Tag: label

  • Bossini warns Hong Kong landlords over Rents

    Bossini warns Hong Kong landlords over Rents

    Casual apparel retailer Bossini says it will close more stores in Hong Kong as many landlords remain unwilling to convert leases to turnover-based rents.

    The company has reported a loss of US$11.2 million for the December half after sales fell 25 percent.

    With Hong Kong and Macau accounting for 66 percent of sales in 2019, cross-border travel restrictions to both territories meant that share fell to 55 percent last year. Revenue in Hong Kong and Macau fell by 38 percent year on year.

    “The overall shop rental expenses remained at a very unreasonable level with several landlords still unwilling to provide rent concessions, despite some landlords had already switched to pure turnover-rent arrangement,” said chairman Victor Herrero in a stock exchange filing.

    “This will inevitably involve the closure of certain loss-making retail shops… We will continue to renegotiate with landlords to seek rent relief and reduction. Where landlords are reluctant to respond reasonably to our requests, we will close those shops.”

    Group revenue reached $60.3 million. Outside Hong Kong and Macau, sales rose by 2 per cent in Mainland China, but fell 9 per cent in Singapore. This was the first complete trading period not to include Taiwan, which the company exited by the end of last June.

    Looking forward, the company expects the pandemic to continue to impact its business.

    “The group’s performance is expected to remain under significant pressure for the remaining financial year with travel restrictions and social-distancing measures still largely in place,” said Herrero.

    But the company is upbeat about its ability to withstand the ongoing pressure caused by the pandemic.

    “Overall, the group is formulating and implementing strategies ranging from brand re-positioning, product segmentation and pricing, distribution channels, production and supply chain management, marketing and promotion to IT infrastructure,” he said.

    “We believe all of these would collaboratively equip us with a solid foundation and pave the way for our expansion and tap into market opportunities in the mid- to long-term.”

  • Bvlgari makes Vietnam comeback

    Bvlgari makes Vietnam comeback

    Italian luxury brand Bvlgari has returned to Vietnam and opened its first store in HCMC.

    The store opened in a shopping mall in District 1, HCMC, in February but without a formal opening ceremony due to the Covid-19 outbreak and official orders not to congregate in large numbers.

    The brand is known for its Bvlgari Serpenti jewelry and watches, the B.Zero1 Jewellery collection and Octo Finissimo watches.

    Some of its products cost more than €25,000 ($30,180).

    The brand used to be sold in Vietnam through a local distributor, Imex Pan Pacific Group, until March 2019. In October that year, it established a subsidiary in the country.

    A Bulgari Vietnam spokesperson told VnExpress it returns to Vietnam due to the potential of the market owing to rapid urbanization and economic growth.

    It is the right time to return since “we will be able to approach our potential customers, who usually buy luxury products when traveling to foreign countries,” the spokesperson said.

    According to the market and consumer data provider Statista, the Vietnamese luxury goods market is expected to be worth $1.14 billion in 2021 and grow at 7.17 percent annually until 2025.

    Bvlgari, founded in 1884 sold a majority stake in 2011 to French luxury group Moët Hennessy Louis Vuitton.

  • Giordano opens largest retail store in Indonesia’s

    Giordano opens largest retail store in Indonesia’s

    Apparel retailer Giordano has unveiled a large-scale store in the newly opened Bumi Raya City Mall in Pontianak, Indonesia.

    Located on the mall’s first floor, the Giordano store spans 2300sqft and offers a complete range of men’s, women’s and children products.

    “This is our second store in Pontianak, which is one of the most culturally diverse cities in Indonesia and the entrance to Singkawang, the renowned ‘city of a thousand temples,” said Patrick Yeo, president director of Giordano Indonesia.

    Opened last month, Bumi Raya City Mall is home to more than 190 brands, including a host of international retailers and flagship stores. Bumi Raya City Mall is also the first family lifestyle mall to open in Pontianak.

    Founded in 1981, Giordano operates more than 2100 stores and counters in Greater China, South Korea, Southeast Asia, Australia, India and the Middle East.

