Retail News CRM

Tag: Japan

  • Don Don Donki opening second outlet in Singapore on June 14

    Don Don Donki opening second outlet in Singapore on June 14

    Japanese discount retailer Don Don Donki will open its second Singapore store next week at Tanjong Pagar’s 100AM mall.

    Don Don Donki’s product range of about 30,000 items was curated for Singapore and spans fresh and processed foods, vegetables, meat, sushi, groceries, beverages, costumes, clothing, cosmetics, novelty goods and household items. A third of the product selection is from Hokkaido.

    The first store opened in the Orchard Central shopping centre last December and the company plans at least 10 stores in Singapore within five years.

    The new store is spread over two levels of the 100AM mall.

    Better known by its nickname Donki, the retailer was founded by Japanese businessman Takao Yasuda in 1978 and is owned by the Don Quijote Group. Its stores in Singapore are run by Pan Pacific International Holdings, its holding company for overseas business.

    While the stores in Japan are called Don Quijote, its Singapore branch name has been changed to avoid confusion with a local Spanish restaurant of the same name. The term “Don Don Donki” was taken from the store’s theme song.

    “The idea to have Don Don Donki in Singapore was suggested by Hokkaido Marche,” said Yasuda, 68, who “semi-retired” a couple of years ago and moved to Singapore. “When I came here, I realised products in Singapore are very expensive, and in Japan I’m known as the king of discounts.

    “What costs one dollar in Japan is sometimes two or three dollars here.”

    So when he was approached by Hokkaido Marche to partner and open its concepts in Singapore, he agreed immediately.

    With 368 stores in Japan, Hawaii and the US, the brand achieved nearly ¥828.8 billion (US$7.3 billion) in sales last fiscal year.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • MINISO looks to expand in Vietnam market

    MINISO looks to expand in Vietnam market

    Miniso Vietnam plans to open 50 more stores by the end of this year and reach 400 by 2022.

    The discount retail chain plans to enhance its distribution system in Vietnam with a 10,000 sqm warehouse in Ho Chi Minh City which will open within a few months. That will provide strong support for stores and a planned online operation.

    Miniso Vietnam also has boosted its brand-name awareness among young consumers by having local singer Son Tung M-TP as its first brand ambassador.

    The company entered Vietnam in September 2016 and has already opened 40 stores there – 17 in Ho Chi Minh, 19 stores in Hanoi, and four elsewhere. It is rapidly rolling out stores to cash in on Vietnam’s current 10.9 per cent annual retail sales growth, which makes the country one of the fastest-growing retail markets in the world.

    The company says it recognises Vietnamese shoppers are moving from high-street shops to shopping centres and so it is adjusting its expansion strategy to include more malls.

    It has reached an agreement with Vincom to open stores in the mall operator’s future developments in major commercial and shopping centres.

    Products are priced between VND43,000 (US$2) and VND500,000, predominantly targeting consumers aged 18 to 35.

    The brand has been accused of misleading consumers by describing itself as a Japanese brand when it is a Chinese company, owned by Chinese and selling products made in China with no apparent Japanese connection.

    But that has not stopped it from opening more than 2600 stores worldwide, covering more than 62 countries and regions. Last year, its sales topped US$1.8 billion.

    The company plans to open 10,000 stores throughout the world by 2022.

  • SK-II experiential concept store features AI and face authentication

    SK-II experiential concept store features AI and face authentication

    An experiential concept store opened by beauty brand SK-II in Tokyo incorporates face authentication technology and AI.

    The Future X Smart Store by SK-II will trade in the trendy Harajuku district until June 28. (Scroll down for a video of the store from BuzzFeed).

    According to SK-II, customers can look into and touch digital screens which recognise them and help recommend beauty treatments based on their specific skin tones and types.

    “We aim to offer comprehensive skincare experiences that connect customers and SK-II in a bi-directional manner at the time of customer’s choosing,” said an SK-II executive in a Japanese press release.

    SK-II believes the technology and AI can create “a unique dialogue” between store and customer.

