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Tag: Sephora

  • LVMH sales soar as shoppers return to luxury

    LVMH sales soar as shoppers return to luxury

    LVMH sales surged 15 per cent in the latest quarter to €9.88 billion (US$10.477 billion).

    That was nearly €400 million more than analysts had been expecting, with the result driven across all of the luxury group’s business units.

    Fashion and leather goods, which account for more than half the company’s turnover, rose 15 per cent during the quarter. That compares with static growth the same quarter last year. Fendi and Louis Vuitton were singled out by analysts as strong performers, with Celine, Kenzo, Loewe and Berluti also showing progress.

    LVMH’s leather and fashion brands also include Dior, Emilio Pucci, Fendi, Givenchy, Louis Vuitton, Marc Jacobs, Moynat, Rimowa and Thomas Pink.

    ‘Selective retailing’,  the group’s second-largest division, had been dragged down by DFS in prior quarters, offsetting a strong performance by Sephora cosmetics chain, observed Deborah Aitken, an analyst with Bloomberg Intelligence. But the latest quarter it showed improvement of 11 per cent. Sephora continued to gain market share globally and recorded double-digit revenue and profit growth for the quarter.

    “This could be an important turnaround,” said Aitken.

    Liquor – including brands such as Cape Mentelle, Chandon, Cloudy Bay, Dom Pérignon, Glenmorangie, Hennessy, Krug, Moët & Chandon and Veuve Clicquot – was the second best performing sector, up 13 per cent organically. Hennessy was a star performer.

    Sales of watches and jewellery also rebounded, rising 11 per cent. Bulgari continued to gain market share and Tag Heuer successfully launched its new Connected Modular 45 watch.

    And the perfume and cosmetics business grew sales by 12 per cent.

    Fung Global Retail observed that Parfums Christian Dior reported good growth and Guerlain launched a new women’s fragrance called Mon Guerlain during the quarter. Parfums Givenchy benefited from the success of lipstick lines, which saw rapid development in Asia. In addition, the Kat Von D brand launched exclusively in January 2017 at Sephora in France.

    Managing expectations

    While the company was clearly pleased with its results it did warn shareholders to keep their expectations modest, pointing out the growth had come against a 2016 quarter when the industry was struggling with Paris terror attacks. It said such levels of growth should not be expected for the full year.

    LVMH shares rose to a record in Paris after the results were announced.

    The LVMH figures will set the standard for a raft of luxury retail earnings due to be released in the coming days. Prada reports results today and Kering, parent of Gucci, on April 25.

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  • Retailers snag prime spots for flagships amid lower rentals

    Retailers snag prime spots for flagships amid lower rentals

    Rising vacancies and plunging rentals in shopping malls may be a headache for landlords, but it is not all bad news for retailers who have taken advantage of lower rentals to snag prime locations for their flagship stores.

    More than 10 flagship stores were set up islandwide last year, noted property consultancy Cushman & Wakefield’s research director Christine Li. This is the highest number since the global financial crisis in 2009, she said.

    The last wave of flagship stores were set up between 2007 and 2009, when Orchard Road was undergoing a makeover.

    Last year, cosmetics label MAC and Sephora opened flagships at Ion Orchard, while Japanese fashion retailer Uniqlo unveiled a three-storey store in Orchard Central. Other new flagships include those of watch brand Rolex at Marina Square and German leather goods brand Braun Buffel at Marina Bay Sands.

    Ms Li said: “In the lower rent environment, 2016 saw a ‘flight to quality’ as retail brands that are still optimistic on expansion took this opportunity to upgrade to larger prime retail spaces vacated by previous tenants.”

    • 10 At least this number of flagship stores were set up islandwide last year. This is the highest number since the global financial crisis in 2009.

    She said flagships are strategic, as they reinforce and enhance a brand’s presence and status.

    Uniqlo’s founder Tadashi Yanai said the firm decided to open a flagship in Orchard Road as it sees Singapore as a gateway to not only the markets in South-east Asia but also in the Middle East and Africa.

