The Week in Brief
Retail in Asia
The one-stop source for retail intelligence, covering trends, reports, openings and expansion activity across Asia.
Sign up here to receive our regular newsletters and special editions – never more than three times a week: https://retailinasia.com/subscribe/
Young Australians’ growing appetite for luxury is driving high-end brands' expansion
Amidst Australia’s sun-kissed landscapes, a fervour for opulence and exclusivity is sweeping across the retail industry, driven by young Australians’ taste for high-end goods.
A recent report from real estate firm CBRE details the buoyant trajectory of Australia’s luxury retail market. The resurgence of international tourism, coupled with the burgeoning presence of Millennial and Gen Z cohorts embracing luxury brands, has laid a robust foundation for the sector’s remarkable performance in Australia.
Top luxury groups including Louis Vuitton, Richemont, and Hermès have showcased remarkable revenue growth rates in Australia of 87 percent, 153 percent, and 177 percent, respectively, since 2019.
Other high-end brands have either entrenched their presence or expanded their reach, securing leases in key metropolises including Sydney, Melbourne, Brisbane, Perth, and Adelaide, per data from IBISWorld and CBRE. Read the full article here.
Estée Lauder's annual sales dip on continued mainland China softness; CEO Fabrizio Freda set to retire in 2025
The Estée Lauder Companies reported a 2 percent decrease in sales to USD 15.61 billion for its fiscal year, hurt by mainland China weakness which the beauty giant forecast will continue into 2025.
The New York-based company said organic net sales decreased 2 percent, hit by the ongoing softness in overall prestige beauty in mainland China and a decline in Asia travel retail, driven by a decrease in the first half, as the beauty company and its retailers reset inventory levels.
In Asia Pacific, sales decreased 3 percent, primarily driven by mainland China, partially offset by double-digit growth in Hong Kong and Japan. Mainland China sales fell on ongoing softness in overall prestige beauty, including during holiday and key shopping moments.
Estée Lauder also said CEO Fabrizio Freda is retiring from the helm of the company at the end of fiscal 2025. The longstanding executive will continue to lead and oversee the company until his successor is appointed, the company confirmed. Read the full article here.
Diane von Furstenberg to take global operations in-house from its Chinese licensee, Glamel
领英推荐
Diane von Furstenberg plans to take back her global fashion business in-house by year-end, ending her firm’s current licensing deal with Chinese distributor, Glamel.
In 2020, the U.S. luxury brand switched a digital-first and China-focused wholesale strategy, after years of declining sales, appointing Glamel Trading Limited as manufacturer and merchandiser for the DVF brand.
Under the new deal, Glamel will only handle distribution of DVF product in the greater China region going forward. Read the full article here.
Walmart sells entire stake in China’s JD.com for USD3.6 billion
U.S. retail behemoth Walmart has divested its complete stake in JD.com, a major player in China’s e-commerce landscape, unraveling one of the most substantial investments by a foreign competitor in a Chinese retail giant.
As of December 31, Walmart held approximately 289 million shares in JD.com, with JD.com’s annual report in April confirming Walmart’s status as a 9.4 percent shareholder.
Earlier reports from Bloomberg suggested that Walmart reaped around USD3.6 billion from the sale, a move that reverberated in the market as JD.com’s shares listed in Hong Kong plummeted by nearly 9 percent on Wednesday.
This divestiture concludes a chapter in Walmart’s strategic investment saga driven by the urgent need to establish a stronger presence in the Chinese market. Read the full article here.
SEE ALSO:
Retail in Asia?provides a full range of targeted marketing initiatives, including website and newsletter advertising, sponsored articles and interviews, and bespoke reports and surveys. For enquiries, please contact?our team?at [email protected].