    At the pop-up’s entrance, customers are welcomed by digital art that changes according to the facial expressions and body movements of the customer.

    They can then move into a cubicle where they sit before a mirror which analyses their skin condition in an instant. But unlike ordinary skin analysis machines, the machine does not touch the skin directly – it simple scans the skin and uses AI to calculate treatments.

    On the store’s second floor, a Smart Beauty Wall with a digital touch screen automatically recognises the customer from the earlier scanning process below. It displays the results of the skin analysis and provides skin care advice.

     

    And a Smart Beauty Counter in the centre of the floor reacts to the customer, automatically displaying suggested products according to the analysis result. Customers can then try as many products as they wish while watching product information on screen.

  • Play for your makeup at Chanel’s Coco Game Center

    Play for your makeup at Chanel’s Coco Game Center

    Retro games such as Pacman and Pong take on a new twist at the Coco Game Center in Pacific House until June 18.

    After last year’s hit Coco Cafe, Chanel Beauty has followed up with another fun beauty concept.

    With previous stops in Seoul, Tokyo, Shanghai and Singapore, the Coco Game Center has arrived in Hong Kong. Inspired by Japanese arcades, the pop-up features games that highlight Chanel Beauty collections.

    The Bubble Game features the Hydra skincare line, while Beauty Ride features the latest range from Rouge Coco. The Beauty Lounge offers six new shades of Rouge Allure Ink.

    Visitors can also find out what happens when they put moisturiser on Mario or lip rouge on Pac-Man.

    Check the gallery of the event below (6 images) :

    Lees ook:

    Lees ook:

  • KAWS x Uniqlo UT ‘Sesame Street’ Collection Has an Official Release Date

    KAWS x Uniqlo UT ‘Sesame Street’ Collection Has an Official Release Date

    UNIQLO last week announced that it will begin rolling out the special KAWS x SESAME STREET UT (UNIQLO T-shirt) collection on Friday, June 29. Items will be available at all UNIQLO stores and UNIQLO.com. The collection showcases contemporary artist KAWS’s uniquely whimsical take on characters from the internationally beloved children’s television series. The UT range features carefully selected examples of celebrated pop culture graphics from around the world, transforming T-shirts into canvases of art expressing the individuality and tastes of wearers.

    KAWS initiated the idea of this special collection, which features graphics of iconic Sesame Street characters such as Big Bird, Elmo, and Cookie Monster. The range will be available in 23 colours and patterns for people of all ages. Unisex items for adults will be in sizes XS through 2XL at $19.90. The 2XL size will be available only through the online store. Kids’ items will be sold in sizes 100 through 150 at $14.90.

    Check the gallery below (4 images) :

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Guess narrows losses in first quarter, revenues lift 14% on Asia earning

    Guess narrows losses in first quarter, revenues lift 14% on Asia earning

    Continued momentum in Asia has helped boost revenues for US clothing brand Guess Inc for its first quarter, to May 5.

    As the company continued to take advantage of its infrastructure investments in China and Japan, its operating margin in Asia improved by 430 basis points.

    Asia revenues increased 32.6 per cent in US dollars and 25.1 per cent in constant currency.

    Operating margin for the company’s Asia segment increased 430 basis points to 4.8 per cent in the quarter, compared to 0.5 per cent. This was driven mainly by higher gross margins.

    CEO Victor Herrero says company revenues overall grew 15 per cent in US dollars and 8 per cent in constant currency. “We were also able to expand the company’s operating margin, despite cost pressures related to our transition to our new distribution centre in Europe.”

    At the same time, the company had a GAAP net loss of $21.2 million, a 0.3 per cent improvement on the first quarter a year earlier. An adjusted net loss of $17.8 million was 7.9 per cent better than the same period 12 months ago.

    Lees ook:

  • Asia safes Michael Kors performance

    Asia safes Michael Kors performance

    Asia proved the strongest growth market for premium apparel and accessories retailer Michael Kors last year, offsetting ongoing weakness in its largest market, the Americas.

    Asian sales increased 17.5 per cent to US$137.7 million in the fourth quarter and were up 33.7 per cent to $469 million for the year.