    “Despite the faltering retail climate in Singapore, Uniqlo’s belief in the potential of this region is what has driven (our) decision to launch the three-storey Global Flagship store here,” he said.

    The islandwide vacancy rate for retail space was 7.5 per cent at the end of last year, up from 4.5 per cent at the end of 2013, Urban Redevelopment Authority (URA) data showed.

    The climbing vacancy rate has, in turn, reduced rental rates. The median rental rate for retail space in the third quarter of last year was the lowest on record, falling to $9.82 per sq ft per month for the Orchard Road area – the first time it fell below $10, URA data showed.

    Riding on the wave of soft rents, French sporting goods retailer Decathlon even secured a 15-year lease for a 35,000 sq ft outlet in Viva Business Park in Chai Chee, which opened in January last year.

     

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  • Zara, Gap, Body Shop slash Indian retail prices

    Zara, Gap, Body Shop slash Indian retail prices

    Global brands like Gap, The Body Shop and Zara are slashing Indian retail prices to stay competitive in the heavily price-sensitive market.

    UK cosmetic brand The Body Shop slashed prices across categories in India by 20 to 30 per cent last week, and US fashion brand Gap is looking to have up to 40 per cent of its products made locally, which should allow prices to drop by 10 to 15 per cent.

    “The process has started,” says CEO J Suresh of Gap’s India franchisee Arvind Lifestyle Brands. The Indian-made items will be introduced next year.

    The Body Shop India COO Shriti Malhotra says its price cuts will make its products more accessible.

    Spanish fast-fashion brand Zara is also looking at slashing its prices to bring them closer to Swedish rival H&M.

    It quotes experts as saying price cutting is one of the most effective ways to boost sales and market share in India, particularly in highly competitive and fast-growing segments.

    “Most brands strategically lower prices for the value-conscious Indian consumer,” says CEO Devangshu Dutta of retail consultancy firm Third Eyesight.

    Inditex-owned fashion brand Zara reduced prices by up 15 per cent when H&M entered the Indian market in October 2015 with its global strategy of aggressive pricing. The move helped Zara record 17 per cent sales growth last year.

    When Arvind Lifestyle Brands took over the business of beauty and wellness retailer Sephora from former franchisee DLF Brands in September 2015, its first move was price correction. “We looked at pricing in Dubai and Singapore and kept it in the band of 5 to 10 per cent lower than that,” says Sephora India CEO Vivek Bali.

  • US investor buys into Mitra Adiperkasa

    US investor buys into Mitra Adiperkasa

    US private-equity company General Atlantic has made its first investment in Indonesia by buying into lifestyle retailer Mitra Adiperkasa (Map).

    It has subscribed for Rp1.08 trillion (US$80.5 million) in bonds issued by Map which are convertible into shares in its F&B subsidiary Map Boga Adiperkasa (MBA), which runs Cold Stone Creamery, Godiva, Krispy Kreme, Pizza Express and Starbucks in Indonesia. It has more than 300 stores across 24 cities, and has more than doubled its store count over the past five years.

    Map runs multi-channel retail concepts in Indonesia across a diversified portfolio of department stores, sportswear, specialty fashion, F&B, and lifestyle products. It has nearly 2000 retail stores.

    “We believe the rapid rise in Indonesia’s middle and young working classes, the increase in this population’s disposable income, and the continued rural-to-urban migration represents an opportunity for us to strengthen our international food brands and cement our leadership position in the F&B market,” says Map CEO V.P.

    Sharma. A portion of the investment money will be used to accelerate the F&B division’s network expansion.
    “Indonesia’s domestic consumption comprises more than half of gross domestic product, and consumption patterns are increasingly shifting toward modern and aspirational lifestyle brands,” says General Atlantic Southeast Asia head Wai hoong Fock. “These secular trends position MBA’s food & beverage portfolio well for further expansion.”

    Regional commitment

    The partnership, General Atlantic’s first investment in Indonesia, indicates its commitment to long-term market prospects in South-east Asia,” says Fock, who joined General Atlantic from CVC Capital Partners last year to lead its South-east Asia investing program. He is based in the firm’s Singapore office.
    General Atlantic has 18 investment professionals in Asia, based in offices in Beijing, Hong Kong, Mumbai and Singapore. The firm opened its Singapore office in 2011, investing three years later in Singapore-based online mobile entertainment/communication Garena platform. It has also supported the growth of retail and F&B companies including lifestyle brand Tory Burch, luxury fashion brand Zimmermann, restaurant group Barteca Holdings, urban juice-bar concept Joe & The Juice, community accommodation marketplace AirBNB and transportation network company Uber.

    Map has 1921 retail outlets in 68 cities throughout Indonesia. Its retail concepts include department stores (Debenhams, Galeries Lafayette, Seibu and Sogo), fashion and lifestyle (Crabtree & Evelyn, Kipling, Lacoste, Marks & Spencer, Massimo Dutti, Nautica, Sephora, Swarovski, Topman, Topshop and Zara), sports (Converse, Golf House, Oakley, Payless ShoeSource, Reebok, Rockport, Skechers, The Athlete’s Foot and The Sports Warehouse), F&B (Burger King, Cold Stone Creamery, Domino’s Pizza, Godiva, Krispy Kreme and Starbucks), kids (Kidz Station and Oshkosh B’Gosh) and bookstore Kinokuniya.

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  • CityOn.Zhengzhou to open fully leased

    CityOn.Zhengzhou to open fully leased

    Taubman Asia, a subsidiary of US shopping centre group Taubman Centers, and China’s Wangfujing Group, have announced the line-up of retailers for its CityOn.Zhengzhou mall in Henan province, set to open on March 16.

    When it opens, the centre will be 100 per cent leased and 90 per cent occupied with nearly 200 stores and restaurants. In the heart of Zhengdong New District, the six-level, 94,000 sqm shopping and dining destination will offer domestic, international and lifestyle brands from fast fashion to accessible luxury, anchored by a four-level Wangfujing department store.

    “We are thrilled to see our second China project coming to life in Zhengzhou,” says Taubman Asia president Rene Tremblay.

    Local, regional and international cuisine at all price points and in both seated restaurants and quick-serve formats will be a feature of the centre, which will also offer family-friendly experiential, educational and entertainment offerings.

    Many international brands will be making their central China debut at the centre, says Taubman Asia group VP Paul Wright.

    Outlets at the mall include…

    Fashion: Adidas, Ajidou, Basic House, Bershka, Charles & Keith, Columbia, Converse, Ecco, Five Plus, Forever 21, H&M, Innisfree, Jack & Jones, KIKC, Kipling, La Chapelle, Lee, Levi’s, Mango, Massimo Dutti, Miniso, Mishka, Mobi Garden, Nike, Pandora, Polo, Sand & Foam, Sephora, Skechers, Stradivarius, The North Face, Uniqlo, Vans, Vero Moda, Westlink and Zara.

    F&B/entertainment/kids/lifestyle/electronics: Acasia Food Village (featuring 14 food vendors), Benfu Sushi, Boat Noodle, Chatime, Chez Choux, Chicken Container, Coco, Dollar Shop, FrozenYo, GB Kids Station, Gong Cha, Grandma’s Kitchen, Guoguo Mutton Soup Restaurant, Guxiang No. 9 Catering, Hallmark Babies, Homao, Huawei, iSpace, La Chapelle Kids, Lenovo, MagicSalad, MM by Haircode, Mr Wish, NaughtyKids, New York Fries, Oscar CityOn Cinema, PapaBubble, Pizza Zone, Rbike, Siwuke Tea, Starbucks, Strawberry Forever, Subway, Teppanyaki Xiang, Toot Science, Udon & Tempura, Uncle, Wan Quan Bu Tong, Xiang Tian Xia Huo Guo, Xiao Liu Jia, Xiao Zhu Zhu Kao Rou, Xue Mi Da, Yang Xiang Dou Pi Shuan Niu Du, YuYuTo, ZBX Fresh Fish Hot Pot, Zheng Shi Yi and Zoo Steak.

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  • Pomelo boosts funding to $11m

    Pomelo boosts funding to $11m

    Thai online fashion retailer Pomelo has raised a follow-on round, bringing its total Series A funding to US$11 million.

    This round was again led by Singapore-based Jungle Ventures, with participation from existing investors and new contributors including 500 Tuk Tuks (a fund of major venture capitalist 500 Startups), Andre Hoffmann and Jonathan Price.

    Pomelo says it will use the funds to continue expanding in Southeast Asia. While focussed on Indonesia, Singapore and Thailand, it has customers in more than 40 countries.

    “We strive to provide the absolute best in terms of online fashion through our vertically integrated supply chain,” says Pomelo co-founder/CEO David Jou. “eCommerce is clearly approaching a tipping point in Southeast Asia, and we’re lucky to be one of the leaders in the fast-growing fashion vertical.”

    Additionally, the label continues to strengthen its management depth, having added Meg Mistry as brand president and James Lamrock as regional VP (operations). Mistry was previously regional creative director for online fashion house Zalora, while Lamrock was chief logistics officer at Luxola, which was acquired by beauty products company Sephora. Investment firm TPG senior adviser Jonathan Price has also joined in an advisory capacity. He was previously MD of cosmetics and skincare group The Body Shop Asia and global COO of accessories company Targus.

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  • DLF Brands quits luxury sector

    DLF Brands quits luxury sector

    India’s DLF Brands, which runs high-street fashion brands mall Emporio in Delhi, is quitting the luxury business.

    It has just shut down two of the seven stores of US fashion brand DKNY after parting ways earlier with such brands such as Giorgio Armani, Mango, Salvatore Ferragamo and Sephora.

    “We don’t have any plans to open more DKNY stores,” says DLG Brands MD Timmy Sarna. “And we don’t want to be in the high-fashion business. It’s difficult to scale up that business because there aren’t too many locations in the country where you can sell luxury.”

    Instead, DLF Brands, the retail arm of real-estate company DLF, wants to focus on mass brands. “We have profitable businesses in Kiko, Mothercare and Sunglass Hut,” says Sarna.

    DLF Brands has bought the franchise rights of UK-based Mothercare for 15 years, and plans to launch smaller stores, even in community-based markets, selling value-added products.

    “From 109 stores at present, we want to increase the number to 300. A major part of production is happening here now, so prices will eventually come down,” Sarna says. “Apart from this, our other brands such as Sunglass Hut, Claire’s and make-up brand Kiko are doing extremely well and are profitable.”

    DLF Brands started its exit from the luxury market in 2012, quitting its joint ventures with Ferragamo and Giorgio Armani. In 2014, it shut down stores of Italian menswear brand Boggi Milano, then last year parted with LVMH’s make-up and skincare brand Sephora, which was taken over by Arvind Lifestyle Brands.

    “You can either be in the fashion business or in the mass-brand business. You cannot have your finger in too many pies,” says Sarna.

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  • Coach Tmall flagship abandoned

    Coach Tmall flagship abandoned

    The official Coach Tmall flagship shop has been abandoned.

    Luxury bag brand Coach Inc says it will replace its shop on Alibaba Group Holding’s business-to-consumer sales site by selling directly through its own website and on its WeChat account, the social-media app run by Alibaba rival Tencent Holdings. Coach has offered coupons and launched a media campaign on WeChat.

    A Coach spokeswoman says the company wants to consolidate resources and will continue to look for innovative ways to leverage digital and social platforms.

    Alibaba says Coach products are still available on TMall from other merchants.

    Selling shoes, purses and accessories, Coach was one of the first US luxury brands to launch an official store on the TMall. It started with a temporary pop-up store from December 2011 to January 2012, opening a full store in 2015.

    Early this month, nearly a dozen trade groups wrote to Alibaba complaining that it was not doing enough to combat counterfeits. And the loss of Coach comes as Alibaba faces added scrutiny from a US trade agency as to whether it should be added to a list of marketplaces that are known for selling counterfeits.
    Alibaba’s Taobao consumer-to-consumer marketplace was on the list years ago, but was removed in 2012.

