Retail News CRM

Tag: luxury retail

  • Lanvin Group Narrows First-Half Loss to €34.6 Million as Store Closures Bite

    Lanvin Group Narrows First-Half Loss to €34.6 Million as Store Closures Bite

    Shanghai-based Lanvin Group narrowed its first-half adjusted EBITDA loss to €34.6 million as store closures and restructuring outpaced a 12.9 per cent revenue drop to €100.8 million.

    The New York-listed luxury group cut its adjusted EBITDA loss from €52.2 million a year earlier, achieving its first period since listing where operating cuts exceeded top-line decline. The prior-year base excludes Italian tailor Caruso, which the company sold in February to Abu Dhabi-backed MondeVita.

    Management closed 23 directly operated stores during the six months to June 30, bringing its active boutique network down to 151 sites. Over the past 18 months, the company has eliminated 74 stores from a peak of 225, cutting its physical footprint by a third to curb overhead.

    Mixed fortunes across four fashion houses

    St John overtook the namesake maison to become the group’s largest revenue contributor, generating €35.5 million. While that represented a 10.5 per cent decline in euros, sales fell roughly 5 per cent in US dollars, helped by a 31 per cent jump in e-commerce. Chief commercial officer Mandy West, promoted in March, will roll out two capsule collections during the second half.

    Austrian skinwear label Wolford delivered €31.0 million, down 6 per cent. Direct-to-consumer sales slipped 2 per cent while e-commerce expanded 22 per cent, lifting gross margin four percentage points to 60 per cent following the resolution of earlier supply chain bottlenecks. Marco Pozzo took over leadership of the brand in February.

    Revenue at flagship house Lanvin slid 17.9 per cent to €22.9 million, making it the group’s third-largest unit. Barbara Werschine took charge as chief executive in May following stints at Hermès and Eric Bompard, while designer Peter Copping presented his winter 2026 collection in Paris. Footwear brand Sergio Rossi remained the weakest unit, tumbling 28.6 per cent to €10.9 million after artistic director Paul Andrew departed in January and the business phased out third-party manufacturing contracts.

    Asset-light transition across global operations

    Chinese luxury groups that expanded through European acquisitions have spent the past two years paring down overhead to adjust to weaker global wholesale demand. Greater China generated 8.1 per cent of Lanvin Group’s sales last year, leaving the company heavily exposed to European and American department store channels where foot traffic has softened. Trimming company-owned real estate while shifting brands toward licensing mirrors the defensive posture adopted by mid-tier European fashion houses.

    Chairman Zhen Huang expects the broader corporate transformation to wrap up before the end of the year. The group is now preparing second-half wholesale deliveries and expanding asset-light franchise partnerships across Sergio Rossi and Lanvin.

  • Loewe Opens Largest Japan Flagship in Tokyo’s Ginza District

    Loewe Opens Largest Japan Flagship in Tokyo’s Ginza District

    Loewe has opened CASA LOEWE Ginza in Tokyo. It is the brand’s largest flagship in Japan and its second-largest retail footprint worldwide.

    Located at the intersection of Chuo-dori and Miyuki-dori in Tokyo’s luxury district, the street-level store lands as the Spanish fashion house marks its 180th anniversary. The opening anchors its retail presence in Japan’s resilient high-end consumer market.

    Suna Fujita Collaboration and Exclusive Ranges

    Inside, the flagship features an exclusive collaboration with Kyoto ceramic studio Suna Fujita. The studio produced designs specifically for the Tokyo location. Those artworks appear on the signature Hammock bag, a shearling coat, and a jacket detailed with cherry blossom motifs.

    Alongside the bespoke launch pieces, the store secured an advance pre-release of the wider Loewe and Suna Fujita collection. That lineup includes reworked versions of the Amazona and Basket bags. Dedicated floor displays show small leather goods, charms, and accessories.

