Retail News CRM

Tag: Japan

  • Bad news for Japan’s retailers as Chinese tourists cut back on buying

    Bad news for Japan’s retailers as Chinese tourists cut back on buying

    They’re still coming in droves — but no longer buying in spades. After propping up sales for overseas retailers over the past decade with a shopping-driven tourism agenda, Chinese visitors are no longer returning home with suitcases bulging like before.

    A new survey by consultancy Oliver Wyman shows Chinese tourist numbers and holiday expenditure continuing to rise last year, even as shopping during overseas travel dropped 17 percent from a year earlier.

    The average Chinese tourist spent about 6,705 yuan ($986) on shopping when traveling, down from 8,050 yuan in 2015. But overall holiday spending — including on hotels and sightseeing — rose 3.5 percent to 20,317 yuan from 19,635 yuan, according to the survey of 2,000 travelers from the mainland.

    The sea change in spending habits is dealing a blow to retailers from Parisian department stores to Japanese duty-free operators and Hong Kong jewelers, but bigger numbers of wealthier Chinese may create other opportunities for leisure and entertainment operators in popular overseas destinations.

    “Businesses globally have to adjust their strategy to think about how to capture the new Chinese tourist dollar,” said Oliver Wyman’s Shanghai-based partner, Hunter Williams. “It’s less about the outlet mall now and more about the national park.”

    One reason for the change is the easier access to foreign goods in mainland China due to a booming $60 billion cross-border e-commerce market.

    Imported items can now be ordered online and delivered in as quickly as a day, often exempt from taxes levied on goods from store shelves.

    That’s damped the practice of buying overseas for the purpose of reselling locally, and the survey showed such resales falling to 3 percent of shopping expenditures from 8 percent in 2015.

    Chinese outbound spending still ranks highest in the world. In 2016, travelers from the country spent $261 billion, a fifth of the global total, up from $249.8 billion in 2015, according to the World Tourism Organization.

    But the portion contributed by shopping has fallen to 33 percent of overall travel expenditure, from 41 percent in 2015, the Oliver Wyman survey showed.

    Chinese consumers no longer need to travel overseas to stock up on items from Playtex bras to Christian Dior lipsticks and Blue Nile diamond rings, which are now available on online portals run by firms like Alibaba Group Holding Ltd. and JD.com Inc. With foreign brands increasingly using the internet to reach Chinese buyers, foot traffic to malls and outlet stores in popular overseas destinations is slumping.

    Duty-free retailer Laox Co. reported a 33 percent fall in revenue for 2016 as Chinese tourists spent less, while U.S retailer Macy’s Inc. is shutting 14 percent of its stores to stem sales declines.

    Luxury houses like LVMH Moet Hennessy Louis Vuitton SE and Cie Financiere Richemont SA and brewer Kirin Holdings Co. have pointed to sales pressures from fewer Chinese shoppers visiting stores globally, said Bloomberg Intelligence retail analyst Catherine Lim.

    The survey also showed that more Chinese tourists are traveling with children and spouses rather than going alone or with friends. That could benefit destinations that offer unique leisure experiences or entertainment options, said Oliver Wyman’s Williams.

    “The number of Chinese tourists is still rising rapidly and at quicker pace than their overall spending,” he said. “This should give industry players some pause to think about how to make up for the loss of shopping-related spending through volume.”

  • Japan’s Nitori to open flagship store in Shanghai

    Japan’s Nitori to open flagship store in Shanghai

    Japanese furniture and home decoration brand Nitori will open a flagship store in Xujiahui, Shanghai.

    With an area of 8,000 square meters, this store is the old location of Best Buy. It is reportedly Nitori’s first flagship store in China after its brand re-design.

    Founded in 1967, Nitori is one of the largest home supplies chains in Japan. The company was listed on Tokyo Stock Exchange in 2002 and started fast expansion in the domestic Japanese market after that.

    In 2003, its number of stores was over 100 for the first time. At present, its main businesses include home decoration, house renovation and online shopping.

    Nitori entered China in 2004 by launching a logistics center in Shanghai and the company launched its online shopping business Nitori Net in September 2004. The company’s first Chinese physical store was opened in Wuhan, Hubei province in 2014, marking Nitori’s formal beginning of its Chinese business. So far, Nitori has over ten stores in cities like Shanghai, Hangzhou, and Ningbo.