    Meanwhile, LVMH Moët Hennessy Louis Vuitton SE’s Guerlain has just opened a flagship store on TMall, and MakeUp Forever and Sephora, two other brands under the LVMH umbrella, also have TMall stores. Also, the cosmetics unit of Salvatore Ferragamo will launch its store later this month.

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  • How the new Sephora flagship store at Ion Orchard lure shoppers back to brick-and-mortar …

    How the new Sephora flagship store at Ion Orchard lure shoppers back to brick-and-mortar …

    French multi-brand beauty retail giant Sephora opened its new local flagship store at Ion Orchard to much fanfare last Friday. The store sprawls across 10,000sqf on basement 2, and features a refreshed store concept from its previous premises on level 1, incorporating a boutique-within-a-boutique concept and better lighting.

    The queue to be among the first paying customers to enter the store at noon on July 22 started forming at 9.30pm the night before, and there were 1,000 people waiting outside by the time the store was opened. Sephora vouchers of S$100, S$50 and S$10 were handed out to the first 500 people in the queue, while limited-edition gift packs were given to the next 500.

    Among those in the pre-opening queue was 21-year-old sales associate Catherine Low, who had joined the snaking line at 6.15am on opening day. “I decided to join the queue to be among the first in line because I have been lusting after Kat Von D products for a long time and now I can finally purchase it in stores here,” she said. “When I got in I made a beeline for the Kat Von D Everlasting Liquid Lipstick in Lolita. This shade is really popular and I was afraid it would be sold out”.

    The flagship store boasts a global-first for Sephora — a Kat Von D store-in-store that carries the full range of the cosmetics brand that was founded by the celebrity Los Angeles-based tattoo artist, who shot to fame on reality television show LA Ink. Close to 4,000 products from the Kat Von D range were sold on launch day, with the sales of the brand’s popular Everlasting Liquid Lipsticks accounting for half of the sales.

    Kat Von D currently takes pole position at Sephora in Malaysia, Thailand and Singapore since it was launched on Sephora’s local e-commerce site on July 7 and in the retail stores in Malaysia and Thailand on July 16. It has racked up over six figures in sales in these three countries to date.

    The experiential element

    What Sephora nailed was creating a retail environment shoppers are excited to be in. “Sephora Ion Orchard has always been one of the top 10 (outlets), not just in Asia, but in the world, so it was the natural choice to launch the first Kat Von D Shop-in-Shop together with Sephora Ion Orchard’s new home to provide a more vibrant and electrifying retail experience for her many fans,” said Mathieu Sidokpohou, Sephora’s managing director of South-east Asia.

    sephora

    Other highlights at the store include professional cosmetics brand Make Up For Ever’s “sushi bar” concept counter, which features a conveyor belt where shoppers can pick up bento boxes of makeup items, exclusive-to-store brands Cover FX and Zoeva and a Made-in-Sephora gondola featuring house-brand products.

    These in-store highlights, together with the prime positioning of the store, which is a stone’s throw from Orchard MRT Station, is set to further strengthen Sephora Ion Orchard’s position as one of the top-grossing beauty retail spots in Singapore and the region. The anticipated footfall at the flagship Sephora store also presents beauty retailers with an opportunity to create a buzz around big campaigns and launches before products are rolled out to the rest of the island. The store is the first in Asia to carry all 100 lipstick and 50 lip pencil shades of cult US cosmetics brand Urban Decay’s highly hyped 10th anniversary collection.

    The beauty retailers spoke to welcome the added experiential retail elements at the store. “The new design layout of two main aisles instead of just one allows more visibility for brands from different categories and allows customers more interaction with the brands, which translates to a refreshing customer experience,” said Chen Jingwen, Nudestix’s brand manager for South-east Asia, which is one of the beauty brands that are exclusively available at Sephora outlets here.

    Avid Sephora customer and 98.7FM DJ Sonia Chew agreed: “I love the new store for the vast amount of brands they have and it’s also got a much edgier and fresher feel to it with plenty of corners to explore in the store — and to discover more goodies to buy! Sephora attracts the true-blue beauty junkies, and I always feel like I have a secret bond with the people who shop there.”

