Versace Japan Gets ready

Versace Japan lead by new CEO Saito, Hiroshi is getting ready to open their first two directly-owned flagship stores in Japan. The stores which will open in the beginning of September 2011 will be located in Tokyo and Osaka. Besides the Versace flagships shops Versace has also signed a franchise deal with IPGI to open Versus stores throughout Japan.

In the summer of 2009 Versace closed all four stores and left Japan.  They quickly began their return to Japan under new leadership under Giacomo Ferraris in Milan (Italy) headquarters.

Information Versace SpA

A Slighted Aeon Seeks to Force Change on Parco

After being slighted by Parco on a an alliance to operate joint retail locations, Aeon has teamed up with Mori Trust, majority shareholder of Parco, to force their rejected offer and more, as well as punish Parco president Hirano Hidekazu for the offer rejection.
Aeon with a 12.4% stake in Parco combined with Mori Trust’s 33.2% ownership will give their alliance over 45% ownership and the ability to make decisions and call the shots.

Since Parco has rejected the offer not only does Aeon now want the offer pushed through they also want Parco to become a subsidiary of Aeon and to oust Hirano, Hidekazu President of Parco replacing him with three Aeon executives and a new Parco president Makiyama, Kouzou – who may be friendlier to Aeon’s wishes.

If Aeon in cahoots with Mori Trust are successful in winning their demands this will definitely shake up the fashion retail balance skewing in favor of Aeon and creating a bigger retail giant in Aeon.

Though do not expect Parco to go down without a fight – and a fight there will be at the next general shareholders meeting.

Who will win?

It will be tough to call but with Aeon and Mori Trust holding a 45.6% stake – they will be tough to beat.

Information Nikkei

Sales for Prada Japan Grow in 2010

Same-Store Comparative Sales for Prada Japan grew in 2010, up 16.6% from 2009. Driven by strong performance of their retail network which makes up over 70% of their sales Prada not only grew in Japan but also worldwide achieving record sales and profits. Besides the sales growth in Japan Prada also saw sales increase 20% in the U.S. and almost 30% in Europe with the largest gain in Asia (not including Japan) at 63%.
With plans to open 11 new stores in Asia, the majority in China, now could be a good as time as any for Prada to pursue their IPO.

Information Prada SpA

Louis’ Shopping Spree

Even while March same-store comparative sales in Japan will most likely be in the negative for the Louis Vuitton Moët Hennessey portfolio of brands, LVMH does have something to celebrate – their extensive brand portfolio of brands which is only growing.

As parent company to around 60 global Fashion, Leather Goods, Wine & Spirits and Watch & Jewelry brands, the oldest a wine producer Château d'Yquem, which dates its origins back to 1593, LVMH is the world’s largest luxury goods conglomerate.

In being the largest LVMH is able to enjoy certain economies of scales when it comes to things like production, advertising, influencing department stores (see here) and buying other luxury brands.

Of course everyone knows LVMH is the parent company of brands Fendi, Givenchy, Berluti, Loewe, Céline, Marc Jacobs, Christian Dior, Moët Chandon, Chaumet…and many more luxury brands, LVMH is also a buyer and acquirer of brands, which is how they have grown to become the world’s largest luxury goods corporation.

This year has been a busy year for LVMH with the approximately $5.2 billion US purchase of 50.4% of Bulgari, as well as the purchase of Danish skin care brand Ole Henriksen this past February, and now the word on the street is LVMH is interested in shoe brand Jimmy Choo.

With the purchase of Bulgari and potential acquisition of Jimmy Choo, LVMH will be in a league of its own when it comes to luxury brand portfolios with not even the great Pinault-Printemps-Redoute (PPR) owner of Gucci nor Compagnie Financière Richemont S.A, can aspire to be.

The that question begs to be asked is with so many international brands represented in LVMH and with Japan as one of LVMH’s largest and still most lucrative markets why is there not more Japanese brands represented i.e., Yohji Yamamoto?

Do you think LVMH should purchase Japanese brands and increase their (Japanese brand’s) exposure internationally? If so, which Japanese brands do you think would be a good match for LVMH?

Strong Yen Good for Fast Retailing

Assisted by a strong yen, Fast Retailing beat out U.S.-based Limited Brands, parent company of Victoria's Secret to become the world's fourth largest apparel company. Limited Brands with about 7.93 billion yen in worldwide sales is now at the number five spot.