    Luxury Brands Cement Prime Ginza Real Estate

    Securing corner plots along Chuo-dori remains a core strategy for European luxury labels competing for tourist spending and domestic shoppers in Japan. Following flagship rollouts in Shanghai and Seoul, Loewe’s expanded presence shows top-tier brands still view Tokyo street retail as essential for long-term brand equity in North Asia.

    Doors are now open to the public. Retail traffic around Ginza’s prime intersections will test full-year footfall targets across the brand’s expanded footprint in the months ahead.

  • Laopu Gold Targets Global Expansion as Sales Growth Moderates

    Laopu Gold Targets Global Expansion as Sales Growth Moderates

    Laopu Gold is pushing ahead with overseas expansion plans to secure new sales channels as top-line retail growth cools across its core Chinese market.

    The Beijing-based luxury heritage gold brand reported a moderating pace of domestic expansion while confirming plans to establish footprints in key international shopping hubs.

    Slowing Domestic Demand

    Consumer appetite for pure gold jewellery in China faced pressure after a prolonged run of sharp price gains. Shoppers who drove previous surges in heritage gold sales have pulled back on discretionary luxury purchases, forcing premium jewellers to adjust their operational expectations.

    Laopu Gold built its brand equity on handcrafted traditional gold ornaments sold at significant premiums through boutique locations. As domestic store productivity normalises, management is looking beyond mainland shopping centres to sustain revenue momentum.

    Pushing Into Global Retail

    International luxury corridors represent the next commercial frontier for the brand. Establishing outposts in regional financial hubs and tourist destinations allows the jeweller to capture affluent Chinese travellers as well as international high-net-worth consumers.

    Rival jewellers across Hong Kong and mainland China have made similar shifts into Southeast Asia and the Middle East over the past two years. For Laopu Gold, competing on international high streets requires convincing foreign consumers to pay luxury design markups on traditional Chinese craftsmanship rather than treating items purely as gold weight assets.

    Execution details on specific international leases and overseas opening schedules will determine whether foreign revenue can counterbalance cooling domestic retail volumes.

  • Fossil India Bets on Analogue Revival as Young Buyers Build Watch Wardrobes

    Fossil India Bets on Analogue Revival as Young Buyers Build Watch Wardrobes

    Fossil India is repositioning its product lineup toward premium analogue timepieces as younger domestic consumers buy multiple watches for different occasions rather than relying on a single device.

    The shift follows a rebound in traditional watch demand across India, aided by the proliferation of secondary wearables like smart rings that free up wrist space previously dominated by connected screens.

    Freeing wrist space for premium mechanicals

    Speaking at the ETRetail ShopFWD Summit in Bengaluru, Fossil India managing director Johnson Verghese said younger shoppers are researching models independently, entering the category earlier and curating separate watches for work, sports and evening social events. Fossil manages its own label alongside licensed fashion brands including Michael Kors, Emporio Armani and Diesel in the Indian market.

    To capture higher spending, the group introduced higher-priced mechanical models such as the racing-inspired X1 automatic watch, pricing it well above Fossil’s historic average in India. Verghese noted that buyers willingly paid the premium because of upgraded materials like ceramic and titanium, automatic movements and distinct visual design.

    Across Asia-Pacific markets, watchmakers face a dividing consumer base: entry-level connected fitness monitors on one side and design-led mechanical timepieces on the other. For accessible fashion watch brands, category growth depends on positioning the traditional watch as a personal accessory rather than a functional clock.

    Expanding retail footprint beyond metropolitan centres

    In-store services, particularly caseback engraving, have become central to conversion rates by turning purchases into personalised gifts and commemorative items. Verghese stressed that modern buyers research specifications online before testing weight and wrist fit in physical stores, making consistent pricing and stock data essential across both channels.

    Fossil India plans to direct its next store rollouts toward tier-II and tier-III cities, where quality retail space remains limited despite rising disposable incomes among first-time corporate workers.

