Today, we bring you the first instalment of The China Edit, a weekly curation of the most important must-read fashion business news and analysis from and about the world’s largest luxury market.
TOKYO, Japan — Fast Retailing Co., Asia’s largest clothing retailer, raised its forecast for annual profit as the seller of Uniqlo apparel expanded overseas and benefited from the yen weakening to a three-year low.
TOKYO, Japan — Fast Retailing Co., Asia’s largest apparel retailer, rose to a record in Tokyo trading after saying warmer weather and an extra Sunday in March fueled the biggest monthly sales jump in more than three years.
LONDON, United Kingdom — According to an estimate released this week by Credit Suisse, Inditex, the Spanish company that owns ‘fast fashion’ giant Zara, will achieve online sales of over 600 million euros in 2013, almost double that of 2012, the results of which will be announced next week.
As materials, transportation and labour costs rise, putting pressure on margins, producers of fast fashion face growing challenges that only some will survive.
Uniqlo-parent lifts forecast as Q1 profit jumps (Reuters) “Fast Retailing Co raised its annual profit forecast to a record after sales rose at home outlets of the Japanese retailer’s flagship Uniqlo casual clothing chain and price cuts and chilly autumn weather spurred a quarterly profit jump.” Marks & Spencer loses £270m stock market value (Guardian) “Almost £270m was wiped off the stock market value
Gap Gains With Zara Responding to Fast-Fashion Fatigue (BusinessWeek) “Call it fast-fashion fatigue. Millennials, after years of settling for apparel retailers’ downgraded fabrics and workmanship, are pushing for higher- quality clothing again, and chains are getting the message. Gap Inc., the biggest U.S. specialty-apparel retailer, and Fast Retailing Co. Uniqlo are able to charge more for better basics.” Hermès lifts
Uniqlo.com to the Rescue of Middle America (Business Week) “Uniqlo, the Japanese clothes giant, launched an online shopping site in the U.S. this week. This may not seem like important news to many, but to a certain American consumer—think very well-dressed, without much money, and living between the coasts—it is like a food drop from a Marshall Plan plane in 1940s Berlin.” Coach bags an earnings rebound (FT)
Fashion tests Amazon mantra of low prices (FT) “Amazon’s well-drilled executives can usually be relied on to repeat the company’s mantra of eliminating costs and waste to offer consumers lower prices. Cathy Beaudoin gets to be different… So instead, in a striking departure from Amazon’s usual talking points, she says: ‘Price is not really a differentiation for us … We maintain the pricing integrity that our
This Man Wants to Clothe the Planet (WSJ Magazine) “Yanai is refreshingly open about his goals these days: making Uniqlo the number-one apparel retailer in the world. His target—$50 billion in yearly revenue by 2020—will require whiplash gains above Uniqlo’s current revenue of $12 billion, driving the company ahead of front-runners Inditex.” Service with a smile, J. Crew CEO Drexler says customers should expect it
Vintage for Today? (IHT) “‘New vintage — for today,’ said Mr. Lagerfeld, referring to a flow of high-waisted, wide pants that might have come from hazy photographs of a mademoiselle in Deauville but were, in fact, invented in one of the designer’s gouache drawings” Fashion Industry Aims To Corner the Chinese Market With Weibo (Fashionista) “If you’ve heard of Weibo, you’ve probably heard it described
Hautel Check-In: Luxury Labels Extend Brands to Hotels (Brand Channel) “The U.S. economy is sputtering, and the European continent isn’t looking very bullish at the moment. But none of this seems to be terribly concerning to the luxury hotel market. There has been a spate of recent openings — hotel extensions of luxury brands — to prove it.” Polka Dots Are In? Polka Dots It Is! (Slate) “If you’ve ever
Spain’s got talent (Telegraph) “Stuart Vevers and Lisa Montague, the British duo who set Mulberry on the road to global superstardom, have taken their recipe to Loewe, the luxury heritage brand based in Madrid. Will it taste as sweet?” Burberry to invest in new, bigger stores (Reuters) “British luxury brand Burberry posted a 26 percent jump in profit as expected and said it would invest up to 200 million