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Tag: International

  • Cath Kidston Japan surges but not enough

    Cath Kidston Japan surges but not enough

    Cath Kidston Japan sales outperformed every other market in the year to March, but not enough to stem losses by the UK-based company. Sales in Japan rose by 5.4 per cent after a net four new stores took the brand’s network there to 32. Ten more Cath Kidston Japan stores are planned there next year.

    In China, Cath Kidston also performed well, aided by a new franchise deal which will see 50 shops opened over the next five years.

    “The brand clearly continues to resonate with our loyal customer base, particularly in the UK and Asia,” said CEO Melinda Paraie.

    “During the period the group continued to grow top-line sales, despite significant headwinds in some of the markets in which we operate,” she said.

    “We are particularly pleased with the significant growth in ecommerce sales in both Japan and the UK, where a strong performance on Black Friday contributed to our best-ever week online.”

    Despite the positive Asian results, Cath Kidston’s loss rose from £8.4 million in the 2017 financial year to £10.5 million this year. Paraie blamed “increased cost pressures from the weaker sterling” since the Brexit vote for the result. Worldwide sales rose 1.2 per cent to £130.7 million, with UK sales up by 5.1 per cent.

  • Inditex suffers from late coming winter

    Inditex suffers from late coming winter

    Zara owner Inditex has posted slow like-for-like sales growth due to the unusually warm autumn and adverse currency moves. Inditex, which also owns upmarket label Massimo Dutti and teen label Bershka, posted a 3 per cent rise in like-for-like sales in the six months to the end of November after an “extraordinarily warm September”. Sales bounced back somewhat to 5 per cent in October and November.

    The fashion giant reported an increase in earnings before interest and tax of €3.07 billion from the previous corresponding period.

    In the first nine months of the year, the world’s largest fashion retailer reported a 3 per cent increase in sales to €18.4 billion and a 4 per cent rise in net profits to €2.4 billion.

    According to Inditex, the company didn’t have to cut clothing prices from September like its rivals, which resulted in margin growth of 108 basis points during the third quarter.

    The clothing retailer maintained sales and margin guidance for the rest of the year.

    Pablo Isla, Inditex chair and CEO, said the group’s strong business model, which continues to deliver solid structural growth in all markets, and its constant focus on developing the integrated store and online platform through continued enhancement of technology and systems, have contributed to its performance.

    The company announced last September that all products from all its brands will be made available online by 2020, including in markets where it does not have any stores.

    Isla had said that Inditex wants to make all fashion collections available to all customers wherever they are in the world.

    “Even in those markets which do not currently have our bricks-and-mortar stores,” Isla added.

    Other than Zara, Massimo Dutti and Bershka, Inditex also sells the brands Pull & Bear, Stradivarius, Oysho and Uterque across its network of almost 7500 physical shops. It operates online in 49 markets.

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  • Victoria’s Secret opens first flagship store in Australia

    Victoria’s Secret opens first flagship store in Australia

    Victoria’s Secret has opened its debut flagship store in Australia, the first store in the nation to offer the U.S. lingerie giant’s full range of apparel, innerwear and accessories. Located in Melbourne’s Chadstone Shopping Centre, the Victoria’s Secret store opened to much fanfare at 5:30 am local time, with a ribbon cutting ceremony last week.

    Some one thousand women camped outside and waited for a first look at the store, according to local media reports, with the first shoppers getting a $180 voucher.

    Designed to reflect the firm’s New York flagship store on Fifth Avenue, Victoria’s SecretMelbourne is fitted out the brand’s recognised pink, and hosts an in-store display that holds approximately 12,000 pairs of panties.

    There’s also a separate entrance for its Victoria’s Secret Pink collections.

    The new Australian store in addition sells Body by Victoria, Very Sexy, Dream Angels, Bombshell, cotton lingerie and Victoria’s Sport athleisure line.

    The Melbourne opening marks the first official Victoria’s Secret store in Australia, separating itself from concession stores inside malls and Australian airports that are limited to selling fragrance and cosmetics.

    Victoria’s Secret recently announced it had appointed fashion executive John Mehas as its new lingerie chief executive.

    Mehas will take over in January, replacing Jan Singer, who has now resigned.