  • Gentle Monster’s newest store Haus Dosan took a year to create

    Gentle Monster’s newest store Haus Dosan took a year to create

    Gentle Monster has launched Haus Dosan, a new retail concept featuring its dessert brand Nudake and cosmetic label Tamburins.

    Located at Dosan Park, the store spans five stories, housing Nudake’s first flagship store in South Korea. Named ‘Haus 0 10 10 10 1’, the number ‘01’ is derived from quantum mechanics, representing “the future-forward direction”, whereas ‘Haus’ is a metaphorical description of the future retail.

    Haus Dosan is the eyewear brand’s first project of many more to come under the theme of ‘Unopened:Future”.

    The first floor houses a gigantic structure in the centre, a collaborative artwork with Frederik Heyman, which creates “a bizarre scene that no one has seen before and represents Gentle Monster’s bold and daring philosophy”. Inspired by the installation, an exclusive soundtrack created by Venezuelan artist Arca will be played throughout the first to the third floor of the store.

    The second floor of the building, dedicated to Gentle Monster’s optical eyewear, is designed under the concept of minimalism and moderation, featuring a media installation by Jonas Lindstroem showing video artwork ‘Truth or Dare’.

    Haus Dosan’s third floor, which displays sunglasses range, houses The Probe, a six-legged walking robot made by Gentle Monster’s own robot lab after a year of research.

    The upper-floor is home to Tamburins’ second flagship store, showing art pieces by artists such as Chulan Kwak, Mercedes Vicente and Casper Kang. Meanwhile, Nudake’s first flagship store is located on the B1 floor, offering an array of artistic desserts.

    Starting with Haus Dosan, Gentle Monster aims to launch a larger scale ‘Haus Shanghai’ this May.

  • LVMH, Rihanna ‘suspend’ Fenty fashion label

    LVMH, Rihanna ‘suspend’ Fenty fashion label

    LVMH and Rihanna are suspending the ready-to-wear operations of Fenty, the pop singer’s brand, less than two years after its debut as the pandemic pummels demand for clothing.

    “Rihanna and LVMH have jointly made the decision to put on hold the ready-to-wear activity, based in Europe, pending better conditions,” the French luxury conglomerate said in a statement Wednesday.

    Fenty was launched to great fanfare in May 2019 and represented a rare effort by LVMH to build a new fashion brand from scratch. The luxury giant has typically focused on acquiring businesses with prestigious legacies, whether it’s handbag maker Louis Vuitton or Champagne producer Moet & Chandon.

    In a separate statement on Wednesday, L Catterton, the private equity fund backed by LVMH founder and billionaire Bernard Arnault, led a $115 million series B funding along with other investors into Savage X Fenty, Rihanna’s lingerie brand.

    The funds will help power the underwear business’s next phase of growth and enable its retail expansion after it experienced an “explosive” rise in revenue in the past year, the fund’s statement said. The goal is to support “the Fenty ecosystem focusing on lingerie, cosmetics, and skincare,” according to LVMH.

    “Celebrity-originated brands can be very popular very quickly, but their staying power is questionable,” Luca Solca, an analyst at Sanford C. Bernstein, said by email. “The risk is that they end up being a flash in the pan.”

    Rihanna’s Fenty Beauty make-up brand has 10.5 million followers on Instagram, compared with one million for Fenty ready-to-wear. The pandemic has impacted the personal luxury goods sector differently, with the apparel category suffering the most, according to a study by Bain consultants.

    “We are still in a launching phase and we have to figure out exactly what is the right offer,” LVMH Chief Financial Officer Jean-Jacques Guiony told analysts about Fenty in October. “It’s still a work in progress.”

  • Italian fashion brand Kampos launches in Korea

    Italian fashion brand Kampos launches in Korea

    Kampos, the ultimate Italian brand promoting luxury with integrity, is expanding overseas by entering the South Korean market.

    The brand has recently signed a partnership with a local distributor, Sanghyun Yu, based in the capital, Seoul, and has already established Kampos South Korea Ltd. As part of the strategy, the brand has just launched its South Korean website.