    Michael Kors sales and profit numbers released overnight included a better than expected fourth quarter, but flat forecasts for the year ahead disappointed analysts.

    Net income for the three months ended March 31 was $44.5 million, a significant improvement over a $26.8 million loss during the same period last year.

    Fourth-quarter comparable Michael Kors sales were up 2.3 per cent on strength in accessories, footwear and men’s categories, but fell 1.7 per cent on a currency-corrected basis.

    Michael Kors has been investing heavily in transitioning its business model following the acquisition of Jimmy Choo last year, with chairman and CEO John D Idol saying a solid foundation had been created.

    “We created a global luxury group with the acquisition of Jimmy Choo and completed the first year of our Runway 2020 strategic plan for the Michael Kors brand, ending the year significantly ahead of our expectations,” he said.

    “Looking to fiscal 2019, we have a number of initiatives planned to drive growth in both of our luxury brands.

    The company expects building momentum to deliver first quarter revenue of around $1.13 billion, with a $140-$145 million contribution from Jimmy Choo’s 182 stores.

    Neil Saunders said the addition of Jimmy Choo had masked weakness in Michael Kors sales figures for last year.

    “While the headline growth number from Michael Kors looks strong … it is flattered by the addition of Jimmy Choo sales; when these are stripped out, the growth plummets to a lacklustre 0.6 per cent,” Saunders said.

    “This anemic underlying growth rate comes off the back of a dire performance last year when revenues plunged by 11.2 per cent. Taking account of all these things, the fashion brand is ending its fiscal year with soft growth.”

    Store renovations, expansion into new luxury concepts, a renewed focus on e-commerce and the launch of a new loyalty program have emerged as key pillars of the company’s 2020 strategic plan.

    In comparison, Americas sales declined by 2.5 per cent to $342.8 million in the fourth quarter and by two per cent to $1.67 billion for the year.

    “Perhaps the most damning figure is the Americas retail sales number,” Saunders said.

    “A particularly worrying outcome given the 18 per cent decline posted in the prior year. In our view, this number clearly indicates that Michael Kors is not back to full strength and still has a lot of work to do on its proposition.”

    Encouragingly, retail growth and the addition of Jimmy Choo bolstered margins, resulting in a 14.5 per cent increase in gross profit.

    Jimmy Choo sales were $107.9 million worldwide in the fourth quarter and $222.6 million for the full year, with Europe and the Middle East driving turnover.

    There were 1011 stores in Michael Kors business as at March 31, including 829 Michael Kors stores.

  • Brand new Shibuya mall and hotel to open in September to welcome Olympic

    Brand new Shibuya mall and hotel to open in September to welcome Olympic

    Among changes ahead of the 2020 Tokyo Olympics, Shibuya is having a revamp that includes Shibuya Stream, on the south side of the railway station.

    It is a complex covering the point where the Shibuya River emerges from underground. The theme of the first three floors is “Shibuya Style: Custom Shibuya”, with 30 businesses recruited that target “adults who have their own style and live their life their own way”. Most of these places are new to the area, the city or the country.

    The first floor, the Riverside Market (pictured), is intended to resemble a relaxing riverside area. It will feature a restaurant from Osaka making its Tokyo debut, Bokkoku Kaiten Tori Ryouri, which appears to have a Mexican menu. A branch of The Great Burger Stand will be among five other businesses.

    Meant to mimic the streets of Shibuya, the second floor will be called Shibuya CustomStreet and feature 15 shops, including two restaurants by bakery connoisseur Shuichiro Omura, as well as a French restaurant with an open kitchen.

    Introducing paella

    Shibuya Court, the third floor, will feature nine more restaurants with open spaces, including cuisine options like Japanese and Spanish. For the first time in Japan, guests will be able to taste Barcelona-style paella and Spanish seafood at Xiringuito Escriba.

    Two plazas will make up the ground floor of Shibuya Stream. The first will face the great stairs leading up to the first floor as well as the Inari Bridge. It will serve as Shibuya Stream’s connection to the south side while also giving guests a chance to look over the river. There are already plans for promotional events to occur here.