    “Our number one priority is improving performance,” L Brands chairman and chief executive officer Leslie Wexner said at the time of announcing.

    “I am confident that, under John’s leadership, Victoria’s Secret Lingerie…will continue to be a powerhouse and will deliver products and experiences.”

    Victoria’s Secret operates 1600 stores globally.

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  • Luckin Coffee worth $2.2 billion in quite short time

    Luckin Coffee worth $2.2 billion in quite short time

    Fast-growing Chinese cafe chain Luckin Coffee has raised US$200 million in its latest funding round, effectively valuing the company at a stunning $2.2 billion. That’s up to $700 million more than its value was estimated just one month ago when the quest for funding was announced.

    Launched only in January, the company had already opened more than 1700 outlets in 21 Mainland China cities by last month. Its rapid growth is based on an inexpensive delivery service concept and online ordering system.

    An aggressive competitive strategy involves an IT-focused approach whereby all customers must purchase coffee via an app, with which they can then monitor brewing progress via livestream. Its pricing is considerably less than Starbucks.

    Luckin said the latest funding round was led by Singapore Government sovereign wealth fund GIC and China International Capital Corp. They were likely attracted by a mid-term plan for an IPO of the Luckin business in either Hong Kong or New York. GIC was a participant in a similar capital raising in July.

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  • DB Schenker signs a MoU for logistics centre in China

    DB Schenker signs a MoU for logistics centre in China

    DB Schenker, one of the world’s largest logistics service providers, and the Eastern China city of Changshu signed a Memorandum of understanding for the establishment of a state-of-the-art logistics center in the Changshu Economic and Technology Development Zone.

    Due to its convenient location near the metropolitan areas of Shanghai, Suzhou and Wuxi, and its proximity to the deep-water port of Yangshan as well as to a new port currently developed on the Yangtze River near Changshu, the city is a strategic location for a logistics center. Moreover, DB Schenker will be the first international third-party logistics provider (3PL) with a fully owned logistics site in Changshu.

    The new facility will provide state-of-the-art logistics and supply chain management services with a high level of automation to customers from the automotive and healthcare industry as main target group as well as to companies from other industry sectors situated around the Yangtze River Delta and Greater East China Region. The construction start of the center is scheduled for the end of 2019 with duration of two years.

    “After our strategic investment in a logistics center in Pinghu in July, the logistics facility in Changshu will be our second 100% owned distribution center in China. Both facilities complement our local growing warehouse portfolio with existing presence and partnerships with warehouses in Beijing and Shenyang”, says Christopher Pollard, CEO Greater China, Schenker China Ltd.

    With over 50 years of experience in China, DB Schenker is one of the biggest 3PL companies in the local market offering extensive air, ocean, road and rail freight services, as well as integrated contract logistics service and supply chain management.

     

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  • Shopee wraps up a record-breaking 2018 on 12.12 Birthday Sale

    Shopee wraps up a record-breaking 2018 on 12.12 Birthday Sale

    Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, wraps up a record-breaking year with its highly successful Shopee 12.12 Birthday Sale. On 12 December, Shopee saw ​over 12 million orders across the region, surpassing all past records including the recent Shopee 11.11 Big Sale.

    Supported by ​more than 450,000 brands and merchants​​, Shopee recorded ​48million visits as users shopped ​60 million deals across all categories, and the highest number of items sold in 1 minute was ​73,519​​. Shopee’s highly popular in-app game Shopee Shake was played 46 million times​​ throughout the campaign.

    In Singapore, Beauty & Personal Care, Home & Living and Mobile & Gadgets were the top three most popular categories. Leading brands including Laneige, Kao and JBL emerged as favourites amongst users.

    Zhou Junjie, Chief Commercial Officer, Shopee​​, said, “Shopee 12.12 Birthday Sale marks another significant milestone as Shopee celebrate a year of exponential growth. Following the success of Shopee 11.11 Big Sale in November and Shopee 9.9 Super Shopping Day in September, it has been an exciting and fulfilling quarter as past records are surpassed and set new benchmarks to reach next year.

    Since launching in 2015, Shopee has seen tremendous growth across its seven markets, achieving over 195 million downloads across Southeast Asia and Taiwan.

