Tag: uniqlo

  • Chinese sports brands back in the race

    Chinese sports brands back in the race

    A government-backed campaign to encourage healthy living is helping give Chinese sports brands traction again in the domestic consumer market.

    After three tough years with the slowing economy and over-expansion following the Beijing Olympics in 2008, the brands are ready to compete again, thanks to cutbacks in store networks and more choice in online sales channels.

    When Beijing was preparing to host the Olympics, sportswear companies began to expand aggressively, with leading brands adding nearly 1000 points-of-sale each every year between 2007 and 2011, according to Hong Kong brokerage and investment group CLSA analyst Dawei Feng.

    However, sales were undermined by cheap knock-offs and competition from expanding overseas fashion chains such as H&M, Uniqlo and Zara.

    Between 2012 and 2013, China’s biggest sports brand Anta closed 900 shops across the country. Also cutting stores from 8255 to 6133, Li Ning became profitable last year after three years of losses.

    Anta has been working with its stores on marketing, says Bloomberg Intelligence analyst Catherine Lim. It also started a children’s brand after China scrapped its one-child policy.

    Anta, which holds distribution rights to the Fila brand in China, is the official sportswear sponsor of the Chinese Olympic Committee.

    China’s five publicly traded sportswear companies have a combined market value of about $9.4 billion, or less than a 10th of Nike, the world’s largest sporting-goods maker.

  • Uniqlo Philippines to open six new stores

    Uniqlo Philippines to open six new stores

    Japanese fashion brand Uniqlo is opening six stores in the Philippines by June 2016.

    “We are thrilled to announce that Uniqlo will open four new stores in Luzon by May and two new stores in the Visayas by June, as we continue to bring high-quality and innovative clothing to Filipinos,” said Katsumi Kubota, COO of Uniqlo Philippines.

    The Luzon branches of Uniqlo Philippines will be in UP Town Center in Quezon City; Solenad 3 in Nuvali, Laguna; Evia Center Vista City in Daang Hari Rd, Cavite City; and SM City Cabanatuan in Nueva Ecija.

    The Visayas stores will be in Iloilo City and Bacolod City, adding to the existing outlets in SM City Cebu and SM Seaside City Cebu.

    Uniqlo is a brand of Japanese global retail holding company Fast Retailing, which designs, manufactures and sells clothing under seven main brands: Uniqlo, GU, Comptoir des Cotonniers, GU, Helmut Lang, J Brand, Princessetam.tam and Theory. It has global sales of about US$13.88 billion.

    There are more than 1700 Uniqlo stores in 17 markets, including Australia, China, Hong Kong, Indonesia, Malaysia, Philippines, South Korea, Taiwan and Thailand.

  • Uniqlo profit drops

    Uniqlo profit drops

    Uniqlo profit has plummeted in the Japanese fast fashion chain’s first half year.

    Parent Fast Retailing has revealed a 33.8 per cent decline in year-on-year surplus, despite a 6.5 per cent increase in sales from September 2015 to February 2016.

    Consolidated revenue reached JP¥1.0116 trillion (US$9.385 billion) and profit ¥99.3 billion (US$1.535 billion).

    While Global Brands reported a rise in both revenue and profit, Uniqlo Japan reported declines in both revenue and profit, and Uniqlo International reported a rise in revenue but a decline in profit.

    The company blamed the Japanese decline on poor sales of winter ranges and lower gross margin, with same-store sales down 1.9 per cent.

    “Subsequent stronger discounting in January and February contributed to a 3.5 per cent fall in the first-half gross margin.

    Uniqlo profit was down on weaker sales in Greater China, South Korea and the US in the company’s international division. However sales and profit rose in Southeast Asia, Oceania and Europe.

    In the Global Brands division, revenue and profit both rose on strong sales of GU ranges. “GU’s widely advertised campaign items such as knitwear and trendy bottoms such as wide pants and jogger pants all generated strong sales, fueling double-digit growth in same-store sales,” Fast Retailing reported.

    The company is predicting a better second half but has revised its earnings forecast to a 7 per cent rise in revenue and a 27 per cent decline in operating profit.

  • UNIQLO to Open First Global Flagship Store in Singapore and in Southeast Asia Region

    UNIQLO to Open First Global Flagship Store in Singapore and in Southeast Asia Region

    UNIQLO today announces that it will open its first global flagship store in Singapore, and in the Southeast Asia region, in the autumn of this year. The new store, which will be the largest UNIQLO store in Singapore and in the region, will be located in the Orchard Central mall along Orchard Road, the fashion hub of Singapore for both local residents and international visitors.

