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Tag: luxury

  • 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.

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  • Luxury Gift-Giving Ideas in a Crisis Year

    Luxury Gift-Giving Ideas in a Crisis Year

    Gift-giving looks different in a pandemic year, but consumers aren’t eschewing luxuries entirely.

    If you like things you can hold in your hand but still want to get in on the crypto craze, Bitcoin Suisse’s certificates are worth a look: beautifully-crafted paper wallets hold bitcoin, ether, a Swiss franc-backed stablecoin, and others.

    The certificate’s design leans heavily on Bitcoin Suisse’s home: Switzerland’s spiritual mother, Helvetia, adorned by Alprose, features on the front while the reverse depicts crypto valley encircled by 23 stars representing the country’s cantons. The certificates bear a hologram designed to hold security features including nano and micro text, security guilloches, and spectral line patterns.

    Calling Enzo Enea a landscaper is like calling Dom Perignon a drink: the Swiss-based designer has designed greenscapes for the Queen of Bahrain and Prince Charles and worked with Zaha Hadid. He’s just as sought-after in his native Switzerland.

    Enea’s business is booming during the pandemic, as homebound bankers look to upgrade their surroundings. A fixture in design bibles like Monocle and Wallpaper, Enea recently-opened concept store overlooking Zurich’s Sihl river – a stone’s throw from Paradeplatz.

    Outside In embodies the philosophy of meshing the outdoors with interior quarters: the two-story shop includes statement pieces like Oscar Niemeyer’s Rio chaise longue or BassamFellows’ iconic Swiss tractor stool to Serax stoneware-cement tableware.

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  • Gucci revives classics to regain edge in crimping luxury market

    Gucci revives classics to regain edge in crimping luxury market

    Gucci is revisiting 1960s handbags and other classics in its latest collection, mixing them with up-to-the-minute sneakers and logoed skateboards, as it seeks to reach a wider audience and reverse a fall in sales after years of stellar growth.

    With traditional fashion shows cancelled because of the coronavirus pandemic, designer Alessandro Michele teamed up with US director Gus Van Sant to shoot a seven-part miniseries to show off his largely season-less, gender-neutral creations.

    Gucci is showing the videos as a virtual fashion film festival, with a new instalment released daily over the course of this week.

    The films, which have a dream-like, retro quality with vintage cars and juke-boxes, follow a woman, played by Italian actress Silvia Calderoni, as she goes about her daily routine in Rome.

    They feature cameo appearances by celebrities close to the fashion house such as singers Billie Eilish and Harry Styles – all wearing Gucci creations, including re-editions of Michele’s designs from his first 2015 collection.

    The former One Direction singer has also created a buzz in the fashion world by appearing on the cover of a December edition of Vogue, clad in a Gucci ball gown.

    Watershed moment

    Behind the scenes, luxury industry watchers say this is a watershed moment for Gucci, the business that drives the bulk of revenue and profits at parent Kering, but which has been losing steam over the past year.

    After a nearly fourfold increase in earnings since Michele took the creative helm, Gucci’s revenues have slowed down, lagging rivals like LVMH’s Louis Vuitton and Hermes. Gucci was the only fashion brand in Kering’s stable to suffer a sales decline in the third quarter.

    Much of the brand’s success up until recently relied on well-heeled, young Chinese shoppers travelling to Europe’s fashion capitals and snapping up Michele’s quirky, flamboyant designs.

    But with international tourism almost frozen due to the pandemic, Gucci can no longer rely on foreign visitors coming to Europe’s shopping streets to boost sales.

    Consultancy Bain, which produces closely-followed forecasts for the luxury industry, said on Wednesday the share of high-end goods purchases by local clients is expected to rise to 80-85 per cent of the total this year from 60 per cent in 2019. Local buyers are still set to account for 65-70 per cent of luxury shopping in 2025.

    Gucci is rejigging its marketing and product line-up to refocus the label and boost its appeal among local and older shoppers in Europe and the United States. The fashion house has, for example, produced “re-edited” versions of its classic handbags such as the 1800-euro Jackie 1961.