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  • Korea’s auto exports on the rise, but local industry still struggling

    Korea’s auto exports on the rise, but local industry still struggling

    Attractive prices and returns have seen the number of Chinese customers buying high-end apartments in HCMC soar this year. Duong Thuy Dung, senior director of real estate market research firm CBRE Vietnam, said at a recent forum that 31 percent of high-end apartment buyers in HCMC in the first nine months were Chinese. This figure increased from only 2 percent in 2016 and 4 percent last year.

    In the last two years, Chinese were sixth among all buyers, but this year, they have surpassed Vietnamese to rank first.

    Only 24 percent of high-end home buyers are Vietnamese, CBRE data shows.

    Stephen Wyatt, country head of property service firm JLL Vietnam, said the number of Chinese buyers has been increasing because Vietnam has an attractive price compared to other markets like Hong Kong, Japan, Singapore, South Korea and Taiwan.

    Chinese people often compare prices in Vietnam with Shanghai when they buy properties, he said, adding that they hope to gain profit from higher property prices in Vietnam in the future.

    A high-end apartment in the city costs around $5,000 per square meter, but the same one in Hong Kong could cost four times, said Nguyen Khanh Duy, director of residential sales at real estate service provider Savills HCMC.

    Nguyen Hoang, director of research and development at real estate firm DKRA, said that the number of Chinese and South Korean buyers in HCMC started to increase last year.

    Chinese from Shanghai and Hong Kong are buying properties as investments (not to stay in). “Most projects that foreigners bought in the last two years are under construction,” he said.

    Other industry insiders said that the high returns that HCMC high-end apartments offer is attracting many foreign buyers.

    The rate of return is 5-6.5 percent in Thao Dien ward and Thu Thiem Peninsula in District 2, while in other Asian countries, this rate is only 3.7-5.2 percent, Duy said.

    CBRE senior director Dung added that it was not just Chinese, but foreign buyers in general who are showing an increasing interest in HCMC real estate.

    Dung said that each foreigner group has a different preference for high-end apartments. Customers from mainland China, Hong Kong and Taiwan prefer large-scale projects near the downtown HCMC.

    South Koreans like to buy apartments in the southern District 7 that hosts a large community of South Koreans, while Western buyers often look for a quieter lifestyle in eastern District 2.

    Dung said HCMC is estimated to receive 40,000 new apartments in the 2018-2020 period, 60-70 percent of these in the high-end segment.

    In the last three years 35,000 luxury apartments have come into the market, CBRE said.

    This is a major increase from 2012-2014 when fewer than 10,000 units were on offer, CBRE said.

  • Asia is leading the global digital retail market

    Asia is leading the global digital retail market

    Retail executives looking to understand the future of retail should take a close look at Asia, where retail is booming as Asia is leading in terms of retail growth. The growth rates are twice the rate of the rest of the world, and e-retail growing at three times the rate.

    Asia is followed by Europe and the US, with China, Korea, and India at the forefront.

    In 2017, China’s online retail penetration was 20 per cent and its CAGR (13-17) was 33 per cent. In comparison, the US achieved an online retail penetration rate of 12 per cent in 2017 and a CAGR (13-17) of only 11 percent. Most dramatic is India, which had a CAGR (13-17) of 53 percent, highlighting the rapid growth seen in the market.

    Market conditions have allowed for swifter digital penetration than any other region worldwide and have led to the creation of ecosystems for retailer and consumer ease, revealed Bain & Company’s latest Asia retail report.

    According to the report, retail ecosystems comprise vast communities of consumers, retailers and partners that are rapidly reshaping the retail landscape. Alibaba and Tencentlead the best-known Asian ecosystems; however this phenomenon is not limited to China.

    Ecosystems deliver a very sticky consumer proposition by combining services like e-commerce, chat, streaming, gaming or payments in a single platform or app, which is becoming almost universally adopted by shoppers, according to the report.

    A large customer base is incredibly attractive to retailers as a channel to a critical mass of customers. But more importantly, the ecosystem also provides retailers with access to hard-to-replicate capabilities, such as last mile fulfillment, data analytics and cloud services, through their platforms. Increasingly, these ecosystems are deploying their capabilities into bricks and mortar retailers as well as online, meaning they can exert significant influence over the retail sector.