  • Coach Targets 10 Billion Dollars in Sales by 2028

    Coach Targets 10 Billion Dollars in Sales by 2028

    Coach plans to reach 10 billion dollars in annual sales by 2028, up from its current 7 billion dollar revenue base. The expansion relies on growing international store networks, pushing deeper into ready-to-wear and footwear, and recruiting younger shoppers.

    The brand generates the vast majority of revenue for parent company Tapestry Inc., which recently reported 8 billion dollars in annual sales. Chief executive officer and brand president Todd Kahn, who took the helm in 2020 after joining as general counsel in 2008, is steering the push as the label marks 85 years since its founding in 1941.

    Expanding Global Footprint and Gen Z Reach

    Attracting Gen Z buyers sits at the center of the sales roadmap. Coach has broadened its assortment beyond signature leather handbags into ready-to-wear lines, footwear collections, dedicated brand cafes, and circular fashion initiatives like Coachtopia.

    Creative director Stuart Vevers continues to lead product design, balancing heritage leather craftsmanship with youth-focused styling. Kahn noted that while the company started as a small workshop run by immigrant artisans on 34th Street in Manhattan, preserving core leather craft remains essential to its identity as an accessible luxury house.

    From Leather Workshop to Tapestry Growth Engine

    Department store distribution once dominated accessible luxury, but direct retail networks and localized experiential spaces across Asia, Europe, and North America now anchor the brand’s margins. Rivals in the premium leather goods category face tighter consumer spending, yet Coach has maintained price discipline and direct-to-consumer momentum across international markets.

    Tapestry will measure progress against the 10 billion dollar milestone across its quarterly filings leading up to the fiscal 2028 deadline.

  • Cettire Net Loss Widens to $8.5 Million as US Tariffs Hit Sales

    Cettire Net Loss Widens to $8.5 Million as US Tariffs Hit Sales

    Australian luxury platform Cettire posted an annual net loss of $8.5 million for the year ended June 30, more than trebling its deficit from a year earlier.

    The loss widened from $2.6 million in the previous financial year as sales revenue dropped 3.2 per cent to $718.4 million. Gross revenue fell 2 per cent, though it posted a small gain when measured on a constant currency basis.

    Tariff Friction and Middle East Disruption

    Active customer numbers fell 8 per cent to 605,000 during the twelve-month period. Management attributed the decline to weaker demand in the United States and a deliberate cut in paid marketing expenditure.

    The platform ran into direct regulatory friction in its largest market after US authorities removed the de minimis import duty exemption. In the second half of the financial year, consumer sentiment in high-growth Middle Eastern markets also weakened as regional conflict disrupted cross-border trade.

    During the period, US tariff changes, including the impact from the removal of the de minimis exemption, contributed to ongoing challenges in our largest market.

    Dean Mintz, founder and chief executive of Cettire, said US tariff refunds helped ease pressure late in the financial year.

    Momentum Outside North America

    Business outside the United States delivered better results, with sales revenue rising 14 per cent across the rest of the company’s geographic footprint. The expansion beyond North America cushioned the top-line decline and delivered market share gains across secondary regions.

    Pure-play luxury aggregators in Asia-Pacific have spent the past two years wrestling with excess inventory and fading post-pandemic demand. Cettire’s reliance on cross-border drop-shipping makes it unusually sensitive to customs thresholds, putting operational execution under scrutiny as border rules tighten.

    Attention now turns to trading updates in early fiscal 2027 to see whether the 14 per cent growth rate outside the US can offset lingering drag in North America.

  • European Luxury Houses See China Rebound as Burberry Sales Climb 9%

    European Luxury Houses See China Rebound as Burberry Sales Climb 9%

    European luxury groups are tracking a tentative rebound across mainland China, led by high-net-worth spending and demand for premium beauty and apparel.