    The second open space will stretch along the river to Kanno Bridge with the intention of hosting markets, beer gardens, festivals and community events. The area will also be landscaped and lined with green, and the river will be given a boost to its image with new water-treatment projects.

    The shops will be open for business from September 13. Pictures of the rendering can be viewed below :

     

    Lees ook:

  • I.T Limited sales goes up in China and Japan, but down in HK

    I.T Limited sales goes up in China and Japan, but down in HK

    Solid growth in Japan and China compensate for subdued sales in Hong Kong for fashion retailer I.T Limited.

    While Hong Kong sales slipped 5.1 per cent to HK$3.28 billion, much of that was related to store network rationalisation, with like-for-like sales down just 0.9 per cent. Mainland China sales rose by 10.9 per cent to HK$3.837 billion and in Japan, sales soared 29.3 per cent in Hong Kong currency, or 31.6 per cent in local currency, to HK$945.8 million.

    Total group turnover was up 4.8 per cent to HK$8.383 billion and net profit by 37.1 per cent to HK$431.9 million.

    I.T Group operates its own brands, including Chocolate and 5cm, concept stores Izzue and Double-Park; international brands it has local licences for including Kurt Geiger and Camper; and A Bathing Ape, which the company rescued from Japanese owners in 2011.

    I.T Limited’s total trading area shrunk by just 0.3 per cent in Hong Kong, reflecting the sheer size of its various brands’ network. But the company said the consolidation exercise and controlled discounting initiatives helped profitability. Same-store sales growth turned positive in the second half of the year.

    “The results in our Hong Kong and Macau segment are particularly noteworthy,” said chairman Sham Kar Wai.

    “They are not only due to the fact that Hong Kong is the home of the group and is one of the leading fashion marketplaces in Asia. They also reflected the determined efforts we made to move the business in our Hong Kong and Macau segment into positive territory in the second half of the financial year. We are also particularly encouraged by the recent relevant data showing signs of gradual recovery in the fashion retail industry in Hong Kong.”

    On the mainland, the group now has 492 stores and an online business. While same-store growth of less than 1 per cent was far lower than the previous year’s 17 per cent, it was against an unusually high base.

    I.T Limited is also experiencing solid growth in the US,m where it opened two new stores in Los Angeles.

    “Our business in Japan and the US continued to outperform, and we are particularly gratified that the responses to the two new Los Angeles shops have been overwhelmingly positive.”

    Lees ook:

    Lees ook:

  • My Melody Café Is Opening In Singapore At Suntec City

    My Melody Café Is Opening In Singapore At Suntec City

    Japan’s My Melody Cafe plans an outlet at Suntec City.

    Commonly known as My Melo, the character central to the cafe is a white rabbit from Japanese characterisation company Sanrio who is said to be a good friend of Hello Kitty.

    With an al fresco garden setting, the cafe will feature a floral arch, garden-themed mural wall and a cottage house.

    The menu will offer five mains, six desserts and seven character-customised drinks.

     

    Lees ook:

    Lees ook:

  • The Outlets Hiroshima opens with great success

    The Outlets Hiroshima opens with great success

    The ribbons have been cut for the official opening of The Outlets Hiroshima, a shopping, dining and entertainment destination.

    Launching with 100 per cent occupancy, The Outlets Hiroshima offers savings of 35 to 70 per cent on luxury and fashion brands such as Armani, Bally, Coach, Ermenegildo Zegna, Kate Spade and Salvatore Ferragamo; sports brands including Adidas, Champion, New Balance, Nike, Puma and Under Armour; and Japanese brands such as Beams, United Arrows and Urban Research.

    With the open-air environment of traditional shopping villages, the shopping centre’s 125 outlet stores are set amid landscaped courtyards, water features and outdoor seating. Setting The Outlets Hiroshima apart from Japan’s typical outlet malls is an extra 25,000sqm of dining, entertainment and retail. As well as 22 restaurants and cafes offering both international and Japanese food, a 1000-seat food court offers 12 cuisines.