    “What we are seeing is the emergence of scale open retail ecosystem platforms across the Asia Pacific region, that offer retailers a compelling alternative to building and scaling their own capabilities,” said report author Melanie Sanders, Bain & Company partner. “The scale of these ecosystems means that we are seeing a battle emerge between ecosystem platforms in key markets, with the potential for a winner-takes-all situation.

    However, the extent and pace of ecosystem development will not be uniform across geographic markets. The report has outlined ten market factors, which has explained why ecosystems have developed so rapidly for some Asian countries, including social factors such as urban density and age structure through to retail market conditions such as the scale/maturity of physical retailers in the country.

    “The emergence of retail ecosystems is raising a new set of choices for retailers about how to participate in this new retail landscape. The emergence of these ecosystems presents huge opportunities for those playing to win in these markets, but at the same time has the potential to completely change the rules of the game and may mean a loss of control,” the report said.

    “Retailers face a confronting set of choices around how to respond the rise of retail ecosystems. At the heart of the decision will be whether the retailer has the capabilities, capital and customer franchise to compete against an ecosystem,” said Jonathan Cheng, report author and principal at Bain & Company.

    As digitisation of the retail sector continues to expand in Asian and global markets, ecosystems will continue to evolve based on the needs of both the consumers and retailers, the report added.

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  • What to learn from China’s Singles’ Day?

    What to learn from China’s Singles’ Day?

    Ever since the first Singles’ Day or 11.11 sale began in China in 2009, every year, there would be plenty of commentary explaining the phenomenon to an international audience. This doesn’t appear to be necessary any more.

    In its tenth edition, the event has grown into the world’s largest shopping festival where 180,000 brands participate and consumers take less than two hours to spend a phenomenal 100 billion yuan ($14.5 billion).

    It is an event in its own right. Not an imitation, but something that that consistently pushes the boundaries in terms of content, tie-ins and consumption. In 2012, sales for Singles’ Day first surpassed Cyber Monday and Black Friday in the US.

    And so effectively targeting buying power has been a focus for many international marketers. Given the volume of purchases and the willingness of Chinese consumers to embrace new technologies, it is also a true testing ground for brand owners.

    Three major changes are to take our from this year’s 11.11.

    Mini-programs take centre stage

    For brands and retailers, mini-programs have become a core marketing channel.

    Considering WeChat’s active user traffic of one billion, this comes as no surprise.

    Within WeChat’s ecosystem, mini-programs provide connectivity between social, content and payment. For example, retailers in a shopping mall can distribute free parking vouchers using mini-programs and they will be able to generate information on the arrival time and spending habits, as well as which customers own a car.

    According to official figures from WeChat, as of July 2018, it had over one million mini-programs with users opening them four times per day on average.

    A survey by China’s big data service provider QuestMobile has identified the most important functions of a mini-program: effectively combining online and offline activities; sharing customer information; serving as a standalone e-commerce platform; and the ability to combine the physical aspects of a promotional campaign with social marketing.

    Growth in short videos

    Data reveals companies using short video sharing platforms, such as TikTok and Kuaishou, received the majority of the 11.11 targeted advertising traffic.

    Community is king

    In China there are Social+ platforms that present a lucrative opportunity for both content and word-of-mouth marketing. Xiaohongshu, which is backed by Alibaba, has 150 million users consisting of the social media generation born in the 90s. They use the platform like Facebook and are highly influenced by shopping tips and insight from celebrities.

    A completely different interest group is Babytree, an online parenting platform that uses a similar vertical marketing model and presents another attractive opportunity for advertisers.

    These platforms provide an engaging forum for like-minded people and are realising the tangible benefits of teaming up with major e-commerce operators.

    All the above changes highlight how brands and consumers are moving away from purely a transactional shopping experience. Instead, it’s more collaborative and relationship-based, changing the dynamics of e-commerce. There is ample evidence of this phenomenon developing in other markets.

    Lessons from the East

    At $30.8 billion, the online sales of 11.11 surpassed this year’s figures for Black Friday ($6.22 billion) and Cyber Monday ($7.9 billion) in the US. But both these figures for the US represent a 24% and 20% respective increase on last year.