    In regards to future expansion, Nitori plans to have 100 stores in China by 2020.

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  • Muji plans world flagship and hotel in Tokyo

    Muji plans world flagship and hotel in Tokyo

    The Japanese household goods and apparel company has announced its plans to open a hotel and world flagship in Ginza, Tokyo, in the spring of 2019.

    Developed by the Yomiuri Shimbun Tokyo headquarters and Mitsui Fudosan, a retail property developer of the Mitsui group, the 14,219 square metre, 13-floor building will feature eight floors dedicated to the Muji ‘world flagship’ store. Hotel accommodation will be spread across the top five floors of the building, and will be decorated with Muji furniture and products.

    The provisionally named ‘Muji Hotel’ will be developed as part of the “Marronnier x Namiki Yomiuri Ginza Project,” a retail complex in the upmarket area of Ginza, Tokyo, that Mitsui hopes will further revitalise footfall in the area. The building will be located close to the Marronier Gate Ginza, a commercial facility.

    The hotel is to be designed and operated by the UDS company of the Odakyu Group. Construction began in June 2017.

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  • Disney’s created in Japan franchise reaches US$2 billion revenue worldwide

    Disney’s created in Japan franchise reaches US$2 billion revenue worldwide

    “We couldn’t be more proud of Tsum Tsum’s Japanese-origins and its international appeal,” said Paul Candland, President, Walt Disney Asia. “Tsum Tsum connects with fans across multiple platforms and experiences and is proving to be a successful channel to introduce new intellectual property.”

    – According to LINE the game has been played over 165.4 billion times worldwide since its debut, with nearly 61.8 trillion Tsums cleared in the course of the gameplay.
    – With Tsum’s measuring an average of 7mm across (the size when played on a 4.7-inch smartphone), then 61.8 trillion Tsums would form a line 432 million kilometers long the distance from Earth to Mars and back.
    – The Tsum that players spent the most skill tickets to level up is Cinderella, followed by Beast (from “Beauty and the Beast”) and Maleficent Dragon (from “Sleeping Beauty”).

    From its humble beginnings as a popular plush toy from the Disney Store Japan, Tsum Tsum’s expanded franchise experience now spans every Disney consumer touch point including fashion, lifestyle and consumer electronics attracting a wide consumer base from boys and girls, as well as young adults. The stackable toys also have their own show with animated episodes available online and on Disney Channel as well as Tsum Tsum Tuesdays, which is now a popular subscription service in the U.S. From classic Disney characters such as Mickey Mouse and Princess to Buzz Lightyear and Darth Vader, Tsum Tsum encompasses the appeal and affinity of Disney’s key brands – Disney, Disney•Pixar, Marvel, and Star Wars.

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  • Mulberry links with licensee Onward for Japan joint venture

    Mulberry links with licensee Onward for Japan joint venture

    Luxury fashion and accessories brand Mulberry has added another joint venture (JV) in Asia with news that it has signed an agreement with existing license partner Onward Global Fashion to form a 50:50 JV company to operate its business in Japan.

    UK-based Mulberry said the new company will benefit from its digital and brand building capabilities coupled with Onward’s experience in distributing luxury brands across the Japanese market.

    “The joint venture will advance the group’s strategy of directly participating in key international luxury markets while continuing to refine its positioning in the UK,” it said on Friday.

    The new company will be called Mulberry Japan Co Limited and will have its HQ in Tokyo. It will develop the Group’s retail, digital, omnichannel and wholesale business in the Japanese market and is expected to be “profit-neutral” for Mulberry during the initial two-year development phase.

    Mulberry and Onward will be equal partners, each owning 50% of the share capital of the new company. Between them they will invest ¥400 million (£2.8 million) to provide funds to develop the distribution network and build the brand’s presence in the country.

    Mulberry’s CEO Thierry Andretta said the luxury firm sees Japan as a “significant growth opportunity” and that in Onward it has “a partner which has extensive luxury goods experience and a robust infrastructure which will enable us to advance our international retail and omnichannel strategy in this key market.”