    Naturally, the management of Ion Orchard is pleased with the response as Sephora’s relocation is part of the mall’s strategy to keep the retail scene healthy. “The relocation of Sephora is part of our ongoing efforts to refresh our tenant mix with new and established brands that have their flagship presence at Ion Orchard, and to enhance the existing beauty cluster,” said Chris Chong, chief executive of Orchard Turn Developments, adding that this move had been in the works since last year. “Ion Orchard houses many international brands whose stores at Ion Orchard rank among their top 10 globally for size and sales. Sephora counts as one of these. We have been working with Sephora to delight our shoppers with high-profile celebrity appearances by Sandara Park, David Gandy and Kat Von D, and will continue to partner them in such activities and mall campaigns.”

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  • Thailand retail growth predicted at 6%

    Thailand retail growth predicted at 6%

    Thailand’s retail market is expected to grow at a compound annual growth rate (CAGR) of more than 6 per cent from now until 2020.

    This was revealed in the latest market study by global technology research and advisory company Technavio.

    Its research report, Thailand Retail Market 2016-2020, offers an analysis of the market in terms of revenue and emerging trends, as well as forecasts for six major product segments – grocery, apparel and footwear, beauty and personal care, personal accessories, home and garden, and consumer electronics.

    Grocery

    Valued at US$103 billion last year, the grocery market in Thailand is forecast to reach $145 billion by 2020, growing at a CAGR of 6.92 per cent. The segment is largely driven by the modern retail sector, while increasing urbanisation and changing consumer lifestyles are playing a significant role in the market’s development.

    Supermarkets and convenience stores have shown the fastest year-on-year growth rates with 9.5 and 10.5 per cent respectively last year.

    “Even though hypermarkets offer attractive prices, consumers are increasingly preferring supermarkets for the convenience factor and the availability of a wide product range,” says Technavio lead retail goods expert Poonam Saini. “Unlike supermarkets, which are in urban zones, hypermarkets are generally in bordering areas, catering almost exclusively to nearby consumers.”

    Apparel and footwear

    The second-largest market segment last year, apparel and footwear is expected to reach $9.19 billion by 2020, growing at a CAGR of more than 3 per cent.

    Several foreign companies are competing with local companies in the segment, says the report. International brands have fair penetration rates, offering stylish designs and a wide product range through modern retail stores. Local brands have also been successful with their long-established presence along with customer loyalty and trust.

    “The popularity of the online channel is growing, and players are actively using social media sites such as Facebook and Instagram for promotional campaigns and marketing activities,” says Poonam.

    “Websites such as Zalora.com are becoming popular for apparel and footwear products, as these sites offer promotions and discounts.”

    Beauty and personal care

    One of the fastest-growing segments, beauty and personal care (BPC) is having more than 3 per cent CAGR and is expected to reach $5.53 billion by 2020. A continuous exposure to western beauty and grooming trends has helped maintain the growth of the market over the past few years.

    International BPC companies have a nearly 50 per cent share of the market, with comprehensive product portfolios and innovative products. Thai retailers are expanding and attracting new consumers, says the report, citing cosmetics brand Sephora, which opened two new stores in 2014 after entering the market late the previous year.

    Top vendors

    Technavio’s research analysts name five top vendors for Thailand in the report.

    Topping the list are supermarket Big C and retail conglomerate Central Group. Then follow CP All, which has a chain of 7-Eleven stores, and homewares stores Global House and Home.

    Other prominent vendors in the market are Adidas, Aeon, Isetan Mitsukoshi Holdings, Lazada, Nike, Sephora, Seven & I Holdings, Tesco, The Mall Group and WearYouWant.

    Technavio develops more than 2000 reports every year, covering more than 500 technologies across 80 countries. It has about 300 analysts globally.

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  • Sephora launches online store for Hong Kong

    Sephora launches online store for Hong Kong

    Sephora has launched an e-commerce platform for the Hong Kong market.