    When we ask the reason of this expansion to Alessandro Vergano, Founder & CEO of Kampos he declares: ”This international move is more than a business decision; it is a strategic and meaningful move to strengthen our sustainable mission. We are determined to transform the way of consumption by challenging the luxury industry’s norms, inspiring change, and reducing marine waste.” He adds: ”Sharing our message at an international has become obvious as we understand the need to reach further international customer profiles outside Europe. We believe South Korea is full of opportunities and we are thrilled to collaborate with Sanghyun Yu”.

    Sanghyun Yu is a well-recognized local distributor in South Korea with strong expertise in the market and luxury goods. ”I am extremely excited to be part of the Kampos journey. I believe in sustainability as the next big trend in South Korea. The younger generation wants to shop and hear about sustainable luxury brands. Today, there is a big market gap as we don’t give them access to those international changemakers. I’m determined to turn this gap into an opportunity by supporting Kampos”.

  • The evolution of fashion week with see now and buy direct approach

    The evolution of fashion week with see now and buy direct approach

    The fashion industry loves a bandwagon, and the see-now-buy-now one keeps rolling along. A murderer’s row of major brands, from Burberry and Ralph Lauren to Tommy Hilfiger and Moschino, has incorporated at least some element of instant gratification into their recent collections. Burberry and Lauren presented immediately shoppable runway shows, with the latter inviting attendees straight into the store after his spring 2017 show.

    Hilfiger made his Tommy x Gigi collaboration available to buy fresh off the runway, and Moschino’s Jeremy Scott has been offering capsules of his most poppy, instantly recognizable pieces — like this season’s slogan sweatshirts and trash-can bag. But it’s been tough, from an outside perspective, to see how they stack up — when a collection is trumpeted as “sold out,” it’s rarely revealed how many pieces were even available, or how long that process took.

    In recent weeks, see-now-buy-now’s image as the silver-bullet savior of fashion has taken a hit. Designer Thakoon Panichgul, who had completely overhauled his business to focus on seasonless dressing and e-commerce, announced he was putting his brand on “pause” to rethink the concept. And Tom Ford, who tried out see-now-buy-now for one season, decided it wasn’t for him, telling Women’s Wear Daily, “The store shipping schedule doesn’t align with the fashion show schedule … you can’t have a show with clothes that have been on the selling floor for a month.”

    Fashion has been bullish on instant shopping for several years now, with the conventional wisdom claiming that our immediate-gratification culture has spurred a Veruca Salt customer. (“Don’t care how, I want it now.”) And for people who follow fashion religiously, that is definitely the case. When I interviewed Jeremy Scott several years ago, he told me that his young customer was impatient for fashion: “I live in a world of Instagram fans who ‘like’ things,” he said, “and don’t understand when they’re ‘liking’ it, why it’s basically not coming out of that phone right there for them.”

    But as Cathy Horyn pointed out after Lauren’s show, the strategy may work better for mid-price labels than it does for luxury ones. Contemporary brands like Rebecca Minkoff have been demonstrably successful at leveraging the possibilities of instant shopping — CEO Uri Minkoff tells the Cut that the brand’s sales were up 64 percent year after year, after adopting see-now-buy-now. “When we create an experience, the format is not as relevant as ‘What is the experience, who is involved?’” he says.

    For example, their show last month at the Grove in L.A. was open to consumers and was stocked with influencers whose combined following totals over 20 million on Instagram alone, including Chiara Ferragni and Aimee Song. Some pieces were available to buy right after the show, while others dropped 30-45 days later, and Minkoff said that both sold “way better than normal,” with even the dress the designer wore for her bow selling out briskly online. Still, says Minkoff, “That’s what works for us. I’m not saying that everyone should do it. In a luxury sense, having a longer-term relationship and a romanticizing of something over a period of time, that’s great.” Minkoff’s brand operates at what he calls “a more spontaneous purchase level.”