    “We are very honored, and excited, to open our first UNIQLO Global Flagship Store in Singapore. Having been a member of the local retail scene since 2009, we remain committed toward contributing to the local community and being an integral part of Singapore’s growth and future,” said Taku Morikawa, UNIQLO Southeast Asia CEO. “We will continue our effort to design and create innovative clothes that enrich the daily lives of people, as a reflection of our LifeWear philosophy,” he added.

    The Singapore Global Flagship Store will provide an extensive range of the latest lines for women, men, kids and babies, in a sales area of approximately 2,700 square meters across three levels in the Orchard Central, the first and tallest vertical mall in Singapore. Modelled on highly successful UNIQLO flagship stores around the world, customers will enjoy the best that UNIQLO has to offer, in a truly unique retailing setting – from the product range to the store’s interior and layout.

    The opening of a Global Flagship Store in Singapore highlights its prominence in UNIQLO’s expansion plans worldwide and will add to global flagship stores in key locations today, including New York’s Fifth Avenue, London’s Oxford Street, and Ginza in Tokyo. Through its innovative, high-tech displays and extensive product lineup, the new Singapore Global Flagship Store will serve as a launch pad to display the brand’s LifeWear to a wider audience. The latest UNIQLO Global Flagship Store will create more than 300 jobs in Singapore.

    UNIQLO Singapore Global Flagship Store (official name to be announced at a later date)

    Opening Date: Autumn 2016 (Planned)
    Address: 181 Orchard Rd, #01-01, Singapore 238896
    Sales Area: Approx. 2,700 square meters across three levels

    About UNIQLO LifeWear

    Apparel that comes from the Japanese values of simplicity, quality and longevity. Designed to be of the time and for the time, LifeWear is made with such modern elegance that it becomes the building blocks of each individual’s style. A perfect shirt that is always being made more perfect. The simplest design hiding the most thoughtful and modern details. The best in fit and fabric made to be affordable and accessible to all. LifeWear is clothing that is constantly being innovated, bringing more warmth, more lightness, better design, and better comfort to people’s lives.

    About UNIQLO and Fast Retailing

    UNIQLO is a brand of Fast Retailing Co., Ltd., a leading global Japanese retail holding company that designs, manufactures and sells clothing under seven main brands: Comptoir des Cotonniers, GU, Helmut Lang, J Brand, Princessetam.tam, Theory, and UNIQLO. With global sales of approximately 1.6817 trillion yen for the 2015 fiscal year ending August 31, 2015 (US $13.88 billion, calculated in yen using the end of August 2015 rate of $1 = 121.18 yen), Fast Retailing is one of the world’s largest apparel retail companies, and UNIQLO is Japan’s leading specialty retailer.

    UNIQLO continues to open large-scale stores in some of the world’s most important cities and locations, as part of its ongoing efforts to solidify its status as a truly global brand. Today the company has a total of more than 1,700 stores in 17 markets worldwide including Japan, Australia, Belgium, China, France, Germany, Hong Kong, Indonesia, Malaysia, Philippines, Russia, Singapore, South Korea, Taiwan, Thailand, U.K. and the U.S. In addition, Grameen UNIQLO, a social business established in Bangladesh in September 2010, currently operates several Grameen UNIQLO stores in Dhaka. UNIQLO manages an integrated business model under which it designs, manufactures, markets and sells high-quality, casual apparel. The company believes that truly great clothes should be supremely comfortable, feature universal designs, are of high quality and offer a superb fit to everyone who wears them.

    With a corporate statement committed to changing clothes, changing conventional wisdom and change the world, Fast Retailing is dedicated to creating great clothing with new and unique value to enrich the lives of people everywhere. For more information about UNIQLO and Fast Retailing, please visitwww.uniqlo.com andwww.fastretailing.com.

  • Uniqlo to open flagship store in Singapore

    Uniqlo to open flagship store in Singapore

    Japanese clothing brand Uniqlo is set to open its first global flagship store in Singapore and the Southeast Asia region at Orchard Road by the second half of this year.

    The store, spanning across three levels at Orchard Central (a total area of 2,700 sqm), will generate more than 300 jobs here. It will be Uniqlo’s biggest outlet in Singapore and the region.

