 percent. The rest goes to meat, seafood and rice.

    The traditional market remains the favorite shopping outlet for Vietnamese people, accounting for 85 percent of total spending on fresh food.

    Vietnamese people spend VND930,000 ($39.81) per week on fresh food at traditional markets, mostly on meat and seafood.

    Although locals spend only VND220,000 ($9.42) per week on fresh food at supermarkets, the figure shows a 28 percent growth over last year. Most of the supermarket spending is on fruits and processed food.

    Fresh food and FMCG make up the majority of Vietnamese people’s spending at 26.8 percent last year in the cities and 25.9 percent in rural areas.

    With rising incomes, Vietnamese people, especially in the cities, have been spending more on education and health, the report finds.

    The share of spending on education by urban families increased from 10.8 percent in 2012 to 12.9 percent last year, while spending on health grew from 3.5 percent to 3.9 percent in the same period.

    The report also finds that Vietnamese consumers accord top spending priority to food safety, health and environmental issues/disease.

    The majority of survey respondents, 96 percent, are confident that their spending capability will be stable or increase in upcoming months, and 86 percent expect the Vietnamese economy to be stable or grow stronger in the near future.

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  • Inside the Indian sportswear industry

    Inside the Indian sportswear industry

    India today is at par with wider global fitness trends. The booming economy and changing lifestyle preferences have compelled Indian consumers to be more health conscious and add new health and wellness routines to their hectic lifestyles. This trend has largely benefited the sportswear industry in India, which now is among the top in demand fashion segments of the country.

    According to a research report published by Global Industry Analysts Inc., the global market for Sports and Fitness Clothing is projected to reach US $231.7 billion by 2024. The research also indicates that technological developments designed to improve comfort and performance has also led to the growth in sales of sports apparel. The report points out that the Asia-Pacific region is expected to be fastest growing region, with a CAGR of 6.9 percent over the forecast period. Sales came from emerging markets, such as India and Thailand, as well as the US, the world’s largest sportswear market.

    The Indian Market

    According to reports from various internet sources, the Indian sportswear market grew 22 percent from 2015 to 2016, outpacing the segment’s global increase of 7 percent.

    As documented by a Euromonitor research, the sportswear market in India has grown from Rs. 24,000 crore in 2014 to Rs. 37,000 crore in 2016 at more than 50 percent over the past two years. A same study has shown a 23.7 percent CAGR for the 2011-16 period with a forecast of 11.3 percent for the 2016-2021 period.

    Men’s wear comprises the biggest share of the Indian sportswear market followed by the women’s and kids’ segments. In the recent past, the women’s market is progressively showing positive signs of accelerated growth. “Women’s wear is the fastest growing segment in the sportswear industry in India now — both for the industry and for us. Earlier, it was highly underpenetrated, but now it’s a booming segment. The men’s segment continues to grow at a steady pace of 40 percent,” says Sandeep Mukim, Managing Director, Proline.

    “While the men’s segment in sportswear is growing fast as numbers of sale, it is the women’s segment that is registering a higher growth percentage. This is due to the growing awareness of women for individual sports category like running, marathon, and other fitness activities. The kid’s segment is highly influenced by team sports – and the segment is growing fast along with the increasing popularity of cricket, football, etc.” says Mohit Prabhakar, GM, Nivia.

    “For our brand, as also for the category as a whole, the growth is largely driven by the men’s category. The women’s and kids market has not grown at the same pace, largely for the need to be fashion-oriented and/or more colourful as opposed to the fact of being more functional and performance-driven. Also, given the same budget, women are likely to purchase more garments to match element of their wardrobe and hence are more likely to buy, say, 2 pieces of stretch leggings rather than 1 track bottom,” says Sakshi Juneja, Key Accounts Manager of Black Panther, a unit of Juneja Global.

    “It is very difficult, almost impossible to accurately estimate the market size for sportwear, considering the fragmented nature of this particular industry and the overlapping categories such as lounge wear, athleisure and even sleepwear and undergarment brands vying for a slice of the activewear pie by styling themselves as sportwear brands. Added to this is the huge unorganized sector with a full-fledged and well-developed market for counterfeit merchandise of global brands, retailing brazenly through not only MBOs but also leading online portals,” she adds.

    As a whole, the sportswear market in India has traditionally been dominated by the big international brands, aptly named the ‘Big Four’ — Reebok, Adidas, Nike and Puma. Most of these brands entered the country in the 1990s and in the years that followed established their presence through a flood of local franchisees.