    People born from 1981 onwards — Millennials and Generation Z buyers — now make up almost 60 per cent of luxury purchases, Bain said, but brands cannot afford to neglect the remaining 40 per cent.

    That is why on top of tweaking their ranges to include less trend-driven items, most luxury labels are directing their customer service to establish close contact with clients who are not able to go to the stores themselves.

    Gucci is still doing well on many fronts, including an operating margin of 30 per cent in the first half of 2020, down from a record high of 40.6 per cent a year earlier but still far exceeding that of many competitors.

    But analysts say there are some signs of fatigue. Luca Solca of Bernstein said Gucci’s social media traction, while still high, is diminishing. It also seems to have more trouble selling excess inventory at full price.

    “There is no red flag at Gucci, but we see an opportunity to act now in order to avoid bigger issues down the road,” said Solca in a note.

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  • Dire forecast for global luxury goods sales

    Dire forecast for global luxury goods sales

    Sales of luxury goods worldwide are set to fall by 23 percent to US$258 billion this 12 months, their largest ever drop and first since 2009, as a result of fallout from the coronavirus pandemic, in line with consultancy Bain.

    The anticipated decline, regardless of a powerful sales recovery in China, is on the decrease finish of a 20 percent to 35 percent vary which Bain’s carefully adopted business forecast had predicted in May.

    That is because of an even bigger than anticipated rebound in the course of the summer season when lockdown measures had been lifted or eased internationally and shops promoting high-end purses, garments, jewelry, and watches had been reopened.

    However, a resurgence of the pandemic in Europe and the United States since October has led to new restrictions and store closures whereas uncertainty linked to the US elections additionally weighed on client sentiment.

    The solely vivid spot is China, the place sales have surged because it started to emerge from the well-being disaster within the spring. Sales in mainland China are seen rising by 45 percent at present trade charges to $52 billion this 12 months.

    “We have a two-speed world, with Europe and the US strongly hit by the second wave and by social and political uncertainty, while China is relentlessly accelerating day after day,” Federica Levato, a companion at Bain, mentioned.

    Fourth-quarter sales are anticipated to drop by 10 percent, though the decline may very well be larger relying on how a lot of the brand new shutdowns hit the essential Christmas season.

    Revenues for the likes of Louis Vuitton proprietor LVMH, Hermes, and Prada ought to partly recuperate in 2021, though Bain says it is going to take till the top of 2022 and even 2023 to return to final 12 months’ ranges.

    The coronavirus disaster has accelerated three developments, Bain mentioned, with purchases on-line nearly doubling from 12 percent in 2019 to 23 percent in 2020, and e-commerce set to turn into the main channel for luxury purchases by 2025.

    International journey curbs have led to folks shopping for extra of their dwelling nations, whereas buyers born from 1981 onwards now account for nearly 60 percent of complete purchases.

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  • Hermes Japan opens a new store in Osaka

    Hermes Japan opens a new store in Osaka

    Luxury fashion house Hermes has opened a new store in Osaka, its fourth store in the city. Located at Parco shopping center, the new Hermes store spans two stories and occupies a 515sqm space.

    Designed by the Parisian architecture agency RDAI, the store facade features floor-to-ceiling undulating glass windows, creating a “water-like effect” on both floors. Meanwhile, the store interior is decorated with ropes hanging from the ceiling, showcasing traditional Japanese craftsmanship with the Kumihimo braiding technique.

    Hermes’ silk collections, including the new double-sized scarves, are displayed at the store’s center while ready-to-wear collections are presented at both sides of the store. Far end of the store is an “intimate salon”, featuring women’s accessories, including shoes, jewelry, and watches.

    The new Hermes Osaka store features a bar and a made-to-measure service on the upper floor.

    “Echoing the annual theme for 2020, Innovation in the Making, this new retail space mirrors Hermes’ tribute to the human hand and to the ingenuity of its artisans,” the company said in a statement.

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  • LVMH whitdrawing Tiffany deal

    LVMH whitdrawing Tiffany deal

    French luxury-goods group LVMH has dropped its plan to take over Tiffany & Co, prompting the  New York jeweler to announce it will file a lawsuit to enforce the deal.