    Leisure activities and amusements include a cinema, ice-skating rink, bowling alley, VR centre and video arcade. There are also 85 specialty stores selling Hiroshima souvenirs, as well as an upscale supermarket offering fresh fruit, vegetables, pastries and local products.

    Developer Aeon Mall Co has seamlessly integrated outlet shopping, dining, leisure, entertainment and local culture in its collaboration with The Outlet! Company. The Outlets Hiroshima is collaborating with travel agencies to offer packaged group tours, and also provides special promotions and privileges for foreign tourists. The project is about 30 minutes’ drive from downtown Hiroshima.

    Pictures from the grand opening can be viewed in the gallery below :

    Lees ook:

    Lees ook:

    Lees ook:

  • Henderson to buy Japanese retailer FamilyMart’s Hong Kong stores for US$38 million

    Henderson to buy Japanese retailer FamilyMart’s Hong Kong stores for US$38 million

    Property developer Henderson Land plans to acquire the Hong Kong unit of FamilyMart UNY, Japan’s second-largest convenience store chain, for HK$300 million (US$38 million) through its investment subsidiary, it announced on Thursday.

    UNY (HK) owns and operates three outlets in the city – described as hybrids of merchandise stores and supermarkets – under the brand names Apita, UNY and Piago, respectively in Taikoo Shing, Lok Fu and Kowloon Bay, as well as a discount store named Watashi to Seikatsu in North Point, which is due to close when the lease runs out in September.

    The acquisition is expected to strengthen the company’s position in the local retail market, expand its store coverage to Hong Kong Island and enhance its reach to the city’s middle-class households, according to a statement from Henderson Investment, a subsidiary of Henderson Land Development. Henderson Land is the property flagship of real estate tycoon Lee Shau-kee, Hong Kong’s second richest man according to Forbes magazine.

    The companies expect to complete the transaction by May 31, after which Henderson will be granted the use of certain trademarks of UNY for 10 years.

    UNY’s Hong Kong stores have been rooted in the local retail scene for around 30 years with a focus on offering Japanese food and fresh produce. UNY HK reported a net income of HK$31 million in the fiscal year ending November 2017, down 22.5 per cent from the same period a year ago.

    Henderson Investment’s presence in Hong Kong’s retail landscape includes its operation of local department chain, Citistore, which the company acquired for HK$934.5 million from its parent company in 2014. Citistore currently has six department stores, in Tsuen Wan, Yuen Long, Ma On Shan, Tuen Mun, Tseung Kwan O and Tai Kok Tsui.

    Listed in Hong Kong, Henderson Investment halted its trading in the local bourse on Thursday morning with its shares at 68 HK cents, and expected to resume trading on Friday.

    Lees ook:

    Lees ook:

  • Aeon adopts wait-and-see approach over GST

    Aeon adopts wait-and-see approach over GST

    Japanese retailer AEON Co (M) Bhd is adopting a wait-and-see approach when it comes to the upcoming abolishment of the Goods and Services Tax (GST) on June 1.

    Executive director Poh Ying Loo said Aeon was still seeking greater clarity from the Pakatan Harapan government.

    “The GST question was something that was also posed by shareholders earlier and our stand right now is that it is too early to decide right now,” Poh said at a press briefing after the group’s 33rd annual general meeting here today.

    “We understand that other policies and tax regime such as the Sales and Services Tax (SST) will be reintroduced. We can’t really comment on whether of not our pricing would be cheaper until those things are made more clear,” he added.

    The group has allocated between RM300 million and RM500 million in capital expenditures (capex) this year.

    According to Poh, this was slightly lower than last year’s capex of some RM500 million.

    “The capex is inclusive of our newest mall in Kuching, Sarawak which we have already opened in April this year,” said Poh.

    With three levels of retail floors and four levels of car park, the Kuching mall is AEON’s debut presence in East Malaysia.

    The remaining capex will be for the expansion of Taman Maluri Shopping Centre and the refurbishment of Tebrau City, Bandar Utama and Bandar Sunway.

