Retail in Asia: The Week in Brief

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12 June 2024

VF Corporation's CCO Martino Guerrini talks about Southeast Asia expansion and GMG partnership

VF Corporation , home to brands such as Vans, The North Face, and Timberland, recently announced the extension of its partnership with retail conglomerate GMG , aimed at expanding the presence of VF’s brands in Southeast Asia (SEA), the Middle East and North Africa (MENA). Retail in Asia spoke with Martino Scabbia Guerrini, global chief commercial officer and president of emerging brands at VF Corporation, on the partnership and VF’s expansion strategy in Asia-Pacific.?

"GMG will introduce VF’s brands across key Southeast Asian markets, open mono-brand stores, and drive e-commerce business for select VF brands. This will strategically drive brand penetration and presence in growth markets like Hong Kong, Singapore, Malaysia, Indonesia, Philippines, and Vietnam. We continue to be committed to growing our brands in the marketplace, especially in Southeast Asia where we see significant opportunity. The expanded partnership will bring about the right level of investment and focus that will help us elevate and grow our brands in this rapidly evolving marketplace," Guerrini said. Read the full article here.

McDonald’s names new Japan president

McDonald’s Japan has appointed Thomas Ko to the role of president of its operating company, as part of an executive reshuffle.

The Hong Kong native will replace Tamotsu Hiiro, who will become chairperson of the McDonald’s group in Japan. Hiiro also will remain president of the holding company.

Ko, who started as a business consultant, joined the fast-food veteran first joined the U.S.-based McDonald’s Corp. in 2010 as director of consumer strategy for the region covering Asia-Pacific, Middle East, and Africa. From here, he then served in executive roles for McDonald’s in varying locations, including South Korea and Portugal. Read the full article here.

Global online retail sales to reach USD6.8 trillion by 2028, but physical stores are here to stay, according to research by Forrester

Online retail sales for the top five countries in Asia Pacific—China, South Korea , Japan, India, and Australia—are expected to increase from USD2.2 trillion in 2023 to USD3.2 trillion in 2028.

In Southeast Asia, retail sales in Indonesia, Thailand, Vietnam , Malaysia, the Philippines , and Singapore are expected to rise from USD93 billion in 2023 to USD193 billion by 2028.

But Forrester’s study finds that while e-commerce continues is still expanding, physical stores are set to maintain their significance worldwide, with a staggering USD21.9 trillion or 76 percent of total retail sales projected to be conducted offline out of the estimated USD28.7 trillion in global retail sales by 2028. Read the full article here.

Estée Lauder expands its skincare portfolio with acquisition of Deciem, famed for The Ordinary

The Estée Lauder Companies Inc. has announced the successful completion of its acquisition of Deciem Beauty Group Inc., the Canadian-based multi-brand company known as “The Abnormal Beauty Company.”

ELC’s Deciem acquisition marks a significant milestone in Estée Lauder’s strategic expansion efforts and further strengthens its position in the global skin care market.

ELC’s journey with Deciem, whose flagship brand is The Ordinary, began in 2017 when it first invested in the company. Over the years, ELC increased its stake and became the majority owner in 2021. Following a three-year period, ELC exercised its option to purchase the remaining interests in Deciem. On May 31, 2024, ELC closed the deal, utilising approximately USD860 million in cash. Read the full article here.

ALSO:

• PVH Corp., the owner of Calvin Klein and Tommy Hilfiger, reported a 10 percent drop in sales, even as the U.S. apparel firm’s sales remained buoyant in Asia Pacific
• Birkenstock's sales rose 22 percent for the second quarter, clocking double-digit growth across all regions, including Asia Pacific
• Chanel’s Virginie Viard has stepped down from her role as creative director
• The Macallan introduces world-first boutique in Hong Kong, designed by acclaimed architect Jamie Fobert
• Luxury house Chanel partners with The Shilla Duty Free and Changi Airport Group to run a vibrant Summer Club pop-up concept at Singapore Changi Airport until July 1