    July retail sales across the country’s top 25 luxury labels dropped more than 10 percent under tighter scrutiny on offshore wealth, but corporate earnings forecasts point to an autumn turnaround. Household spending on cosmetics has begun to stabilize, while quarterly reports from fashion houses reveal pockets of early momentum.

    Divergence Across Brands

    Burberry Group posted a 9 percent increase in Greater China retail sales during its latest quarter, helped by younger shoppers and localized campaigns. The British fashion house partnered with Chinese National Geography magazine on documentary marketing to lift brand engagement among Gen Z consumers.

    Gucci parent Kering expects sales in the region to return to positive growth by the fourth quarter of 2026. Chief Executive Luca de Meo called the country a strategic priority as trading conditions improved steadily through the latest reporting period.

    LVMH reported steadying demand in mainland stores, citing improving figures for its Sephora retail chain and cognac labels. Swiss group Richemont captured higher tourist spending across Hong Kong and Macau, while Moncler gained ground in market niches.

    Uneven Recovery Profile

    The rebound remains concentrated among high-net-worth buyers rather than broad middle-income households. That divide keeps the pace uneven across retail categories and price points.

    Hermes continues to accelerate sales in the region, while Danish jeweler Pandora is seeing sales declines narrow. For retail operators across Asia, the test will be whether luxury spending broadens beyond top-tier VIP clients before fourth-quarter results land.

  • Louis Vuitton to Close Guiyang Store as Southwest China Footprint Shrinks

    Louis Vuitton to Close Guiyang Store as Southwest China Footprint Shrinks

    Louis Vuitton will close its only store in Guiyang on August 31, cutting its footprint in southwestern China to three locations.

    The retreat brings the French luxury house down from a peak of six stores across the southwestern region.

    An on-site notice confirmed the pending exit in the capital of Guizhou province. The closure follows a wider review of the brand’s network across mainland China, where consumer spending on luxury goods has softened and purchasing habits continue to evolve.

    Network cuts in the southwest

    Trimming regional outposts allows luxury operators to protect margins while focusing resources on premier flagship locations in tier-one hubs. Southwestern provincial capitals once served as key targets for European brands seeking newly affluent shoppers outside Beijing and Shanghai. That rapid retail buildout has steadily unwound across secondary hubs as consumer footfall and basket sizes contract.

    Legal pushback and consumer sentiment

    The network changes coincide with active trademark enforcement in mainland courts. In July, Chinese beverage chain Molly Tea was ordered to pay Louis Vuitton 10.3 million yuan ($1.5 million) over the use of a similar logo. While the court ruled in favour of the luxury brand, the verdict generated public sympathy for the domestic drinks company across Chinese social platforms.

    S&P Global Ratings director Sandy Lim noted that while immediate sales effects from the dispute are limited, brand perception among younger buyers requires attention. Lim stated that this emerging consumer group prioritises cultural respect alongside prestige when selecting brands.

    Operations at the Guiyang store cease on August 31, leaving three operational sites in the southwestern provinces as luxury houses track autumn demand trends.

  • Champagne Bureau Australia Launches Education Prize for Wine Retailers

    Champagne Bureau Australia Launches Education Prize for Wine Retailers

    Champagne Bureau Australia has launched the Champagne Education Prize for early-career hospitality and fine wine retail staff. Australia ranks as the world’s seventh-largest Champagne export market.

    The training scheme targets frontline workers. It combines technical category study with direct travel to France.

    Focus on frontline wine sellers

    Organisers view sommeliers, bartenders and fine wine retail employees as the primary channel for introducing Australian consumers to the category. The program aims to deepen their technical knowledge through direct interaction with shoppers and restaurant diners.

    Selected participants will travel directly to the Champagne region for on-the-ground study.

    Australia holds seventh place globally

    Sustaining demand across Asia-Pacific liquor retail channels relies heavily on trade education. Premium wine distributors face stiff competition from domestic sparkling producers for shelf space and wine list placements.