    “We are very honoured, and excited, to open our first UNIQLO Global Flagship Store in Singapore. Having been a member of the local retail scene since 2009, we remain committed toward contributing to the local community and being an integral part of Singapore’s growth and future,” said Taku Morikawa, CEO of Uniqlo Southeast Asia.

    Uniqlo fans can expect the flagship store to provide an extensive range of Uniqlo’s latest lines for women, men, kids and babies. The store will also serve as a platform to showcase the brand’s LifeWear collection.

    There are currently 13 global flagship stores around the world, including cities such as New York, London, Paris and Shanghai.

  • Uniqlo Oxford St remodel complete

    Uniqlo Oxford St remodel complete

    Uniqlo Oxford St, the London flagship of the Japanese fast fashion brand, will reopen on March 18, after an extensive refit.

    One of the brand’s global flagships, Uniqlo Oxford St originally opened back in 2007 at No 311, six years after Uniqlo made its UK debut. In its new guise, the store will showcase the group’s LifeWear concept as well as pay tribute to London’s rich culture.

    “We wish to celebrate the special connection we feel with London,” says Global Creative fast-retailing president John Jay. “We believe that our new campaign, ‘This Way to Utopia’, and campaign ambassadors showcase this in the best way possible.”

    The completely renovated sales floors at Uniqlo Oxford St span five layers, covering 2240 sqm altogether. A highlight is the Uniqlo WearHouse London, a special area on the third and fourth floors where customers can immerse themselves in the LifeWear concept, which aims to enhance individual lifestyles by delivering quality clothing that is functional in design and versatile to wear.

    These special floors will feature core seasonal styles along with items – also for sale – that capture London lifestyles.

    Cultural events will be held at the store throughout the year to celebrate London’s art and music scenes.

    Another new attraction at the store is a roof terrace overlooking central London. There will be public events in this space throughout the year that combine Uniqlo with local culture.

    To mark the reopening of the store, Uniqlo is collaborating with local partners. The Liberty London spring/summer collection makes its global debut on March 18. It is a collaboration line with Liberty, a London store known for its floral prints since being founded more than 140 years ago.

    For the first time in the UK, the Uniqlo X Hana Tajima collection of modest wear will have its UK launch at the flagship store. Hana Tajima, a UK-born fashion designer and blogger, mixes her styles with Uniqlo’s LifeWear concept to create a collaboration line that has already launched in Southeast Asia and the US.

    A new partnership with Tate Modern Museum will include regular events at the store curated by the museum. In addition, Uniqlo will be the official sponsor of the Tate Modern’s relaunch weekend in June, as well as a new attraction at the museum, Uniqlo Fridays, a series of late-night events starting in October.

    The talents of six leading Londoners from the art, fashion and music scenes will be featured in the “This Way to Utopia” reopening campaign.

  • Bloom time for kids’ fashion

    Bloom time for kids’ fashion

    Mrs Madelaine Wong buys new clothes for her three children every fortnight.

    The 37-year-old, a regional director of sales, shops for them during lunch time or after work.

    While Mark, six, Lauren, four, and Jude, one, are at a stage of their lives where they outgrow their clothes quickly, Mrs Wong admits that she also buys them new clothes because she feels guilty about not spending enough time with them. She thinks that shopping for them is a way for her to show affection.

    She spends about $100 on each shopping trip and is a regular customer at mass market-label stores such as Cotton On and H&M.

    “I get suckered into shopping at Cotton On’s online store when the brand is having a 20 per cent discount storewide. I go online and think to myself, ‘Okay, I think they need some more pyjamas’, or I will see a pretty dress and add it to the shopping cart.”


    Lauren Wong may be only four, but her wardrobe is bursting at the seams, thanks to her mother buying her new clothes every fortnight. PHOTO: DIOS VINCOY JR FOR THE STRAITS TIMES

    While parents and grandparents may have grown up with a culture of saving as much as possible… they may now feel that they could be a bit freer spending on their children and grandchildren.

    DR SESHAN RAMASWAMI, associate professor of marketing education at Singapore Management University

    Thanks to indulgent parents like her, the children’s clothing market has become the one bright spot in the weak retail sector.

    The range of children’s clothes has expanded in recent years, with the arrival of new brands and the expansion of existing ones.

