Tom Ford for Women Coming to Osaka

Following in the foot steps of his first men`s boutique Tom Ford will open his first women's boutique this fall in Osaka, Japan.

Tom Ford already has four men's boutiques in Japan, three in Tokyo; Ginza Mitsukoshi, Yurakcho Hankyu Men's, and Shinjuku Isetan, and one in Osaka at Umeda Hankyu Men's.

Now in his fourth year designing women's wear Tom Ford will pursue a strategy of aggressive growth opening his first women's boutiques at the end of this month in Toronto and Vancouver in Canada followed by a women's wear boutique in this fall in Beijing, then in Osaka with the location rumored for Umeda Hankyu.  After the Osaka store opens Tom Ford plans on additional women' wear opening in Paris, Moscow, Abu Dhabi, Kuwait, and Istanbul by the end of this year.

The women's wear collection that will be available at the new Osaka store will consist of ready-to-wear and accessories with the RTW to include a slim jersey tube dress; black leather, glossy satin and crocodile scales embroidered on silk jersey as well as outerwear in the form of puffer jackets and capes made from beaver fur, and hairy alpaca coats in shades of tomato red and taxi yellow.

Is the Japanese female consumer ready for the sophistication and elegance, not to mention the prices of Tom Ford? 

Information Tom Ford & WWD

J. Front Retailing To Buy A Stake In Parco

In a move that will further consolidate the competitive department store market in Japan, J. Front Retailing will acquire a 33.2% share of shopping mall operator Parco Co.

With the acquisition of Parco, J. Front Retailing will expand its department store holdings, already operating Daimaru & Matsuzakaya as well as the acquisition last year of Lifestyling Holdings.

As sales at department stores have been decreasing for the past 15 years due to an aging Japanese population, competition and a culture among department store executives to react slowly to change if at all, consolidation through mergers and acquisitions became commonplace. 

As competition in the department stores industry increases both internally and externally, many department store operators are vying for the holy-grail of customers; those in their 20’s and 30’s. 

Parco’s customer reach and strategic locations in major city centers have long made Parco an acquisition target; showing why Aeon was interested and bought a 12.3% minority stake last year. 

With the initial share purchase and any subsequent acquisition of additional shares that would give J. Front Retailing majority ownership of Parco, would also give them a strong foothold into the twenty and thirty-something customer group.

After the initial and any subsequent acquisition of Parco by J. Front Retailing what will Aeon do?

This question is also important in the overall context of competition in the department store market in Japan.  As Aeon may find out a Parco operated by J. Front Retailing will no longer work for them, but what will it do against the other department stores; Isetan Mitsukoshi, H20 Retailing, and Takashimaya?

Since Parco was not a major department store player it will not likely lessen competition among department stores though it will likely give J. Front Retailing a competitive edge in geographic locations, new and diverse brands as well as a strong entry into the desirable twenty and thirty-something customer group.

What do you think of the acquisition and any subsequent acquisition of Parco by J. Front Retailing?  Do you think there will be additional consolidation in Japan’s department store industry through closures and mergers and acquisitions in the near future?

Information J. Front Retailing, Japan Department Stores Association & Nikkei

Swiss Watch Exports to Japan Increase

The economy in Japan is enjoying a recovery.

Same-store sales at retailers, select shops and department stores were up in both December and January, fashion and luxury CEOs in Japan I have spoken with are optimistic, and so is the Japanese consumer.

Further evidence that Japan's economy is improving came in January when *Swiss watch exports to Japan increased 28.5%, behind only the US, Hong Kong, and China.

Will this trend of positive sales continue through 2012 and beyond?  Although I do not expect Japan to see large growth in the fashion and luxury sector I do expect positive and stable growth, especially as Japan realizes their rightful place as the globe's first mature luxury market.

What are your thoughts on Japan's overall economic recovery as well as the fashion and luxury sector?

Information *Federation of the Swiss Watch Industry

Marni for H&M

In continuing their successful tradition of fashion designer collaborations H&M will launch their next collaboration next month on 8 March.

This next collaboration for H&M will be with Italian fashion house Marni. Like other brands before for it, the collaboration with Marni will be a limited collection compromising women's wear and men's wear including tops, bottoms and coordinates.