    Intake dates and selection details for the inaugural cohort will determine when the first group of Australian trade professionals heads overseas.

  • Borsalino Opens First China Boutique at Shanghai Plaza 66

    Borsalino Opens First China Boutique at Shanghai Plaza 66

    Borsalino opened its first permanent boutique in mainland China at Shanghai’s Plaza 66, launching the 170-year-old Italian luxury hatmaker’s direct retail presence in the country.

    The Shanghai debut anchors the company’s broader expansion push across Greater China and key international retail destinations.

    Mauro Baglietto, managing director of Borsalino, led the ribbon-cutting ceremony alongside Alec Hou, chief executive of Essence Group, joined by representatives from the Italian government and Plaza 66 leasing management. To accompany the launch, the brand unveiled a limited-edition jewellery collection featuring a Fedora finished with an 18-carat gold logo set with rubies, sapphires and diamonds.

    Heritage and Pop-Up Operations

    Plaza 66 hosted a Borsalino pop-up installation from 22 to 27 August to support the boutique opening. The temporary space showed archival vintage headwear, demonstrations of Italian millinery craft, and bespoke personalisation services for local shoppers.

    Giuseppe Borsalino established the company in Alessandria, Italy, in 1857, making it the country’s oldest operating luxury hatmaker. The business currently pairs its own-brand boutiques and wholesale accounts with global distribution networks, fashion collaborations and film-industry styling partnerships.

    Niche Luxury in Prime Retail Malls

    Heritage European craft houses continue to seek dedicated real estate across top-tier Chinese commercial centers to engage high-net-worth buyers directly rather than relying solely on multi-brand stockists. Placing a standalone store inside Plaza 66 gives Borsalino immediate access to Shanghai’s most concentrated luxury customer base.

    The next metric to watch is whether Essence Group and Borsalino follow this flagship opening with additional retail leases in secondary luxury hubs such as Beijing and Chengdu.

  • Australia CBD Retail Vacancy Rises to 10.8% on Melbourne Supply Wave

    Australia CBD Retail Vacancy Rises to 10.8% on Melbourne Supply Wave

    Australia’s central business district retail vacancy rate rose 40 basis points to 10.8 per cent in the first half of 2026 as fresh retail completions in Melbourne added new space.

    A survey of 5,669 retail tenancies across five state capitals by real estate services firm CBRE showed that shop vacancies declined in four of the five cities, leaving Melbourne as the lone driver of the national increase. Melbourne’s CBD vacancy rate climbed 160 basis points to 8.1 per cent following the launch of two retail centres. Sydney held the tightest retail core in the country, with vacancy standing at 5.3 per cent.

    State Capital Breakdown

    Adelaide posted the sharpest improvement among metropolitan centres, where retail vacancy dropped 130 basis points to 10.4 per cent. Brisbane recorded an 80-basis-point decline to 16.7 per cent, while Perth edged down 10 basis points to 18.5 per cent.

    Physical retail space in Australian city centres remains structurally tight over the long term. CBD retail stock accounted for just 4.2 per cent of total new retail supply built across the country over the past decade, limiting the risk of prolonged oversupply even as consumer budgets tighten.

    Luxury and Experiential Demand

    Foot traffic gains from returning office workers, inbound tourists, and major events have kept cash registers moving in primary shopping strips. Luxury brands and premium apparel retailers continue to take prime floor space in Sydney and Melbourne, competing directly against dining and wellness concepts that landlords rely on to anchor footfall.

    For retail property operators across the Asia-Pacific region, Australia’s low single-digit prime core vacancies mirror similar supply squeezes in Tokyo and Singapore. Landlords in secondary locations, however, face longer leasing cycles as retail groups focus their capital expenditure almost exclusively on high-traffic street corners and flagship malls.

    Leasing agents now turn their attention to absorption rates in Melbourne’s two newest downtown complexes over the second half of 2026, which will determine whether the city’s vacancy rate stabilizes before next year’s development pipeline delivers.