    As of the end of 2017, AEON has 26 malls across the country.

    A big part of AEON’s drive this year is to further strengthen its omni-channel strategy that will leverage onto its physical stores for offline experiences, logistics and convenience.

    “We had partnered with online concierge and delivery service Honestbee in January, and the response has been encouraging. We expect this business will grow with time,” said managing director Shinobu Washizawa.

    The firm is also set to roll out a “groceries drive-thru” service in Bukit Indah, Johor whereby customers can order groceries online from Aeon and pick them up themselves through a drive-thru window, starting next month.

    Aeon posted a net profit of RM105 million on the back of RM4 billion revenue for the year ended 31 December 2017.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Bic Camera Inc.’s profits come from Chinese tourists

    Bic Camera Inc.’s profits come from Chinese tourists

    Japanese retail tycoon Ryuji Arai can thank a growing flock of Chinese spenders for his swelling fortune.

    Bic Camera Inc., the Tokyo-based consumer electronics retailer that sells everything from cosmetics to liquor at discounted prices, has become a sought-after destination for tourists shopping in Japan. Profit has jumped to a record, sending its shares up by more than 50 percent over the past year.

    The surge has given 71-year-old Arai a $1.8 billion fortune. Arai, who founded the retailer four decades ago and steered the company to its initial public offering in 2006, is now chairman at the company. He owns a 43 percent stake in the shares through a set of trusts and his asset management company La Holdings.

    Bic Camera has won tourists over with bargain prices offered in its stores along with duty-free desks, and by giving overseas shoppers the option to make online reservations for products they wish to purchase. The company is also trying to woo Chinese shoppers by accepting payment methods such as Alipay, Wechat and even Bitcoin — which is helping boost sales, said Bloomberg Intelligence Consumer Analyst Thomas Jastrzab.

    “Bic Camera’s early adoption of new payment options could give it an edge over more cautious rivals,” said Jastrzab.

    Not much is known about the reclusive businessman. Bic Camera declined to make him available for comment for this story. He started his first company in his early twenties and later spun out the camera sales division into its own company, according to local media reports. He then went on to form Bic Camera in his early thirties with the opening of a store in Tokyo’s Ikebukuro shopping district.

    Arai is an anti-nuclear advocate, and Bic Camera displayed huge banners in 1995 to protest France’s plan at the time to resume nuclear tests in the South Pacific.

    In 2009, Arai stepped down as chairman of Bic Camera after the company became embroiled in a scandal over false earnings reports. After the shares lost almost half their value in January that year, they rallied when the company was allowed to retain its listing on the Tokyo Stock Exchange and it restated earnings for the fiscal years 2006 to 2008. The company was fined $1.3 million. He retook the role of chairman, without any directors role, several years later. Since then, Bic Camera shares have climbed eight-fold.

    After relinquishing the chairman role, Arai remained the largest shareholder of Bic Camera.

    Bic Camera has teamed up with Haneda Airport’s terminal operator, Japan Airport Terminal Co., to launch stores in airport terminals as well as Tokyo’s Odaiba shopping and entertainment district, according to Masanari Matsumoto, a spokesman for the company. Those stores are stocked with goods popular with inbound tourists to let them quickly find what they want, Matsumoto said. Inbound tourists shoppers to the electronics retailer have more than tripled in three years, according to the company.

    In recent years, the company has also ramped up sales through its own website and stores on e-commerce sites such as Rakuten and Amazon.com. Online sales accounted for about 10 percent of overall revenue in the six-month period ended Feb. 28, according to company filings.

    Bic Camera’s net income jumps more than five-fold over past four years.

    The company’s net income climbed fivefold to a record 13.5 billion yen ($122.6 million) in the financial year ended Aug. 31, according to figures from the company. Bic Camera predicts profit will increase to 16.4 billion yen this fiscal year.

    That strategy has helped Bic Camera become Japan’s third-biggest electronics and appliance retailer while offsetting the impact of a declining population at home. Bic Camera will benefit more than other big-box electronics retailers such as its competitors Yamada Denki Co. and Edion Corp. from the recovery in demand for digital consumer electronics, according to a Nomura Holdings Inc. research note last month.