    Australian label Seed Heritage, which carries clothes for women and children (from babies to teenagers), debuted with a splash in Singapore last year by opening three stores in Parkway Parade, VivoCity and Wisma Atria.

    The label’s general manager, Ms Denise Haughey, says that the 16-year-old brand had received regular inquiries from mothers living here before it opened in Singapore. She declines to give sales figures, but says: “Singaporean parents really enjoy dressing up their little ones.”

    Seed Heritage clothes feature plenty of whimsical prints and stylish pastel colours and are priced between $7.95 for three pairs of boy socks and $59.95 for a girl’s embroidered dress.

    Israeli high-street label Fox, which carries clothing for women, men and children, has enjoyed an “overwhelming” response to its children’s and baby collection.

    A spokesman for Wing Tai, which distributes the brand here, says the good response can be seen from the large number of members who sign up to collect points for discounts. The brand has accumulated 120,000 members since opening here in 2004.

    The spokesman adds: “We’ve noticed parents are becoming more trend-conscious when it comes to dressing up their children and this has helped spur the childrenswear industry.”

    Popular Swedish high-street fashion label H&M revamped its flagship store at Orchard Building in 2014 to devote the fourth floor to its children’s clothing department.

    The department previously shared space with its men’s fashion.

    H&M’s clothes for children, aged from newborn to 14, include T-shirts, jeans and cotton dresses.

    Like in the adult range, the children’s clothes are priced competitively, ranging from $19.90 for a white lace top for girls to $59.90 for a cotton blazer for boys.

    Ms Abby Wee, public relations manager for H&M Singapore, says the brand has also expanded its childrenswear range to include sportswear, swimwear and dancewear because of strong sales in childrenswear.

    Japanese casual wear label Uniqlo carries children’s clothes in 20 of its 24 stores in Singapore.

    Another popular Japanese label, Muji, sells its children’s collection at three of its nine stores here.

    Ms Jasmine Sng, general manager for Muji (Singapore), says the label had received many requests to bring in childrenswear. Muji shirts and dresses for children range from $12.90 to $59.

    Ms Sng says the sales of children’s and babies’ clothes have grown from 7 per cent of total garment sales in 2014 to about 10 per cent.

    The expansion in children’s labels is also mirrored in the luxury end of the market.

    The Shoppes at Marina Bay Sands expanded its children’s section late last year.

    Italian label Dolce & Gabbana Junior opened a 1,400 sq ft space in October. The outlet is the brand’s first junior store in the region and its collection carries clothes for children aged newborn to eight years old.

    Designer multi-brand retailer Club 21 opened standalone Armani Junior and French label Bonpoint stores at Marina Bay Sands in December.

    Other children’s labels at The Shoppes include Baby Dior, which opened a 900 sq ft store in 2014 and Ralph Lauren Children, which opened its largest standalone store for childrenswear in South-east Asia in the same year. The flagship store for the American label spans 1,985 sq ft.

    The designer label clothes for children can cost $550 for a boy’s shirt and a couple of thousands of dollars for a party dress.

    Paragon shopping mall also has a floor populated with childrenswear stores, including French brand Petit Bateau, international brand Nicholas & Bears, British brand Burberry Children, Filipino label Gingersnaps and multi-label store Kids 21.

    Retail experts interviewed say growing affluence and smaller families have led to the strong growth in the childrenswear market.

    Mr Samuel Tan, course manager (diploma in retail management) at Temasek Polytechnic School of Business, says: “With fewer children a household, parents or even relatives are willing to spend more on the kids.

    “With generally higher disposable incomes and more affluent dual-income families, design, look and quality of clothes are prioritised over price.”

    He adds that parents who are loyal customers of a brand are also more likely to shop for their children at the same store.

    “With the growing popularity of brands such as H&M, Uniqlo and Cotton On, the line extension is a logical move.”

    Dr Seshan Ramaswami, associate professor of marketing education at Singapore Management University, says that retailers may be targeting the children’s fashion market to fend off online competition.

    He adds that today’s parents have higher incomes compared with those of previous generations and are more willing to spend on their children.

    “While parents and grandparents may have grown up with a culture of saving as much as possible and have grown used to spending less on themselves, they may now feel that they could be a bit freer spending on their children and grandchildren,” he says.

    Manager Jonathan Heng, 38, admits that he shops more for his two sons than for himself.

    “It is more because of necessity. They grow so fast and outgrow their clothes and shoes quickly,” says Mr Heng of Caleb, four, and Zachary, three months old.

    “My wife and I probably shop for them every other month. As parents, our lives are about our kids now anyway,” he adds.

    Ms Sharon Yeoh, a senior consultant at the Civil Service College’s Institute of Leadership and Organisation Development who has two daughters aged six and three, says she also shops more for her children than for herself. “It is more fun shopping for them. The clothes are so cute and pretty.”

  • SM Investments to consolidate its retail assets under one entity

    SM Investments to consolidate its retail assets under one entity

    SM Investments Corp (SM), the holding company of Philippine-based conglomerate SM Group of Companies, is merging its retail arm SM Retail Inc with related retail firms earning revenues up to $1 billion.

    SM earlier disclosed that its board of directors approved the merger of SM Retail with companies operating leading local retail chains such as Ace Hardware, SM Appliance Center, Homeworld, Our Home, Toy Kingdom, Watsons, Kultura, Baby Company, Sports Station and several other specialty stores. Together they operate 1,374 outlets and in 2015 delivered total revenues of P53 billion.

    SM is expected to own 77.3 per cent of the enlarged SM Retail.

    The merger will complement the existing retail portfolio of SM Retail which includes 53 SM department stores, 44 hypermarkets and 213 supermarkets as well as majority stakes in the local operations of Alfamart, Forever21, Crate & Barrel and other specialty and apparel retailers in addition to a minority stake in Uniqlo.

    The combined entity will have 1,927 outlets and 2.4 million sq m of gross floor area across a diverse portfolio of food, household appliances, DIY, furniture, apparel, footwear, pharmaceuticals/cosmetics and specialty retailing stores. The portfolio will serve a wide range of Filipino consumer needs in both staple and discretionary goods categories and will continue to leverage extensive synergies across the SM group.

    SM president Harley Sy said, the move is similar to the consolidation the company undertook in 2013 to create its large-scale, mixed-use property business.

    “The merger adds greater diversity and a more extensive footprint to SM Retail’s portfolio and is consistent with our goal of simplifying our corporate structure,” Sy said. “As a result, SM Retail will be even better positioned to address the growing needs of Filipino consumers and we expect the merger to be accretive to SM Retail earnings in future years.”

    SM’s net income increased 13 per cent in 2015, while consolidated net income stood at P28.4 billion, posting the same level in 2014. Consolidated revenues grew 7 per cent to P295.9 billion for the period.

    “Our strong underlying earnings growth in 2015 was due to favorable domestic market conditions and improved efficiencies which helped us widen our margins particularly in retail and property,” Sy noted.

    SM’s underlying earnings increase was driven by a 17 per cent growth in retail earnings, 14 per cent growth in property recurring net income and 10 per cent growth in bank net income. For 2015, banks accounted for 40 per cent of SM’s consolidated earnings, property 38 per cent and retail 22 per cent.

    SM’s last trading price decreased 2.96 per cent or P25 to close at P820.

     

  • Uniqlo Announces Collaboration with KAWS for UT Collection

    Uniqlo Announces Collaboration with KAWS for UT Collection

    UNIQLO today announces a collaboration line for UT (UNIQLO T-shirts) with the artist KAWS. Since its launch in 2003, UT has featured an array of pop culture graphics in such collaborations as SPRZ NY and the Shochiku Kabuki series. The new KAWS collection celebrates UT’s fusion of fashion with authentic pop culture.

    KAWS is a renowned artist who cut his creative teeth on the streets of New York, his subversive images winning him considerable notoriety. Today, some of the world’s most renowned museums and galleries collect and exhibit his critically acclaimed artwork.

    UNIQLO is committed to changing the world for the better through the power of clothing. UT is part of LifeWear, a concept first introduced in 2003 and which embodies a quest to enhance individual lifestyles by delivering quality clothing that is functional in design and versatile to wear.

    Commenting on the new collaboration, KAWS said, “I have always enjoyed working in different medium, whether it be plastic toys, painting, bronze sculpture, or graphic design. UT is a cool canvas for making my artwork available to people virtually everywhere. I have enjoyed working with the UNIQLO team whose enthusiasm is unparalleled. It is great to be part of the amazing UT platform of my friend and fellow artist NIGO.”