  • Dolce & Gabbana Sparks Racism Backlash With Chinese Ad

    Dolce & Gabbana Sparks Racism Backlash With Chinese Ad

    Italian luxury retailer Dolce & Gabbana is facing a growing backlash in China after an ad campaign that was meant to promote the brand in arguably its most valuable market has been decried as racist.

    Amidst growing calls to boycott the brand on Chinese social media, popular e-commerce sites, including Alibaba’s Tmall and JD.com, have seemingly removed listings for Dolce & Gabbana products. Searches for the brand on those sites at the time of this writing returned no results. NetEase’s Kaola said that it had taken down the brand’s listings.

    The growing backlash forced the brand to postpone a fashion show in Shanghai just hours before it was set to take place on Wednesday, after models and celebrities reportedly said they would not attend the event. Dolce & Gabbana’s ambassadors in the region, Karry Wang and Dilraba Dilmurat, who is of Uigher ethnicity, have ended their contracts with the company.

    The uproar follows the publication of a series of ads on Chinese social media platform Weibo earlier this week, featuring a young Chinese woman attempting and failing to eat traditional Italian food, such as pasta, pizza and a cannoli, with chopsticks. The ads were released as part of the brand’s #DGLovesChina campaign ahead of the scheduled fashion show in Shanghai, but critics decried the videos as playing on racist stereotypes. The ads are still visible on Dolce & Gabbana’s Instagram page.

    The controversy was made worse after screenshots of direct messages purportedly from founder Stefano Gabbana’s Instagram account were leaked, showing offensive comments about China and Chinese people. Both Gabbana and the brand have denied that the messages were sent by the Italian designer, saying the accounts were hacked, but many have expressed scepticism, given Gabbana’s track record of getting into verbal spats on social media.

    “I love China and the Chinese culture. I’m so sorry for what happened,” Gabbana wrote in an Instagram post that asserted his account was hacked.

    The boycott is especially troubling, since China is such a crucial market for luxury retailers. A 2017 McKinsey report found that Chinese consumers account for nearly a third of the global luxury market, spending RMB 500 billion (approximately $99 billion) annually. The consulting firm expects Chinese consumers to account for the majority of the growth in the global luxury goods market in the coming years, and by 2025, the country is forecast to make up 44 per cent of the total global market.

    At the same time, McKinsey said that Chinese luxury consumers increasingly rely on word of mouth from friends and family to make purchase decisions, even more than the in-store experience. This creates treacherous terrain for global luxury brands, and Dolce & Gabbana is not the only one to have made a culturally insensitive or simply out-of-touch decision, causing offense in its most valuable market.

    Ikea, among many other brands, has faced criticism for listing Taiwan as a separate country on its packaging or website, while Mercedes-Benz ran into problems for quoting the Dalai Lama in an ad campaign. China considers the spiritual leader to be a dangerous voice for separatism in Tibet.

    Lees ook:

    Lees ook:

    Lees ook:

  • Headwinds will cramp luxury retail sector

    Headwinds will cramp luxury retail sector

    The luxury retail sector will grow next year – but at a disappointingly slow rate, according to the latest data from Euromonitor.

    As tough global trading environments continue to prevail – social and political unrest in Asia Pacific, economic slowdown in Latin America, and conflict in Eastern Europe will conspire to restrain growth in both key emerging and developed markets, the research house says.

    “Indeed, the market continues to face headwinds from major luxury goods markets, such as France and Hong Kong, as well as other large emerging markets, such as Russia and Brazil, while instability in the Middle East continues to cloud the horizon.”

    Whilst 2017 will not be a stellar year for the global industry overall, “we will see some tailwinds, with markets such as India and Mexico in a much stronger position,” Euromonitor concluded.

