Retail News CRM

Tag: Hong Kong

  • Marriott International Asia Pacific Believes its Women Associates “Shape Our Future”

    Marriott International Asia Pacific Believes its Women Associates “Shape Our Future”

    Marriott International Asia Pacific announces its second Women in Leadership Asia Pacific Conference closes today after a resounding past three days of success. The event took place at Marriott International’s recently-opened The Ritz-Carlton Macau and JW Marriott Macau Hotels, and was hosted by Peggy Fang Roe, Chief Sales & Marketing Officer Asia Pacific; and Yibing Mao, General Counsel and Senior Vice President of Asset Management & Financial Analysis Asia Pacific. The conference convened 73 Marriott women executives from across the Asia-Pacific region to bolster their working knowledge and give them an opportunity to network, share insights, and be inspired by each other.

    “Women have always played a pivotal role at Marriott. Even in 1927, our co-founder, Alice S. Marriott, was imperative to Marriott’s success. Marriott International Asia Pacific has a high percentage of women in leadership roles, and a third of our senior executives are women. That makes me very proud and I know that the company is better for it,” said Craig S. Smith, President and Managing Director for Asia Pacific.

    Mr. Smith continued, “However, we are far from being done. Marriott International is committed to encouraging more women to take on leadership roles and we will support our women associates and help them grow personally and professionally. They are vital to Marriott’s future.”

    A series of diverse topics covered over the three days included “The Competitive Advantage of Female Talent,” presented by Mr. Smith; “Pursuing Excellence” by Rajeev Menon, Chief Operations Officer, Asia Pacific (excluding Greater China); and “Building Your Innovation Brand,” presented by Jenny Hsieh, Vice President, Insight, Strategy & Innovation.

    “The company is determined to think forward on how it can continue to mentor and grow women in leadership roles, and I have seen it firsthand since I started at Marriott International over 10 years ago. It is an honor to co-host this year’s conference, continue Alice’s legacy, and do my part in opening doors of opportunity to the women in the company within this region,” said Ms. Roe.

    The annual conference is part of Women’s Leadership Development Initiative, which was founded in 1999 with the aim to increase the presence of women in management or decision-making positions by engaging senior leaders to ensure career development, as well as encouraging current female leaders to drive organizational success.

    Globally, women represent 52% of Marriott International’s staff and nearly 60% of its management roles, with nine women leading divisions worth more than US$100 million annually. Women executives on the rise are offered a wide variety of development programs, including formal mentoring, coaching, leadership training and succession planning.

    In Asia Pacific, close to 40% of the company’s managers are women, with a substantial increase in women General Managers over the past few years.

    Marriott International Asia Pacific has leveraged several programs to identify and develop future women leaders, such as Human Capital Planning, GM Elevate and Asia One-Week Leadership Development Program. In addition to these, Marriott International Asia Pacific launched last year a series called “Evenings of Engagement,” which comprises events across the continent providing networking opportunities for women leaders where they can share stories, discuss experiences and issues, form deeper relationships, and inspire future women leaders.

    In September 2015, Marriott International was named one of the 100 Best Workplaces for Women 2015 by Fortune.com and the Great Place to Work® Institute. Companies were selected based on responses from over 135,000 women in the US on issues such as fairness of promotions, access to information and leadership, and support for personal lives as well as for the level of representation of women in leadership positions.

    Lees ook:

    Lees ook:

  • L’Oreal expands Dermacenter concept in Asia

    L’Oreal expands Dermacenter concept in Asia

    With growing concerns of the effects of pollution on the skin in Asia, personalized routines are in demand now more than ever.

    International players like L’Oréal are looking to cater to this trend by developing even more specialized formulations that preserve, heal and improve the health of skin as well as offering services that allow consumers to interact with dermatologists on the go.

    The global cosmetics player’s first Asia based Dermacenter opened in Hong Kong in 2014 which has led to the launch of several others including; Haitang Bay, Iguazu downtown with London Supply, Bangkok (two stores), Hong Kong-Hysan and Seoul with Lotte Duty Free.

    According to L’Oréal, these stores provide a good opportunity for travelling consumers to gain access to brands like Vichy, Aqualia Thermal and LiftActiv, and La Roche-Posay, Tolériane and Effaclar.

    The Travel Retail Division was expanded in 2013 with company CEO Jean-Paul Agon commenting: “Travel retail is a key channel for winning over one billion new consumers. This market, present around the world, could be considered a ‘sixth continent.’”

    Travel Retail

    L’Oréal has been present in the travel retail market since the 1960s with L’Oréal Luxe, positioning L’Oréal Paris in the space in the last decade, and The Body Shop in the last few few years.

    Travel Retail, which represents all products sold in the travel distribution channel caters to over 2.4 billion international travellers every year, with Beauty occupying the one category in the market, where L’Oreal is seen as a leader in the field, holding a 21.3% market share in 2013.

    “By meeting consumers’ beauty aspirations, whatever their nationalities, beauty rituals or purchasing power, L’Oréal Travel Retail plays a strategic role in conquering new consumers who will pursue their experience with our brands in their home countries,”  Nicolas Hieronimus, president Selective Divisions said in 2014.

    “The launch of Vichy, La Roche-Posay and Kérastase in Travel Retail demonstrates our confidence in the huge potential of this channel. From now on, all of the Group’s major brands will have the opportunity to develop on this ‘sixth continent’.”

    Lees ook:

  • Miu Miu moves in after Marc Jacobs quits space

    Miu Miu moves in after Marc Jacobs quits space

    Miu Miu will be running another store at Canton Road besides the one at Peking Road in Tsim Sha Tsui. Photo: Nora Tam

    Fashion brand Miu Miu is taking up a shop formerly occupied by Marc Jacobs on Canton Road in Tsim Sha Tsui, in the musical chairs of Hong Kong’s retail real estate as thinning crowds of shoppers force brands to look for cheaper alternatives.

    But experts are not convinced that there are enough brands willing to fill the space vacated by their peers given the dull outlook for the industry.

    Miu Miu, controlled by Prada, will take up the space formerly occupied by LMVH’s Marc Jacobs at Harbour City, according to sources.

    The new shop is expected to open next month.

    It is not clear if Miu Miu will continue to keep its shop at Peking Road, also in Tsim Sha Tsui.

    Landlord Wharf (Holdings) declined to comment. Miu Miu was unavailable for comment on Tuesday.

    The news of the relocation comes a month after sports brand Adidas leased the shop in Central that used to be occupied by US luxury brand Coach. Coach closed the shop in August in the wake of a drop in the number of mainland Chinese visitors to the city.

    Adidas has rented the 13,000 sq ft shop for HK$4.34 million a month, according to the Land Registry – 22.5 per cent less than the HK$5.6 million Coach was paying.

    “For prime areas like Canton Road, landlords do not worry about finding tenants,” said Michael Chik, the managing director of agency Sheraton Valuers, which focuses on retail shops transactions.

    But there are some landlords – especially those who do not own first-tier street shops – who are failing to attract tenants. “The fact is that some companies are consolidating their network in Hong Kong,” he said.

    Hit hard by slower growth in tourist arrivals and a drop in luxury sales, retailers are facing a challenging environment. Some have asked landlords to cut rents while others are opting to relocate.

    Since last year, luxury retailers have been struggling in the wake of Beijing’s anti-corruption measures, economic slowdown on the mainland, a weakening of Asian currencies and changing travel patterns of mainland Chinese.

    The city’s retail sales by value fell 5.4 per cent in August from a year earlier, after a decline of 2.9 per cent in the previous month as tourist arrivals slowed.

    “Despite several movements in the market, this is a fantastic opportunity for fast-fashion and sports-fashion-related sectors to capture some prime opportunities that have not been available in the market for many lease cycles,” said Tom Gaffney, the head of retail at consultancy JLL.

    Gaffney said he believed such “movements” would lead to a more sustainable retail landscape in Hong Kong.

    Chik said he expected landlords at Canton Road to come under pressure to cut rents when a number of leases expire at the end of the year and early next year.

    Leases of at least 10 shops on Canton Road will expire between next month and next year.

    Lease of the Puyi shop at 116-120 Canton Road will expire next month. Chik said the retailer, which has another shop on the same street, would give up the shop when the lease expired. Puyi leased the 1,000 sq ft shop three years ago for a monthly rent of about HK$1.7 million.

    Asia Commercial Holdings rented three shops at Manley House on 86-89 Canton Road in 2011 for a monthly rent of about HK$6.3 million. The retailer has been planning to sublet one shop with an asking rent of HK$1.3 million aimed at reducing rental pressure. But it had yet to find a replacement, said Chik.