    The US$16.2 billion takeovers was agreed to before the advent of the Covid-19 pandemic and the jeweler’s share price had dropped well below the price LVMH had agreed to pay.

    However, LVMH’s board is using geopolitical and taxation factors to defend its position with the board issuing a brief statement late Wednesday Asian time after a board meeting confirming it would “not be able to complete the acquisition of Tiffany & Co”.

    The statement referred to a letter from the French European and Foreign Affairs Minister which directed LVMH to “differ” (sic) – thought to mean defer – the acquisition until after January 6 next year in “reaction to the threat of taxes on French products by the US”.

    Tiffany & Co had earlier requested LVMH to extend the closing date for the deal from the current expiry date of November 24 to December 31.

    LVMH’s board, having taken legal advice from advisors to its teams, said it resolved to comply with the merger agreement signed by the two companies in November last year, which stipulated the November 2020 closing date.

    “As it stands, the Group LVMH will therefore not be able to complete the acquisition of Tiffany & Co.”

    Tiffany & Co meanwhile, is alleging that LVMH has deliberately stalled the takeover to force a renegotiation of the price.

    The company will file a lawsuit with the Delaware Court of Chancery Wednesday US time seeking to force LVMH to close the transaction by the November deadline.

    “Tiffany alleges that LVMH has delayed the EU regulatory process to avoid closing before a mandated deadline, and threatened to walk away from the takeover unless the price tag is reduced,” the FT reported, citing “people briefed about the matter”.

    The Tiffany & Co sale has been the subject of considerable ongoing speculation since the impact of Covid-19 on luxury retailing and international travel.

    At one point, analysts were speculating that LVMH might begin acquiring shares on the open market at a price lower than the company had agreed to pay under the merger agreement. However, after a board meeting in June, LVMH issued a statement reiterating it would not buy shares on the market and was sticking to the deal.

    Reuters reported back then, however, that LVMH CEO Bernard Arnault was exploring ways to reopen negotiations in an attempt to reduce the price.

    “While Arnault now has concerns about overpaying for Tiffany, he still believes in the deal’s strategic rationale, according to the sources,” reported Reuters. “Tiffany will give LVMH a bigger share of the lucrative US market and expand its offerings in jewelry, the fastest-growing sector in the luxury goods industry.”

  • Covid-19 has trapped US$111 billion of luxury spending in China

    Covid-19 has trapped US$111 billion of luxury spending in China

    Jeff Meng, a 25-year-old watch lover from a well-heeled Guangdong family, had US$22,800 burning a hole in his pocket. He could not find the Rolex Daytona watch he wanted, dubbed “panda” for its black-and-white face, anywhere in China.

    Thanks to the coronavirus pandemic that’s halted travel and disrupted networks of parallel importers, Chinese high-end shoppers like Meng – who collectively spend $111 billion a year on luxury goods, powering over a third of the global industry – are finding it hard to spend their cash.

    That’s forcing global luxury houses from Balenciaga to Montblanc to rethink how to reach Chinese consumers on the mainland, despite long-standing concerns that range from counterfeiters to powerful e-commerce platforms that set the rules. The halt to travel is also fuelling the rise of a second-hand luxury market in China as consumers seek certain styles or models they can’t find in local stores.

    Prior to the pandemic, two-thirds of Chinese luxury purchases were made overseas, according to consultancy Bain & Co. The spending took place either on shopping spree vacations or through resellers called “daigou”. Meaning to “buy on behalf,” these were platforms or individuals who used Chinese people living, studying or traveling abroad to purchase sought-after goods from boutiques in Europe or the US and bring them back home.

    “Now, travel is impossible, and daigou sellers are either back on the mainland or stranded in Europe,” said Meng. “The pandemic made me realize you can’t easily get what you fancy in China.”

    From Savile Row to Swiss watches, luxury rules have changed

    Cognisant of the potential of Chinese consumers who don’t travel overseas, luxury houses had already been rolling out plans to expand on the mainland. The pandemic has now hastened that shift and imbued it with urgency.