    So how will it all work?  Mulberry Japan will manage all retail, digital fulfilment and wholesale distribution for the Japanese market.  A general manager has been appointed to build a local team, based in the Tokyo head office with the firm expected to be up and running later this year.

    The distribution platform currently consists of a new Mulberry store in Tokyo Ginza G6, two concessions (one in Tokyo, one in Osaka), wholesale and the Group’s mulberry.com site.

    The Japan deal comes as Mulberry makes growth in Asia a priority. Earlier this year it set up Mulberry (Asia) Limited as a JV with Challice Limited to operate the group’s business in Hong Kong, China and Taiwan. That launch also came along with “significant” marketing investment in North Asia. In addition to local marketing initiatives, Mulberry plans to invest around £3 million in additional support over the next two years.

  • Japan’s retail sales growth slows in May, June looks more positive

    Japan’s retail sales growth slows in May, June looks more positive

    Retail sales in Japan lifted 2% for the month of May, as shopping revenue growth slowed in the archipelago nation, compared to April’s increase of 3.2%.

    The May result came in below a median forecast of 2.6% compiled by Reuters.

    The biggest contributors to the rise were sales of motor vehicles, followed by fuel, medicine and toiletries, according to the Economy Ministry.

    Offsetting the gains, sales at supermarkets and department stores dipped 0.6% in May, after growing for the first time in nine months in April at a pace of 1.1%

    Month-on-month, sales fell 1.6% from April, when they rose 1.4% on March.

    However, June looks to be more positive on the retail front for major apparel and accessories players.

    A report by WWD said big-name fashion retailers in Japan recorded a positive sales month in June, on the back of early clearance sales and an increase in shopping tourists to the nation.

    Fast Retailing said Tuesday that same-store sales at its Uniqlo stores in Japan were up 4.1% on the year last month, while Isetan Mitsukoshi Holdings, the country’s largest department store operator, said same-store sales among its Tokyo metropolitan area gained 1.1% year-over-year in June.

    After releasing a soaring first-quarter profit result last week, Takashimaya said June sales at its 17 department stores in Japan grew 4.6% compared with the same month last year, while H2O Retailing Corp, which operates the Hankyu and Hanshin chains of department stores, said sales at those stores were up 4.6% on the year last month.

    Finally, the 18 Daimaru and Matsuzakaya department stores in Japan, operated by J. Front Retailing, posted a 4.8% sales rise on the year in June.

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  • Japan Airlines to outfit B787-9 Dreamliners with new Sky Suite offering

    Japan Airlines to outfit B787-9 Dreamliners with new Sky Suite offering

    Japan Airlines is introducing a new JAL Sky Suite configuration to its B787-9 Dreamliners that is set to debut on the airline’s Tokyo Narita to Kuala Lumpur route starting at the end of July this year.

    The new configuration is part of a wider plan by Japan’s national carrier to outfit its B777-300ER/-200ER, B767-300ER and B787-8/-9 with new Sky Suite layouts, which it has been introducing on select international routes. After Kuala Lumpur, the new B787-9 Dreamliner layout will be progressively introduced onto other international services.

    The revised layout will notably be retrofitted with the fully flat JAL Sky Suite III business class seat – the same as its B777-200ER, which first began sporting the seat last June. Meanwhile the business class cabin itself will increase in capacity to 52 seats compared to the 44 with the aircraft’s current layout.

    The JAL Sky Suite III seats are laid out in a 1-2-1 configuration (the current layout has seats 2-2-2), providing all passengers with direct aisle access – and offer a maximum bed length of about 78 inches, a width of 21 inches (which can be increased to 29 inches with the armrest is stowed), and a width of 20 inches. Additional features include a 17-inch monitor, a retractable privacy partition, a universal power outlet and a USB port.

    Premium economy and economy class, meanwhile, won’t see a capacity change – a notable detail as it means Japan Airlines will be retaining its eight-across configuration in economy. Industry norm is for the B787-9 Dreamliner to be configured with nine-across seating, and Japan Airlines claims it is the only airline to offer eight-abreast in economy on the aircraft.

    Seating in premium economy will be the JAL Sky Premium (35 seats in a 2-3-2 layout), which offer about 42 inches of pitch and 19 inches of width. Dividers, a 12.1-inch monitor (10.6 inches for bulkhead seats), a universal power outlet and USB port also feature.