    “At the same time, luxury brands and retailers continue to seek ways to harness social media and tap into the psyche of the digital consumer, as connectivity continues to drive new opportunities in digital innovation and growth in the omnichannel continues to reach new frontiers.

    Divergence remains a key theme across the luxury markets for the year ahead with strong regional disparities in Asia Pacific appearing strong with 5 per cent growth, a marked difference to 2015, with a regional growth of just 1 per cent, reflecting the significant economic slowdown in China.

    The developed regions of Western Europe and North America were significantly weaker, with both regions showing a slight downturn in 2016 with a weak Eurozone continuing to hold back regional performance and the added concerns over terrorist attacks, as well as the more recent Brexit vote, have also dampened sales. In the next five years, the US is predicted to lose its top spot in the ranking to China.

    However, the disappointing data for the developed regions should not obscure the importance of these high-value luxury goods markets. These regions remain amongst the most powerful in the world and together account for over half of all luxury goods sales in 2016.

    Watch Fflur Roberts, head of luxury goods with Euromonitor International, share more about the luxury sector.

    Lees ook:

    Lees ook:

  • Asia luxury retail revival ahead

    Asia luxury retail revival ahead

    While Asia Pacific may be experiencing a slowdown in luxury retailing right now, three key trends will fuel a renaissance in coming years.

    That’s the core finding of a research report by property specialist CBRE, The Future of Luxury Retail in Asia Pacific: New Demand Drivers and Shifting Occupier Requirements, which promises property owners can expect “a solid new stimulus for demand” in the coming years.

    Most major luxury retailers are now well established in Asia Pacific – their with China and Hong Kong penetrations already at 89 per cent and 81 per cent, respectively. And after several years of rapid expansion, these markets are approaching saturation point.

    “Accounting for one-third of personal luxury goods sales globally in 2014, Asia Pacific is a key region for international luxury brands with key markets including China, Hong Kong, Japan, Singapore, South Korea and Taiwan. However, the high growth period for luxury retailers in the region is gradually coming to an end,” commented Dr Henry Chin, head of research, CBRE Asia Pacific.

    ”Over-saturation, surging operational costs and weaker retail sales – especially in Hong Kong due to the slowing mainland China economy – have prompted retailers to consolidate their existing store networks and slow their rate of entry into new markets focusing on operational efficiency,” said Chin.

    But here is where there is hope: CBRE has identified three emerging trends which will partially offset some of the negative effects arising from the slowdown and compensate for the loss of demand.

    • The Emergence of Affordable Luxury

    Often referred to as bridge brands, affordable luxury retailers – for example Michael Kors – provide high quality branded goods at a lower price tag than top-tier luxury retailers. Several top-tier luxury brands are already so well established in the region that they are at risk of overexposure, a trend which is prompting many consumers to look for differentiation.

    • Inclusion of F&B

    Recent years have seen luxury brands begin to expand beyond their core fashion businesses into the F&B sector – examples include 1921 Gucci in Shanghai iAPM and Cafe Dior by Pierre Hermé on the top floor of Christian Dior’s flagship store in Seoul – transitioning their brand from being totally fashion-oriented to more lifestyle-driven. Including an F&B component in stores enables luxury retailers to provide their consumers with a more complete experience in which they can shop, relax and socialise.

    • Growth of Luxury Childrenswear

    As of 2014, Asia Pacific was home to 807 million people aged below 14, representing more than 20 per cent of the total population, offering an enormous opportunity for growth in this segment. The emergence of luxury childrenswear brands has been welcomed by landlords as many of them are looking to expand their offering into toys, bookstores and playrooms in order to attract and retain foot traffic amid competition from online retail.

    “With the momentum behind these trends, this will account for a bigger slice of leasing demand for prime retail space,” says Joel Stephen, senior director, head of retailer representation, CBRE Asia.

    “Retailers and landlords can benefit from the projected growth in these market segments.”