    With other factors like perceived anti-Chinese racism in western countries exacerbated by the coronavirus, and the Chinese government’s desire to bring spending home to boost its ailing economy, it’s likely that Chinese luxury buyers won’t revert to previous patterns even after the crisis passes.

    More than half of Chinese purchases for luxury goods will happen domestically by 2025, Bain & Co estimated in May, compared to a third in 2019.

    “Chinese feel unsafe in foreign countries, which is why they consume at home,” said Amrita Banta, MD at luxury consultancy Agility Research. “Brands should increase importing from foreign countries into China and offer a wider and well-priced range. They can now expand their reach to more cities — even smaller towns which have a propensity to spend.”

    E-commerce, live-streaming

    With China having largely contained its epidemic, including a new outbreak in Beijing last month, shoppers are spending again. This is set to boost the luxury market on the mainland as much as 10 percent this year, compared to a 45-per-cent plunge in the global industry, according to estimates by Boston Consulting Group.

    “Things are normal again internally, and we are seeing the results throughout our stores,” Richemont Chairman Johann Rupert said of China, where it has around 460 boutiques. “But they’re not traveling. Nobody is traveling. And until people feel sufficiently safe, I doubt that we will return to a pre-Covid stage.”

    The loss of Chinese travel spending has been cited as a blow to earnings by companies from LVMH to Moncler SpA in recent months. While luxury companies mostly do not break out Mainland China numbers, sales to Chinese tourists are likely to far outstrip revenue from local boutiques, analysts say.

    The trend of more spending within China “will push us to reconsider our store network,” said Jean-Marc Duplaix, CFO of Gucci-owner Kering SA during an April 21 earnings call. “It will lead to a clear re-shuffling of the distribution.”

    A wave of luxury brands like Prada, Miu Miu, Balenciaga, Piaget and Montblanc have opened virtual storefronts on Alibaba Group Holding’s Tmall luxury platform this year, some setting aside long-standing objections to working with third-party online channels.

    Brands like Louis Vuitton, Givenchy and Chloe have started using live-streaming to push products in China, a popular style of social commerce where an influencer speaks live to audiences for hours at a time, promoting and trying out items.

    In the past, luxury houses were worried about diluting brand prestige and losing control of customer data by working with Chinese internet giants like Alibaba, but the urgency of reaching Chinese shoppers has now eclipsed those concerns.

    “Most luxury brands were too reliant on their offline experience and they lacked presence outside major cities where there is no decent shopping mall,” said Jason Yu, MD at Kantar Worldpanel Greater China. “Counterfeits and resellers were also prevalent on e-commerce platforms in the past. But that is fast changing now.”

    Demand for some items has surged past supply in China. In May, Swiss watch exports to China fell 55 percent from a year ago, according to industry data, largely due to supply bottlenecks.

    “Due to the travel curbs during the pandemic, all the consumption power is locked inside China, so our sales there are growing,” said Alain Lam, the finance director of Oriental Watch Holdings. The high-end watch seller has 46 stores in mainland China. “But the supply is very tight, as Swiss factories are not yet fully returned to work.”

    Prior to the pandemic, luxury brands largely avoided stockpiling in China and kept local manufacturing to a minimum. Brands will now need to rethink how to avoid delayed stock and lost sales, said Agility’s Banta.

    Chinese shoppers desperate for certain items are turning to second-hand luxury platforms to procure them, fueling a surge of investment in such startups. Jeff Meng finally found his “panda” Rolex watch on one such platform called Ponhu (Beijing) Technology.

    Boosted by the pandemic, Ponhu’s gross sales will triple this year compared to last year, said founder Ma Cheng.

    JD’s used-goods platform Paipai saw sales in second-hand luxury goods jump 138 percent during the 18 days of its annual summer sale period in June compared to a year ago, including a record 300 Rolex timepieces changing hands. The demand for luxury watches, in particular, is due to the delay of new stock supply to Chinese retail stores, said Paipai’s luxury business manager Tony Yao.

    Rise of Hainan

    Facing its worst economic contraction since at least 1992, when official data was first released, China wants to keep spending within its borders.