The collection will launch in Japan, the rest of the world and online on 8 March - which means if you get in line now at any of the H&M stores in Japan you may have a good chance to buy the merchandise at regular price before for it is on Yahoo Auctions.

Marni was founded in 1994 by Consuelo Castiglioni.

Information Hennes & Mauritz AB

ICB To The Rescue

As domestic apparel manufacturers and retailers are experiencing slow sales here in Japan, they are doing what Japanese companies have been doing successfully for decades - exporting. The exporting is growing beyond China as apparel manufacturers and retailers see hope in the economic malaise of the U.S./North America and Europe.

Hedging on both continents economy's improving Onward Kashiyama will expand its ICB line first to New York by the end of this year and then to Europe in 2013.

ICB which has previously been distributed and sold in the US and Europe in the past will make a bigger splash for its comeback. This time Onward Kashiyama will set up a New York office and studio to support ICB as well as collaborate with emerging U.S. fashion talent in order to localize ICB merchandise selection for the U.S.

Onward Kashiyama also has plans to position ICB as a premium brand in the U.S. and Europe with prices to be set 20-30% higher than they are in Japan.

Do you feel Onward Kashiyama can translate the success of ICB from Japan to the U.S. and Europe?

Information Onward Kashiyama

Carven for a limited time

Starting today and running until next Tuesday 21 February, French fashion maison Carven has opened a temporary shop corner in Iwataya Mitsukoshi in Tenjin, Fukuoka.

Carven was established in 1945 by French couturier Madame Carmen de Tommaso, opening the first Carmen atelier on the Champs-Élysées.

Carven is in Japan through a partnership with Bluebell.

Information Bluebell Japan

The Biggest Uniqlo Ever!

Next month on 16 March, Fast Retailing will open the largest Uniqlo flagship...in the world.

At almost 5,000 sqm, the newly renewed twelve-story flagship in Ginza will carry the complete Uniqlo product line including women’s, men’s, children’s and baby; apparel and accessories.  The renewed Ginza store will also dedicate a floor to Fast Retailing’s UT line and UU brand designed by Undercover’s Jun Takahashi.

As reported in an earlier post on Tokyo Fashion Daily this new Uniqlo flagship will have staff available speaking six languages including Japanese, English, Chinese, Korean, French and Spanish.

Besides the opening of the renewed Uniqlo flagship in Ginza on 16 March, Fast Retailing will also open a g.u. flagship in Ginza at the end of March.

Will another large Uniqlo flagship in Ginza help Fast Retailing achieve their goal of global apparel domination?

Information Fast Retailing Co.

H2O Retailing Selling and Closing

H2O Retailing, operator of Hankyu Hanshin Department Stores, announced today it will closedown the Kobe Hankyu outlet at the Mosaic Kobe Harborland.

H2O also announced it will sell its share in the Mosaic Kobe Harborland to Mistubishi Logistics, owner of the land.

The Kobe Hankyu outlet will be closed in March and the sale will take place in April.

Why is H2O Retailing selling and closing? Do they need cash for an acquisition, renovation or something far more sinister? Any ideas?

Information H2O Retailing Corp.

Alexander Wang and his Shop-in-Shop Dilemma

Popular worldwide and in Japan, Alexander Wang is expanding, not only globally but also in Japan.

Just last week on Saturday 4 February Alexander Wang and their Asia partner Club 21 opened a shop-in-shop in Shinjuku Isetan. Not resting on this recent store opening Club 21 and Alexander Wang are putting the finishing touches on their next shop-in-shop in Ginza's Dover Street Market. After the Ginza opening Alexander Wang and Club 21 have plans for at least two more shop-in-shops in Japan rumored to be in Osaka and Nagoya.

One may ask why hasn't Alexander Wang opened a flagship store in Japan? Most likely it has to do with finances not fashion. To be sure Alexander Wang and his partner Club 21 have plenty of cash, and his popularity in Japan is strong as he is a favorite of Japanese retailers, but is the popularity of Alexander Wang enough to support the investment in a flagship store with his full collection when so many desginers have name-sake luxury flagships that are struggling in the back-streets of Tokyo? At the moment it is safe and profitable to open shop-in-shops in key locations, this way not to saturate nor dilute the brand, it's price nor it's exclusiveness.

When the timing is right expect Alexander Wang to open a flagship shop in Japan and when that time comes be ready to line up and shop.

Information Alexander Wang and Club 21

コナカ、良かったですね

Apparel retailer Konka has reported their first profitable year since 2007.

With the decrease in temperatures in Japan helping to increase sales of winter and outerwear across all retailers, men's wear operator Konaka has experience especially strong sales for their fiscal year 2011. Moving forward Konaka is optimistically forecasting another increase for 2012 of 16% giving them their second consecutive profitable year this decade.

With the recent strong sales retailers in Japan have been experiencing many retailers are optimistic of a profitable year ahead.

Information Konaka Co.

Japan Department Stores Up In January

2011 ended strong for fashion retailers in Japan and January the first month of 2012 to measure sales results has also proven to be off to a strong start.

Isetan Mitsukoshi the usual leader in same-store sales for Japan’s department stores did not finish first in January but still reported a 0.8% increase in sales for January. 

The sales leader in January among the big department stores in Japan was H2O Retailing, operators of Hankyu and Hanshin department stores.  They reported a strong 8.4% increase in sales.

J. Front Retailing operator of Daimaru and Matsuzakaya department stores also experienced an increase of 2.2% for sales for January.

The only negative for Japan’s department stores was Takashimaya, which saw sales decrease 1.9%. 

Cold weather was the factor blamed by Takashimaya for their decrease in sales, as the other big department stores in Japan all credited the cold weather with their sales increases.  Who do you think was right?

Information Japan Department Stores Association

OIOI Up

In reward for their risk-taking strategy of increasing design and production of in-house accessories Marui Group experienced a 1% increase in sales finishing up at 307 billion yen for the first nine months of their fiscal year ending December 2011.

Moving more design in-house Marui was able to produce more shoes that were popular for their sneaker-like appearance as well as light-weight bags that were small and compact enough for laptops and iPads.

As sales of in-house merchandise increased so did sales and profitability as merchandise designed in-house lead to high margins. This plus cost-cutting across the Marui Group helped them reach an increase of 34% in consolidated operating profit. With profits and sales up Marui is positive their annual operating profit will increase 15% for the year ending March 31 to 17 billion yen.

Information Marui Group Co.

Gathers in the Park shop

Sanyo Shokai, manager, liscensor and distributor of 25 brands including Bruberry is expanding into their newest sales channel. This new retail channel is named "Gathers in the Park shop". The first Gathers in Park shop will open this April in the new Sihubya Hikarie tower. If sale goes as according to plan Sanyo Shokai will expand Gather in the Park shop to 25 retail doors by 2016.

Sanyo Shokai currently earns 80% of their sales through department stores and with department stores steadily losing sales and Sanyo Shokai losing the Burberry license in 2015 they are now looking for new revenue channels.

Information Sanyo Shokai Ltd.

Uniqlo Sales Up In January

For the second consecutive month same-store sales at Uniqlo are up.

Fast Retailing reported a sales increase of 7.9% for their Uniqlo brand for the month of January. Though same-stores sales increased the number of customers decreased by 1.5% thus increasing sales per customer by 9.5%.

Fast Retailing attributed their January success to cold winter temperatures which increased demand and sales for their Heattech line and down jackets.

Information Fast Retailing Co.

Tokyu Hands Enters Social Media

In order to increase their marketing reach and tap new sales channels Tokyu Hands will join the rest of the modern world and launch a Tokyu Hands Facebook page.

With the number of Facebook users in Japan as of today at *6,769,820 this "new" marketing strategy comes just in time for Tokyu Hands which along with other Japanese department stores has been struggling with declining sales for close to a decade. As apparel and accessory sales fell off Tokyu Hands and other department stores relied more and more on cosmetics, food and gift sales though over the past few years these selling-stalwarts of the department stores have also fell on tough times as competition increased and Japanese customers became more comfortable shopping online.

Tokyu Hands' strategy for their Facebook page will to display select products for sale while connecting with potential customers and displaying recommendations based off their shopping habits as well as targeting VIP customers.

In the beginning the Tokyu Hands Facebook page will be a test though if successful could become a new sales channel for a department store that has been otherwise stuck in the Jurassic era.

If successful will other Japanese department stores embrace social and digital marketing?

Information Tokyu Hands Inc. & SocialBakers