    Changes in Luxury Retailers’ Real Estate Requirements

    The emerging retail trends – combined with changing tourism patterns and the ongoing slowdown of the region’s luxury retail sector – are already impacting luxury retailers’ real estate requirements, resulting in new, and in some cases, weaker demand for different types of retail property.

    “The change in shopping behavior among mainland Chinese tourists – who are demonstrating a stronger preference for shopping in Europe and Japan – has prompted luxury brands to review their expansion and rationalise their real estate portfolios, strategies and requirements. Since most luxury retailers remain cautious towards expansion, especially in China, retailers are now focusing on consolidating their footprint into a solid network of stores in high quality locations, as opposed to expanding rapidly and opening many smaller stores, in order to extract the highest value from their sales network,” says Chin.

    Some of the key trends that CBRE have identified include:

    • Weaker interest in department stores despite continued interest in prime locations;
    • Stronger focus on flagship stores, displaying more product lines, thus making a stronger statement in the market;
    • Increased popularity in short-term opportunities for brands to set up exhibitions, pop-up and concept stores, and workshops, to generate greater consumer awareness;
    • Affordable luxury brands continuing to drive demand, encouraging more shopping center landlords to offer them anchor tenant space; and
    • More interest in upper floor retail space, but limited to top-tier malls and driven by F&B and childrenswear segments.

    Says Stephen: “Driven by the emergence of affluent consumers and the rise of the number of millionaires in the region, Asia Pacific will remain a hugely important market for international luxury brands with new names entering the region.

    “Even though leasing demand will slow to a more sustainable level, prime space in core areas will continue to be keenly sought after.”

    Penetration of luxury retailers into Asia-Pacific.

    Lees ook:

  • Saturation hits luxury retail, but new trends provide hope

    Saturation hits luxury retail, but new trends provide hope

    The Asia Pacific region is experiencing a slowdown in the luxury retail sector, but new emerging trends are set to provide the retail sector with a solid new stimulus for demand in the coming years, according to the CBRE’s special report, ‘The Future of Luxury Retail in Asia Pacific: New Demand Drivers and Shifting Occupier Requirements’.

    Most major luxury retailers are now well established in Asia Pacific with China and Hong Kong being two of the most penetrated markets at 89 per cent and 81 per cent, respectively. However, following several years of rapid expansion, these markets are approaching saturation point.

    “Accounting for one-third of personal luxury goods sales globally in 2014, Asia Pacific is a key region for international luxury brands with key markets including China, Hong Kong, Japan, Singapore, South Korea and Taiwan. However, the high growth period for luxury retailers in the region is gradually coming to an end,” said Dr Henry Chin, Head of Research, CBRE Asia Pacific.

    ”Over-saturation, surging operational costs and weaker retail sales – especially in Hong Kong due to the slowing mainland China economy – have prompted retailers to consolidate their existing store networks and slow their rate of entry into new markets focusing on operational efficiency,” said Dr Chin.

    CBRE has identified three emerging trends which will partially offset some of the negative effects arising from the slowdown and compensate for the loss of demand: Emergence of Affordable Luxury, Inclusion of F&B and Growth of Luxury Childrenswear.

    “With the momentum behind these trends, this will account for a bigger slice of leasing demand for prime retail space,” says Joel Stephen, Senior Director, Head of Retailer Representation, CBRE Asia. “Retailers and landlords can benefit from the projected growth in these market segments,” he adds.

    Emerging retail trends are already impacting luxury retailers’ real estate requirements, resulting in new, and in some cases, weaker demand for different types of retail property, the report said.

    Some of the key trends that CBRE have identified include weaker interest in department stores despite continued interest in prime locations; stronger focus on flagship stores; increased popularity in short-term opportunities for brands to set up exhibitions, pop-up and concept stores, and workshops, to generate greater consumer awareness; affordable luxury brands continuing to drive demand; and more interest in upper floor retail space, but limited to top-tier malls and driven by F&B and childrenswear segments.

    Lees ook: