Social Media 2nd Thursdays

On Thursday 11 August (the 2nd Thursday of August) Tokyo Fashion Daily, Business presents Social Media 2nd Thursdays.


The purpose of Social Media 2nd Thursdays is to discuss the Social and Digital Marketing trends in Japan and globally, in fashion and other industries.

At each meeting I will discuss a topic in Social Media and open the topic for discussion. It may be a new Social Media campaign, a Digital Media Marketing tool or a branded short movie.

To attend all you need is an interest in Social and Digital Media Marketing and your meishi. The presentation will be conducted in English and discussion can be in both English and Japanese.

The Social Media Thursday event on Thursday 11 August will begin at 7pm and finish at 830pm. The location is Bar Taru http://www.bar-taru.com/access in Ginza. There is no sign-up fee or entry cost only what you drink.

This session’s topic is “How Do You Balance the Exclusiveness of Luxury with the Mass Audience of Social Media?”

Please let me know if you are able to attend so I may take an accurate head count.

If you have any questions please leave a comment to this post or contact me through twitter @tokyofashndaily
Social Media 2nd Thursdays will be held the second Thursday of each month.

Aeffe Japan Sees First Half Growth

Aeffe, producer and distributor for Alberta Ferretti, Moschino, Pollini, Jean Paul Gaultier and Cacharel, reported a 15.3% increase in revenue in Japan for the first half of the year which accounted for 8% of consolidated sales for the group.

Through a strategy of cost cutting and growth as well as maximizing efficiencies Aeffe was able to realize not only an increase in sales and revenue but also profits.

Ready-to-wear lead the way in terms of sales followed by leather goods, accessories and shoes.

Sales at Aeffe grew in all geographical areas except the United States.

Information Aeffe & WWD

OIOI Profits Increase 50% for the Quarter

Marui Group will report an astronomical 50% increase in operating profit for the 3 month quarter ending June 2011. The 50% increase about 1.75 billion yen is one of the largest percentage increases I have witnessed in almost eight years in Japan.

Marui Group attributes their success to a strong retail business – but there must be more than that.

Digging deeper, Marui found success not only through their strong retail business which itself only increased about 3% but also by having fashionable and trendy private label brands with high margins. Besides the retail business Marui also saw their credit card business grow and experienced strong sales for their summer products. New store openings in Kyoto and other locations in Japan also boosted group sales for the Marui Group.

Information Marui Group Co. & Nikkei

Kao Corp’s Strong Q1

This week Kao Corporation reported their net income for the quarter ending in June jumped 21.7%. Despite the earthquake incurring losses of 1 billion yen, Kao also reported an increase of 11.7% in net income to over 15 billion yen. In more good news for Kao they also reported an increase of 1.7% in net sales where they originally forecasted a decrease.

Overall sales were strong for Kao in all geographic regions except Japan.

With a good start to their year on their first quarter Kao has changed their forecasts to reflect optimism and growth for the first and second quarter to 15% to over 30 billion yen.

Kao Corporation includes Bioré, Kanebo, Jergens and Molton Brown among others in their beauty care category.

Fun Fact: Kao Corporation was founded in 1887 by Tomiro Nagase and was known as Nihon Yuki Company until 1985 when they changed their name to Kao Corporation.

Information Kao Corporation & WWD

Comme des Garcons’ New Concept

In case you missed it last week, Comme des Garçons opened their most recent concept store in Omotesando. 

Located in the Gyre building (Chanel on the ground floor) the new Comme des Garçons store is 1,075 sqf and carries vintage Comme des Garçons products including furniture, bath goods, kitchen and glassware and apparel, some from the 1980s.

Kenmai Nagaoka designed the new concept store with the interiors matching the merchandise.

Fun Fact: The new Comme des Garçons concept store sells smocks that the brand’s staff wore as uniforms during a 1986 New York fashion show fashion with an updated print on the back reading “Printemps-Été 1986 Comme des Garçons,” and priced at 40,000 yen.

Information Comme des Garçons & WWD

 

Akris to Open First Boutique in Ginza

Swiss-based fashion house Akris will open their Japan flagship store next month in August. The boutique located in Ginza will be their first in Japan and eleventh globally after their Munich location.

The boutique will span 1,400sqf and be spread out over two floors. The new boutique represents a new sales channel for Akris who have for years been selling only through Japanese department stores.

Akris was founded in 1922 by Alice Kriemler-Schoch.

Fun fact; the word “Akris” was derived from the letters of Alice Kriemler-Schoch's name.

Information Akris and WWD

Shibuya Hikarie

Currently the unfinished Shibuya Shin Bunka Gaiku Project stands at the former site of Tokyu Bunka Kaikan outside Shibuya station, but soon that will all change with the completion of the new commercial complex by Tokyu Corp. The new complex named Shibuya Hikarie will be a monstrous 182.5m tall spread out over 38 floors; 34 above ground and 4 below ground. Opening in the spring of next year Shibuya Hikarie will not only have the standard retail stores including Tokyu Department store but also in an attempt to inject a little more culture into the neighborhood it will have a 2,000 seat music hall and a 2,000 sqm art hall for exhibitions and events.

In the future it is possible Shibuya will be known not only for its fashion trends and tribes but as well for its art and music.

Shibuya Hikarie will cost Tokyu Corp about 100 billion yen to build.

You can follow all the going ons at Shibuya Hikarie at @shibuya_hikarie

Information Shibuya Hikarie

Department Stores Rebound in June

As consumers are more positive and in the mood to shop sales at Japanese department stores increased 0.3% in the month of June. The small but most-welcomed increase is the first rise in sales for Japanese department stores in four months and came to over 492 billion yen in sales.

While overall sales for Japan were up 0.3% for department stores, Tokyo department stores were up 0.4% to about 126 billion yen also their first sales increase in four months.

Information Japanese Department Stores Association and Nikkei

It is Never too Hot to Shop for Thermal Underwear

At least this is what Fast Retailing is betting when they introduce their Heattech Thermal Underwear into Uniqlo stores in Japan this month.

Hoping Japanese consumers are not hot enough with soaring heat, high humidity and at least two more months of summer Uniqlo feels now will be a good time to stock their store shelves with their upgraded (odor resistant for him and moisturizing for her) Heattech line. If you are able to stand in the non-air-conditioned stores long enough you will be able to choose from a variety of colors and choices.

All joking aside though Fast Retailing’s goal is simple - to increase sales and to do so they want to beat the competition in what is thought to be a cold winter as energy savings will likely make indoor temperatures as cold as it is outdoor.

Fun Fact: Fast Retailing’s Uniqlo sold 28 million units of Heattech in 2008, 50 million in 2009 and 80 million in 2010 and are projects sales of 100 million units of Heattech this year.

Information Fast Retailing Co.

Update on Matsuzakaya Redevelopment

With Matsuzakaya department store coming under the demolition ball in 2013 plans are emerging on what will take its place.

In a joint bid between J. Front Retailing and twelve other landowners J. Front Retailing plans on developing the land into a commercial and tourist center. At the heart of the commercial center will be an 18 floor building spread over 140,000 sqm with 12 floors above and 6 below. The commercial building will have 8 floors dedicated to retail space covering about 45,000 sqm with the main tenant of course being J. Front Retailing (department store) as well as foreign and domestic retailers.

The total cost of the demolishing Matsuzakaya Ginza, redeveloping the area and building the new complex is forecasted to be up to 90 billion yen.

Fun fact; In 1924 Matsuzakaya Ginza was the first department store in Japan to allow customers to wear their outdoor shoes inside the department store.

Information Nikkei

Shimamura Defies the Laws of Economics

With their last quarters’ same-store-sales down 5% along with group operating profit down 20% to 6.5 billion yen and net profit down 4.7 billion yen fast-fashion apparel company Shimamura feels the time is ripe to open new retail locations in Japan.

Unphased by the earthquake and tsunami on 11 March as well as energy savings, current consumer restraint and oversaturation of the market Shimamura aims to open 75 new retail doors for the fiscal year.