    Part of the ongoing international expansion of its online retail arm, the online store will offer brands unavailable on the ground in Hong Kong, such as Butter London, Skin Inc and Nudestix.

    The LVMH-owned perfumery chain has yet to establish a bricks-and-mortar presence in the country, and commentators are suggesting that the online store will serve as a sounding board to test out the appetite for the retailer’s products and services.

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  • Sephora Malaysia goes online

    Sephora Malaysia goes online

    Cosmetics company Sephora has launched a one-stop online shop in Malaysia following its acquisition of independent beauty eTailer Luxola.

    Luxola founder and CEO Alexis Horowitz-Burdick says the move allows Sephora Malaysia to offer an even larger assortment of beauty products for local customers.
    Sephora Asia president Anne-Veronique Bruel says that investing in Luxola offers a great opportunity to penetrate the online beauty market and accelerate the company’s growth in Malaysia and Southeast Asia.
    As well as a wider brand selection, including products for men, the new online shop will offer advice on beauty trends. It is also offering free delivery for orders worth RM80 or more, and there is a cash-on-delivery option for selected areas in Kuala Lumpur.

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  • CapitaLand China growth outpaces economy

    CapitaLand China growth outpaces economy

    Singapore-based shopping mall investment company CapitaLand Retail China Trust (CRCT) grew its income last year by 10.3 per cent to S$89.2 million ($63 million) from S$80.9 million.

    With China’s economy growing 6.9 per cent last year, the company’s retail sales drew 10.7 per cent of RMB30.1 trillion ($4.58 trillion), reports CRCTML chairman Victor Liew (CRCTML manages CRCT).

    “China’s slower growth is reflective of an economy undergoing transition, but it is expanding from a much larger base now and its growth is still considerably faster than those of most other economies,” says Liew. “CRCT’s family-oriented shopping malls are well-placed to benefit from China’s growing urban population and rising retail sales as domestic consumption becomes the country’s new growth engine.”

    It was the first time CapitaLand China’s gross revenue had crossed the RMB1-billion mark, says CRCTML CEO Tony Tan. “Portfolio occupancy remained high at 95.1 per cent  as at December 31, while rental reversion for the full year was 8.1 per cent.

    “Annual tenants’ sales increased 11.6 per cent and shopper traffic rose 1.8 per cent year-on-year.

    “We continually refresh our mall offerings to stay relevant to our shoppers’ evolving preferences and needs. For example, CapitaMall Xizhimen (pictured) brought in the popular Jing Ge Steamboat to increase the variety of its F&B offerings, while CapitaMall Qibao introduced a water park.

    “To improve sustainability and the shopping experience, CapitaMall Grand Canyon installed energy-saving LED lights in common areas and upgraded its car park with new flooring.

    “CapitaMall Wangjing is carrying out renovation work to rejuvenate its façade, and is on track to unveil its new look by June.

    “We will continue to strengthen our malls’ tenant mix and uplift the shopping experience through continual asset enhancement initiatives.”

    Gross revenue for the year increased RMB17.5 million, or 1.8 per cent, over the previous year. This was attributed mainly to rental growth from the multi-tenanted malls, partially offset by lower revenue fromCapitaMall Minzhongleyuan, which was impacted by road closure for the building of a subway line, and from CapitaMall Wuhu, where tenancy adjustments are being introduced to achieve stronger positioning and better trade mix.

    CRCT is the first China shopping mall real estate investment trust (REIT) in Singapore, with a portfolio of 10 malls. Listed in Singapore in 2006, its objective is to establish long-term investments in a diversified portfolio of real estate used primarily for retail in China, Hong Kong and Macau.

    A significant portion of CapitaLand China’s properties’ tenancies comprises major international and domestic retailers such as the Beijing Hualian Group, Carrefour and Wal-Mart. The anchor tenants are complemented by specialty brands such as BreadTalk, Innisfree, KFC, Nanjing Impressions, Nike,Sephora, Starbucks, Uniqlo, Watsons and Zara.