    On July 1, China increased the tax-free shopping quota for travelers to its southern Hainan province, which has been designated a free trade zone, to 100,000 yuan annually per person from the previous 30,000 yuan. Sales on the first day of the new policy at four malls amounted to nearly 60 million yuan, reported state media.

    Some Chinese consumers say that the pandemic has unexpectedly shifted their perspectives: shopping at home can be convenient and pleasant in contrast to infrequent vacations or daigou platforms with no-returns policies.

    “I realize it’s so nice that I can try on the clothes in the malls, and salespeople treat me as a long-term client instead of just a tourist,” said Michelle Zhang, a finance executive from Fuzhou, Fujian province. “Even after global travel resumes, I will continue to shop more at home.”

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  • Burberry realigns business units, names new ready-to-wear head

    Burberry realigns business units, names new ready-to-wear head

    Burberry is reorganizing its creative team as the luxury label welcomes back Adrian Ward-Rees to lead its ready-to-wear business.

    The British-based luxury retailer will set up three new business units – ready-to-wear, accessories, and shoes and says it plans to “pool expertise within them” to improve its focus on products and improve quality.

    “The changes we intend to make will ensure we have the right structures in place as we enter the next phase of our strategy,” said CEO Marco Gobbetti.

    Ward-Rees held the role of senior VP and MD of Dior Homme with Christian Dior for the last four years and previously worked at Hong Kong-headquartered Lane Crawford, along with a merchandising role with Burberry.

    He takes up the new role as senior VP ready-to-wear on July 20, based in London and reporting to Gobbetti.

    “I am delighted to welcome back Adrian to Burberry to lead our newly created Ready-to-Wear business unit,” said Gobbetti.

    “Embedding product specialization will enable us to elevate quality and increase our agility, further supporting the momentum we have built across our brand and product and setting us up for future success as markets begin to recover.”

  • Asia-Pacific luxury-goods market tipped to shed 2.1 billion USD this year

    Asia-Pacific luxury-goods market tipped to shed 2.1 billion USD this year

    The Asia-Pacific luxury-goods market is projected to sink by US$2.1 billion this year as pessimistic consumers switch from big-ticket items to the affordable-luxury realm.

    Retail intelligence group GlobalData has forecast luxury sales in the region will decline by 3.4 percent to reach $60.3 billion this year, compared to $62.4 billion last year.

    The industry has been hard hit by the coronavirus pandemic, leading to the closure of numerous luxury stores across Apac. Sagging consumer confidence across the region means luxury retailers are not expected to regain their sales growth anytime soon, according to the GlobalData.

    In addition, the threat of an extended Covid-19 crisis and an impending global recession will force consumers in the region to cut back on big-ticket items, especially luxury products, impacting on the Asia-Pacific luxury-goods market.

    “Covid-19 has forced luxury brands to postpone their fashion shows, cancel promotions events, and disrupted supply chains,” said GlobalData Retail analyst Suresh Sunkara.

    “However, since the start of the second quarter of this year, several countries in the region including China, Japan and South Korea have lifted most of their lockdown measures to bring normalcy in their economies while countries such as India have begun phased relaxation of lockdown measures. This will bring some relief to luxury retailers as they can now open their stores and resume operations.

    “International travel restrictions are still in place, resulting in continued closure of duty-free stores in airports, a major contributing channel for luxury sales. As a result, store closures and sales declines are bound to force luxury retailers to re-evaluate their price positioning and launch affordable luxury product lines to revive volume sales in these testing times.”

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  • Chanel faces fair-trade hurdles in South Korea

    Chanel faces fair-trade hurdles in South Korea

    French luxury label Chanel is under investigation for alleged breaches of South Korea’s Free Trade Act.

    The Korean Free Trade Commission (KFTC) is looking into allegations that the firm is placing unfair restrictions on duty-free operators distributing its products to local retailers. Korean law has recently relaxed restrictions on how duty-free companies can sell and distribute stock following the heavy impact of the coronavirus pandemic on the industry. The previous regulations restricted duty-free companies from passing stock and inventory to local retailers.

    The French group however is refusing to allow its products to be sold at potentially reduced prices.

    “If a firm does not allow a business partner to sell its products at a certain price and threatens to cut supplies or impose a penalty in any future business relations, this is a contravention of the Fair Trade Act,” a KFTC official said.

    “If Chanel violates the act, then we can bring a case for possible judicial review and apply administrative actions, accordingly, from imposing fines through to issuing a correction order or even prosecuting the brand, in the worst-case scenario.”

    Customer levels have reduced 85.7 percent since the outbreak, with sales halving from KRW2.17 trillion (US$1.76 billion) down to KRW1.08 trillion ($885 million).

  • Luxury labels head to Line during Thai coronavirus lockdown

    Luxury labels head to Line during Thai coronavirus lockdown

    High-end brands have taken to online social-networking platform Line to sell luxury products during the Thai coronavirus lockdown.

    Off-the-runway fashion items, currently unavailable at temporarily shuttered department stores in Bangkok, are now being sold on Thailand’s dominant messaging service, previously the domain of local brands engaging in e-commerce.

    International names in luxury retail such as Bao Bao Issey Miyake, Club 21, Chanel and Louis Vuitton are now using Line accounts to set up online storefronts dedicated to moving products during the restrictions on movement.

    The brands are using various strategies – from video clips and advertising via messaging to live chats serving product information – in an attempt to capture attention in the online marketplace.

    While the Thai coronavirus lockdown may be relaxed later this month, allowing malls and department stores to reopen in the Thai capital, the new luxury e-commerce channels may well become an enduring feature of the nation’s fashion retail sector.

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  • Burberry management take pay shave as luxury brand keeps staff on payroll

    Burberry management take pay shave as luxury brand keeps staff on payroll

    Senior management of British luxury fashion house Burberry has taken a voluntary pay cut and the company has opted to retain base pay for all its employees during the Covid-19 crisis, without relying on UK government support for jobs.

    During the past three months, the firm has temporarily closed retail stores and implemented strict social-distancing protocols.

    As reported last month, Burberry has converted its Castleford trench coat factory into a manufacturer of personal protection equipment (PPE) for medical and care workers during the pandemic.

    “While we continue to take mitigating actions to contain our costs and protect our financial position, we are also committed to safeguarding jobs and supporting the relief efforts during this global health emergency,” said Burberry CEO Marco Gobbetti.

    “I would like to thank our teams for their continued determination and resilience as we continue Thomas Burberry’s legacy of protecting others and caring for the community.”

    Savings on executive salaries between now and June will be contributed to support communities in need globally is additional to the financial donations Burberry has made to vaccine research and charities alleviating food poverty – with monies going towards procuring and distributing PPE, helping food banks and supporting healthcare charities around the world.

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  • ‘Revenge spending’ fuels luxury goods rebound

    ‘Revenge spending’ fuels luxury goods rebound

    So-called ‘revenge spending’ has been credited with a significant upturn in sales of high-priced retail goods in South Korea which has tentatively emerged in recent days from a lockdown during the Covid-19 pandemic.

    Industry analysts say that the pent-up desire for consumption is leading to an increase in purchases of luxury goods to display wealth.

    Revenge spending refers to the outpouring of pent-up desire for consumption at once. Another factor cited by South Korea’s fashion industry experts is the ‘Veblen effect’ which refers to a phenomenon in which products sell better as prices rise – a form of conspicuous consumption.

    Although low- and mid-priced brands in South Korea are struggling with the effects of the Covid-19 outbreak, expensive brands are doing well.

    At the height of the spread of COVID-19, sales at Lanvin Collection and Time have increased significantly, Handsome Corp, an affiliate of Hyundai Department Store, and the top player in the women’s fashion industry.

    Lanvin Collection, which is one of the most exclusive offerings among the Handsome brands, is a license brand introduced jointly by Handsome and French luxury brand Lanvin Paris. It saw sales rising 35 percent year on year during the first quarter.

    Time, the flagship brand of Handsome, also saw its online sales jump 58 percent in the first quarter.