Sure a new store opening may make them quick profits for the first month but hasn’t Shimamura ever heard of the Law of Diminishing Returns?

Do you think Japan or Tokyo for that matter needs more retail fashion stores?

Desigual to Open in Fukuoka

Add another fashion brand to the list of companies opening in up shops in Fukuoka.
Yesterday I blogged about H&M and Forever 21 opening stores in Fukuoka in 2012, and it was also recently announced that Spanish apparel company Desigual will open their flagship store in Hakata, Fukuoka also in 2012.

Founded in Barcelona, Spain, Desigual is a casual apparel brand famous for its patchwork designs, powerful prints, inventive graffiti art and flashy colors.

Let’s hope Desigual, H&M, and Forever 21 fair better than their casual apparel counterpart Abercrombie & Fitch which opened to little fanfare and sales in November of last year.

Number Six for Forever 21

Not to be outdone by their competition (H&M), Forever 21 will also open their next store, their sixth in Japan, Fukuoka.

What’s next for Forever 21? Well, continuing their path of oversaturation of the Japan market they will also soon open locations in Osaka, Kyoto and Nagoya.

Information Forever Twenty-One

H&M Lucky 13

In early 2012 Hennes & Mauritz will open their 13th store in Japan, lucky 13 will open in Canal City in Fukuoka, Kyushu. The store was originally planned to open fall 2011 but was postponed until the spring 2012.

Information Hennes & Mauritz AB

Fashion Retailers’ June Sales Results

With the hot summer in progress and many fashion retailers not knowing what to expect with shortened work days and electricity cuts due to power saving measures, same-store-sales results in June were surprisingly and pleasantly good.

In June consumers took advantage of fashion retailers' promotions & discounts driving increases in same-store sales that exceeded the industry and retailers’ expectations.

Same-store-sales for Japanese department stores in June were up with Isetan Mitsukoshi leading the way with a 4.6% increase in sales, followed closely by J. Front Retailing’s Daimaru Matsuzakaya at 4.3%. Even Takashimaya reported a rise in sales with their first increase in months of 0.7%.

Along with department stores fashion retailers also experienced same-store-sales increases in June with United Arrows showing one of the largest jumps at 14.4% (for their third same-store-sales increase in a row). Fast Retailing’s Uniqlo also showed an increase of 3.9% for June sales.

Foreign luxury brands in Japan are also showing positive signs with some brands reporting up to double-digit sales growth in June.

Although Japanese shoppers are still shying away from high-priced items they are buying watches, jewelry and accessories including handbags and other leather goods, with the most popular items so far being cool-biz and casual summer apparel.

Surveying several CEOs and sales directors at luxury and fashion brands in Japan, they seem to be optimistic for the summer months ahead. If June is any portend of good news than the rest of the summer should also be pleasant for fashion retailers in Japan.

Samantha Thavasa Buys Samantha Thavasa

Samantha Thavasa Japan Ltd. will purchase Samantha Thavasa China Ltd. in a 10 million yen buyout. The buying of their China joint venture comes at a time when Samantha Thavasa starts an aggressive push into the China market. With only two Shanghai-based stores so far in China, Samantha Thavasa will open up to 15 stores including Hong Kong and Beijing within the next two years.

Information Samantha Thavasa Ltd. & Nikkei

Coming This Fall to Japan Ferragamo Jewelry

This October Salvatore Ferragamo will launch their signature jewelry line in Japan as wells the US, Europe and Asia Pacific.

The jewelry line, the first ever will have an SRP of 55,000 yen to over 1 million yen and will only be available in their retail store locations.

The jewelry line was created in partnership with Gianni Bulgari, member of the famous Bulgari family who heads his own jewelry company Enigma.

With strong competition from other luxury RTW and ACC brands in the high-end jewelry market i.e., Gucci, Chanel, and Christian Dior, how do you think Salvatore Ferragamo will fair?

Salvatore Ferragamo S.p.A was founded by Salvatore Ferragamo a Florentine and Italian shoe designer in Florence in 1928.




Information Salvatore Ferragamo Italia S.p.A..

Japanese Brands China Bound

According to a recent Nikkei article many Japanese apparel companies seeking to expand their sales are expanding their business westward to China.

This year Sanyo Shokai (the largest global license holder of Burberry) will open 16 new stores in China for three of their brands giving them a total of 26 stores in China.

Onward Holdings will also increase their retail doors 9% in China to 166 by the end of this year bringing their brand presence to 9 different and unique brands.

Not to be left out Tokyo Style will increase their stores in China and Asia by 40% to 216 by the beginning of 2012 including their mainstay Jil Stuart brand.

Along with Honey, Look Inc. and Fast Retailing these Japanese apparel companies and more look to take advantage of the lucrative fashion market for Japanese brands in China and of course the promise of increased sales

Information Nikkei

United Arrows June Sales Jump

For the third consecutive month same-store-sales at United Arrows jumped 14.4% for the month of June from the previous year.

Due in large part to strong merchandising and buying United Arrows is consistently able to experience strong consecutive monthly sales.

June’s same-store-sales numbers also include online sales at United Arrows.

Information United Arrows Ltd. & Nikkei

Japan Department Store Sales Up in June

Sales at Japanese Department Stores increased across the big department stores for the month of June – a first in many months for all the department stores.

Starting with Isetan Mitsukoshi sales increase 4.6%, followed closely by J. Front Retailing’s Daimaru Matsuzakaya at 4.3%. Takashimaya also experienced their first sales increase of in many months 0.7%.

Consumers are still staying away from high-priced items at department stores and instead are buying groceries and other items – a trend that will most likely continue for the near future but with the hot summer ahead and power-cuts and savings expected this summer could prove to be a very good summer for Japan’s Department Stores.

Information Japan Department Stores Association and Nikkei

Uniqlo's Sales Increase in June

Optimistic investors rewarded the good news from Fast Retailing that their mainstay Uniqlo brand showed stronger same-store-sales for June. Up 3.9% from the previous year Uniqlo’s sales are off to a good start to the long, hot summer.

Along with the 3.9% increase in same-store-sales for June Fast Retailing also reported customer traffic at Uniqlo increased 0.4%.

Fast Retailing’s stock price increased 2.5% to 13,000 yen on the day’s trading.

With a hot summer ahead and power-cuts and savings expected, Uniqlo’s sales should do well throughout the summer – that is unless they launch their Heattech again in August like they did last year.

Information Fast Retailing Co.

The Receptionist Index

The Economist magazine has its Big Mac Index, industrialized countries have their unemployment rate, housing and construction indices, and now Japan’s fashion industry has it’s very on economic indicator. I call it the “Receptionist Index”.

In 2005 during the days of the luxury bubble in Japan, I began working with an Italian luxury brand. This brand had an extensive network of retail shops throughout Japan as well as strong sales that would grow over 10% every month. Every time I would visit the office of this Italian luxury brand I would be greeted by a receptionist (usually young and very presentable). During the next several years the receptionist would change but there always was a receptionist to greet me when I arrived. I also remember being greeted by a receptionist at my other luxury clients in Japan during this time.

One day after the burst of the luxury bubble at the end of 2007 I visited the office of my Italian luxury client and this time there was no receptionist to greet me - only a phone and a directory. During this time my Italian luxury client’s sales were not very good, in fact they were quite poor. I also noticed many of my other clients no longer had receptionists to greet me, only phones and directories.

For several years after as luxury sales were still slow to recover to just recently many luxury brand offices in Japan did not have receptionists, only phones and directories, but recently on a trip to my Italian luxury client’s office I was once again greeted by a familiar face - a receptionist.

As I met with my client I asked him what has changed to have him hire a new receptionist for the office, his answer was simple and one word, “sales”. When I asked him to expand on his answer he told me sales at his company recently have been very good and this has allowed him to hire a new receptionist for the office. He then told me the way to measure a luxury brand’s sales success in Japan is to visit their office and if they have a receptionist sales are good, if sales are poor you will only find a phone and directory.