    While the results illustrate a gap in retail ecosystems between the two largest economies, there is clearly a growing preference by US consumers for digital channels rather than elbowing through crowded stores the day after their Thanksgiving dinner.

    In a poll by Periscope By McKinsey in October 2018, roughly a month before the sales, nearly half of the respondents (48%) said that they plan to shop more online while fewer (28%) said they plan to do so in-store.

    China’s highly sophisticated online shopping behaviour has leapfrogged the development of retail that has been commonplace in most Western countries. In doing so, it now sets the world standard in e-commerce.

    Any marketers who want to successfully compete in this huge and attractive market need to be digital and mobile led in their strategies. But 11.11 does not just represent an opportunity for sales in China. The trends and habits should be understood as they will provide the inspiration for other markets where online spending is also growing.

    Brands that can adapt these successful models may well be able to transfer success.

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  • H&M to collaborate with EYTYS to launch a gender neutral collection

    H&M to collaborate with EYTYS to launch a gender neutral collection

    ashion giant H&M has teamed up with Swedish streetwear brand Eytys to launch a gender neutral fashion collection that will go on sale in selected stores worldwide on January 24. The new unisex collection, which is being designed in collaboration with H&M, will feature footwear, apparel and accessories for men, women and kids.

    The footwear collection will include new takes on a number of Eytys’ signature chunky-soled styles and will come in custom-designed boxes decorated by painter Zoe Barcza.

    “With this collaboration, we hope to introduce the H&M customer to our design philosophy of robust and fuss-free design where function triumphs embellishment and style spans genders,” said Max Schiller, creative director at Eytys.

    “The collection is all about proportions – creating a distinct unisex silhouette by playing around with loose silhouettes and chunky architectural footwear. It’s the Eytys idea of a ‘generic’ look, one that is meant to elevate integrity, attitude and confidence.”

    According to H&M, the Eytys design approach and overall ethos are rooted in the digital age, but also in freedom from restraints based on gender or age.

    “Together the brands have extracted the core of Eytys DNA and developed a unisex collection featuring a no- fuss and fashion-forward range of shoes and clothes.”

    Schiller said H&M admired Eytys’ distinct look and initially approached the company with the idea of creating a shoe collection.

    But after initial brainstorming, it was decided to create a full gender neutral fashion collection – shoes, clothes and accessories – and enable customers to experience the whole brand aesthetic and ethos, he said.

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  • Best companies for French citizens to work for in 2019

    Best companies for French citizens to work for in 2019

    In its fourth year of running a top employers list for France, Glassdoor has seen several companies — like Thales and Airbus — make a reappearance over the years. This December however, the company that’s been hailed as the best place to work for 2019 is a newcomer to France’s list: fashion designer Hermes.

    It’s fair to say that France is renowned for its luxury brands, yet Hermes is the only group from this field to make it into this year’s top 10, with Louis Vuitton and L’Oreal coming in at 11 and 16 respectively.

    Instead, a few other industries fill the top 10, including transportation and retail.

    To compile, Glassdoor assessed the input that workers give when offering feedback, in addition to recent ratings, which are on a scale from 1 to 5.

    The top 10 firms found in this Glassdoor list surpassed the average global rating of 3.4; with each group receiving a figure of 4.2 or higher.

    Below are the top 10 firms for this year’s ranking.

    10. Amazon

    Coming in at number 10 is e-commerce titan Amazon.

    With a global workforce of more than half a million, Amazon is renowned for its job creation with the e-commerce group stating that in the past five years, it’s created over 125 jobs every day in the States alone.

    While office perks vary from country to country, some benefits mentioned include access to medical care and career development programs.

    9. Leroy Merlin

    Another retailer that’s winning over workers as well as consumers is French-headquartered Leroy Merlin.

    The DIY group’s operations are featured in about a dozen countries, with 100,000 staff members employed to keep the retailer functioning around the clock.

    Having placed on Glassdoor’s “Best Employers” for France since the survey began in 2016, the retailer attributes one reason why it remains popular among employees, is that it sees people as the “central resource” of the business.