    Meanwhile, Isabel Marant, a French luxury brand imported by LF Corp., saw its sales rise 10 percent year on year.

    A similar phenomenon is emerging in the men’s clothing market. Thom Browne, imported and sold by Samsung C&T Corp, saw its sales rise 20 percent thus far this year.

    Thom Browne is a semi-luxury brand known for its men’s suits, and has recently enjoyed explosive popularity among young people with the release of Samsung Electronics’ Galaxy Z Flip Thom Browne edition.

    With the coronavirus crisis reshaping the online market, some commentators say these brands are benefitting from quickly establishing online sales systems.

    All of the brands whose sales have increased tout their wares via online portals — Handsome.com, LF Mall, and SSF Shop.

    The fact that there is no difference between offline and online prices also contributed to the increase in sales.

    “Covid-19 is intensifying the gap between the rich and the poor in the fashion industry,” an official from the fashion industry told Korea Bizwire.

    “A growing number of young and middle-aged people are now purchasing products from expensive brands online that they would never have considered in the past.”

    Meanwhile, according to a McKinsey study, luxury sales by South Korean department stores dipped in the double digits in March when social-distancing measures became widespread. But during the first week of April, sales rebounded. Overseas luxury brand sales rose by 5.4 percent and overseas watch and jewelry sales were up 27.4 percent at Lotte.

    McKinsey suggests that as other regions continue to struggle during the Covid-19 crisis, South Korea could emerge as a fast-rebounding market for luxury sales and one brands should keep their eyes on to understand future consumer trends and behavior across Asia-Pacific.

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  • Vestiaire Collective launches coronavirus charity sale

    Vestiaire Collective launches coronavirus charity sale

    Vestiaire Collective, the online platform for pre-owned luxury fashion, has launched a charity sale to support the fight against coronavirus.

    Vestiaire Collective has partnered with more than 50 influential celebrities, including Kate Moss, Rachel Weisz, Thandie Newton, Anna Dello Russo and Charlotte Tilbury, to offer luxury pieces from their wardrobes.

    Some items were already sold on the first day of the sale such as leopard print faux fur coat from Kate Moss or a Penny Packham maxi dress from Charlotte Tilbury.

    “We’re doing everything we can to combat the effects of the virus with our community, and to help fight it with charity fundraising,” the company said in a statement.

    According to the company, all proceeds from the sale will be used to support hospitals and scientific researchers working on coronavirus, including the World Health Organization, the Italian Lombardia Region Fundraising, the France/Paris Hospitals Foundation and Madrid’s La Paz Hospital.

    Founded in Paris in 2009, Vestiaire Collective now has more than 7 million members from more than 50 countries across Europe, the US, Asia and Australia, with 25,000 new items submitted every week.

  • Hong Kong recession sees locals sell off luxury goods

    Hong Kong recession sees locals sell off luxury goods

    The Hong Kong recession has proved a strong incentive for locals to sell off their luxury goods, according to a report by the Nikkei Asian Review.

    Several local citizens and businesses told the Japanese publication of an uptick in the private trade of luxury items, including those of a grounded flight attendant who traded her personal collection’s best-loved items to ensure sufficient cash reserves in case of losing her full-time job.

    Multinational diamond firm WP Diamonds reported a 70-per-cent increase in inquiries to sell diamonds, jewelry and luxury watches, including a doubling of inquiries to sell engagement rings. Secondhand luxury-bag trader Milan Station Holdings reported a 30-per-cent increase in bags sold to its stores during the past two months.

    “There seems to be a trend of people monetizing to make sure they are liquid in the event of a prolonged crisis,” said WP Diamonds CEO Andrew Brown told Nikkei Asian Review. “It is the perfect time for consumers to think about selling their pre-loved jewelry pieces that were left to gather dust in the dresser.”

    The increase in private sales occurs at a time when normal retail sales of jewelry, watches and valuables dropped 42 percent in January year on year. At the same time, gold trading in the city has increased at a time when global stocks are affected by the coronavirus outbreak.

    The Hong Kong recession commenced before the outbreak of coronavirus took hold, the economy battered by ongoing political protests during the second half of last year.