    Meanwhile economy class sports the airline’s JAL Sky Wider II seats, which have a pitch of about 33 inches and – due to the eight-across layout – a width of around 19 inches. Seats also have a universal power outlet, USB port and 10.6-inch monitor.

    The seating isn’t all that will be changing, though. A new “Magic-VI” in-flight entertainment system with some 300 films will be available, as will in-flight wifi.

  • DoCoMo to deploy Ericsson’s UDN

    DoCoMo to deploy Ericsson’s UDN

    Japan’s NTT DoCoMo has contracted Ericsson to provide the vendor’s Unified Delivery Network (UDN) global content delivery network solution for the DoCoMo mobile network.

    The contract marks Ericsson’s first deployment of its UDN in Japan. DoCoMo will initially use the platform to roll out content distribution services, and will follow this up by introducing future value added services including toll-free data for certain content.

    Ericsson’s UDN is designed to connect content providers worldwide with the last mile reach network operators can offer.

    It is designed to aggregate network capabilities to allow services to be optimized and monetized in new ways, while offering operators the ability to efficiently scale the delivery of OTT services and high-quality video content.

    “For future services, NTT DoCoMo foresees that consumption of 4K video, virtual reality and augmented reality content will increase and believes a platform like a UDN adds value in the high-speed 5G era,” the operator’s GM of service design Takaaki Sato said.

    Ericsson head of UDN service provider partnerships Cillilan Maher said its UDN ecosystem now encompasses 55 content providers and 40 operators worldwide.

    “As part of [this ecosystem], DoCoMo will be able to significantly advance the traditional content delivery network model,” he said.

    “As a service provider partner, they will be able to garner incremental revenue and can participate as a content provider, driving traffic through both their own network and the UDN ecosystem.”

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  • Fendi to open a pop-up store in Tokyo

    Fendi to open a pop-up store in Tokyo

    Fendi is opening a pop-up store in Tokyo at Dover Street Market, as it rolls out a capsule collection that is specific to the Japanese retailer.

    As well as landing in Dover Street’s London and New York store, the Elephant Room pop-up in Ginza will highlight products of the “Fendi Vocabulary”, the key theme of the men’s fall/winter 2017-18 collection designed by Silvia Venturini Fendi.

    The essential words of this vocabulary including Yes, Love, Fantastic, Trust, Hope, Think, were inspired by Ernest Hemingway, according to the house.

    In an interview with WWD, Venturini Fendi said that the collection vocabulary includes “very simple and common words that yet in their simplicity have a very important meaning that is going to be forever and that can help us in difficult moments. There are so many changes going on and things are moving faster and faster in the world, that is why I think that we have to evolve and look at the future with an optimistic attitude that can help us facing all these changes and challenges. Yet, we have to look forward without forgetting the fundamental values of the past. That is why I have chosen to use and print these universal key words on clothes, bags and accessories.”

    Exclusive products from the Italian luxury brand will be featured within each pop-up, and will be unique to each pop-up location. The capsule collection includes a t-shirt, a hat and a scarf emblazoned with Fendi, Love and DSM and London, New York or Tokyo, depending on the boutique. Each location also has a site-specific limited-edition collection with dedicated colours: pink for London, grey for Tokyo and blue for New York.

    The items will be available in-store at Dover Street Market and at fendi.com.

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  • Christine Edman named Givenchy Japan CEO

    Christine Edman named Givenchy Japan CEO

    Luxury fashion brand Givenchy has recruited Christine Edman to head up its Japan operations on behalf of the French maison.

    Effective June 16, Edman has taken of the role of Givenchy Japan president and CEO, under the helm of the Paris-based parent firm LVMH Group. She replaces Seiko Masuda, former president and CEO of Givenchy Japan. It has not been disclosed where Masuda will be heading to.

    Most recently, Edman served as president of H&M Japan, in which she managed the Swedish retailer’s operations and expansion across Japan, before retiring form H&M last year. She took up the Japanese chief role in 2008, after serving for one year as H&M area manager for Hong Kong.

    Prior to that, Edman served as business development manager, and then a marketing consultant, for Aunt Stella in Japan, after serving as an assistant brand manager for Mattel Japan for two years, after graduating.