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  • Estee Lauder settles Have & Be Korea deal

    Estee Lauder settles Have & Be Korea deal

    Estee Lauder has completed the acquisition of Have & Be Korea, the parent of skin care brands Dr Jart+ and Do The Right Thing.

    The New York-listed global beauty powerhouse has not revealed terms of the deal, which gives it an important brand in the fast-growing Korean beauty industry.

    Launched online in 2005 by ChinWook Lee, Dr Jart+ is a Seoul-based, global high-growth skin care brand featuring quality and innovative products designed to address specific skin care needs. The brand’s unique fusion of dermatological science and art – as reflected in the

    brand name, which is inspired by the phrase “Doctor Joins Art” – appeals to a broad range of consumers, especially millennials. Dr Jart+ is sold in many countries around the world, primarily in Asia and the US, through various department stores, specialty-multi and eCommerce channels including Sephora.

    The Estee Lauder Companies’ investment also includes an interest in Do The Right Thing (DTRT), a men’s-focused skin care brand that fuses Korean innovation with a bold New York style. Founded by Mr Lee in 2012, DTRT’s line of cleansers, lotions, moisturisers and serums are sold in Korea through various channels and in the US through Sephora and Birchbox Man.

    Estee Lauder is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The company’s products are sold in over 150

    countries and territories under brand names including: Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, Mac, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, Aerin, Marni, Tory Burch, Le Labo, Editions de Parfums Frederic Malle and Glamglow.

  • Estee Lauder buys into Korean skin care brands

    Estee Lauder buys into Korean skin care brands

    Estee Lauder has bought an interest in South Korea’s Have & Be, which owns the skin care brands Dr Jart+ and Do The Right Thing.

    The deal is further evidence of the growing market strength and popularity of South Korea’s cosmetics industry.

    Terms of the investment were not disclosed but the deal is expected to be settled in December.

    Launched online in 2005 by ChinWook Lee, Dr Jart+ is a Seoul-based, global high-growth skin care brand featuring quality and innovative products designed to address specific skin care needs. The brand’s unique fusion of dermatological science and art – as reflected in the brand name, which is inspired by the phrase “Doctor Joins Art” – appeals to a broad range of consumers, especially millennials. Dr Jart+ is sold in many countries around the world, primarily in Asia and the US, through various department stores, specialty-multi and eCommerce channels including Sephora.

    “We are thrilled to announce our partnership with Dr Jart+,” said Fabrizio Freda, president and CEO of The Estee Lauder Companies.
    “This investment gives our company a strategic opportunity to develop a partnership with one of Korea’s most promising high-growth skin care brands.

    “ChinWook Lee and his team have built a successful and exciting brand that is at the forefront of the rapidly expanding Korean beauty wave.”
    ChinWook Lee said as the Korean beauty wave “continues to flourish globally”, his company is excited about the additional opportunities, support and guidance The Estee Lauder Companies will bring to the brands.
    “This is a tremendous moment for the Dr Jart+ team and for the continued growth of Korean beauty.”

    The Estee Lauder investment also includes an interest in Do The Right Thing (DTRT), a men’s-focused skin care brand that fuses Korean innovation with a bold New York style. Founded by Lee in 2012, DTRT’s line of cleansers, lotions, moisturisers and serums are sold in Korea through various channels and in the US through Sephora and BirchboxMan.

    “Global consumers look to Korea as a trendsetting market in beauty, and the Dr Jart+ brand is part of the reason why,” said William P. Lauder, executive chairman of The Estee Lauder Companies.

    “Dr Jart+ and The Estee Lauder Companies share an entrepreneurial heritage as well as a commitment to innovation and creativity. We have great respect for this brand, and we appreciate the opportunity to support and advise Mr Lee and his team as they continue to grow Dr Jart+ globally.”

    Estee Lauder’s products are sold in over 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, Mac, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, GoodSkin Labs, Tom Ford, Ojon, Smashbox,Ermenegildo Zegna, Aerin, Osiao, Marni, Tory Burch, Rodin olio lusso, Le Labo, Editions de Parfums Frédéric Malle and Glamglow.

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