    8. Thales

    Moving up from last year’s no. 24 spot, Thales is all about being a responsible leader in the transport, security and defense spheres.

    While Thales has attributed “acting responsibly” as a crucial quality to its long-term success, it’s not the only qualities it aims to foster.

    Inside the firm, Thales is dedicated to supporting its staff, through promoting diversity, team collaboration and career development — it even has an in-house university to support employees through any part of their profession.

    7. AUTO1 Group

    From its small beginnings in 2012, AUTO1 Group has now become Europe’s leading car trading platform with its operations taking place in over 30 countries.

    Inside the company, more than 3,500 people from over 55 nationalities are employed — which AUTO1 attributes as one of its key strengths when it comes to keeping the company thriving on a financial level.

    6. onepoint

    When hiring, onepoint looks for talent that holds “cutting-edge skills, (a) strong commitment to the Group and an open frame of mind.”

    In return, onepoint dedicates a large amount of time on an employee’s first few weeks with its integration period strategy; which can include introducing them to partners, training and different teams.

    On Glassdoor, reviews indicate that the company offers an innovative atmosphere with a strong, upbeat culture.

    5. Saint-Gobain

    With more than 180,000 people hired worldwide, Saint-Gobain asks its large workforce to abide by five key values during each workday: to be agile, uphold the open and engaging culture, foster strong relationship with clients, constantly innovate and embrace their entrepreneurial abilities.

    In return, staff members have a range of work benefits on offer. In France, this can include personalized training and commercial discounts.

    4. Adrexo

    Making its debut in Glassdoor’s rankings for France, Adrexo is considered a leading private operator of advertising print in the country, having collaborated with the likes of McDonald’s and Haribo.

    Inside the firm, over 20,000 individuals in France have been employed by Adrexo and no matter what level they are at, the company wants to make sure it promotes each person’s leadership and entrepreneurial capabilities.

    3. Ubisoft

    The business that’s seen success from the likes of “Assassin’s Creed” and “Far Cry,” is winning over its employees as well as consumers.

    With more than 14,000 workers running its ship, Ubisoft is keen on hiring individuals who are innovative and ooze creativity.

    While game design is an important role at the videogaming firm, it’s not the only job in town, with Ubisoft offering a whole host of divisions including marketing, programming, finance and quality control.

    2. Criteo

    Last year’s winner Criteo has moved down to second place for 2019, yet the ad firm remains a top favorite — with employees applauding the staff who’ve been employed and the strong overall management seen, Glassdoor reviews reveal.

    From what began as a start-up in the mid-2000s, Criteo has now transformed into a business with dozens of international offices and several “success stories,” such as partnering up and helping the likes of Office Depot, Sephora, and Microsoft.

    1. Hermes

    When people think of this high-end luxury brand, the iconic, top-dollar Birkin bag often comes to mind. Yet that’s not the only product on offer at Hermes.

    The luxury group sells jewelry, fragrances, watches, accessories and more to customers across the globe, both in brick-and-mortar stores and online.

    Inside this designer world, over 12,000 people work hard to keep the brand running at full speed and are hired to keep true to its values: high standards and authenticity, imagination and daring, elegance and simplicity.

  • Glossier’s president and CFO quits

    Glossier’s president and CFO quits

    One of Glossier’s earliest executives is leaving. Henry Davis, president and chief financial officer, is exiting the direct-to-consumer beauty brand after almost five years to pursue his own entrepreneurial opportunities. This comes weeks after Davis’ position changed from chief operating officer to chief financial officer, a role the company has been trying to fill since former vice president of finance Matthew Weiler departed the company earlier this year.

    In addition to Davis and Weiler, former creative director Helen Steed left Glossier a year ago to join New York-based branding and design agency Aruliden as vice president and creative director. Glossier confirmed Davis’ departure. His last day will be December 31.

    “Henry has been my partner since the earliest days of Glossier. He was one of the first people to understand the opportunity to build a new kind of company — one that leverages technology to create in collaboration with its customers,” Emily Weiss, founder and chief executive, told BoF. “I’m excited for him as he begins his own entrepreneurial journey.”

    After Weiss, Davis was the most public face of the business. He was one of the first executives hired by Weiss and joined the brand in June 2014, three months before launching in October of that year.