    UT Creative Director NIGO said, “KAWS has been a friend of mine for more than 20 years, and I’m very happy to collaborate with him for our 2016 UT items. I’m certain that the collection will be a hit around the world. I’ve created things with KAWS quite a few times before, and we’ve got a lot of respect for each other. This project was no exception. We went through a ton of ideas to come up with some great results. I think the T-shirts and other items in the collection reflect KAWS’s amazing worldview.”

  • Retail closures add to Wing Tai woes

    Retail closures add to Wing Tai woes

    Costs related to the closure of retail stores were among the factors contributing to reduced second-quarter earnings for Singapore’s Wing Tai Holdings.

    Store closures caused a 12 per cent rise to S$23.8 million in administrative and other expenses quarter-on-quarter, according to a stock exchange filing by the company.

    Lower rental income and depreciation from its Singapore retail outlets also resulted in a 20 per cent fall in distribution expenses to S$22.2 million from S$27.7 million. No dividend was declared for the quarter.

    Wing Tai’s retail division represents the brands Adidas, Fox Kids and Baby, Topshop, BCBGMaxazria, G2000, Topman, Burton Menswear London, I.T., Uniqlo, Dorothy Perkins, Karen Millen, Warehouse, Etam, Pumpkin Patch and Yoshinoya. The company also has hospitality, residential and commercial property interests.

    Also contributing to the second-quarter net profit fall of 85 per cent year-on-year to S$1.08 million were lower contributions from the property development segment and a higher tax rate. These were partially offset by a stronger share of profits from associates/JVs, and lower distribution expenses.

    Overall, the group said earnings had come in below expectations as its operating and sales environment had proved tougher than anticipated. However, it is confident it is well-positioned to ride out the current down-cycle with its portfolio of prime residential and investment assets.

    Cooling measures will continue to weigh on market sentiment in Singapore this year, the group expects, while economic conditions in Malaysia will probably keep sales soft.

  • Singapore retail chains look to Muslim market

    Singapore retail chains look to Muslim market

    Amid the rows of blue jeans lining the walls of apparel chain Uniqlo are headscarves, baju kurung and kebaya — part of the Japanese retailer’s new section in Singapore that caters mainly to Muslim shoppers.

    While these garments are usually sold at niche stores in Geylang Serai and Kampong Glam, they can now be found at Uniqlo stores in town or at neighborhood centers.

    Uniqlo is one of the first mainstream retailers in Singapore to turn its focus to the Muslim market.

    The current selection is the second collection launched by Uniqlo following a successful initial run last July. The range is carried at five of its outlets — 313@Somerset, Causeway Point, Jem, One KM and Suntec City Mall — and its website.

    Another retailer that has jumped on the bandwagon is Singapore-based online store Zalora. Each month, it introduces about 50 to 60 products such as long and flowy tops and dresses under its “Zalia” collection. Managing director Dione Song described these as “trendy yet modest” pieces.

    The budding trend here mirrors the global boom in Islamic fashion in recent years. Muslims across the globe spent SG$266 billion (US$188.77 billion) on clothing in 2013 — more than the combined spending in Japan and Italy on fashion. This is set to almost double to SG$484 billion by 2019.

    Observers say the market potential in Singapore is large, with 15 percent of the resident population being Muslims. Also, unlike certain ethnic or cultural wear that is seasonal, such as the cheongsam, this clothing is everyday wear for a substantial proportion of Muslim women.

    Uniqlo said that it is discussing expansion plans for upcoming fashion seasons. It “acknowledges that there is a need among the markets where we are present for stylish and comfortable modest wear.”

    The collection is also retailing in Malaysia, Indonesia and Thailand.

    There is yet to be a major international clothing brand for Muslim wear, but over the past two years brands such as DKNY, Tommy Hilfiger, Zara and Mango have started to offer Muslim-oriented collections in their Middle Eastern stores.

    Major retailers here like H&M, Topshop, Topman and Dorothy Perkins say they have not rolled out any cultural or religious products.

    Although many here have welcomed the greater diversity of choice for consumers, a handful of netizens have voiced their displeasure about Uniqlo’s sale of religious and ethnic wear.

    Associate professor Ang Swee Hoon of the National University of Singapore’s business school said a secular chain offering religious wear could raise eyebrows.

    But Ustaz Firdaus Yahya, manager of an Islamic learning center, said it “reflects their acknowledgement of diversity, and those who do not welcome it may be ignorant or have their own personal bias.”

     

  • 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.