    “When there is vacant shop, landlords of shops on that street will feel the pressure,” said Chik, who said he believed rents for new leases on Canton Road would be 30 per cent below the old leases.

    Retail high street rents in Causeway Bay, Tsim Sha Tsui, Central and Mong Kok went down by 26 to 43 per cent in the third quarter from their peak levels in the fourth quarter of 2013 and during lease renewals compared to the last rent a few years ago, according to a report by DTZ/Cushman & Wakefield.

    This article appeared in the South China Morning Post print edition as Miu Miu moves in as Marc Jacobs quits space

  • How some retailers are using O2O strategies to boost sales

    How some retailers are using O2O strategies to boost sales

    A slowdown in mainland tourist inflow has prompted Hong Kong’s retailers to step up efforts to attract those who are still making their way to the city.

    To grab the attention of the visitors, shops and other tourism-dependent entities are launching new online-to-offline marketing campaigns.

    One key way of reaching the customers has been to gather information on people visiting Ocean Park, the marine-life theme park that is popular with Chinese tourists.

    Mainlanders seeking to visit Ocean Park normally book their tickets through agents and have to leave some sort of contact information, usually their phone numbers.

    Now some marketing firms are gathering those telephone numbers and using them to craft O2O campaigns for their retail sector clients.

    Hooking up with the ticket agents, the marketing firms gain access to those phone numbers. Then they approach the ticket buyers by asking if they are willing to receive some Hong Kong-related information and promotions.

    Once the consent is secured, they will send discount e-coupons to the visitors on behalf of retailers, as Kevin Ng, a consultant with the Hong Kong Productivity Council, told a seminar recently.

    Since people who have bought Ocean Park tickets will definitely come to Hong Kong, such marketing activities will be very specific and targeted, leading to a greater chance of doing business.

    Sheung Wan is known for its cluster of shops selling Chinese herbs and dried seafood. Even those traditional businesses have begun using the innovative O2O route to win more business, according to Ng.

     

    Lees ook:

    Lees ook:

  • SCMP Group tries on retail e-commerce with Hong Kong’s My Dress

    SCMP Group tries on retail e-commerce with Hong Kong’s My Dress

    SCMP Group Ltd announced today that it is acquiring a majority stake in MyDress Holdings Ltd, operator of MyDress.com.

    SCMP Group acquired a 56.65 per cent share of MyDress Holdings Limited with its investment of HK$39.7 million (US$5.12 million), according to a company disclosure.

    E-commerce platform MyDress was launched in 2013 and sells an affordable selection of fast fashion apparel and accessories for men and women, from undergarments to bags, sourced from over 50 brands.

    Google has ranked MyDress as the most searched fashion e-commerce website on mobile devices in Hong Kong.

    Co-founders and key executives of MyDress, Edmund Wong and Leon Lai, will continue to runMyDress and manage its daily operations while working with SCMP on further development.

    “I initially started MyDress as a fashion and content portal, where people could post pictures of outfits. After two years, I met Leon, who is experienced in the e-commerce industry [in] Hong Kong,” Wong, Co-founder and Director of MyDress told e27. 

    “We thought that there should be an e-commerce platform for Hong Kong people, which is why we started selling clothing. Initially, we were only selling women’s. We only started selling men’s wear about four months ago,” he added.

    At the moment, MyDress website content is only in Chinese, but the English version will be launching later this week.

    Wong said talks with SCMP were made about 18 months prior to the official acquisition.

    Through a joint venture partnership with Hearst, SCMP Hearst publishes the Chinese editions of Cosmopolitan, CosmoBride, Harper’s BAZAAR, Esquire, ELLE, ELLE and operates Cosmopolitan.com.hk,amongst others, in Hong Kong.

     

  • Hello Kitty, Farewell Rolex as Hong Kong Shoppers Go Downmarket

    Hello Kitty, Farewell Rolex as Hong Kong Shoppers Go Downmarket

    U.S. luxury handbag maker Coach Inc. opened its four-story flagship store in the heart of Hong Kong’s Central district to much fanfare in June 2008, with a celebrity-studded, champagne-fueled party. In August, the company quietly terminated its HK$5.6 million ($723,000) per month lease and Adidas is moving in — paying 23 percent less in rent, according to Colliers International Group Inc.