    To bridge that gap between romance and spontaneity, some high-end designers have waded into instant shopping by offering small see-now-buy-now capsules and continuing to show the rest of their collection as before. But according to Ken Downing of Neiman Marcus, “I don’t feel like doing just a capsule is the only way to attack this, because I actually think it confuses the consumer even more.” Downing is a strong advocate of see-now-buy-now as an overall approach – he mentions customers who come with photos of a runway model or a celebrity in something they just wore. “If they can’t find what they’re looking for that’s all about that moment, I’m sure they’re finding it in fast-fashion stores,” he says.

    Elizabeth von der Goltz of Bergdorf Goodman echoes this line of thinking. “When people have these see-now-buy-now capsules that they put enough marketing and social media behind, they work extremely well,” she says. “But you need to come up with a full strategy that’s not about this one shot. How do you continue driving your business through the season, versus this one time?”

    One surprising discovery that emerges is that this new world of immediate shopping has some old-school aspects to it. (Maybe not that surprising — if you think about it, the old-school couture fitting and trunk show was the original see-now-buy-now.) Stores are putting their muscle into experiences. Von der Goltz points to recent events Bergdorf has done with Kith, Nike, and Fenty, as well as what she calls its “right off the runway” events, where customers can meet designers, see and touch the clothes, and place preorders. Downing, who was on his way to a customer event in Houston when we spoke, says, “they’re actually very successful events because it’s an experience. You’re interacting with a fashion authority who can give them ideas on how to put clothes together. It’s making the clothes that they’ve seen for some time look new by the way that we’re styling it.”

    While its roll may have slowed slightly, everyone I spoke to agreed that see-now-buy-now is not going anywhere, even if a few brands have soured on it. Fashion consultant Julie Gilhart said she thought it would just become more commonplace, predicting that “many of the up-and-coming brands will just build this see-now-buy-now concept into their initial business start-up.” Minkoff even imagines consumer fashion shows becoming a draw in themselves. “Wouldn’t it be fun for consumers to be able to come to New York,” he muses, “and see three or four fashion shows rather than saying, ‘I’m going to see a Broadway show?’ He thinks that a few seasons from now, that could be the reality. “I don’t think the world is slowing down,” he says. “We are betting the ranch on this model.”

  • Arket bound to open its first retail store in China this autumn

    Arket bound to open its first retail store in China this autumn

    H&M-owned Arket has announced plans to open its first physical store in China this autumn.

    The flagship store will be located in Beijing and will stock a mix of the Stockholm-based brand’s wardrobe staples and seasonal fashion drops for both women and men.

    The store will also feature an Arket cafe and stock an assortment of beauty and home items.

    “We are incredibly happy to announce our upcoming opening in Beijing and we are looking forward to finally meeting our many Chinese customers in person,” said Arket managing director Pernilla Wohlfahrt in a statement.

    “The new store gives us an opportunity to welcome people into our world and invite them to experience the rich diversity of our collections – from beautifully-made fabrics and fashion designs to nature-inspired interiors, sustainable childrenswear and contemporary Swedish cuisine.”

    The physical store is the latest step of the Nordic band’s expansion into Asia. The company made its debut into the Chinese market in August with the launch of its digital flagship store on Alibaba Group’s B2C e-commerce platform Tmall.

    In late 2020 the brand also announced plans to open its first store in South Korea early this year.

  • Boohoo and Asos are acquiring collapsed retail brands

    Boohoo and Asos are acquiring collapsed retail brands

    British online fashion retailers Boohoo and ASOS made major expansion moves on Monday, with the former buying the Debenhams brand and the latter in talks to buy the key brands of Philip Green’s collapsed Arcadia group.

    The moves underline how online players have gained the upper hand over traditional bricks and mortar clothing retailers, a trend accelerated by the Covid-19 pandemic.

    Boohoo said it had acquired all of the intellectual property assets, including customer data, related business information and selected contracts of Debenhams from its administrators for 55 million pounds ($75.4 million).

    It will not take on Debenhams’ stores or its staff.

    Debenhams’ administrators said last month it was starting a liquidation process, putting 12,000 jobs at risk.