  • Uniqlo look to Muslim market

    Uniqlo look to Muslim market

    Amid the rows of blue jeans lining the walls of apparel chain Uniqlo are headscarves, baju kurung and kebaya – part of the Japanese retailer’s new section that caters mainly to Muslim shoppers.

    While these garments are usually sold at niche stores in Geylang Serai and Kampong Glam, they can now be found at Uniqlo stores in town or at neighbourhood centres.

    Uniqlo is one of the first mainstream retailers here to turn its focus to the Muslim market.

    The current selection is the second collection launched by Uniqlo following a successful initial run last July. The range is carried at five of its outlets – 313@Somerset, Causeway Point, Jem, One KM and Suntec City Mall – and its website.

    Another retailer that has jumped on the bandwagon is Singapore- based online store Zalora. Each month, it introduces about 50 to 60 products such as long and flowy tops and dresses under its “Zalia” collection. Managing director Dione Song described these as “trendy yet modest” pieces.

    The budding trend here mirrors the global boom in Islamic fashion in recent years. Muslims across the globe spent $266 billion on clothing in 2013 – more than the combined spending in Japan and Italy on fashion. This is set to almost double to $484 billion by 2019.

    Observers say the market potential here is large, with 15 per cent of the resident population being Muslims. Also, unlike certain ethnic or cultural wear that is seasonal, such as the cheongsam, this clothing is everyday wear for a substantial proportion of Muslim women.

    Uniqlo said that it is discussing expansion plans for upcoming fashion seasons. It “acknowledges that there is a need among the markets where we are present for stylish and comfortable modest wear”.

    The collection is also retailing in Malaysia, Indonesia and Thailand.

    There is yet to be a major international clothing brand for Muslim wear, but over the past two years brands such as DKNY, Tommy Hilfiger, Zara and Mango have started to offer Muslim-oriented collections in their Middle Eastern stores.

    Major retailers here like H&M, Topshop, Topman and Dorothy Perkins say they have not rolled out any cultural or religious products.

    Although many here have welcomed the greater diversity of choice for consumers, a handful of netizens have voiced their displeasure about Uniqlo’s sale of religious and ethnic wear.

    Associate Professor Ang Swee Hoon of the National University of Singapore’s business school said a secular chain offering religious wear could raise eyebrows.

    But Ustaz Firdaus Yahya, manager of an Islamic learning centre, said it “reflects their acknowledgement of diversity, and those who do not welcome it may be ignorant or have their own personal bias”.

    Prof Ang said it is a good move for Uniqlo to offer its technology to a larger market. Its hijab and headband, for instance, are made of the Airism fabric that wicks away moisture and has odour elimination, anti- bacterial and cooling functions.

    Editor Karimah Samsudin, 26, who owns a Uniqlo scarf, said: “It is good for mainstream brands to offer such attire because it is hard for us to find clothes that are not revealing or tight and clingy.”

    Singapore Polytechnic senior retail lecturer Sarah Lim said the sale of such clothing should not remain niche, a view retailers agree with.

    Zalora noted that although Zalia was launched to meet an increase in demand for modern ethnic wear, non-Muslim customers have also snapped up pieces from the range.

    Ms Song said: “The creation of Zalia was a natural inclination to offer stylish choices not just for the Malay-Muslim community but also to provide shoppers with modest, trendy alternatives.”

  • Uniqlo struggles with currency and weather

    Uniqlo struggles with currency and weather

    Uniqlo, Asia’s largest apparel retailer, has delivered a disappointing set of results for the quarter to November 30.

    While revenue rose 8.5 per cent year on year to ¥520.3 billion (US$4.44 billion), profit fell 16.9 per cent to ¥75.9 billion ($647.1 million). Considerable depreciation of the Japanese yen was the main factor in a ¥29.0 billion fall in pre-tax profits, the company said.

    Uniqlo International sales also fell short of target in the first quarter, reporting a rise in revenue but a decline in profit (revenue: ¥196.9 billion (+17.2 per cent year on year), operating profit: ¥20.8 billion (-14.2 per cent)).

    “Unseasonal warm winter weather around the globe adversely impacted same-store sales at Uniqlo Greater China (encompassing operations in mainland China, Hong Kong and Taiwan), Uniqlo South Korea and Uniqlo US in particular, resulting in a lower than expected first-quarter performance and declining profits in all three of these areas.