    Previously, Davis worked at Index Ventures, an early investor in Glossier that also led, along with Institutional Venture Partners, a $52 million Series C round of funding in February.

    A changing of the guards in upper management follows a handful of new hires including Marie Suter, who left Condé Nast after a 13-year tenure to join Glossier as creative director in March.

    Facebook alum Maykel Loomans is now head of digital product design, and Kym Davis, formerly of Fenty Beauty, is leading product development.

    Ashley Mayer, who came from Silicon Valley-based venture firm Social Capital, is head of communications, and former head of communications, Amy Snook, recently became chief of staff.

    The company, which has almost 200 employees, has raised $86 million and, according to a source close to the company, is on track to do over $100 million in revenue this year.

    In November, Glossier opened a flagship location in New York City that by customer accounts was one of the most bustling stores in the area.

    To date, the brand has only sold its range of skincare, cosmetics and body care through direct channels, an anomaly for direct-to-consumer lines that have begun to rely on retail partnerships to scale. Since inception, Weiss’ mission has been to retain complete control of its brand experience by creating a direct retail network to support the digital first line.

    And even though this may have resulted in the brand not yet scaling to the size of many other heavily funded startups, Weiss’ — and by extension Glossier’s — influence is outsized. Weiss has stayed true to her direct roots and in doing so has managed to build a cult following and community of engaged consumers willing to buy anything put forth by the brand, from its best-selling Boy Brow grooming pomade to its Milky Jelly Cleanser.

    The brand’s most engaged consumers have become ambassadors that are treated like influencers — some unpaid and others receive cash and shopping credits for their efforts in spreading the word.

    Weiss has been thoughtful about international expansion. Despite global demand from the onset, she took three years to sell outside the US. Glossier started selling in Canada and the UK last year and this year entered Ireland, Sweden, Denmark and France. The brand now sells across seven countries.

    “This team has proven that building a business alongside your customers is the future — not only in the world of beauty, but for all internet-first brands,” Davis said. “I couldn’t be more bullish about Glossier’s future as I embark on founding my own company.”

    Nabil Mallick, a partner at Thrive Capital and Glossier board member, will serve as interim CFO. A search for a full-time CFO is underway.

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  • Google Korea office raided by tax agency

    Google Korea office raided by tax agency

    The National Tax Service (NTS) launched an investigation into Google Korea on Wednesday, sending an official to secure accounting documents at the company’s office in Gangnam District, southern Seoul. The investigation is thought to be into YouTubers suspected of avoiding taxes, as NTS Commissioner Han Sung-hee previously promised during the National Assembly’s annual questioning session in October to take measures to “prevent tax evasion” by well-paid YouTubers.

    Commissioner Han revealed that the NTS had advised 513 YouTubers to pay income taxes in the past, and was open to launching investigations into those who have not declared taxes.

    The raid comes just a day after global IT giants like Google and Amazon were ordered to start paying 10 percent value-added tax (VAT) in Korea from next July.

    The National Assembly passed a bill to revise the country’s Value-Added Tax Act in a move to impose VAT on foreign IT firms, the Assembly announced Tuesday. Specifically, the revision means IT firms will have to pay 10 percent in taxes for revenue made from business-to-consumer services, which include online advertisements and cloud computing services.

    Also subject to VAT will be revenue made from online-to-offline services like hotel booking platforms that market online to raise sales in physical stores, as well as sharing economy services, which are spearheaded by companies like Airbnb. The revision will go into effect from July 1 next year.

    “We will continue discussing the issue of taxing business-to-business transactions between Korean and overseas firms, which could not be agreed on in this revision,” said Rep. Park Sun-sook of the minor opposition Bareunmirae Party, who submitted the bill for the revision.

    Like in other countries, the issue of taxing global IT giants has been the subject of fierce debate in Korea. Politicians have long raised concerns over how little IT giants like Google are being taxed in Korea, while domestic IT firms have bemoaned how the “reverse discrimination” was allowing overseas competitors to thrive at the expense of domestic companies.

    Google Korea is estimated to have paid less than 20 billion won ($17.7 million) in corporate taxes in 2016, when it raised nearly 5 trillion won in revenue in Korea in the same year through the Google Play store and YouTube advertisements. In 2017, however, Naver, which earned slightly less at around 4.67 trillion won, paid a total of 423 billion won in taxes, or 20 times more than Google.