    Meanwhile, ASOS said it was in exclusive talks with the administrators of Green’s collapsed Arcadia group over the acquisition of the Topshop, Topman, Miss Selfridge and HIIT brands.

    “The board believes this would represent a compelling opportunity to acquire strong brands that resonate well with its customer base,” ASOS said, adding that any deal would be funded from cash reserves.

    However, it cautioned there was no certainty a deal will be sealed.

    Arcadia collapsed into administration in November, putting over 13,000 jobs at risk.

  • Prada CEO sees massive revenue growth during next years

    Prada CEO sees massive revenue growth during next years

    Italian luxury group Prada sees revenues rising to 5 billion euros ($6.1 billion) in four to five years, its chief executive said on Thursday.

    “We will reach five billion euros in a matter of four to five years. COVID-19 has given a strong shock to the whole system, we will see a strong acceleration when it will be over,” Patrizio Bertelli said in an interview with Italian daily Il Sole 24 Ore.

    “We have not grown as much as we would have liked so far, but we are the group that has best maintained its identity,” he added.

    The Hong-Kong listed group said it would close 2020 with an operating profit. Net revenues in 2019 were 3.226 billion euros.

    The fallout from the COVID-19 crisis triggered a 40% decline in Prada’s revenues in the first half of last year, leading to a 196 million euros operating loss.

    In the interview, Bertelli said there could be positive signs for the luxury sector as a whole from March, when lockdowns in many European countries may end.

    The executive, founder of the brand with wife Miuccia, said the company was not interested in acquiring other brands but would press ahead with buying production plants instead, investing 100 million euros per year in sites and shops in coming years.

    “Made in Italy’ production will be more and more important,” he said, noting 80% of Prada’s current production is based in Italy.

  • Thriving Louis Vuitton offsets drop in sales at luxury group LVMH

    Thriving Louis Vuitton offsets drop in sales at luxury group LVMH

    Booming sales at LVMH’s fashion brands like Louis Vuitton, particularly in China, helped to cushion the impact of the coronavirus pandemic, which has crimped revenues at the French luxury group.

    LVMH, which closed a $15.8 billion acquisition of U.S. jeweler Tiffany in the middle of the pandemic, has like rivals taken a hit as governments the world over forced retailers to close shops during lockdowns.

    Declining international travel has also deprived luxury goods companies of tourist revenues.

    But an improving backdrop in China, one of the world’s biggest markets for luxury fashions and which had eased COVID-19 measures by the second half of 2020, has helped some companies to rebound.

    LVMH’s fashion and leather goods business, home to Vuitton handbags and other brands like Christian Dior, performed better than analysts expected in the fourth quarter, with sales rising 18% year-on-year on a comparable basis. Louis Vuitton is the group’s biggest revenue driver.

    That was an improvement on the third quarter, when like-for-like sales, which strips out acquisitions and currency effects, were already up 12%.

    “The strong beat should get LVMH’s share price home and dry,” Berstein analyst Luca Solca said in a note.

    LVMH Financial Chief Jean-Jacques Guiony told a conference call that new product launches planned before the pandemic – like a Vuitton handbag named after the Pont Neuf bridge in Paris – had helped the brand.

    LVMH – which is setting the tone for luxury rivals such as Gucci-owned Kering with its earnings – has also kept up with marketing spending while some smaller peers have cut back, and holding catwalk shows in cities such as Shanghai despite the crisis had helped, Guiony said.

    “Louis Vuitton and Dior were taking the bulk of customers’ attention when nobody was talking,” he added.

    LVMH’s billionaire boss Bernard Arnault said in a statement that the group was well placed to build on a market recovery.

    Guiony said the company had no visibility, however, on the outlook for China, at a time when new restrictions to fight a resurgence of COVID-19 cases risk overshadowing Chinese New Year festivities in mid-February, usually a major shopping highlight.

    LVMH also owns spirits brands, like Hennessy cognac, and operates airport duty-free shops, which have struggled.