    Meanwhile, Uniqlo Europe reported higher than forecast gains in both revenue and profit, and Uniqlo Southeast Asia and Oceania reported a steady operating profit, as expected.

    New store openings proceeded as planned, with a net 66 stores opened during the first quarter, mainly in Greater China and Southeast Asia. As a result, the total number of Uniqlo International stores had expanded by 169 year on year to 864 stores as at November 30.

    Uniqlo Japan fell short of expectations in the first quarter, declining in both revenue and profit Revenue was ¥230.9 billion (-0.7 per cent), operating profit ¥44.8 billion (-12.4 per cent).

    “While online sales expanded 23.2 per cent year on year, same-store sales declined 2.3 per cent, resulting the fall in revenue,” the company said.

    “In September and October, fall winter items such as cashmere sweaters, merino sweaters, gaucho pants and wide pants got off to a great start and sales proved strong, pushing same-stores sales higher as a result. However, the unexpected heatwave in November stifled demand for winter items, and led to a sharp drop in revenue.

    “On the profit side, hefty discounting of winter items in November squeezed the first-quarter gross profit margin, while lower than-expected first-quarter sales inflated the selling, general and administrative expenses to revenue ratio.”

    The number of directly run Uniqlo Japan stores, excluding 38 franchise outlets, totaled 806 stores at the end of November 2015. While that represents a net decrease of 18 stores year-on-year, 10 of these stores were converted from directly-run stores to new employee-franchise outlets.

    The group reiterated its goal of becoming the globe’s largest apparel retailer.

    “To this aim, we have focused our efforts on expanding Uniqlo’s global operations, boosting store numbers in each country where we operate, opening global flagship stores and large-format stores in major cities around the world, and offering exciting joint collections with well-known designers from around the world, such as Ines de la Fressange. This strategy is designed to both boost awareness and visibility of the Uniqlo brand and strengthen our global operational base. We are also actively promoting our GU brand by accelerating the opening of new stores in Japan and launching the label in the Chinese market.

    “We believe the GU operation has reached a key turning point in its growth and development as a second pillar brand for the group,” the company concluded.

    Uniqlo’s Global Brands division exceeded expectations in the first quarter by reporting a 17.4 per cent year on year gain in revenue to ¥91.8 billion, and a 29.7 per cent year on year gain in operating profit to ¥12.4 billion.

    “Within the Global Brands segment, our low-priced GU fashion casualwear label reported significant rises in both revenue and profit that surpassed our initial forecasts. GU reported double-digit growth in same-store sales on the back of strong sales of heavily advertised campaign items such wide pants, baggy sweaters and knitted bottoms.

    “Meanwhile, our Theory fashion brand and J Brand premium denim label both fell slightly short of target when they reported a decline in profits.”

    The company’s France-based Comptoir des Cotonniers and Princesse tam.tam labels reported lower-than-expected sales and a decline in profit, after the November terrorist attacks in Paris forced some stores to close temporarily.

  • Uniqlo strengthens Toray partnership

    Uniqlo strengthens Toray partnership

    The partnership which pioneered Heattech and Airism garments have forged a new expanded relationship they say will create “a new industry for the future”.

    Fast Retailing’s flagship Uniqlo and Toray Industries first joined hands 10 years ago aimed at developing technological solutions to make clothing functional rather than just practical – and provide the Japanese fashion giant with a point of difference over fast fashion rivals.

    Uniqlo’s signature Airism garments are meant to be worn beneath any ensemble to keep you cool and dry, making heat and humidity more bearable with properties such as absorbency, breathability and odour control. Heattech garments come with features designed to make it the most comfortable innerwear, including sweat-wicking, quick-drying, anti-odour and anti-static features.

    The most recent seasonal Heattech lines contain camellia oil moisturiser to keep the wearer’s skin soft and supple in dry weather.

    In the new five year third stage of their working partnership, Uniqlo and Toray will work together to:

    Accelerate globalisation and digitalisation to create a new industry by:

    • Realising an end-to-end business model by utilising the Internet of Things (IoT).
    • Further reducing production lead time.
    • Further increasing globalisation of production sites and locations.
    • Optimising production in each location.
    • Expanding production sites to support business growth in Greater China (China, Hong Kong and Taiwan).

    Maximise LifeWear that is made for all by:

    • Improving comfort and functionality of all current products.
    • Adding value to products by conducting research and development.
    • Developing new sportswear to enhance daily lives.