    Edman is an MBA graduate from the Stockholm School of Economics and received her undergraduate degree from Lafayette College in Pennsylvania, USA.

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  • SK-II launches exclusively at Changi Airport

    SK-II launches exclusively at Changi Airport

    Japanese beauty brand SK-II will launch new Magnetic Booster, part of its Radical New Age Power (R.N.A) line, exclusively with The Shilla Duty Free at Changi Airport on 1 July.

    The Magnetic Booster will be sold in sets with the R.N.A Power Cream (80g) in the R.N.A Power Magnetic Kit (S$200/US$145) or with the R.N.A Power Essence (50ml) in the R.N.A Power Essence Magnetic Kit (S$187/US$136). Magnetic Booster will be available at all Singapore SK-II counters from September.

    Magnetic Booster features Magnetic Micropulse Technology which is claimed to deliver consistent yet gentle pulsations at 7,000 magnetic vibrations per minute with magnetism. According to SK-II, the product is three times better at improving penetration than finger application.

    To support the launch, top Chinese celebrity make-up artist Wu Miao will host sessions on 7 July for beauty media, influencers and selected customers at the SK-II PITERA Lounge at The Shilla Duty Free. Miao, who contributes to Marie Claire, SELF and OnlyLady magazines, was named as one of the top ten beauty bloggers by Weibo. SK-II Associate Director Travel Retail Global Shweta Sharma, The Shilla Duty Free Head of Global Merchandise Division Raelene Johnson and Changi Airport Group Senior Vice President Airside Concession Division Teo Chew Hoon will also attend the event.

    The SK-II PITERA Lounge, which launched in October 2015, is the brand’s first and only lounge facility in an airport and offers facial and massage services. Miao will share his tips for using the Magnetic Booster along with the R.N.A Power Cream and will provide insight on his inflight and travel skincare regimen by curating his own inflight beauty essentials. Guests will then be invited to experience the new Magnetic Booster and curate their own inflight beauty essentials followed by a shopping tour at The Shilla Duty Free.

    SK-II Associate Director Travel Retail Global Shweta Sharma said: “We are again honoured to be celebrating our ninth year of solid partnership with Changi Airport Group, and our fourth with The Shilla Duty Free with the first-in-the-world launch. We are excited to delight travellers with this exclusive access to our latest skincare innovation and for them to experience the power of the award-winning SK-II R.N.A Power anti-ageing range.”

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  • Blackstone targets Japanese retail through privatisation of Croesus

    Blackstone targets Japanese retail through privatisation of Croesus

    Blackstone has offered to buy a listed owner of retail assets in Asia-Pacific, valuing the Singapore-based Croesus Retail Trust at SGD901m (€572m).

    Blackstone has agreed to pay SGD1.17 per unit for all of the company’s issued units and intends to privatise it through a scheme of arrangement to be approved by unitholders.

    In 2013, Croesus Trust Retail became the first Asia-Pacific retail business trust with assets in Japan to be floated on the Singapore Stock Exchange (SGX).

    The trust owns a diversified portfolio located predominantly in Japan and has strategic relationships with large Japanese groups Marubeni and Daiwa House.

    Market sources told IPE Real Estate that several Singapore real estate investment trusts, including Croesus, have been trading at discounts to their net asset value, and have consequently attracted interest from investors keen to acquire sizeable portfolios in Asia-Pacific.

    The offer, announced to the SGX on Wednesday, confirmed market speculation of a potential takeover of the trust. Since speculation surfaced in April this year, the Croesus unit price has risen 25%.

    Blackstone will pay unitholders of Croesus a distribution income of up to SDG31.1m, subject to the deal closing by the end of October.

    A simple majority of more than 50% of unitholders, representing at least 75% in value of the units held by unitholders present and voting at the scheme meeting, is needed to approve the scheme.

    In a joint statement to the Singapore Stock Exchange, Croesus and Blackstone said the scheme represents an opportunity for unitholders to realise their investment at an attractive valuation.

    It said unitholders will receive significant premiums to the historical trading price of the units, the net asset value per unit and the net tangible asset per unit.