    The French company went ahead with its Tiffany deal during the pandemic but ended up renegotiating the price tag slightly downwards. LVMH is now betting on growing its clout in jewelry, a resilient area of the luxury goods business.

    LVMH overall group sales for the October to December period came in at 14.3 billion euros, in line with forecasts.

    For 2020 as a whole, LVMH’s revenues reached 44.65 billion euros, falling 16% from a year earlier on a like-for-like basis.

    LVMH’s net profit reached 4.7 billion euros ($5.71 billion), down 34% on a year earlier, while profits from recurring operations – or earnings before interest and tax – fell 28% but vastly exceeded analyst forecasts.

    The group said it would propose a dividend payout against 2020 results of 6 euros per share, including a 2 euros per share interim dividend paid in December.

    It had cut its dividend last year to 4.80 euros during the COVID-19 crisis.

  • Uniqlo Singapore set to open ‘Hub of the East’ store

    Uniqlo Singapore set to open ‘Hub of the East’ store

    UNIQLO today announces that it will open UNIQLO Orchard Central, its first Global Flagship Store for Southeast Asia and Singapore, on Friday, 2 September 2016. Under the concept of “U+S and The World”, the new store will showcase the brand’s full assortment of LifeWear – innovative, high-quality clothing that is universal in design and comfort, and made for anyone, anywhere – and will offer Singaporeans an exciting space to share their culture with the world. UNIQLO Orchard Central will be located in Orchard Central mall, along Orchard Road.

    “UNIQLO Orchard Central will be a unique store for the region, providing a new shopping experience for customers. With its vibrant creative scene, Singapore is the ideal location for us to showcase our LifeWear concept through the eyes of the local community. We hope that through our work with highly dedicated Singaporean individuals and groups, we will be able to turn this space into a platform where creative ideas can be expressed and shared with others,“ said Taku Morikawa, UNIQLO Southeast Asia CEO.

    UNIQLO Orchard Central spans three levels and covers 2,700 square meters in sales floor space. Fans of the brand can expect a new shopping experience, thanks to the combination of the in-store design, full product line-up and visually stunning displays. Even the elegant dark wood floors that evoke the mood of Singapore and Southeast Asia are intended to help create the proper setting for the largest product line-up anywhere in the region.

    Iconic rotating mannequins will be an integral part of UNIQLO Orchard Central, as well as close to 300 digital displays, the largest number anywhere in the UNIQLO world, and a total of 350 in-store mannequins, the latter matching the UNIQLO Ginza Global Flagship Store in Tokyo.

    “Singapore’s strategic location in Southeast Asia makes it the choice destination for UNIQLO’s first Global Flagship Store in the region. The opening of this new store marks a milestone in our highly successful eight-year joint venture collaboration.

    The Global Flagship Store will have exciting outreach programmes to engage the community. We look forward to serving our customers in this landmark store, and to inspire many creative talents to express themselves in this distinctive space with artistic works and concepts that are authentically Singaporean,” said Mrs Helen Khoo, Executive Director, Wing Tai Retail.

    A dedicated UT (UNIQLO T-shirt) corner on Level 1 will showcase exclusive UT designs drawn from the most popular collaborations such as Olympia Le-Tan and Bruno Munari. “i am OTHER”, the collection designed together with musician and style icon Pharrell Williams will also find a home on the shelves of UNIQLO Orchard Central. The new Disney Collection City Logo UTs includes a unique Singapore design featuring Mickey Mouse with the iconic Merlion, will be launched on the opening day of UNIQLO Orchard Central.

    The new store concept for UNIQLO Orchard Central, “U+S and The World” is taken from the words UNIQLO + Singapore and the company’s intention to serve as a bridge between Singapore and the World. The store is envisioned as the definitive place where UNIQLO will share the creativity, style and culture of a new Singapore with the rest of the world.

    Later this month, UNIQLO will launch “Your Stage Now Live”, the opening campaign of UNIQLO Orchard Central, by turning the hoarding around the store’s construction site into an urban canvas designed collectively by the local community. In addition, the campaign will also invite everyone to express themselves and showcase their culture to the world through a special “Your Stage Now Live” site.