Winning the number one spot is H&M with 1.57 trillion yen in global sales. Coming in number two is Inditex, parent company of Zara with 1.37 trillion yen sales worldwide. At the number three spot is the Gap Inc. With 1.2 trillion yen in global sales.

With just over 8.14 trillion yen in global sales this is the first time Fast Retailing has been number four on this list.

Information Nikkei

Shimaura Sales Drop

Shimaura Company's same-store-sales for the month ending 20 March 2011 fell 15%, causing their stock price to fall 190 to 6,770 yen.

The decrease in sales was due to the temporary closing of over 20% of Shimamura's flagship Fashion Center stores from the earthquake on 11 March.

Shimamura is already forecasting an increase in same-store-sales for April 2011. 

Data Shimamura Co.

Fashion Flight from Tokyo

Working with the great editor Catherine Makino at Majiroxnews, here is a recent article I wrote for them on fashion brand that left Tokyo in the wake of the earthquake and disaster.  Surprisingly it has already received some controversial comments.  What do you think?

Check it out here.

Tokyo Fashion Daily

Tokyo Fashion Daily will be taking a brief hiatus and will return soon. In the meantime please follow me on twitter @tokyofashndaily.

Thank you for your continued readership.

All the best,

TFD

Kansai has a luxury market too

With rolling blackouts, shortened operating hours, office and employee relocations and even store closures in Tokyo, Japan'a luxury market is taking a huge economic loss. Recent economic data reveals many foreign luxury brands with a presence in Japan are experiencing a loss in their stock prices as investors lose confidence in Japanese consumers' ability and desire to purchase luxury goods - and with good reason. While this setback in stock prices and sales is likely a temporary setback until order is restored in Tokyo who or where will pick up the luxury sales slack in Japan? Available data is already pointing to the Kansai region which consists of Osaka, Kobe and Kyoto. While none of these cities is a luxury powerhouse like Tokyo they are already seeing an increase in Chinese tourists, and an increase in hotel bookings (tourists, evacuating Tokyo-ites and temporary relocations) and are expecting an increase in not only luxury goods sales but also the regional economy in Kansai as a whole.

This is excellent news for not only the luxury market in Japan but Japan's economy as a whole.

Information Osaka Vistior's Information Center

Takashimaya Shares Fall

The stock price of Takashimya fell for the fifth consecutive day of trading since the earthquake last Friday. With Takashimaya opened for shorter hours due to the rolling blackouts and fears of quickly decreasing sales investors dumped shares of Takashimya 9% to finish trading on Wednesday to 451¥ ー an eight year low.

Takashimaya was not the only department store to lose share price on their stock. As Isetan, Mitsukoshi, and OIOI also implemented shortened working hours their stock prices also fell.

Not only are Japan department stores stock prices falling but the earthquake and after-effects are also affecting foreign retailers with both Hermes and Burberry stock share prices falling due to investors losing confidence Japanese customers will buy high-price and luxury goodat during this crisis.

Working in Ginza I see first hand the department stores and foreign luxury brands are alL but empty even if they are open at all.

Information Takashimaya Co. and Nikkei

The Philanthropy of Fast Retailing`s Yanai

Yanai, Tadashi President and Chairman of Fast Retailing announced he will donate 1.4 billion yen and 300,000 pieces of Heattech and other much needed items to the locations devastated by the earthquake in the northeast of Japan.

Information Nikkei

Banana Republic Japan – Now on Video

Banana Republic Japan in collaboration with Hyperspots and Japanese TV company BS-TBS have produced a groundbreaking interactive series of short films on video at Banana Republic starring fashion model, Satoko Koizumi.   Check out the video here.

In this first of its kind clickable video which launched 21 February and runs until 31 March users are able to click on elements within the video to learn more about products or other items of interest.

Los Angeles-based Hyperspots developed this patented technology as a market-ready set of systems that renders videos and images clickable on the Internet; in this case allowing viewers to gather more information on Banana Republic clothing worn by the actors without disrupting their viewing experience.

This application is the next level of social media and more as Hyperspots enables tracking, monitoring, and indentifying trends.  Could this finally be a way of measuring ROI for social media?