    This is not an isolated case. Russell Street in Causeway Bay, which boasted the most expensive shop rents in the world until New York’s Fifth Avenue overtook it a year ago, is undergoing a major transformation. A location formerly rented by Emperor Watch & Jewelry Ltd. that sold diamond-studded Cartier watches is now home to discount cosmetics retailer company Bonjour Holdings Ltd. that sells HK$58 packets of Hello Kitty false eyelashes and HK$18 jars of Tiger Balm ointments. Next door, rival Colourmix Cosmetics Co. has moved into a space vacated by Swiss watchmaker Jaeger-LeCoultre.

    As Kering SA’s Gucci, LVMH’s Louis Vuitton, and jewelry chain Chow Tai Fook Jewelry Group Ltd. bargain for lower rents or close stores amid a decline in mainland tourists who had underpinned their sales, mid-tier retailers are filling the gaps. Brands that appeal to the broader market are taking advantage of declining leases to move into some of Hong Kong’s most coveted retail locations.

    “The fallout in the watch and jewelry as well as luxury sector is paving the way for fast fashion brands to expand,” Tom Gaffney, head of retail at Jones Lang LaSalle Inc. in Hong Kong, said in a phone interview.

    Rents Decline

    Retail rents started falling after the city’s appeal as a shopping paradise for mainland tourists was hurt by anti-China protests last year, a slowing mainland economy and Beijing’s austerity and anti-graft campaigns, which have made the Chinese wary of splurging on luxury goods. Hardest hit have been sales of watches and jewelry, where sales have fallen year on year for the past 11 months.

    “Shopping habits are changing; a couple of years ago it was not uncommon to see mainlanders go into watch stores and ask for 10 Rolexes,” said Marcos Chan, head of research for Hong Kong, Taiwan and Macau at CBRE Group Inc. “Now we hardly see people even buying one.”

    While luxury brands are abandoning street-front locations, they are maintaining their presence in high-end malls where monthly rents are lower in part because landlords also receive a portion of sales receipts as part of a tenant’s payment.

    Another source of the slowdown is that Chinese shoppers, who represent 10 percent of global tourism and more than 25 percent of luxury spending, are forsaking Hong Kong in favor of Europe, South Korea and Japan, attracted by weaker currencies and relaxed visa procedures, according to Bloomberg Intelligence. A rising backlash against mainland tourists has also hurt Hong Kong’s appeal, said CBRE’s Chan.

    Jones Lang expects street rents in Central to drop a further 10 percent in 2016 after falling about 20 percent to 30 percent this year, while leases on more than 200,000 square feet of space on Queen’s Road in Central, one of the city’s premier shopping destinations, will become available between now and 2018.

    Just steps from one of Hong Kong’s busiest subway stations in Central, Athens-based affordable fashion brand Folli Follie opened a store in mid-October after luxury watch retailer Carlson moved out.

    Hennes & Mauritz AB is also taking advantage of falling rents to expand. On Oct. 30, it will open a four-story flagship, its largest store in Asia, in Causeway Bay.

    “One part of our expansion strategy is about getting a good and competitive deal,” said Magnus Olsson, the Swedish retailer’s country manager for Greater China, declining to provide rental details. “If we were not happy, we wouldn’t have opened.”

    Helen Mak, senior director of retail services at Colliers, said that while Hong Kong’s superior level of service will continue to attract tourists, they are looking for a different shopping experience on the city’s high streets.

    “In the past, four out of five shops were selling Rolexes,” she said. “In the future, a tourist will expect to see more varieties of retail shops in Hong Kong.”

    Lees ook:

  • Why a tourist’s death should serve as a wake-up call for HK

    Why a tourist’s death should serve as a wake-up call for HK

    Hong Kong’s retail and tourism sectors have suffered another setback as mainland media have, with good reason, reportedly widely the tragic death of a Chinese tourist in the city this week.

    Already reeling from slowing sales, the latest negative publicity about a “forced shopping” trip that went horribly wrong for a visitor was something that local tourism-related businesses could ill afford.

    Now, as the damage has already been done, what can Hong Kong do to redress the situation and prevent such incidents from happening again?

    And what are the broader lessons for local tourism authorities?

    On Monday, a mainland visitor was beaten up by a gang of men after he intervened in a brawl between a fellow tour group member and the tour guide.