    CRT and Blackstone said the offer carries a premium of about 38% to the 12-month volume-weighted average price per unit, and that the offer price exceeds the highest closing price of the units since the initial public offering in May 2013.

    The trust has almost 770m units on issue, and, at the end of March 2017 the net asset value of the units was SGD0.95.

    At the end of March, the company reported an occupancy rate of 97.7% and a weighted average lease expiry of 6.5 years.

    Croesus has doubled its portfolio in Japan to 11 retail assets from just four when it listed in 2013. Its market cap has doubled to SGD759.9m since then.

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  • DoCoMo launches prepaid SIM for foreign visitors

    DoCoMo launches prepaid SIM for foreign visitors

    Japan’s NTT DoCoMo will this week launch a new prepaid SIM service for foreign visitors to Japan providing access to its network for 15 days.

    The Japan Welcome SIM offering will launch on July 1. It will allow travelers to apply for the service online prior to leaving their home country and pick up their SIMs in locations such as international airports upon their arrival in Japan.

    Visitors will be able to subscribe to one of three 15-day plans, including a 1,000 yen ($8.90) plan providing unlimited 128kbps internet access and a 1,700 yen plan providing download speeds of up to 682Mbps for the first 500MB used. Additional high-speed access can be purchased for 200 yen per 100MB of 700 yen per 500MB.

    From October, DoCoMo will also launch a plan providing free internet access in exchange for viewing a certain number of video ads and filling out a survey prior to their arrival.

    DoCoMo partners will also be able to bundle access to the Japan Welcome SIM service with their own services. Initially Tokyu Hotels and Booking.com will be providing the service. This will include the ability for reselling businesses to offer unmetered access to their own web services.

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  • Takata decides to file for bankruptcy

    Takata decides to file for bankruptcy

    Japan’s Takata Corp decided on Monday to file for bankruptcy protection in Japan with liabilities of more than 1 trillion yen (US$9 billion), Japanese media reported, as the auto parts supplier has struggled due to its defective air bag inflators at the center of the auto industry’s biggest ever product recall.

    The decision came at a special board meeting, public broadcaster NHK said.

    Takata is expected to file for a U.S. Chapter 11-style bankruptcy protection procedure, along with a similar filing in the United States, sources have told Reuters. This would open the door for a financial rescue from U.S. auto parts supplier Key Safety Systems, which Takata has tapped as its preferred financial sponsor.

    Faulty air bag inflators made by Takata have been linked to at least 17 deaths in the United States and other countries, prompting a massive global recall which began nearly a decade ago.

  • Starbucks Caffeinates Plans for New Stores in Japan

    Starbucks Caffeinates Plans for New Stores in Japan

    Starbucks Coffee Japan plans to open new outlets at an accelerated pace while shifting its focus from urban centers to suburban areas. Over the next three years, the company will spend roughly 15 billion yen ($146 million) to open 260 new coffee shops, which is 60% more than were opened during the last three years. Starbucks now operates some 1,000 stores in Japan, of which around 10% are located in suburban areas along main streets.
    Now that the urban market has become saturated, and even convenience stores have become rivals offering quality coffee, the company is looking to expand outside cities. The plan is to open 75 new outlets in fiscal 2014, 85 in fiscal 2015 and 100 in fiscal 2016. These will be located mainly along arterial streets in suburban areas and near residential districts.

    The stores will offer both seating and drive-thru windows, and they will be open longer hours than the urban stores, which close at 11 p.m. Some of Starbucks’ existing suburban outlets are open until 2 a.m. and remain busy until closing.

    In a typical day, the stores capture business from people on their way to work in the morning, seniors at lunchtime, housewives in the afternoon, as well as from workers and students returning home at night. Rents are cheaper than in the city, and sales tend to be 30-40% higher, with the average suburban store generating annual revenue of 150 million yen.

    But Starbucks is not alone among companies making the push outward to suburban markets, where coffee shops are filling the gap left by the demise of roadside family restaurants. For example, Hoshino Coffee, owned by Doutor-Nichires Holdings, is opening more coffee shops with sit-down service, hand-dripped coffee, and sweet and savory foods. Thirty-five new branches are planned for the current fiscal year. And Komeda is opening coffee shops with brick walls, wooden tables and other cozy touches.