To watch the video go to Banana Republic and to learn more about the technology visit Hyperspots.

Information Hyperspots and Hyperspots Japan

A Retail Fashion Note

Tokyo Fashion Daily would like to offer the most sincerest condolences to everyone affected by the earthquake in Japan and warmest wishes for a speedy recovery.

On a retail fashion note; I was out today and all the department stores and boutiques are on limited hours, that being said I saw many people shopping like nothing happened-resilience, denial or a combination of both. Tokyo can expect continued limited hours for department stores, boutiques and retailers in the coming weeks due to mandatory roaming power outages, so expect the economy as a whole to suffer and most if not all retailers to have decreased same-store-sales during this period.

Coming soon to Shibuya - 109 Men’s

Currently known as Shibuya 109 Annex or 109-2, the new men’s building will take advantage of the increase in men’s only shops and boutiques. Opening Friday 18 March the new 109 Men’s will house 45 men’s stores from floors 4 through 7 and offer a variety of brands for the man who wants to match their 109 woman.

Information 109 Men’s

Photo Patrick Macias

What is Pet Bottle Spelled Backwards?

Elttob Tep. And this Friday Issey Miyake’s Elttob Tep concept store will open in Ginza. This will be the second Elttob Tep store in Japan after Osaka which opened in 2007 and has seen so much success.

The inside of the store will be exposed and whitewashed with pipes visible and walls glaringly white-washed. And for a retro feel the front window will showcase a dated dentist chair and old twisting barber’s pole.

Information WWD

Burberry is Tops in Japan in Apparel Survey

According to a Nikkei Inc. survey conducted in January 2011, Burberry is the number one favorite apparel brand in Japan among 41.8% of a random sample of 531 male and female Tokyoites. After Burberry the number two spot went to Uniqlo (really?) with 30.9% of the votes, followed by Ralph Lauren in the third spot. Even with their marketing budget greater than some countries’ GDP, power wielded over department stores and well-know brand name Louis Vuitton was only able to squeeze through to number four on the list.

The number one handbag brand in Japan according to respondents was Coach with 30.3% of the votes (sure to make Louis Vuitton happy) followed by Gucci and Louis Vuitton each with 24% of the votes. After Gucci and LV, Hermes finished in fourth place. *The voters for handbags were only female respondents.

Information Nikkei Inc.

Bigger is not always better?

Especially in the case of department stores in Japan.

By the spring of 2012 H2O Retailing will unveil the largest department store in Japan. As part of H2O Retailing’s aggressive expansion they will rebuild Hankyu Department Store Umeda increasing the retail sales space to 100,000 sqm, oh my.

The new Hankyu Department Store Umeda will be 14 floors with 12 above ground and 2 below ground and carry women’s RTW, ACC, Lifestyle goods and of course a wide variety of food.

Information Hankyu Department Store Umeda
Photo WannaGoToJapan

Mosaic to End

After sixty-one years in operation Mosaic in Ginza will close down. The H2O Retailing retail operation has been evicted and will cease operations by September 2012.

The eviction although not unforeseen as H2O Retailing has had about two years notice will at least award H2O Retailing 6 billion yen in consolation profit.

The land which is owned by Tokyu Land will be turned into office space and retail stores.

Mosaic in Ginza built in 1956 was the predecessor of Hankyu Department Store. Sales as of March 2010 were 5 billion yen.

Information H2o Retailing Corp. & Nikkei
Photo Dzineblog

Tokyo Girls Collection Just Got Luxury

As foreign luxury brands still struggle in the painfully-slow recovering Japanese economy they may be receiving an unexpected helping hand in sales this weekend from Tokyo Girls Collection.

Vogue, publisher of Vogue Girl has partnered with Tokyo Girls Collection to showcase Vogue Girl styled looks on the TGC runway. The looks will reflect every day, real fashion of Japanese girls which for the last several years have been a combination of fast-fashion apparel and a luxury accessory like shoes, bags, belts, etc…During the Vogue Girls presentation you may see a Cecil McBee outfit with a Marc Jacobs handbag or a MiiA ensemble complete with Fendi shoes, examples of a look that became popular even before the luxury bubble burst at the end of 2007, as owning goods from luxury brands became less important.

Tokyo Girls Collection has been a godsend in sales for Japanese brands since it launched in 2005 and the foreign luxury brands that are participating through Vogue Girl are hoping it will be a blessing for them as well - with the 20,000 people who paid 7,500 yen per ticket to attend - it might just be.

Tokyo Girls Collection began in 2005 and is a semiannual fashion event. The event showcases the season’s trends by all Japanese brands – and this year some look from foreign luxury brands. The collections are usually modeled by popular celebrities from the entertainment industry and popular magazine models not professional models.  This year's TGC will be held tomorrow, Saturday 5 March at Yoyogi National Stadium.

Information Tokyo Girls Collection & WWD

Levi's Japan Overhauls

In an effort to boost profits and increase their brand positioning and perception Levi Strauss Japan will withdrawal from the discount jeans market.

Currently Levi’s jeans sell in a wide price range from under 6,000 yen to over 10,000 yen. With intense competition in the low-priced jeans market only getting more competitive Levi’s will focus on jeans priced 10,000 yen and higher.

This strategy will not only increase their price per item, it will also increase their brand perception as a retailer of premium-jeans rather than discount-jeans. Along with the new focus on the premium-denim market Levi’s will also stop distributing and will buy back their inventory of their core 501 jeans sold in specialty stores throughout Japan making their 501 jeans more exclusive.

Will this new strategy help improve Levi’s sales, brand and positioning? Is the premium-denim market over?

Information Levi’s Strauss Japan & Nikkei

Ginza Gap Opening Day

At 8am this morning the line waiting in front of the soon to be open (today) Ginza Gap store was still quite small. Notwithstanding the popularity of the Gap in Japan a majority of the young women in line seemed to be more interested in meeting Avril Lavigne and a chance to receive a free pair of jeans rather than celebrate the opening of the newest Gap opening in Japan.

At 4 floors and 2,000 sqm this new Gap flagship occupies a prime corner location in Ginza and will carry apparel and accessories for men, women, kids and babies as well as the GAP Body and Personal Care lines which launched in Japan in 2010.

When I left the Gap a little after 8am the line was still under 200 people, so if you hurry you may still be able to make it in time to get your free pair of jeans from Avril Lavigne.

Uniqlo Down in February

Following up on a 10.7% same-store increase in January, Fast Retailing’s Uniqlo’s same-store-sales fell 5% in February. Along with the decrease in same-store-sales Uniqlo also saw customers fall 4.5% from the same time last year.

These sales figures only cover same-store-sales (805 stores) not own-store-sales (619) and are only for the Japan market.

Information Fast Retailing Co. & Nikkei

Old Navy…Japan

Gap Inc., in Japan since 1995 is finally considering taking the next step in exploring the possibility of entering Japan. Confused? For years now there have been rumors of the Gap bringing Old Navy to Japan and there have been just as many rumors of why the Gap does not; low quality, too much competition, too American in style...the list goes on. Today, in an article by Amanda Kaiser in WWD, Gap’s APAC president John Ermatinger said the Gap is studying the possibility of bringing the chain to Japan and sees plenty of potential here.

If this is true and the Gap finally does bring Old Navy to Japan – which I hope and expect they will, how will they address the low quality and heavy competition rumors which will be genuine entry barriers to Japan?

Information WWD

Department Stores in Japan are up again in February

Out of the big five major department stores, four have experienced an increase in same-store-sales in February, the second consecutive month of growth for these four department stores.

Broken down by department store; Mitsukoshi saw the largest increase at a surprising 10.8%, while Isetan’s sales increased 2.6%. Takashimaya also saw sales grow 1.8% while Hankyu only slightly rose 0.8%. Coming in last again with another consecutive month of decreased sales was Matsuzakaya where sales fell 1.4%.

Information Japan Department Stores Association

Chloé is so Old School

Even with Japan as the number one market globally for Chloé, they have yet to enter ecommerce here. Chloé owned by Compagnie Finacière Richemont SA is focusing more on the luxury retail experience for their customers and will wait until they identify the right and best partner who can offer the same luxury experience online as Chloé offers in their retail stores.

As sales from online shopping sites; own sites and partner sites become even bigger and more important for luxury fashion brands will Chloé get left behind in Japan by their competitors who not only have their own ecommerce sites but also partner with the likes of Yoox, Zozotown, Gilt, Glamour-Sales and more?

Information WWD