    In the incident that took place at a jewelry store in Hung Hom, the 53-year-old man stood up in support of a female fellow tourist who was being berated for not making any purchases at the store. 

    Following a loud argument and some scuffles, the man was dragged out of the shop and beaten up by a gang of four men.

    The beating was so severe that the victim, a person named Miao Chunqi, later died in hospital. 

    China’s state media, not surprisingly, has covered the news in detail, portraying it as a reflection of the chaotic Hong Kong tourism market and lack of protection for mainland shoppers.

    The Global Times, for instance, wondered if there is enough rule of law in Hong Kong’s tourism industry.

    Following the earlier scathing criticism over anti-parallel trading protests in Hong Kong, the latest commentary on cross-border shopping issues is bound to put off more mainlanders. 

    While some reports say that the assailants of Maio were from the mainland, Hong Kong’s tourism authorities still cannot avoid facing difficult questions.

    The tragic incident could, in fact, serve a purpose if the government wakes up to the uncomfortable truth regarding many tour groups from China.

    The root of the problem is that some low-quality tour service operators in China have been offering “zero” price tours to Hong Kong to force tour members to spend in specific shops in Hong Kong.

    The tour operators hope to more than make up for the cheap tours by reaping commissions from the retail outlets with which they have prior arrangements.

    While some Chinese tour members know such norms and are willing to spend in the shops they are taken to, some of them resent being put under pressure and refuse to make purchases.

    It is then that conflicts arise with the tour guides and trip organizers, leading to violence in some cases.

    The distorted service chain has been in existence for many years, but authorities in both Hong Kong and China have shown little inclination or courage to tackle the issue.

    One reason why they have been reluctant to shake up things is this: officials fear that disrupting the trade will go against the process of deepening the commercial ties between China and Hong Kong.

    Even after several reports of mainland shoppers being taken for a ride, the Leung Chun-ying administration has failed to act over the issue of errant tour service providers.

    Now, with the shocking case of a tourist’s death following a “forced shopping” trip, one only hopes that it will finally be a wake-up call for the government. 

    The time has come for our chief executive to address the industry problems, fixing things at home as well as putting pressure on Chinese authorities to clamp down on shady tour services firms. 

    The task is not too difficult if Leung musters the will and determination and the political courage to take on some vested interests.

    Is he up to the challenge?

     

    Lees ook:

  • Hong Kong wine vendors look to beat the retail slump at festival

    Hong Kong wine vendors look to beat the retail slump at festival

    Vendors of wines and liquors appeared to be undaunted by a retail and tourism slump in Hong Kong as they welcomed the annual Wine and Dine Festival in the Central harbourfront.

    One of the biggest in recent years, the festival this year features 340 stalls and offers a free flow of samples in return for the HK$30 cost of an admission ticket for the event.

    Henry Lum Kai-cheung, 41, general manager of Cheers, a boutique wine and cocktail store that operates both in Hong Kong and on the mainland, said the lacklustre retail performance and slowdown of tourism in the city had not deterred him from setting up a stall this year.

    “Actually 90 per cent of my business in the festival in the past years has been from local residents,” Lum said.

    “Tourists don’t usually buy many bottles here because they would have to carry them back home.”

    Jamie Lo Ching-man, marketing manager of Kiwa, a company that imports spirits from Japan, had similar views.

    “Most of our customers are Hong Kong locals. In fact, this year, we doubled the number of booths in the festival from five to 10 because I think there is huge demand for our wine in the community,” said Lo.

    He was expecting an 80 per cent increase in sales from last year.

    According to Lo, the impact of the economic slowdown is not easily evident from the festival itself because many wine companies in Hong Kong thrive by supplying their products to restaurants in the city.

    “We now have fewer orders from restaurants and business has dropped 20 per cent in that area starting from the middle of this year,” Lo said.

    The festival, which runs for four days till 10pm on Sunday, attracted over 140,000 visitors last year when it was relocated to Kai Tak due to the Occupy protests in nearby Admiralty.

    Despite the withdrawal of 40 exhibitors last year, Lum still had fond memories of his stall’s performance, which greatly surprised him.

    “There was an initial worry, but it ended up becoming a huge success because the organiser waived the admission fee and this attracted many people,” Lum said.

    “If I can reach the same sales volume this year, I’ll be happy.”

    This article appeared in the South China Morning Post print edition as Wine vendors look to beat the retail slump at festival

    Lees ook:

    Lees ook:

    Lees ook:

  • Hong Kong retail rents will continue to fall in next year

    Hong Kong retail rents will continue to fall in next year

    In more than three decades in Hong Kong’s real estate industry, Sheraton Valuers’ Michael Chik Pa-fai has seen a number of up and down cycles. With retail sales falling, the managing director of the retail property-focused brokerage expects the slump in retail rents to last for at least a year before the market finds its bottom.

    Q: We saw street shop rents falling sharply in Causeway Bay and Central in the last quarter. Will the falls stop?

    A: I do not think so. The falling trend began when luxury brand Coach terminated the leasing contract of its Central shop due to slow sales of luxury goods. Adidas will now move into the three-storey shop for lower rent. The fall led to a domino effect and extended the pressure to Causeway Bay in the third quarter, and it will spread to Tsim Sha Tsui soon.

    There are still a number of shops vacant in Causeway Bay, such as those in the second-tier street Percival Street. One landlord of a Percival Street shop wanted to rent out his shop with a monthly asking rent of HK$450,000 in May this year, but no one showed interested. The shop was recently sold and the new owner cut the asking rent to HK$300,000 a month but so far it has not found a tenant.

    In Central’s China Building at 29 Queen’s Road Central, landlord Cheung Kong Property Holdings is still looking for a tenant to fill the vacant space after Italian brand Baldinini left by the end of July. Baldinini rented shops three to five on the ground floor as its Hong Kong flagship store at the beginning of this year. It moved in after Asia Commercial Holdings’ shop that traded Rolex luxury watches moved out.

    Q: Are there any tenants still planning to leave before leases expire?

    A: There are quite a lot. When retail sales were good and mainland tourists rushed to visit Hong Kong, retailers opened more than one shop on one street. Now they are considering closing the worst-performing ones. The lease of Puyi Optical’s shop at 116-120 Canton Road will expire next month. It is understood that it won’t renew the lease because it has another shop on the same street.

    Q: When will the market stabilise?

    A: The pace of rent correction in Causeway Bay is slowing after the recent decline. Rents will start to fall on Canton Road when a number of leases expire at the end of this year and next year. One example is that Asia Commercial Holdings moved into three shops in Manley House at 86-89 Canton Road in 2013 for a monthly rent of about HK$6.3 million. The retailer has been planning to sublet one shop with an asking rent of HK$1.3 million with the aim of reducing rental pressure. But it has yet to find a taker.

    When there is vacant shop, landlords of shops on the street will feel the pressure. New leases for some shops on Canton Road will be 30 per cent below old leases.

    It will take a year to let the market finds its bottom. It will go back to the rental level in 2011. Rents have jumped too fast over the years. Before Asia Commercial moved into the three shops in Manley House, Sa Sa International occupied the shops at a monthly rent of HK$1.59 million. Rents jumped more than fourfold.

    The recent downturn will pull rents down. Rents for this kind of shop will be less than HK$1 million.

    Q: Is it the worst time you have seen?

    A: Definitely not. The worst times were the years between October 1997, when Asia suffered a financial crisis, and 2003, when Hong Kong was hit by the severe acute respiratory syndrome (Sars) outbreak. The whole market picked up in 2004, bolstered by the introduction of the Individual Visit Scheme, announced in 2003, and rents kept rising since then.

    The good news is mid-range brands , which had been forced to move to secondary or tertiary locations to make way for luxury-market retailers, are taking advantage of the current market slowdown for opportunities to return to prime shopping districts. For example, Hong Kong-based cosmetics retailer Bonjour has returned to Russell Street, one of the world’s most expensive shopping streets.

    Q: What is Sheraton Valuers’ background?

    A: Chairman Yam Wing-Yin found the company in 1985. We specialise in the sale and leasing of shops and commercial premises. Our retailer clients include well-known brand names such as Emperor Watch & Jewellery, Chow Tai Fook Jewellery, Prince Jewellery & Watch, Sa Sa and Bonjour.

    Lees ook:

    Lees ook:

    Lees ook:

  • China wounds Burberry bottom line

    British luxury brand Burberry says Chinese luxury spending patterns have impacted on its sales in the six months to September 30.

    While the brand’s global retail sales rose two per cent to £1.105 billion in the half year, CEO Christopher Bailey described the market as “increasingly challenging” for luxury customers, especially in China.

    “The external environment became more challenging during the half, affecting luxury consumer demand in some of our key markets. In response, we have intensified our focus on driving sales and productivity, while taking swift action on discretionary costs.

    “While mindful of this external volatility, our plans for the festive season position us well to return to a more positive sales trend in the all-important second half. Looking further ahead, we maintain our focus on – and confidence in – the long-term growth opportunities for our business across channels, regions and product categories.”
    Retail revenue was £774 million, up one per cent on a same stores basis.

    But it was a different story in Asia.

    “Asia Pacific delivered a mid single-digit percentage comparable sales decline in the half, impacted by a further year-on-year deceleration in Hong Kong in the second quarter compared to the first, as footfall continued to drop,” the company said in a statement. “Mainland China comparable sales decreased slightly in the half, in the context of weakening consumer sentiment in the market in the second quarter. Excluding Hong Kong and Macau, comparable sales were broadly unchanged year-on-year in the first half.”

    Japan, however, was a standout.

    “Japan saw comparable sales growth well in excess of 50 per cent, albeit off a small base (with total sales now accounting for around two per cent of global retail/wholesale revenue).

    “Good progress was made during the half in expanding our retail presence, with the addition of our sixth free-standing store, in Shinjuku, Tokyo and the opening of a further six department store concessions, bringing the total to 19. We also assumed operation of 10 childrenswear concessions.”

    The company also expanded its beauty distribution, through Sephora globally and with Shiseido in Japan.

    Lees ook:

  • Ishtara Jewellery plans expansion into Europe

    Ishtara Jewellery plans expansion into Europe

    Ishtara Jewellery, a Singapore business with origins in India, plans to expand within Asia and into Europe and the Middle East.

    MD and owner Parthiban Murugaiyan says Ishtara is marketing Indian-made gold jewellery in Singapore and its sister company Luvenus Jewellery is retailing international brands overseas.

    The company has been importing Indian gold and diamond jewellery into Singapore for 20 years under its previous name India Jewellery Pte Ltd. It has just completed a rebranding.

    Now Ishtara is planning to open retail stores and showrooms in Hong Kong, India – and further afield in Europe and the Middle East. It will also focus on airports, with a Mumbai airport contract already reportedly signed..

    “We are catering to the younger generation of South Asian diaspora with fashionable jewelleries by setting up showrooms and retail outlets globally, especially starting with airports,” Murugaiyan said in an interview.

    Lees ook:

  • Stelux warns of looming loss

    Stelux warns of looming loss

    Hong Kong headquartered watch retailer Stelux has warned shareholders it expects to post a loss in the first half year.

    Stelux owns the City Chain network of watch stores along with eyewear brands eGG and Optical 88.

    In the first quarter of this year the company reported a 7.1 per cent decline in sales. But despite a decrease in turnover due to a decline in tourist spending in Hong Kong and Macau, the company achieved an 85.8 per cent increase in sales of its fashion eyewear chain eGG in the China Mainland, a 23.4 per cent increase in City Chain sales there, and a more modest 0.2 per cent gain in its Optical 88 chain.

    Fast forward to last Friday, however, and it warned interest charges, exchange rate losses and weakening Hong Kong and Macau sales will see it record a loss for the full six months.

    It reported “a decrease in turnover and gross profit caused by weak retail sentiment… particularly in Hong Kong, Macau and Southeast Asia (with moderate turnover growth recorded in Mainland China).”

    In the six months to September 30 last year it posted a profit of more than HK$105 million (about US$13.5 million).

    “Despite the anticipated loss, the group is expected to report a positive operating profit, an improved gearing ratio (with a reduction in bank borrowings of approximately HK$130 million) and stable liquidity in the reporting period,” the statement concluded.

  • Sa Sa profits down more than half

    Sa Sa profits down more than half

    The Hong Kong-based company has issued a warning for investors to prepare for a profit cut to around HK$170 mln

    Cosmetics sale company Sa Sa International Holdings Limited is expecting profits to plunge more than 50 per cent for the six months ended September, according to a filing sent to Hong Kong Stock Exchange.

    These results are explained by ‘the worsening operating environment of the retail sector which has led to significant drops in both sales and gross profit and reduced operational efficiency’.

    According to the previous interim report of the company, for the six months ended September 2014, Sa Sa posted a profit of HK$339.76 million (US$43.84 million), which at that time was also down by around 5 per cent from HK$357.38 million. Now, the profit for the period is expected to be less than HK$169.88 million.

    Regarding sales for the second quarter of fiscal 2015/2016, Sa Sa has announced in another filing that turnover for the Hong Kong and Macau market declined 13.2 per cent year-on-year to HK$1.59 billion. Over this period, same stores sales dipped 10.1 per cent, while average sales per transaction declined 7.9 per cent to HK$346.

    Second quarter results
    In the filing sent to the Hong Kong Stock Exchange with data for the second quarter, the company says ‘overall consumer sentiment and Mainland Chinese tourist arrivals continued to be adversely affected by a number of factors with no significant signs of improvement’.

    ‘The strength of the Hong Kong dollar and the weaker yuan adversely affected the attractiveness of shopping in Hong Kong for both local consumers and Mainland Chinese visitors’, the company explains. ‘The impact of the ‘one-trip-per-week’ policy has gradually gained momentum, leading to a decline of 13.1 per cent and 10.1 per cent in the Group’s retail sales and same store sales in Hong Kong and Macau markets during the second quarter, respectively.’
    It is also explained that the number of transactions of Mainland Chinese customers declined 4.1 per cent, and that their average sales per transaction went down 12.5 per cent year-on-year, dragging down the overall performance of the group.

    Regarding the group performance, including Mainland China, Singapore, Malaysia and Taiwan markets, turnover declined during the second quarter of the year, 12.4 per cent year-on-year to HK$1.96 billion. Of the group’s 281 shops and counters, 110 are in Macau and Hong Kong.

  • Hong Kong Investor Snaps Up Glenferrie Road Property

    Hong Kong Investor Snaps Up Glenferrie Road Property

    A Hong Kong based private investor has paid $4.8 million on a 4.35 per cent yield for a retail and office investment at Hawthorn in Melbourne’s inner-east.

    According to selling agents, Teska Carson’s Michael Taylor and Anthony Choi, the property at 669-671 Glenferrie Road offered a prime retail precinct with main street frontage and a secure and diverse tenancy profile.

    The property was sold subject to three separate leases on a seven year term, Glenferrie Optical (three years) and an office tenant (five years) for a total annual income of $210,000.

    The property comprises an older style, two storey, double-fronted, 293 square metre building, with two retail tenants on the ground floor and offices upstairs, on a 325 square metre site with a generous frontage and exposure to busy Glenferrie Road.

    Glenferrie Road is a retail precinct home to many national tenants including Coles, Chemist Warehouse, David Jones and Woolworths.

    Lees ook:

    Lees ook:

  • Hilary Tsui of Liger boutiques on her passion for fitness and fashion

    Hilary Tsui of Liger boutiques on her passion for fitness and fashion

    Marathon runner, designer and co-founder of Hong Kong’s Liger boutiques, Hilary Tsui Ho-ying talks about her two passions – fashion and fitness.

    You’ve just got back from Paris Fashion Week. What was that like? “This was the busiest fashion week I have ever had! I was in Paris to run a race as well as for showroom appointments, buying and attending fashion shows. I also took my Oh My God collection there for a trade show.”

    How would you describe Hong Kong style? “We have different kinds of style influences here. Korean is very trendy at the moment and there are lots of people still loyal to Japanese fashion. For me and my store, we still tend to be more European.”

    How have falling retail sales in Hong Kong affected plans for your Liger boutiques? “We have to be more careful in choosing brands. Actually, everyone is going through a hard time in retail, especially in the fashion industry. I hope landlords can be more considerate of their tenants when deciding on rents. If that happens, the road will be easier for everyone.”

    How can Hong Kong fashion become more competitive globally? “Quality is important. For example, a friend who founded local label Jourden now has many clients all over the world, including influential stockists like Colette and Barney’s. One of the reasons she can attract these international buyers is that she chooses high-quality fabrics.”

    How do you juggle your passions for fitness and fashion? “Our store now has a sports corner where I can display my favourite brands, trainers and sportswear. Running is not only a sport, it helps release stress – one of my favourite moments is when I can be alone and clear my mind. People always say that marathon running is a kind of meditation. And people want to be stylish when they are doing yoga, running or other exercise.”

    What is the one thing you can’t live without? “My family!”

    Lees ook: