Retail News CRM

Tag: Macau

  • Hard Rock Japan plan

    Hard Rock Japan plan

    Hard Rock International has launched Hard Rock Japan with former Sands China senior executive Edward Tracy as its CEO.

    His appointment is “a strategic move designed to support the company’s growth plans in the region”, says the company.

    The new division follows Japan’s legislature approving the Integrated Resorts Promotion Bill, marking the first step toward legalising gaming in a market that investment bank CLSA gaming analysts estimate to be worth US$40 billion.

    With 30 years’ experience in the Japanese market, where it has six Hard Rock Cafe locations, the company plans to expand its portfolio by becoming a contender for Japanese resort licences.

    Tracy has held several positions within the gaming and hospitality industry. He joined Sands China, a subsidiary of Las Vegas Sands Corporation, in July 2010 as president and COO. He became its CEO one year later, responsible for the oversight of about 13,000 hotel rooms and 30,000 employees, reports the Macau Daily Times.

    Before Sands, Tracy was president and CEO of Capital Gaming, which runs regional casinos, and held similar positions at the Trump Organization, where he was responsible for managing 12,500 employees, 3000 hotel rooms and 240,000 sqft (22,296 sqm) of casino space.

    In 2014, Harvard Business Review named Tracy as one of the “Best-Performing CEOs in the World” in its annual top-100 ranking in 2014.

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  • Mainland China accounts for 28m of 30m Macau visitors

    Mainland China accounts for 28m of 30m Macau visitors

    Macau’s total visitor arrivals rose a nominal 0.8% to a new record 30.95m in 2016, with nearly 28m travelling from Greater China markets (+0.1%), a slight increase of 0.1%, whereas the much smaller international visitor arrival total grew by 7.9%.

    This will be encouraging news for DFS Macau in particular, plus Duty Free Americas, Dufry and many other standalone retailers currently operating shops in Macau’s hotels and tourist district.

    MACAU GAMBLING ON CASINO RECOVERY

    The increase also comes at a time when Macau’s casino business appears to be recovering some of its big spenders, with last December’s revenue up an impressive 8%.

    Most of these big ’high rollers’ were put off visiting the location, following Beijing’s crack down on irresponsible gambling by some mainlanders three years ago.

    Having said that, there was still a 3% fall in Macau’s overall gambling revenue to $28bn last year and this is still the Special Administrative Region of China’s biggest source of revenue by far [three times the gambling revenues generated in Las Vegas-Ed].

    Macau also continues to be only territory anywhere in China that is allowed to operate casinos.

    MACAU STILL NEEDS A LOT MORE HOTEL ROOMS

    The huge new bridge being constructed to link Hong Kong and Macau and the planned expansion of ferry operations to Macau are also expected to greatly increase visitor arrivals – although this expansion will only as good as the number of hotel rooms that are available – around 35,000 at present.

    In the meantime, the MGTO says it continue to work towards completing the tourism development goals in the 5- year development plan formulated by the SAR Government aimed at turning Macau into a World Centre of Tourism and Leisure.

    Macau welcomed more than 20m Mainland visitors last year, up by 0.2%, with 44% from Guangdong Province. There were also nearly 9.56m ‘independent’ visitors from the Mainland. An increase of 8.8% was recorded for the Taiwan market, whereas the sum of Hong Kong visitors dropped by 1.8%.

    HALF A MILLION KOREANS VISITED MACAU LAST YEAR

    As for international markets, South Korea still ranked highest, contributing over 660,000 visitors to Macau last year (+20%). Southeast Asian markets also performed well, with visitors from Thailand registering the largest growth of over 30% among the top ten source markets.

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  • Macau retail revival outshines Hong Kong

    Macau retail revival outshines Hong Kong

    Macau is enjoying a retail revival, according to the latest government data.

    Macau Association of Retailers and Tourism Services executive committee president Frederick Yip, who organised December’s Macau Shopping Festival festival, says the city’s retail industry will be back on a path of growth again soon. The festival generated total sales of MOP230 million (US$28.8 million).

    Of the total, a sale event featuring branded products between December 23 and 25 saw sales exceed MOP2 million, while another special sales event at Landmark Macau raked in MOP2 million, reports the Macao Daily. About 1800 SMEs took part in the festival.

    Yip says the city’s economy has started to recover since gaming revenue began rebounding in August, with more casino-resort projects nearing completion. Macau’s casino gross gaming revenue for last year was equivalent to US$27.9 billion.

    Free Wi-Fi internet access was provided at the festival for the first time, and Yip says a total of 145,000 hours were used by 475,000 people.

    Also helping boost the economy have been the Macau Grand Prix motorsport weekend and a Food Festival in November.

    Statistics and Census Service (DSEC) survey figures show that 30 per cent of respondents in the catering sector reported a year-on-year increase in turnover for the month, up 4 per cent from October. Most popular were Chinese restaurants, followed by Western restaurants, then Japanese and Korean.

    On the other hand, half of the respondents had a similar decrease in turnover to October.

    In the retail sector, 39 per cent of respondents reported a year-on-year increase for November, up 4 per cent points from October. All leather goods retailers saw their turnover grow, while increases were reported by 62 per cent of adult clothing retailers and 50 per cent of department stores.

    On the downward side of the ledger were supermarkets and watch and jewellery retailers. They were among 53 per cent of surveyed retailers that say their turnover decline – by up to 28 per cent for supermarkets.

    Expecting decline

    But while Yip is upbeat, retailers seem more pessimistic looking ahead, with 40 per cent of respondents expecting their turnover to decline in December. Only 19 per cent of merchants were confident of an increase.

    The survey covered 167 F&B businesses and 135 retailers.

    Meanwhile, below the radar a black economy has been uncovered by the Judiciary Police, reports GGR Asia.

    The police say the value of detected retail transactions in Macau using allegedly unregistered China UnionPay handheld terminals amounted to about MOP4.995 billion (US$625.5 million) last year.

    A total of 25 investigations were opened into cases involving alleged unregistered UnionPay handheld terminals. Of those, 20 were passed as cases to the Public Prosecutions Office for further action, the balance reaching an impasse because of lack of evidence.

    The police identified 53 suspects as part of the investigations: 14 from Macau, 38 from Mainland China and one from Hong Kong.

    Early this month, the Judiciary Police and Monetary Authority of Macau jointly conducted raids against the suspected use of illegally modified UnionPay terminals. The police detained 23 people connected to eight shops, suspected of committing computer fraud and being involved in organised crime.

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  • Tourists drive Sa Sa sales

    Tourists drive Sa Sa sales

    Sales performance has improved marginally for cosmetics chain Sa Sa International Holdings for its third quarter, to the end of December.

    This was mainly a result of a rise in numbers of mainland customers driving a 5.4 per cent increase in the number of transactions in Hong Kong and Macau while local trade remained flat. However, the average sales per transaction of local customers increased by 0.2 per cent while for mainland customers there was a 3.6 per cent drop.

    Sa Sa sales growth is a result of the group’s ongoing efforts to adjust its product offerings to adapt to the market demand for trendy products, the company says. This also resulted in continued downward pressure on gross profit margin for the quarter.

    For the quarter, the group’s retail and wholesale turnover eased up by 0.9 per cent year-on-year, while the figures for other markets outside Hong Kong and Macau – including China, Malaysia, Singapore, Taiwan and online – were flat.

    Following the gradual tapering of year-on-year retail sales decline in the first and second quarters in Hong Kong and Macau, same-store Sa Sa sales in the third quarter fell by 2 per cent while retail sales rose by 1 per cent.

    Sa Sa had 290 outlets in total at the end of December, up from 283 as at September 30. For Hong Kong and Macau, there were 115 outlets, up by two; China had three more stores for a total of 56; Singapore lost two stores to finish the year with 21; Malaysia gained five outlets for 73; and Taiwan lost a store to end the year with 25.

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  • Luxury Cartier pop-up opens in Macau

    Luxury Cartier pop-up opens in Macau

    Cartier has unveiled its first-ever lifestyle pop-up store with experiential display to exhibit the Drive de Cartier Watch Collection.

    The pop-up, located in the Macau Four Seasons T-Galleria by DFS, opened this month and will remain until the end of February.

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    “Visitors will immerse in the cultivated and contemporary universe that is inhabited by gentlemen who wear Drive de Cartier watches,” said a Cartier spokesman.

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    Cartier will transform the Shoppes at Four Seasons exhibition area into an “animated open home,” a retail display concept designed to reveal different aspects of the Drive de Cartier lifestyle. Each space will provide an interactive experience, combining the latest digital technology with specialist workshops conducted by a host of prestigious partner companies, creating the perfect space for Cartier’s guests to enjoy a vibrant experience blending dolce vita and celebration.

    Two distinct areas will be set up. A Library Lounge will display a miscellany of objects and collectibles such as books, music, one-of-a-kind figurines and the latest techie gadgets, alongside the new Drive de Cartier collection. It will also provide gaming platforms (including a new version of the classic Pacman) and a design bar area.

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    In the second area, the Atelier, guests will discover holograms and design sketches of the Drive de Cartier collection, and the inspirations behind the watches, drawing their attention to the balanced aesthetic of the distinctive cushion-shaped case, and the refined detailing of the precision Manufacture movements.

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    Guests will be invited to take part in workshops on craft beer and wine tasting, calligraphy and artisan leather stamping.

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    The full Drive de Cartier collection will be showcased during the two months of the animation, but a particular highlight will be the horological wonder that is the Drive de Cartier Flying Tourbillon. This prestigious timepiece is fitted with the manufacture calibre 9452 MC mechanical movement with manual winding. Certified Poinccon de Geneeve, the Flying Tourbillon is a testimony to Cartier’s excellence in fine watchmaking.

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  • Bauhaus International sales drop 10 per cent

    Bauhaus International sales drop 10 per cent

    Same-store sales for clothing retailer Bauhaus International in Hong Kong and Macau have dropped 10 per cent year-on-year for the three months ended December 31.

    The streetwear retailer designs and makes apparel and accessories which it wholesales and retails under its brand names including Bauhaus, Salad and Tough, as well as third-party labels, including Superdry.

    Sales in Mainland China decreased 4 per cent compared to the same period last year, according to its filing with the Hong Kong Stock Exchange.

    The three-pronged decline in sales helped drive down the company’s overall same-store sales by 3 per cent year-on-year. Nevertheless, its same-store sales in Taiwan grew by 12 per cent.

    Bauhaus International did not release the related financial figures in its filing.

    At the end of last month, nine months into its fiscal year, its total sales had fallen by 9 per cent year-on-year; in particular, those generated in Hong Kong and Macau had dropped 14 per cent.

    The company ended last year with 203 shops, of which 82 were in Hong Kong and Macau, 93 in Taiwan and 28 in China.

    At the end of September, halfway through its fiscal year, the company had turnover of about HK$501.4 million (US$  million). Turnover in Hong Kong and Macau fell 18.5 per cent year-on-year, amounting to HK$348.1 million.

    It also saw its interim net loss expand to HK$60 million from HK$26.6 million a year earlier. The company attributed this to the “adverse performance” of its retail business in Hong Kong.

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  • Breitling bows two new stores in Macau

    Breitling bows two new stores in Macau

    Swiss luxury watchmaker Breitling is expanding its reach in Asia, opening two new stores in Macau.

    Located in luxury malls Shoppes at Venetian and Shoppes at Parisian in Macau, the new boutiques sell a full selection of timepiece models from the entire Breitling and ‘Breitling for Bentley ‘ collections. The chronographs come equipped with ‘Manufacture Breitling movements, as well as special limited ‘Boutique Editions’.

    Each Macau boutique has been designed with old and new world characteristics, typical of Breitling. The décor also highlights the brand’s aeronautical heritage, enabling “visitors to plunge directly into the Breitling universe, a unique experience that excites the senses,” said Breitling in a statement.

    Both stores boast a VIP lounge, offering customers a one-on-one, personalised shopping experience.

    Breitling was founded in 1884. Since then, it has played a crucial role in the development of the wrist chronograph. Breitling is also one of the rare companies to produce its own mechanical chronograph movements, entirely developed and manufactured in its own workshops. This family business is also one of the last remaining independent Swiss watch brands.

    Shoppes at Parisian Macau, which only opened in September this year, hosts 170 luxury and lifestyle brands in its 320,000 square feet retail space. The new Breitling Macau Parisian store is located at Place Vendome on Level 3.

    Shoppes at Venetian is located inside the Sands Shoppes, the largest mall in Macau offers with more than 850 duty free outlets. The new Breitling store is in the Great Hall, on Level 3.

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  • Macau retailers and restaurants struggling

    Macau retailers and restaurants struggling

    Most Macau retailers and restaurants have had a difficult October, reporting depressed sales.

    More than half of the city’s dining establishments had strong revenue declines for the month, with just a quarter reporting a slight improvement.

    According to the latest industry climate survey by the Department of Statistics and Census Services (DSEC), the 26 per cent of respondents who had increased turnover say this was driven by an increase in visitors to the city during the one-week National Day holiday.

    Overall, the rise in revenue was 5 per cent compared to September. But for 49 per cent of the Chinese restaurants interviewed and 13 per cent of the Japanese and Korean restaurants, revenue was up by 20 and 6 per cent respectively.

    However, 51 per cent of the respondents reported a decrease in turnover of 12 per cent overall.

    Macau’s retail sector paints a similar picture. About 58 per cent of respondents (1 per cent more than in September) saw their turnover fall, while about 35 per cent (5 per cent more) reported increased sales.

    By sector, leather goods retailers had higher sales, as did 53 per cent of the watches, clocks and jewellery segment, half of adult clothing retailers, 44 per cent of supermarkets and 22 per cent of department stores.

    A 20 per cent or more drop in sales was reported by 78 per cent of department stores and 60 per cent of cosmetics and healthcare retailers.

    Survey respondents do not expect the situation to change soon.

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  • MOP$38,888,888 to Win at Galaxy Macau’s Golden CNY Celebration

    MOP$38,888,888 to Win at Galaxy Macau’s Golden CNY Celebration

    This Chinese New Year, join a golden celebration that’s positively dripping with luck and fortunate, only at The Promenade Shops at Galaxy Macau™. From 9 January to 26 February 2017, Macau’s luxury shopping destination is hosting the “Love My Fortune” Chinese New Year Promotion, offering shoppers the resplendent opportunity to win instant shopping rewards across Galaxy Macau’s integrated resort offerings. What’s more, seven shoppers will receive the Lucky Draw glittering grand prize – MOP$88,888 to spend at The Promenade Shops, for a total prize value up to MOP$38,888,888.

    During the “Love My Fortune” promotion, every shopper who reaches the designated minimum spend will receive an instant reward! Instant rewards include food and beverage vouchers to Galaxy Macau’s vast collection of casual eateries, stylish cafes and Michelin-starred restaurants; gift certificates to The Promenade Shops; and a one-night stay in a Deluxe Room at the JW Marriott Hotel Macau and Galaxy Hotel.

    Simply shop MOP$8,000 or more across a maximum of two retail transactions at The Promenade Shops, then spin the fortune wheel to claim your prize. Shoppers are also automatically entered into the weekly Lucky Draw! Seven lucky draw winners will receive MOP$88,888 gift certificates to spend at The Promenade Shops.

    Kevin Clayton, Chief Marketing Officer of Galaxy Entertainment Group, said, “Galaxy Macau is ringing in the New Year with a festive promotion bringing luck and fortune to all! We’ve designed this gilded campaign with the knowledge that shoppers seek more than great deals and exclusive items, although of course The Promenade Shops has those too, shoppers also seek opportunities to indulge in the aspirational lifestyle, entertainment and culinary experiences of Galaxy Macau. In addition to the MOP$38,888,888 in total rewards up for grabs, including seven Lucky Draw winners each receiving MOP$88,888 gift certificates, The Promenade Shops also welcomes Cha Bei lifestyle cafe and The Apron oyster bar and grill. The Promenade is certainly shining bright with prosperity and joy this Chinese New Year.”

    The Promenade Shops will present the exclusive Chinese New Year fashion items and fashion lovers will radiate charm in the coming festival. At The Promenade Shops, visitors will find over 200 luxury and lifestyle brands, including top-name flagships, boutique designers and high-street favorites. Committed to delivering on the wants and needs of Macau’s most exclusive shoppers, The Promenade Shops has also brought a wide array of brands to Macau for the very first time. These first-to-Macau shops include the Korean art and fashion brand Youk Shim Won and the newly opened kp (new york) inc., showcasing beautifully crafted exotic leather goods at the brand’s first stand-alone store in the Greater China region.

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  • Le Saunda sales dips 8pct y-o-y in Q3

    Le Saunda sales dips 8pct y-o-y in Q3

    Footwear manufacturer and retail company Le Saunda Holdings announced a decrease of 8 per cent in its total retail sales year-on-year for the third quarter of its 2016/2017 financial year, according to a filing with the Hong Kong Stock Exchange.
    Same store sales of the retailer also saw a 7.1 per cent drop year-on-year for the quarter, which when coupled with a 40.5 per cent year-on-year drop in the Group’s e-commerce business sales led the group’s diminished performance during the period compared to last year.

    As at the end of the group’s financial quarter, November 30, Le Saunda had a total retail network comprised of 822 outlets spread throughout Mainland China, Hong Kong and Macau. However, on the back of the declines in sales, the Group has closed 75 outlets compared to the same period of last year.

    Of the total outlets, 737 are in self-owned and in operation in Mainland China, Hong Kong and Macau while 85 outlets are operated under franchising agreements in Mainland China.

    According to the Group’s previously launched interim financial report, its total revenue for the first six months of fiscal 2016/2017, from March to August of this year, showed a decline of 13.8 per cent year-on-year to RMB651.2 million (US$94 million) from RMB756 million during the same period of the previous fiscal year.

    In addition, the Group’s profit dropped 24 per cent year-on-year to RMB45.6 million during the first half of the fiscal year.
    The Group is also engaged in the design and development of handbags and fashion accessories in Mainland China, Hong Kong and Macau.

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  • Swarovski nail salons returning to DFS Group stores

    Swarovski nail salons returning to DFS Group stores

    This Christmas Swarovski is offering a nail treatment service to shoppers at DFS Group stores. The jewellery brand is returning to the T Galleria by DFS stores to offer its nail service for free to shoppers who have spent a certain amount.

    The service, which is available on select dates across December, will take place in T Galleria by DFS stores in Canton Road, Hong Kong, City of Dreams and Shoppes at Four Seasons in Macau.  The pop-up nail salons will offer the Swarovski “sparkling nail service” along with a Star Ornament crystal for shoppers.

    Director of Travel Retail Asia Pacific at Swarovski, Karen Tse, said: “Female shoppers at Swarovski have traditionally taken a more subtle approach by opting for our classic crystal jewelry and iconic pieces. However, over the past year, we’ve observed the trend in Travel Retail shifting towards a desire for customization and personal styling.

    “Our customers now want to create their own style so as to express their identity in a bold new way, and seeking a sales assistant’s advice has become an important step in the purchasing process.  We’re thrilled that our partnership with T Galleria by DFS has empowered them to fulfill this aspiration.”

    Swarovski is set to unveil a new fall/winter 2016 collection from brand ambassador Karlie Kloss, which features stars and icicle motifs.

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  • Luxury-brand in China rising from grave

    Luxury-brand in China rising from grave

    Luxury-brand sales are reviving in mainland China, with Macau paying the price.

    As China’s currency depreciates, the narrowing price gap is keeping mainland luxury shoppers at home, further contributing to Macau’s retail slump, reports the Macau Business Daily.

    Some brands in China are expecting this year to return to the figures of their sales peak in 2012, says partner Bruno Lannes of Shanghai-based consulting firm Bain. He says luxury sales in the mainland have risen an estimated 4 per cent after three years of decline.

    According to the latest data from the Macau Statistics and Census Services (DSEC), retail sales of watches, clocks and jewellery have fallen 21.2 per cent year-on-year, with the overall volume of retail sales dropping 5.9 per cent in the third quarter.

    More than 45 per cent of retailers interviewed by DSEC expect their sales volume to decrease for the present quarter. Meanwhile, visitor numbers from the mainland edged up 0.4 per cent year-on-year in October, but have fallen by the same amount over the first 10 months of this year.

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  • Sa Sa profits dive

    Sa Sa profits dive

    Sa Sa profits took a hit of 37.3 per cent for the six months to September 30.

    The Hong Kong-listed beauty products retailer’s interim results show turnover easing by 4 per cent to HK$3.628 billion (US$467.7 million) for the period, with retail sales in Hong Kong/Macau decreasing by 3.6 per cent to HK$2.9032 billion.

    Profit fell from $153 million to $96 million with its gross profit margin dropping from 42.9 to 41.2 per cent.

    During the six months, the group rationalised its retail network from 291 to 283 – six fewer Sasa stores and two fewer single-brand stores/counters.

    While sales fell in Hong Kong/Macau, the number of transactions rose by 0.2 per cent for local customers and 4.4 per cent for Mainland Chinese tourists. The value of each transaction, however, fell by 6.3 and 6.6 per cent respectively.

    Retail sales in Hong Kong continued to be weak, mainly because of average transaction values being lower. The company says the underlying reasons were a change in consumer preferences, a strong Hong Kong dollar and a depreciating yuan. Also, the policy change limiting Shenzhen residents’ multiple-entry permits to one visit a week has had a “significant” impact.

    However, Sa Sa reports an uptick toward positive growth in July as the company adapted with faster product launches, shorter product cycles and cheaper trendy products.

    Korean swing

    As an indication of market change, Sa Sa’s Korean product mix grew from 16.7 per cent of total sales to 23.5 per cent, and the parallel-imported product mix increased from 29.1 to 31.7 per cent. Sales for house brands dropped from 41.5 to 38.5 per cent.

    Overall turnover for Mainland China decreased by 4.3 per cent to $135 million, while same-store sales fell 5.1 per cent. The loss for the period amounted to $13.7 million. Profitability was impacted by the relocation of warehouses.

    Turnover for Singapore at $101.3 million was a drop of 11.1 per cent. As well as weaker sales, management issues impacted performance. While turnover was high, this created difficulties in retaining the knowledge base. However, a restructuring process has drawn on the resources of the relatively strong Malaysian management team.

    Malaysia’s turnover was down 19.1 per cent to $163.4 million, though same-store sales rose 11.2 per cent. Retail sales growth exceeded other markets thanks to the group’s strong retail network and effective marketing campaigns.

    Turnover in Taiwan fell by 23.1 per cent to $98.3 million, with same-store sales tumbling 19.5 per cent because of weak consumer sentiment and ongoing restructuring of the management team.

    Logistics problem

    In eCommerce, Sasa.com turnover reached $193 million, a dip of 0.1 per cent. Sales were affected by the appointment of a new logistics provider in April with the aim of increasing scalability. However, changeover difficulties resulted in a decision to return to the original service provider.

    “Significant numbers of orders had to be cancelled, and further costs were incurred by moving inventory back and forth as well as the running of two warehouses in parallel during the period,” says the company.

    Building on the growth of mobile internet use, the company launched a mobile app and started a collaboration with eCommerce platform Kaola in addition to its partnership with JD.com, Suning.com and T-Mall.

    On the mainland, the dynamics of the cosmetics market are changing with internet retailing growing at a rapid pace, says the company. Because of these challenges, it is continuing to strengthen management and recruit staff.

    “We are also seconding experienced staff from Hong Kong to improve the attractiveness of our product offerings and strengthen inventory management.”

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  • Hard half-year for Luk Fook Holdings

    Hard half-year for Luk Fook Holdings

    Revenue plunged by 21.5 per cent for jeweller Luk Fook Holdings (International) to reach HK$5.5 billion (US$709 million) for the six months to September 30.

    Its interim results also show a drop of 31.5 per cent in overall same-store sales for the period.

    However, its overall gross margin improved by 5.3 points to 28 per cent as a result of a relatively high gold price and higher gemset jewellery sales mix. Because of this, the gross profit decreased by only 3 per cent to HK$1.5 billion.

    Mainland China accounted for 54.6 per cent of total profits, an increase of 12.8 points.
    With a lacklustre market, retail revenue in Hong Kong plunged by 33.4 per cent to $2.642 billion, while the wholesale business shot up by 51.1 per cent to $361.6 million because of an increase in scrap gold sales as well as wholesale rough diamonds.

    Luk Fook says a relatively high gold price saw gold sales fall more than expected.

    During the six months, the group added 27 Lukfook shops worldwide, including 24 in China (nine of them licensed shops), a self-run shop in both Macau’s casino district and New York,and  a licensed shop in Seoul. This brought its total to 1455 Lukfook shops (up from 1412 at the same time last year), spanning Australia, Canada, China, Hong Kong, Korea, Macau, Singapore and the US, as well as nine 3D-Gold shops (up from four) on the mainland.

    The group says it has been striving to diversify its product mix, and since 2010 has been trying to expand its mid- to high-end watch business. At the end of September is was the authorised dealer of 34 watch brands including Audemars Piguet, Bulova, Burberry, Bulgari, Emporio Armani, Eterna, Frederique Constant, Longines, Omega, Oris, Rado, Tag Heuer, and Victorinox Swiss Army.

    For the six months, the watch business contributed revenue of HK$104.49 million down from HK$119.39 million for the same period last year, representing 1.9 per cent of the group’s total revenue, a 12.5 per cent decrease.

    Looking ahead, the group aims to continue to develop its eCommerce business and to further strengthen cooperation with eCommerce platforms in China. At the end of September, the group had 15 online sales platforms in China, including JD.com, Suning.com, Tmall.com and VIP.com.

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  • Veeko, Wanko and Colourmix parent finds Singapore tougher than HK

    Veeko, Wanko and Colourmix parent finds Singapore tougher than HK

    Hong Kong-headquartered fashion retailer Veeko – the Wanko and Colourmix parent – has found Singapore more challenging than its home market.

    For the six months to September 30, Veeko International Holdings recorded a turnover of

    HK$1.029 billion, down 3.5 per cent year-on-year.

    Its cosmetics business, the Colourmix and Morimor stores, sales were stable, down by just 0.1 per cent at $828 million, accounting for 80.5 per cent of the company’s business, compared with 77.6 per cent last year.

    That highlights the core of the company’s problem – its fashion stores, trading under the Veeko and Wanko brands – which recorded a 16.1 per cent decline in sales to $200.7 million.

    Sales in Singapore, where it closed one store and now has eight, plunged 23 per cent year-on-year.

    Yet in Hong Kong and Macau, where the overall decline in retail sales during the half year was nudging double digits, sales declined by a more modest 7.6 per cent and the gross profit margin rose marginally from 71.8 per cent to 72 per cent. It added three stores during the period, taking the network to 83.

    In Mainland China, fashion sales declined 14.3 per cent and it closed three stores, leaving a net 38.

    Colourmix holds its own

    Beauty is the powerhouse of the Veeko business. The company has 87 Colourmix stores – five more than at the same time last year – of which 82 are in Hong Kong, four in Macau and one in the mainland.  In August 2015, the group launched another cosmetics store brand Morimor, with seven now trading in Hong Kong. This brand is positioned as offering “high-quality trendy skin care and cosmetics products by integrating global premier skincare and beauty concepts, with diversified products covering skin care, fragrance, make-up, hairdressing, body care and cosmeceuticals and health food”.

    Veeko chairman Johnny Cheng Chung Man says the South Korean series of cosmetics and beauty products are very popular among young customers.

    “In addition, the professional beauty consultants offer customised personal services and consultations on skin care so that customers can enjoy the relaxed and pleasant experience of beauty services.”

    The gross profit margin of the cosmetics business for the period was 32.4 per cent, down 3.3 percentage points year-on-year. The cosmetics business for the period recorded a segment profit of HK$1.319 million, representing a significant decrease of 97.7 per cent.

    “As a result of the rapid growth in the cosmetics business experienced in the past consecutive years, a considerably high base has been accumulated. With the continuously weak retail market and overall consumption environment in Hong Kong as well as a drop in the number of visitors to Hong Kong during the period under review, it was necessary for the group to offer several promotional discounts and organise marketing activities to stimulate sales, which led to a reduction in gross profit margin and a significant decrease in segment profit as compared with the same period last year,” said Man.

    Looking forward

    Man says looking forward, the group expects the challenges faced by the retail business to continue.

    “The retail environment in Hong Kong is anticipated to remain severe while a cautious consumption sentiment prevails. The group will continue to enrich its product portfolio of cosmetics products, increase trendy beauty products with exclusive distributorship, conduct staff training on providing quality professional services, and strengthen its internal consolidation.”

    Man said the fashion retail business will continue to focus primarily on the Hong Kong and Macau market. “To cope with the stagnant retail environment as well as to meet constantly changing needs in the market, the group will continue to optimise product designs and improve customers’ shopping experience. As for the overseas markets, the group will continue its cautious control on its overseas stores portfolio. Underperforming stores will be closed down further to focus its business on profitable stores.”

    In Hong Kong, given the slowdown in the retail market and a decline in rental charges for stores located in prime districts, the enhanced bargaining power of the retailers will therefore help reduce the rental pressure for stores with expiring lease terms, he said.

    “As the group will close down certain stores with low profitability and open new stores in prime locations, additional rental saving will be expected in the near future.”

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