    Strengthening regulations on corporate taxes will be much more difficult to achieve than changing VAT rules, however.

    Current international agreements like the OECD Model Tax Convention and tax treaties protect enterprises from paying income tax to foreign countries if they do not have permanent establishments in those countries. Though the definition of permanent establishments is often questioned, by current standards, Korea is not home to permanent establishments of any of the major IT firms – they mostly operate small affiliates here and conduct most of their business online from headquarters in the United States and other countries.

    These global IT firms only need to fulfill the corporate tax requirements for revenues made by their Korean subsidiaries, which is not much.

  • Lululemon founder to join the takeover bid for Amer

    Lululemon founder to join the takeover bid for Amer

    Canadian founder of yoga-apparel retailer Lululemon Athletica Inc., Chip Wilson, is close to joining the Chinese investor group pursuing a takeover of Amer Sports Oyj. The billionaire is in talks to take around a 20 per cent stake as part of the consortium led by Anta Sports Products Ltd. The buyer group and Helsinki-based Amer could announce a takeover agreement as soon as the next few weeks, a anonymous source reported.

    Shares of Amer climbed by the most in almost three months.

    Chinese internet giant Tencent Holdings Ltd. has been discussing joining the Anta consortium with a stake of roughly 5 to 10 per cent.

    Anta said in September it had teamed up with Chinese buyout firm FountainVest Partners to make an indicative offer valuing Amer at about 4.7 billion euros (US$5.3 billion).

    Negotiations are reportedly ongoing, and precise terms could change. No final decisions have been made, and the talks could still be delayed or fall apart.

    A representative for the Chinese consortium said she couldn’t immediately comment. Wilson couldn’t immediately be reached. A spokeswoman for Tencent declined to comment, while a representative for Amer didn’t immediately respond to a request for comment.

    Shares of Amer surged as much as 9.7 per cent — the most since Sept. 11 — before trading up 7.2 per cent to 35.44 euros as of 1:26 p.m. in Helsinki.

    Wilson’s holding company Hold It All Inc., which manages his family’s investments and real estate, also has a private equity unit and a philanthropic arm. He stepped down from the board of Vancouver-based Lululemon in 2015, two years after resigning as chairman. Wilson has a net worth of about US$3.5 billion, according to the Bloomberg Billionaires Index.

    Anta, which has a market value of about US$12.5 billion, has been working to grow its business overseas amid a Chinese government push to expand in sports ranging from soccer to skiing. Amer’s portfolio of well-known sports brands, including Salomon ski equipment, could be an attractive prospect for Anta ahead of the upcoming Olympic Games in Asia.

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  • JD.com and Intel launch new research lab for smart retail

    JD.com and Intel launch new research lab for smart retail

    Chinese online retail platform JD has launched a joint lab with Intel that will explore the use of IoT in smart retail solutions. The Digitised Retail Joint Lab will develop next-generation vending machines, media and advertising solutions, and technologies to be used in the stores of the future, based on Intel architecture.

    Scientists at the new lab have so far integrated Intel’s technologies with JD’s computer vision algorithms to analyse customer traffic and in-store purchasing habits, working on solutions designed to help store owners provide a more personalised and convenient experience to their customers.

    Zhi Weng, VP of JD and head of JD Big Data Platform said: “This lab will combine our collective strengths to develop cutting-edge solutions to bring the precision of online shopping to offline players. We look forward to expanding our cooperation with Intel to deliver a best-in-class, personalised shopping experience wherever consumers shop.”

    Wei Chen, VP of Intel & GM of Intel IOTG China added: “As China’s most influential retailer and a leader in data-driven offline retail innovation, JD is an important partner for us to continue to develop a wide range of use cases for our latest technology developments. We are happy to take our partnership to the next level.”

    The new lab adds to JD’s “Retail as a Service” conceptual framework in a bid to share its technology and infrastructure with other retailers and industries. Other efforts include a suite of technology upgrades for brick-and-mortar store owners, including smart shelving, smart price tags, checkout solutions, and more.

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