    But, in the recent past, given the enthusiasm of consumers towards sports and sportswear in general, a slew of brands, both home grown and foreign, have mushroomed absorb the market tendencies to cater to the rising needs of the consumers. Indian brands, although young, have an edge over their international peers – the price segment in which they operate. “In the case of apparel, international bigwigs are growing at very slow rate compared to homegrown brands due to their high price points. Indian brands are creating huge demand due to their capability of manufacturing compatible quality in India and offering products at very affordable prices,” explains Mohit Prabhakar.

    Of late, a legion of celebrity launched brands have surfaced in an attempt to cash in on the mammoth popularity they enjoy among the commonality. “With fitness fever gripping the nation, celebrities have also caught on to this trend. Bollywood stars Hrithik Roshan and Jacqueline Fernandez have launched their own sportswear brands which are gaining popularity amongst the general audience. However, for those who are more seriously into fitness, they still stick to more international and well-established brands because of proven technologies and brand equity,” remarks Vishal Gupta, Director – Retail, Puma India.

    Growth Drivers

    The average, modern Indian consumer’s lifestyle is undergoing a massive metamorphosis. Rising incomes and discretionary expenditure in urban India have allowed people to focus increasingly on health and wellness, as well as rising awareness of lifestyle diseases. The proliferation of international brands represented by sports and Bollywood stars have kept sportswear in the public eye fuelling this drive as well.

    Contemporary trends like taking long vacations, going on bike rides, hiking, travelling and indulging in recreational activities has been instrumental in driving growth of outdoor, sports inspired apparel. Most of the reputed brands of the sportswear domain have a wide range of outdoor apparel that makes a significant contribution to the total brand revenue.

    Driving the sportswear trend further into the masses are Indian pop culture icons, who are becoming self-proclaimed spokespersons of the fitness movement that is sweeping the country by storm. The proliferation of international brands represented by sports and Bollywood stars have kept sportswear in the public eye, fuelling this drive.

    The flourishing online retail market is yet another catalyst that has been successful in bolstering the growth of the sportswear market in India. E-commerce has especially been instrumental in aiding brands reach to smaller cities and towns where they are not physically present of yet. “E-commerce is a channel which is going to stay and keep becoming stronger because of its massive reach and the huge Indian population. As a brand we would never be able to reach them all with physical retail and hence would have to depend upon online. The younger population is also very tech savvy and spends a lot of their time on social media where they not only get to know fashion / trends but also make purchase decision,” says Vishal Gupta.

    “E-commerce is filling the availability gap for the consumers and thus growing fast. As physical retail would expand in these towns, we foresee that consumers would be happier to experience the products and buy,” says Sandeep Mukim.

    Considering that the second innings of the Indian retail revolution is all set to start from the country’s smaller cities, these geographical locations have emerged as key points of importance for the sportswear industry too.

    “The next big consumer group to adapt to this trend is currently in the smaller towns and cities of India. Their rising aspiration makes our availability in these locations a prime priority,” adds Sandeep Mukim.

    “Sportswear is a brand-driven category and footwear even more so, and footwear is what gives international brands the edge. Added to this is the fact that sports footwear has a largely undeveloped domestic manufacturing capability in terms of material, styling and technology. So the sourcing from manufacturing bases like China entails high MOQs and huge investments. Also, footwear having a low shelf life is a high-risk business. As such, global brands have an edge as it gives them the critical value and volume to sustain EBOs and premium retail space in megastores,” explains Sakshi Juneja.

    “However, Indian brands are pulling up their socks by smart sourcing of limited styles in footwear. Also, global brands are largely marketers who are dependent on local and international vendors for their apparel sourcing. Local brands like Black Panther, having vertically integrated manufacturing facilities are able to adapt and customize to customer preference more efficiently and will always have their own space,” she adds.

    The Indian Consumer

    The modern Indian consumer too has metamorphosed over the time and the Indian sportswear market now speaks to a more educated consumer who is aware of the importance of the right type of gear. “Through the internet and via international trends the consumer is updated with the latest in sportswear technology. To keep up with the evolving consumer, sportswear brands now launch products and technology at the same time as their global counter parts. The coolest and latest technology is brought to Indian audiences, giving them a taste of the type of innovation and experience the brand has to offer. Along with performance technology, trends such as athleisure and street style have played a big role in inspiring product and collections for the Indian market,” says Vishal Gupta.

    Although Indian consumers have come a long way from their earlier price conscious selves, vestiges of this trait are still witnessed today. In line with this, brands still have to make deliberate efforts in their pricing policies. “Our prices are competitive with other international players in the market. We also try to ensure that our price points are more or less the same in India and internationally. The key is providing an awesome product with cutting edge technology while keeping the pricing competitive,” says Vishal Gupta.

    “Nivia is capitalizing in a big way on our affordable price and technical products. In our factory at Jalandhar, we have total control from fabric designing to the final garment which is helping us in keeping our prices affordable for most products,” states Mohit Prabhakar.

    Conclusion

    The sportswear segment in India, like many other fashion segment, is undergoing an astounding change of perception as well as evolution. A noticeable change in the Indian sportswear industry is that it’s becoming increasingly organized; and modern retail is picking pace in small cities too, much to the delight of brands, suppliers and retailers of sportswear and sports lifestyle products.

    Overall, the industry is poised to grow, and India will be a key market as the awareness about sports and fitness increases and people become aware of being healthy.

    “We are extremely positive of the future and next opportunity is in making products for India at local prices. There is large population waiting to consume this category, which has stayed away till now because of the absence of trustworthy home grown players. The domestic brands would take this advantage as local manufacturing is becoming more updated,” concludes Sandeep Mukim.

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  • GSK plans to split into 2 as part of Pfizer joint venture

    GSK plans to split into 2 as part of Pfizer joint venture

    GlaxoSmithKline (GSK) plans to split into two businesses – one for prescription drugs and vaccines, the other for over-the-counter products – after forming a new joint venture with Pfizer’s consumer health division. The revamp is the boldest move yet by Emma Walmsley, the GSK chief executive who took over last year.

    It will lead to the creation of a consumer health giant with a market share of 7.3 percent, well ahead of its nearest rivals Johnson & Johnson, Bayer and Sanofi, all at around 4 percent.

    Walmsley has previously played down the idea of breaking up the group, something that a number of investors have called for over the years.

    On Wednesday, however, she announced that GSK and Pfizer would combine their consumer health businesses in a joint venture with sales of 9.8 billion pounds ($12.7 billion), 68 percent owned by the British company, in an all-equity transaction.

    GSK said the deal laid the foundation for the creation of two new U.K.-based global companies focused on pharma, vaccines and consumer health care within three years of the transaction closing.

    For Pfizer, the deal resolves the issue of what to do with its consumer health division, which includes Advil painkillers and Centrum vitamins, after an abortive attempt to sell it outright earlier this year.

    GSK – whose consumer products include Sensodyne toothpaste and Panadol painkillers – had withdrawn from that earlier Pfizer auction process, but Walmsley said the opportunity to strike an all-equity deal cleared the way for the new agreement.

    “It’s something we’ve been able to do quickly and quietly,” she said.

    “What this deal is all about is the opportunity to strengthen two businesses – a world-leading consumer health care business, and a new GSK that is focused on pharma and vaccines.”

    Shareholders welcomed the news and the shares jumped 7 percent, with Jefferies analysts saying the future separation could crystallize value.

    The new joint venture with Pfizer is expected to generate total annual cost savings of 500 million pounds by 2022 for expected total cash costs of 900 million and non-cash charges of 300 million. GSK plans divestments of some 1 billion pounds.

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  • Decathlon Japan first full store opens next year

    Decathlon Japan first full store opens next year

    Decathlon Japan will open its first full-sized store next year as the French sporting goods retailer continues its rapid global expansion. The Decathlon Japan debut will come just a few months after the company opened its first store in South Korea.

    The company has taken a careful, measured approach to Japan, launching a website in 2015 to build brand awareness and gauge consumer demand. A small test store popped up in Osaka last year, under the Decathlon Lab banner, offering a limited range.

    The first full-sized Decathlon Japan store will be opened in the Hankyu Nishinomiya Gardens shopping mall, in the city of Nishinomiya, located between Kobe and Osaka. It will sell the company’s own house brands Domyos, Quechua and Kalenji, and provide space for consumers to test products before buying.

    Data from BPI France shows Japan is the world’s second largest sport market after the US, and was worth US$12.6 billion last year.

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  • Nike Korea blooms and upgraded its employees

    Nike Korea blooms and upgraded its employees

    Nike Korea’s revenue is forecast to exceed 1 trillion won ($884.27 million) in 2018. If all goes as expected, it will be the first sportswear company in Korea to achieve that milestone. Nike’s annual revenues in Korea have been rising by around 10 percent annually for the last two years, while competitors have only experienced average growth of 3 percent.

    Its sales have been strong across the board, both online and offline. But sales at the 15 company-owned offline stores were particularly strong, with revenues rising over 20 percent annually over the past two years.

    What’s behind the success? The company believes it was the decision to give permanent-employee status to its irregular workers.

    “Our company’s performance greatly improved after we upgraded irregular workers to permanent employees,” said a public relations officer at Nike Korea.

    Between November 2015 and May 2016, Nike Korea converted 654 of its irregular employees at company-owned stores to permanent employees.

    Prior to that, it had only had 310 permanent workers. The 654 new regular employees earned 20 percent more in wages after the change and gained access to a range of benefits, including tuition assistance for children. Labor costs for Nike Korea rose around 10 percent in total as a result of the move.

    Employees say that their new status as permanent workers made them more dedicated to the company.

    “Before, I used to say I work at a store when asked about my job, but now that I’m a regular employee, I confidently say I’m working for Nike Korea,” said 25-year-old Cho Hye-rim who works at a Nike outlet in Gimpo, Gyeonggi. “With a new sense of belonging and loyalty to the company, I began feeling a stronger sense of responsibility when dealing with customers.”

    “When I first heard that I was going to be a regular employee, I had to pinch my cheeks to check whether I was dreaming or not,” said 34-year-old Hwang Hyun-woo, who works at a Nike store in Myeong-dong, central Seoul. “With my experience working in sales at the store, I plan to try out an office job at the company headquarters as well.”

    Very few companies in Korea have converted irregular employees to permanent employees on the same scale as Nike.

    Exceptions include Homeplus, which converted around 1,000 cashiers and store assistants into regular workers this year, and SPC Group, which directly hired 800 workers from subcontracting firms.

    At Nike, the campaign to offer permanent-employee status to irregular workers was led by CEO David Wook-hwan Song, 48, after he took the top office at Nike Korea in 2015.

    He worked with the U.S. headquarters to achieve the transition.

    “I expected that performance would naturally improve if employees came together as a team and developed the pride and confidence that comes with being part of Nike, one the world’s best companies,” said Song.

    Song, who immigrated to Canada in his last year of high school, was hired by Nike Korea in 1994.

    He also earned an MBA from Harvard Business School and worked briefly at McKinsey.

    Last year, Nike included Seoul in its list of 12 key cities for growth.

    Seoul is Nike’s third-highest earning city after New York and LA.

  • Li-Ning X EDG Joint Apparel Anounced

    Li-Ning X EDG Joint Apparel Anounced

    Chinese sports apparel brand Li-Ning has released a collaboration with esports organisation Edward Gaming (EDG). The Li-Ning X EDG apparel line, which includes hoodies, jackets, tracksuits, and shoes, is now selling at its retail location in Shanghai’s Daning shopping complex.

    Li-Ning has become one of China’s largest sportswear brands, having signed multiple sponsorship deals with international-league athletes. EDG is best known for its League of Legends team, which competed in the world gaming championship earlier this year. It closed a funding round of close to RMB100 million (US$15.7 million) last May.

  • The Healthy Chef partners with Quantium Solutions to expand into APAC

    The Healthy Chef partners with Quantium Solutions to expand into APAC

    Quantium Solutions, a leading end-to-end logistics service provider in Australia, has announced a partnership with The Healthy Chef, a company founded by internationally lauded chef, nutritionist and award-winning cookbook author Teresa Cutter. The partnership will help the Australian business expand its eCommerce presence in the Asia Pacific, and it is also the first in the Australian food industry for Quantium Solutions.

    Owned by Singapore Post, Quantium Solutions is an established eCommerce logistics solutions provider in the Asia Pacific, operating in 19 markets, and handling every touch point of their partners’ supply chain process, from delivery to fulfilment. It enables major eCommerce companies – including some of the world’s largest fashion and beauty brands, and now, the Australian food industry – to expand their footprint globally.

    Founder of The Healthy Chef, Teresa Cutter is one of Australia’s leading authorities on healthy cooking. She is also known internationally, having designed menus and recipes around the world for InterContinental Hotels Group, and publishing a weekly column for Time Magazine in the USA. Dedicated to improving the health of individuals, Teresa launched The Healthy Chef eCommerce site in 2012 to sell organic, wholefood nutritional products and her bestselling cookbooks to Australians and overseas customers. Since its launch, the eCommerce store has seen consistent year-on-year growth in its online orders.

    The Healthy Chef enlisted Quantium Solutions to help the business take its popular products, such as Whey Protein Isolate and Organic Pea Protein, to more customers overseas. Quantium Solutions will handle its warehousing, packaging and delivery of orders across Australia, New Zealand and around the world.

    Teresa Cutter, Founder of The Healthy Chef, said: “Our customers are our priority, so it’s important that they receive their order quickly and effectively. With Quantium Solutions an order can now take two to three days to reach our customers in the Asia Pacific. If there are any issues with deliveries, we can count on someone there to rectify the situation immediately. Having Quantium Solutions as part of our team is reassuring and enables us to expand with outstanding service.”

    Per Gustafsson, Australia and New Zealand General Manager at Quantium Solutions, said: “We are very excited to have The Healthy Chef onboard as they are our first customer from the food industry. Having worked with major hotels around the world, Teresa has insights to the demands and buying power of overseas destinations. Also, Australia’s proximity to leading eCommerce markets like China, Singapore, and Southeast Asia, makes it ideal for Australian brands to take their products to larger and more lucrative markets. With a well-established network across the Asia Pacific, Quantium Solutions is able to help brands like The Healthy Chef expand overseas.”

  • Demand of women’s athleisure wear growing at a rapid pace globally : Lotto

    Demand of women’s athleisure wear growing at a rapid pace globally : Lotto

    Lotto Sport Italia S.P.A, a major name in international sports industry, is nothing less than a household name in India. The brand is manufactured, retailed and licensed by Sports Station Pvt Ltd (SSIPL) in India. The organization has been instrumental in the brilliant re-launch of the brand Lotto Sports in India, making it available across nation.

    According to Shivam Kataria, Vice President, SSIPL Retail, since Lotto has been in India from a very long period of time, either customers have grown up wearing the brand or are aspiring to wear it. “The brand awareness of Lotto is so strong in India that many customers instead of considering it as an Italian brand, think that it is an Indian brand.”

    Abroad, the brand is associated with football and tennis. But it gained its share of popularity in India in the running segment. Slowly and gradually as the Indian market followed international trends and inclined towards the athleisure segment from performance wear, Lotto has also changed its perspective.

    “The Athleisure market is poised to grow 15-20 percent year-on-year. Seeing the immense scope in the category going ahead, Lotto also started changing its outlook towards the market by expanding into the athleisure segment. However, the running segment, football and tennis shoes remain core to the brand,” states Kataria.

    Explaining it further, he says, “A majority of people across the globe have started participating in sports, not for competition but for their well-being, for interaction and for fun. They want sportswear which can be worn in the morning, afternoon and evening. They want to feel comfortable wearing the same shoes in office as well as to a club, and this is the major reason behind the rising demand of athleisure.”

    Another category which has seen a spike in demand at Lotto is women’s wear.

    “Currently, 30 percent revenue is coming from the women’s segment. We are targeting to close this year with 30 percent contribution from women customer including footwear and apparel,” asserts Kataria.

    Target Consumer

    The brand caters to modern-day consumers who consider fitness a lifestyle. It also focuses towards catering to the needs of serious sports enthusiasts. Lotto is also positioned as a brand, which delivers international standard sports merchandise to Indian sport enthusiasts.

    Omnichannel Strategy

    According to Kataria, there are two ways to go Omnichannel – to have your own website or to partner with various e-commerce players. “We have partnered with various e-commerce players as cost of customer acquisition is quite high with our portal.”

    “Omnichannel is still evolving in India and in the next six months to one year, the entire system around Omnichannel is expected to get cemented,” he explains. Going forward, Lotto is planning to introduce their own e-commerce portal.

    “Store integration from an Omnichannel perspective is underway and we can expect it to be fully functional in six months,” he states The brand, which has men’s footwear as the fastest moving category, gets 25 percent contribution to the overall revenue from online business.

    Future Plans

    At present, the brand has 36 EBOs across major locations in Delhi/ NCR, UP, Haryana, Maharashtra, West Bengal, MP, J&K, Uttrakhand and Gujarat. It has presence in over 200+ MBO’s including Sports Station, Reliance Footprints, Pantaloons, and leading e-com portals like Flipkart, Amazon, Snapdeal and Jabong.

    Elaborating on the expansion plans of the brand, Kataria reveals, “This fiscal, we are planning to open more 15 EBOs in North, East and South regions and add another 25-30 stores next fiscal. Our plan is to double the store count in one year’s time.”

    “In the next fiscal we will be adding 100 more SIS. We are also looking forward into new categories like bags, luggage and light fitness equipment,” he adds.

    At the same time, the brand is expanding the categories like women’s wear and apparel. According to Kataria, Tier I and Metro cities are where Lotto’s business is and Tier II and beyond is where its growth lies.

    The brand, which has been growing on 35-40 percent year-on-year, plans to grow at the same scale this fi scal too.

    “The same store sales growth has been flatish or slightly negative as compared to last year. However, we are expecting to see a good season from January onwards,” he says.

    The sportswear brand, which endorses the best of athletes in the sports arena including major names like Luca Toni, David Ferrer, Agnieszka Radwanska, Carla Suarez Navarro, Kevin Anderson and many more, is targeting Rs 150 crore plus revenue in India.

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  • ASICS India opens first store in Kolkata

    ASICS India opens first store in Kolkata

    ASICS, a true sport performance brand, launched its first store in Kolkata thereby expanding its retail footprint in a bid to strengthen its presence in India. With the opening of the ASICS Kolkata store, the brand has taken a step forward to strengthen its presence in the east region. The new store is located conveniently in one of the finest malls of the city – South City Mall. The store will offer a wide range of running, training and core performance sports shoes, apparel and accessories for men and women.

    The brand will accelerate its expansion of operations in India, bolstering sales and marketing support for retail stores in response to increasing consumer awareness of health and fitness and rise in spending power.

    Speaking on the new launch, Rajat Khurana, Managing Director, ASICS India said, “Given the potential and growing demand for fitness and sports, India has emerged as an important market for ASICS. This year, our focus is to expand our footprint in both tier 1 and tier 2 cities and offer our best in class products ranging from running, sports, for gym and other fitness-related gear. Kolkata is a very key market for us considering the large audience for sports and fitness in this market. We are hopeful that our products designed keeping core performance in mind will be able to cater to the needs of sports and fitness lovers in the city.”

    The store will showcase the latest ASICS AW18 collection that will host a range of key collections, like the newest additions to the ASICS running portfolio – ASICS Liteshow along with key products like Kayano 25 and Nimbus all featureing FLYTEFOAMTM, ASICS lightest-ever midsole technology. FLYTEFOAM works with the wearer’s foot to deliver superior cushioning every step of the way. It is also about 55 percent lighter than the industry standard midsole material, offering runners a comfortable fit with a fast, responsive feel.

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  • Alcis Sports opens its two new stores in India

    Alcis Sports opens its two new stores in India

    Alcis Sports, a cutting-edge Indian performance wear brand, unveiled two new stores in Bagru in Rajasthan and Kurukshetra in Haryana. With these two new additions, Alcis Sport has now 11 exclusive brand outlets (EBOs) in India, and aims to have 15 by the year-end and 30-40 stores by 2019.

    Bagru and Kurukshetra get firsthand experience of a premium performance wear at an affordable price. Alcis Sports is a homegrown affordable Indian sportswear brand which is at par with international brands in terms of quality and also in sync with Indian sensibilities.

    The stores house Alcis Sports’ range spanning not only athleisure range but specific clothing for running, training, yoga, football, cricket and racquet sports. Alcis Sports is a home-grown, premium cutting-edge performance wear apparel brand, formed to tap into the emerging sportswear segment in the country.

    Roshan Baid, Managing Director, Alcis Sports said, “We are elated at the response of customers in both the outlets especially in Bagru. Touching Rs 1 lakh in sales in just two days in a new locality without much advertisement shows the awareness, acceptance and trust about the brand. We are committed to our customers in terms of international quality and affordable price without any compromise in our products.”

    Alcis is present at large format stores such as Shoppers Stop, Lifestyle, Globus, Central, Sports Station, Walmart, RS Brothers, Sarvanas, Pothys, JC Brothers and M&M and online retail channels such as Myntra, Jabong, Amazon, Flipkart, TataCliq, Ajio, etc. Besides, being present in over 700 multi-brand stores across the country, Alcis Sports is aggressively looking to open exclusive stores through franchise across the country. Alcis plans to open up about 15 exclusive brand stores, covering all the major cities of India, within this year.

    Alcis Sports has tie-ups with leading sports entities such as the hugely popular Pro Kabaddi League (Haryana Steelers and all match referees), among others. The company has secured an investment from Singapore based Venture Capital firm RB Investments, which has a strong portfolio of startups in India, including The Beer Cafe, Swiggy, Bluestone.com, Fab hotels, Faasos and PropTiger to name a few. Alcis Sports has also appointed celebrated Indian cricketer Shikhar Dhawan as the brand ambassador.

    Alcis Sports is a performance wear brand launched by the promoters of Paragon Apparels Pvt. Ltd., the largest manufacturer and exporter of sportswear in India. Alcis prides itself for being the first Indian brand to have the capability and production ability to manufacture technologically advanced sportswear at affordable price-points to enhance the performance of the wearer.

    Produced in India with the latest technologies such as Dry-Tech (moisture management), Anti-Odour, Anti-Static, Anti-UV and Light X, the products are specifically designed keeping Indian lifestyles and weather conditions in mind. The product range consists of clothes to wear while running, training, yoga, football, racquet sports and other athletic and leisure activities.

    Today, Alcis products which have international quality but Indian prices, are available in over 700 outlets across the country including all leading large format stores such as Lifestyle, Shopper Stop, Central, Globus, Sports Station, etc and online retail websites and 11 exclusive brand stores at New Delhi, Mumbai, Kochi, Jaipur, Guwahati, Bangalore, Goa, Bagru and Kurukshetra.

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  • Tiens Group reveals global expansion plan

    Tiens Group reveals global expansion plan

    Chinese healthcare company Tiens Group is eyeing global expansion following the success of its high-tech Shenzhen flagship store which opened in August. According to the firm, the launch was made as a step towards global expansion, featuring a combination of technology-enhanced online and offline consumer experiences such as touch-screen computers and live product demonstrations.

    The brand now plans to establish 110 branches worldwide as part of its broader strategy to create a healthcare system integrating physical retail, e-commerce, Traditional Chinese Medicine and medical facilities, as well as educational, tourism, accommodation and lifestyle experiences.

    Board member and e-commerce GM Chelsea Li said experience marketing is at the cutting edge of business development trends. “We aim to bring our customers an intuitive experience of meticulous care, attentiveness, and beauty.”

    Tiens’ new e-wallet app PointsWin is positioned to play a core role in the firm’s strategy, connecting the business’s blockchain-based customer network. Consumers can currently use the app to make purchases and earn rewards at any business bearing the Tiens banner.

    Tiens Group chairman Li Jinyuan said: “We have always approached development by considering the world from a global perspective. These [target locations] are especially the regions involved in China’s One Belt One Road initiative.”

    The flagship is located in the Tiens International Health Industrial Park in Luohu, Shenzhen.

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  • Vaping Maker Juul Sounds Out Asia for Expansion

    Vaping Maker Juul Sounds Out Asia for Expansion

    United States-based Juul Labs is exploring selling its compact vaping devices in Asia and has sounded out government officials in Indonesia, one of the world’s most smoker-friendly countries, although gaining approval there could face significant hurdles.

    Expansion into Asia would provide the fast-growing firm with new markets at a time when it faces increased regulatory scrutiny in the United States and Israel over the potential health risks of its products’ high nicotine content.

    Juul representatives held discussions with the Indonesian government last month about introducing its vaping devices, finance ministry officials said.

    Indonesia has one of the world’s highest rates of smoking among adults and teenage boys and imposes no penalties for selling cigarettes to minors. Its population of 260 million also makes it a highly attractive market for tobacco and vaping firms.

    A person familiar with Juul’s plans said executives for the San Francisco-based company are concerned authorities may be reluctant to grant approval due to likely opposition from the traditional tobacco industry, which provides much of the country’s tax revenue.

    Tobacco taxes accounted for nearly Rp 150 trillion ($10.2 billion) or about 11 percent of national tax revenue in 2017, government data showed. Each province also imposes taxes on cigarettes.

    Juul also worries its argument that vaping is healthier than smoking will not hold much sway in Indonesia, which is not as concerned as other countries about health issues, said the person, who declined to be identified as the discussions were not public.

    Juul representatives reached out to the Ministry of Finance to discuss how it would be taxed on any sales of devices there, the officials said.

    The government needs to examine the domestic e-cigarette market to determine how a foreign player such as Juul could hurt local small and labor-intensive e-cigarette firms, said Sunaryo, a senior official at the Directorate General of Customs and Excise.

    “We will need it to study it,” he said, adding that he was not sure Juul would comply with a regulation that requires e-cigarette devices and liquids to be sold separately.

    Juul also would need approval from the Food and Drug Monitoring Agency (BPOM). Officials at the agency said Juul had yet to be in touch.

    Other Asian countries the three-year-old firm is actively considering for expansion include India, South Korea and the Philippines, the person familiar with Juul’s plans said.

    In addition to Indonesia, Juul filed trademark applications for those countries between April and October this year, as well as in Malaysia and Singapore, according to a review. It opened its first Asia office in Singapore in July.

    So far Juul, currently valued at $16 billion, is available only in the United States, Canada, Britain and Israel. It has plans to enter Russia later this year.

    Juul said in that it is “proactively learning more” and engaging with local officials in Asia “to understand and hear their views.” It does not have immediate plans to launch in any Asian country, it said. Juul spokeswoman Victoria Davis declined to elaborate.

    A Taxing Question 

    Indonesia is one of only a handful of United Nations member states that has not signed on to the World Health Organization’s global treaty that sets standards for tobacco control.Roughly two-thirds of Indonesian men smoke tobacco daily, and more than 21 percent of boys aged 13-15 smoked cigarettes regularly, according to a WHO report last year.

    E-cigarettes, available in Indonesia since at least 2013, is a small but growing market. The customs office estimates that there are about 300 unsupervised liquid makers, known as brewers in Indonesia, producing various liquid products to more than 4,000 vape stores and 900,000 smokers.

    Philip Morris International, maker of Marlboro cigarettes, which now controls about a third of Indonesia’s market through its stake in Sampoerna, does not offer any of its noncombustible cigarette products in Indonesia.

    That includes its IQOS device, a heat-not-burn tobacco product, according to a company spokesman, who declined to comment on why it has not introduced the product.

    In October, the government imposed a 57 percent tax on e-cigarette liquids, on par with taxes on traditional cigarettes. But tax collection, particularly from smaller companies, is difficult in Indonesia and new rules are often ignored.

    Juul now commands a nearly 75 percent share of the US e-cigarette market, up from 13.6 percent in early 2017, according to a Wells Fargo analysis of Nielsen retail data.

    Its products, like most electronic cigarettes, vaporize a liquid containing nicotine. One Juul pod contains as much nicotine as a traditional pack of 20 cigarettes, according to the company’s US marketing.

    Juul liquid in the United States has a nicotine concentration of 59 milligrams per milliliter, much higher than the liquids typically sold in earlier versions of e-cigarettes and nearly three times the allowable limit in the European Union.

    In August, Israel banned Juul devices with nicotine concentration of more than 20 mg/mL, citing “a grave risk to public health.” Juul is appealing that decision and currently offers a lower nicotine-strength electronic cigarette in Israel.

    In September, the US Food and Drug Administration opened an investigation into Juul and other electronic cigarette companies, citing the rising number of teens who appear to be using Juul and other vaping devices. This week it is expected to issue a ban on fruit and candy-flavored e-cigarettes sold in convenience stores and gas stations.

    In its statement, Juul said its products are intended for adult use only, and that it aims to “improve the lives of the world’s one billion adult smokers” by providing an alternative to cigarettes.

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  • Tencent closed to buy sports firm Amer

    Tencent closed to buy sports firm Amer

    Social media conglomerate Tencent Holdings is believed to be close to joining a Chinese investment group bidding to acquire Finnish sports goods firm Amer. The consortium, spearheaded by Anta Sports Products, would see Tencent participating as one of a few minority investors under the proposal. Its involvement would serve to boost considerably Amer’s brands in the Chinese market.

    In a statement made two months ago, Anta spoke of joining with local buyout company FountainVest Partners to offer a potential €40 (US$45.60) per share for Amer, a target value of around €4.7 billion ($5.3 billion). The consortium has sought at least €3.5 billion ($3.99 billion) in loans. Anta has a market value of about $11.6 billion.

    The acquisition agreement could potentially be complete within several weeks.

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  • India’s Tata food to focus on healthy range

    India’s Tata food to focus on healthy range

    With consumers increasingly becoming health conscious, health and wellness will drive the growth for the food and beverage segment, Tata Sons brand custodian Harish Bhat said Friday. “My belief is, as far as the food and beverages segment in the country is concerned, one of the key drivers for the future will be the consumers’ need for health, wellness and fitness,” he said.

    According to a, Tata Global Beverages has presence in green tea with its Tetley brand, while its other firm Tata Chemicals offers unpolished pulses and low sodium salt.

    Bhat said the salt-to-software conglomerate’s brand is synonymous with trust as its companies offer quality products and services at a reasonable price, adding that in a country which has strong trust deficit, the brand works very well.

    He elaborated that inferior quality products, products which are overpriced, or products or services which don’t live up to world class standards, can create a trust deficit. He further said if there is a segment of trade which is not fair with its consumers that can create a trust deficit.

    “I believe that the Tata brand has earned trust over a long period of time through the behaviours that it has exhibited, through the products and services it has provided to our customers. All our companies believe in providing our customers with products and services of impeccable quality at very good value and it is that combination of quality and value which has made 650 million Indian customers trust the Tata brand,” he further said.

    Trust also comes because the Tata Group has been functioning in harmony with the community…Those are the factors which has made the Tata Group brand synonymous with trust in the country, he added.

    On the impact of the controversial removal of Cyrus Mistry as the group chairman in 2016, on the brand, Bhat parried a direct reply but said the Tata brand is synonymous with trust and continues to remain strong with all stakeholders.

    “All our internal and external researches keep throwing that up all the time,” he said.