    The opening of the store on 2 September will serve to kick-off a long-term collaboration with members of the local community through a broad array of programs centred on the store’s specially designed creative space, a launch pad for creativity and self-expression. Elements such as original in-store music, video content on the digital displays and curated spaces within the shop floor, as well as exclusive canvas tote bags and shopping bags, will all be co-created with the local community.

    “We warmly welcome UNIQLO’s global flagship store to Orchard Central, with its new shopping experience, innovative visual merchandising and special collections. UNIQLO will anchor Orchard Central’s appeal as a vibrant lifestyle and social hub for design conscious shoppers looking for quality affordable merchandise and a unique experience. Our mall enhancement works are also nearing completion and along with the opening of UNIQLO Orchard Central, our shoppers can look forward to a new retail experience as well as improved visibility and accessibility,’ said Ms Mavis Seow, Chief Operating Officer, Retail Business Group, Far East Organization.

  • Harmay launches wet market-inspired store in China

    Harmay launches wet market-inspired store in China

    New-generation retail brand Harmay released its latest fashion collaboration collection with Chinese fashion designer Masha Ma on Tuesday as part of the brand’s continuing expansion despite the COVID-19 pandemic.

    The new fashion collection includes T-shirts, trousers and bags. The retail philosophy is focused on creating a beautiful life through sensuous experiences.

    The brand emerged online in 2008. In recent years, it has started to open more brick-and-mortar stores while maintaining and expanding its online territory with an experiential shopping journey.

    “Harmay was born in the golden age of China’s cosmetics and beauty retail industry, and now we have grown and expanded to become a unique retail brand that pursues beauty and a beautiful life,” said Jason Ju, Harmay HK co-founder and general manager, as well as a Harmay partner. “Bringing consumers a high-quality and innovative shopping experience and becoming a new benchmark for retail are goals we have been aiming for.”

    As a retailer of premium cosmetics and beauty products in China, the company offers a variety of well-known international cosmetics and skincare brands as well as self-developed personal skincare products, providing high-quality, contemporary makeup and cosmetics for consumers. Harmay sells exclusive brands, such as SG79|STHLM, Balmain Hair, Tangent GC, ICONIC London, Graine de Pastel, and many others.

    According to the retailer, Harmay acts as an agent for more than 50 international brands and has more than 200 licensed brands in its portfolio. Besides the top brands, the company explores overseas niche brands that haven’t entered the Chinese market.

    In 2017, it opened its first brick-and-mortar store in Shanghai. Just last year, it opened stores in Hong Kong and Beijing. AIM Architecture, one of China’s leading award-winning architecture companies based in Shanghai, designed the interior of Harmay stores, featuring neat, orderly displays, clean lines, and wide and free spaces inspired by industrial warehouses, assembly lines, kitchens, and lockers. The design makes the stores look more peculiar, fashionable and international.

    Harmay will open two new stores in Chengdu and Shanghai this year.

    Facing the challenges brought by the sudden outbreak of the COVID-19 pandemic this year, Harmay maintained its stable customer flow and sales through its online and offline integrated operation model to resist risks, the company said. This proves that its solid e-commerce foundation and mature physical store development, as well as unique store design, diversified product selections, and customer-centric quality service, have won a large number of loyal followers.

  • Prada cuts ties with Chinese actress after surrogacy controversy

    Prada cuts ties with Chinese actress after surrogacy controversy

    Italian luxury label Prada has ended all cooperation with Chinese actress Zheng Shuang, a week after appointing her as a brand ambassador after she was engulfed in a surrogacy controversy that has enthralled the Chinese public.

    Prada made the announcement late on Tuesday, after coming under heavy criticism on Chinese social media for cooperating with 30-year-old Zheng, whose former partner Zhang Heng has accused her of trying to abandon two young children the couple had through a U.S -based surrogate.

    It is the latest global brand to succumb to public pressure in China, where customers have become increasingly vocal about their expectations for the behavior of companies and celebrities, especially foreign ones.

    “The Prada Group has terminated all cooperation with Ms Zheng Shuang,” the company said on its official Weibo account, without providing further details.

    Prada did not respond to Reuters queries on Wednesday. Zheng and Zhang also did not answer Reuters’ requests for comment.

    China has become an increasingly important market for luxury labels during the global pandemic and its shoppers are expected to account for around half of all global spending on high-end brands in 2020, up from 37 percent in 2019, according to McKinsey & Company.

    Prada has said the group’s China sales jumped 60 percent in June and 66 percent in July.

    “The hit to Prada’s image is huge,” said Huang Shengming, professor of the Communication University of China in Beijing. “Their decision to stop working with Zheng is an effort to cut their losses and it’s the right move.”

    Surrogacy Controversy

    The controversy erupted on Monday after Zheng’s former partner Zhang Heng said on social media that the couple had turned to a surrogate to birth two children in the United States and released voice recordings of a woman he said was Zheng lamenting that the children could not be aborted.

    Zhang said he was stranded in the United States because he had to take care of the two children born in 2019 and 2020.

    Zheng quickly became the target of public criticism, with Weibo users calling her “irresponsible” and “vicious”. The controversy has over the past three days been a top trending item on the Twitter-like site, with 600 million views and more than 100,000 comments.

    Thousands of users also left comments on Prada’s Weibo account to question and ridicule the brand for hiring her.

    On Tuesday, the actress said on her Weibo account that she had not violated laws in either China or the United States but did not comment on whether any of the accusations were true.

    “It’s a very sad and private matter for me,” she said.

    Surrogacy is forbidden in China but going abroad to have surrogate children in countries such as the United States has increasingly become an option for some Chinese couples, especially wealthy ones.

    Chinese state media have weighed in on the Zheng controversy. Changan Sword, an online media site backed by the Central Political and Legal Affairs Commission, criticized her for taking advantage of the law and “corrupting human ethics”.

  • Burberry delivers growth in APAC, most coming from E-commerce

    Burberry delivers growth in APAC, most coming from E-commerce

    Global luxury fashion brand Burberry saw comparable retail sales decline 9 percent during its third-quarter period, as tourist traffic slowed amid the continuing Covid-19 pandemic.

    However, full-price sales jumped due to a decline in markdowns, and the business performed well in Asia-Pacific with comparable sales up 11 percent from strong growth in Mainland China and Korea.

    Japan and the South Asia Pacific, however, continue to be affected by limited tourist traffic and store closures.

    Full-priced sales increased by “double digits” in China, Korea, and the Americas, driven by Christmas and Lunar New Year campaigns, as well as a bigger focus on online pop-ups and activations supporting a 50 percent increase in full-priced sales in Burberry’s digital channel.

    Europe, the Middle East, India, and Africa saw comparable sales fall 37 percent, due to falling tourist numbers, while the Americas fell 8 percent.

    “The brand is pushing full-steam ahead with a full-price strategy to strengthen its gross margins as it continues to focus on driving online demand, particularly from new, younger customers,” said GlobalData’s Gemma Boothroyd.

    “Burberry’s online capabilities will prove vital for its ability to navigate the uncertainty of Covid-19.”

    And, with 15 percent of the business’ stores closed and 36 percent operating with reduced hours or restrictions, the business warned that uncertainty is leading to an uncertain trajectory moving into the fourth quarter.

    “We expect trading will remain susceptible to regional disruptions as we close the financial year,” Burberry said.

    “Notwithstanding any incremental lockdowns, we expect gross margins to benefit from positive full-price, regional and channel mix and lower stock provisions.”

    According to Boothroyd, Burberry’s digital focus has set the standard for other players in the luxury industry, due to the introduction of features such as AR shopping and virtual try-on capabilities.

    “The brand is also harnessing digital platforms to drive engagement through influencer partnerships,” Boothroyd said.

    “Such initiatives will continue to be crucial in Burberry’s attempts to strengthen its appeal amongst a younger demographic.”