The Week in Brief

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Amid a retail downturn in Hong Kong, Abercrombie & Fitch, Prada, Mango among brands pressing on with expansion strategies

Even in the midst of a retail downturn, global retailers Abercrombie & Fitch, Prada , and Mango are making bold moves to expand their presence in Hong Kong.

Retail sales in?Hong Kong dropped 9.7 percent in June, after an 11.4 percent dive in May and a 14.7 percent contraction in April. The figures marked the fourth consecutive monthly contraction following 15 months of uninterrupted growth after Covid-19.

Taking a long-term view, some retailers are pressing on with plans to rebuild or extend retail spaces in Hong Kong. Abercrombie & Fitch Co., a standout performer in the American stock market in recent times, is charting a comeback to Hong Kong after an eight-year hiatus.

“Hong Kong remains attractive to retailers. The government’s efforts to boost Meetings, Incentives, Conventions, and Exhibitions (MICE) activities, along with the city’s simple and low tax regime and solid legal system, retailers have confidence in the Hong Kong market,” said Lawrence Wan,? senior director of advisory and transaction services for retail at real estate firm CBRE. Read the full article here.

Korea emerges as a trendsetting playground for global luxury and contemporary brands

Brands are increasingly opting to make their debut or unveil new collaborations in South Korea, where they hope to take the temperature of a discerning, fashion-forward local audience known to be trend-setters.

Louis Vuitton, for example, made waves with the exclusive launch of a capsule collection in Korea, a reinterpretation of its 2023 pre-fall line tailored exclusively for the Korean market. More recently, Louis Vuitton’s 2025 spring/summer menswear line features a collaboration with Korean artist Park Seo-bo, a luminary in South Korea’s art scene.

French brand Polène also made its debut in South Korea in June. Its Asia boutiques are only in Japan and South Korea, highlighting the importance of the two markets in the region for the brand. Read the full article here.

Lululemon sales climb on continued mainland China growth

The Canadian activewear maker said international net revenue surged 29 percent, on the back of a 34 percent uptick in mainland China sales. The firm’s rest of the world revenues climbed 24 percent, while the Americas region inched forward just 1 percent.

International comparable sales, where company-operated stores have been open for 12 months of longer, increased 19 percent, again thanks to Mainland China comparable sales, grew 21 percent during the three months.

For 2024, the company now expects net revenue to be in the range of? USD 10.375 billion to USD 10.475 billion, representing growth of 8 percent to 9 percent. Read the full article here.

Lanvin Group sales slammed by slowing demand globally especially in Greater China

Lanvin Group revenue decreased 20 percent to EUR 171 million in the first half, hurt by slowing demand across its entire brand portfolio, especially in Greater China.

Greater China revenues plummeted 24 percent, with Asia?excluding?Greater China decreasing by 7 percent during the six months.

By brand, Lanvin sales dropped 15 percent to EUR 48 million, with brand sales dropping 9 percent in Asia Pacific, and 14 percent in Greater China. Wolford revenues slumped 28 percent to EUR 43 million, with Asia Pacific dropping 24 percent and Greater China seeing a 20 percent decline. Sergio Rossi revenues declined 38 percent to EUR 20 million, hurt by a 22 percent decrease in Asia Pacific, with Greater China decreasing by 34 percent. Read the full article here.

SEE ALSO:

• L Catterton, the? investment arm of LVMH, has secured a minority stake in the fast-growing Parisian leather goods brand Polène
• Calvin Klein owner PVH posts 6 percent sales decline on weak Asia-Pacific market
• Balmain has launched into beauty with a new fragrance
• Levi Strauss & Co. has appointed Jude Celedin as GM for Australia and New Zealand

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