    Online sales, with an increase in the weighting of sales on the company’s own website, will drive growth over the longer term, according to Nomura. While customers using Bitcoin have yet to account for a significant portion of sales, the option could help attract more foreign customers, especially during the 2020 Tokyo Olympics.

    ‘‘Quickly adding additional payment options is a good way to achieve differentiation,’’ said Bloomberg Intelligence’s Jastrzab. ‘‘It also helps to boost brand equity by creating a buzz with potential customers.’’

    Lees ook:

  • Asia Pacific drives Tiffany & Co global growth

    Asia Pacific drives Tiffany & Co global growth

    Tiffany & Co Asia-Pacific sales soared 28 per cent in the first three months of this year helping the New York-headquartered jewellery retailer achieve a 53 per cent lift in profit.

    The company’s worldwide net sales increased 15 per cent to $1 billion, with comp sales up 10 per cent. Net earnings increased from $93 million to $142 million.

    Asia-Pacific sales reached $329 million – one third of Tiffany’s global sales – driven by China “and most other markets,” and higher wholesale sales in Korea. Management attributed the growth to higher spending by both local customers and foreign tourists. On a constant exchange-rate basis, total sales and comparable sales increased 23 per cent.

    In Japan, total net sales rose 17 per cent to $151 million and comparable sales rose 14 per cent.

    Neil Saunders, MD of GlobalData Retail, says the results showed that despite being up against some soft prior year figures, the group has “pulled itself out of its previous funk” and its various initiatives are delivering solid results.

    “Among the steps taken, the renewal of the offer is the most critical. Here, Tiffany’s focus on producing more innovative and contemporary collections has paid dividends in both stimulating consumer interest and driving sales. Collections like Tiffany HardWear have been well received and has enabled a brand that was seen as old to reconnect with younger demographics.”

    Saunders says the pace of product innovation was especially encouraging. “New ranges like Paper Flowers show that the company is full of ideas and that it will continue to launch new collections throughout the year. This approach means that the company is once again treating jewellery as an item of fashion and is putting itself at the forefront of trends and modern design. In our view, this is the breath of fresh air that will clear away Tiffany’s traditionally fusty image.

    “It is also encouraging that, while cohesive, new collections are accessible to many consumers. The luxury Paper Flowers range, for example, features items that span the price spectrum from $2500 to $75,000. Meanwhile, the more everyday HardWear range spans $150 to $13,500. Certainly, products are not cheap, but neither should they be as Tiffany is an unashamedly luxury brand that wants to create an aspirational feel.”

    He says strong marketing has helped to amplify the changes made to products. “In our view, campaigns like Believe in Dreams are wonderfully playful and go right to the heart of the issue: that Tiffany might be seen as old-fashioned, but actually, it has something of relevance to the modern shopper. Featuring Elle Fanning in a Tiffany Blue colored hoodie sets the tone perfectly and really helps connect the brand with younger consumers with whom it has traditionally had little resonance.”

    GlobalData’ research shows that Tiffany is gaining ground in both awareness and appeal to millennial shoppers and this is one of the key factors helping performance.

    “Notably, this shift in attitude and message has not harmed the appeal or affection older customers have for the brand. Indeed, many are very engaged with the new styles and marketing. Tiffany, it seems, finally realises that most consumers of all ages no longer want old-world luxury; they want modern, fresh thinking that excites and inspires them.”

    But he cautions Tiffany still has work to do on its store environments. “Although steps are being taken to address this, many stores still do not reflect the brand image of the new Tiffany. However, we appreciate that this change will take time to deliver and are now confident that Tiffany will address the issues. Away from stores, we applaud the website which is easy, engaging and interesting to shop; this is no doubt helping Tiffany’s e-commerce numbers.

    “Overall, we believe that Tiffany has done a great job in turning around its brand. The company feels more energetic and younger than it has for a long time, and that can only be a good thing.”

    Lees ook: