The article discusses the long-term outlook for Hong Kong retail after the coronavirus pandemic subsides. It argues that a full recovery will be difficult due to pre-existing structural trends, including narrowing price advantages over mainland China, shifts in mainland Chinese tourists traveling more widely, and increased competition from retail developments in the Greater Bay Area. The crisis may further ingrain online shopping habits, reducing customers' desire to return to physical stores even after restrictions are lifted. Brands are advised to re-evaluate their strategies and focus on omnichannel operations to engage customers both online and offline.
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Inside Retail Asia Magazine April 2020 Issue
1. ASIA
Fashion
forwardsH&M’S GLOCALISATION MASTERCLASS
JAPAN’S FACTELIER CELEBRATES THE CRAFT
BRANDS REWRITING THE GENDER NARRATIVE
TIKTOK’S METEORIC RISE
EXCLUSIVE INTERVIEW:
JOYCE YAP ON THE CHANGING
MIX OF MALLS
THE CORONAVIRUS PANDEMIC:
WHAT COMES NEXT?
April2020
3. C
oronavirus has affected all of us
in ways we had never imagined:
we are all suddenly trapped in
a lifestyle only experienced by current
generations through the lens of
apocalyptic-movie directors.
At the time of writing in early April – and
things have changed week by week since
February – the physical retail sector has
been decimated through most of Asia.
Supermarkets excepted, malls and stores,
restaurants and bars have been shuttered
completely across Thailand, Vietnam,
Malaysia, Indonesia and India. There are
varying restrictions in place in Hong Kong
and Singapore.
But in China, where the virus now
officially known as Covid-19 first caused
fatalities sometime last December, trading
restrictions are now progressively being
lifted. Shopping centres in large cities like
Shanghai are reopening and consumers
are cautiously returning to browse, shop
and eat. Strict government bans on
movement are being relaxed in the worst-
hit territories, factories have resumed
production and logistics networks are
returning to normal. So while retailers such
as Apple have closed every store outside
China, on the mainland staff are back in
stores and people are buying again, albeit
not at quite the same volumes just yet.
Should the slightly shaky recovery of
China be seen as hope for the rest of us, or
is it a false dawn?
That China is starting to return to normal
should be an encouragement for the rest
of the planet, but any optimism must be
tempered by the reality that even the
most experienced medical minds of the
West, people who have devoted their
lives to understanding pandemics and
viral outbreaks, say it is still too soon to
celebrate. Firstly, the infection curves in
almost every geographic location outside
Mainland China and South Korea have yet
to peak. Secondly, there are genuine but
muted concerns among some medical
professionals that Covid-19 could evolve,
or that if some forms of social distancing
are not enforced, infection rates could
spike again in places where the original
infection rate was milder.
The one truth for now is that uncertainty
is set to prevail for another three to six
months or even longer. There is no cure for
Covid-19, there is no vaccine – and either
could take a year or more to emerge in safe
and effective forms. The so-called Spanish
Flu of 1918 took two years to pass, and
that was in an era where only a fraction of
people travelled from country to country
compared with today.
For now, retailers across Asia are caught
in a seemingly endless holding pattern.
Those that have an online presence can at
least mitigate a portion of the sales they
previously conducted through stores by
moving online – especially those selling
food and groceries, medical and health
supplies and any form of indoor home
entertainment. Around the world, book
sellers and stationers have reported
increased sales due to homeschooling
and a small but apparent shift from digital
books to printed ones. Streaming services
and online training courses are thriving
(has anyone else noticed the sudden return
of the Masterclass digital ads?).
Puzzles, kitchenware (people are
cooking again), and digital devices like
tablets, game systems and wifi boosters
are back in demand. Restaurants which
have previously resisted deliveries are
signing up to delivery apps as a means of
interim survival.
Some smart retailers are pivoting into
new categories to keep momentum
going or assist with the vast challenges
faced by governments, health providers
and consumers dealing with lockdowns
and trying to protect themselves from
transmission: Burberry, Gucci, Louis
Vuitton are among a raft of fashion brands
creating masks and other protective
gear. McDonald’s in Australia, its dine-in
restaurants closed for now, has started
selling grocery items like milk through its
drive-thrus.
These times are unlike any our
generation has faced before. They are
debilitating, unpredictable and often very
frightening. But they will pass. Humanity
will endure. And so will retailing.
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WRITERS
Dean Blake, Nick Bradstreet,
Emily Cheng, Norelle Goldring,
Phung Yi Jun, Pascal Martin,
Kate Maszluch, Emma Sharley,
Katie Smith, Robert Stockdill,
Tong Van, Veronica Wong
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Robert Stockdill
Director of Content
Inside Retail Asia
robert@insideretail.asia
ASIA
Fashion
forwardsH&M’S GLOCALISATION MASTERCLASS
JAPAN’S FACTELIER CELEBRATES THE CRAFT
BRANDS REWRITING THE GENDER NARRATIVE
TIKTOK’S METEORIC RISE
EXCLUSIVE INTERVIEW:
JOYCE YAP ON THE CHANGING
MIX OF MALLS
THE CORONAVIRUS PANDEMIC:
WHAT COMES NEXT?
April2020
Robert
Fresh hope
or false dawn?
Our cover: Vietnamese model Quynh Anh
Shyn of Vietnam who joined four other
Asians to give a ‘glocal’ feel to H&M’s
premium Studio SS2020 range. Read more
on page 24.
3April 2020 – insideretail.asia
4. 4 insideretail.asia – April 2020
Inside
Gender-bending
Katie Smith looks at how younger consumers are rewriting the narrative on
gender and PhungYi Jun looks deeper into the origins of the genre and which
brands are taking the lead.
Pascal Martin, Veronica Wang and Nick Bradstreet on what
Hong Kong retail will be like when the pandemic is over.
After the virus 7
Tales and trends from Asia’s apparel sector.
Fashion forwards
11
Celebrating the craft
Robert Stockdill meets a Japanese entrepreneur who is building a direct-
to-consumer fashion label that celebrates the skills and identity of clothing
factories usually hidden behind luxury brands.
19
TikTok: new on the block
Kate Maszluch and Dean Blake look at the latest social-media trend and ask if it
is worth brands’while signing up.
22
Going glocal
Robert Stockdill looks at how Swedish fast-fashion label H&M is celebrating
Asian creativity.
24
Six fashion labels to watch
Sustainable, Instaworthy and size-inclusive: Emma Sharley picks emerging
retailers set to hit their stride.
28
Q&A with Pavilion Kuala Lumpur CEO Joyce Yap about the
changing trends in shopping centres.
The maturing mall mix 30
Norrelle Goldring explains how artisan bakeries are exciting the
taste buds of consumers all over the world.
Rising to the occasion 34
PLUS:
Our most-read stories online
New retail stores in Asia
Pop up of the quarter
5
38
40
22
24
34
11
5. 5April 2020 – insideretail.asia
Around the region
Chinese chain Luckin Coffee has admitted senior executives
exaggerated sales to boost the company’s worth and
reputation. In a stunning admission, the company advised
investors not to rely on financial statements for the nine
months to September last year. Transactions totalling about 2.2
billion yuan (US$310 million), have been cited. The true extent
of the false sales data remains unclear while a panel reviews
financial records. However, in November, the company claimed
sales were running at six times the rate of the previous year.
China
Singapore-based bookstore chain Popular has fallen victim
to the coronavirus pandemic and shuttered all 16 stores in
Hong Kong. However, Popular’s other non-retail businesses
in publishing and distribution will continue to operate
there. The company was recently taken to court by Palliser
Investments over allegedly unpaid rent, totalling around
HK$520,000 (US$67,000). The group will now redirect its
resources and focus on education publishing, e-learning and
educational services instead of retailing.
Hong Kong
Local food-delivery app Zomato
acquired UberEats in India for
US$350 million. The purchase was
made via an all-stock transaction,
which results in Uber holding a
9.99-per-cent stake in Zomato.
“India remains an exceptionally
important market to Uber and we
will continue to invest in growing
our local Uber Rides business,
which is already the clear
category leader,”said Uber CEO
Dara Khosrowshahi. UberEats in
India has discontinued operations
and directed restaurants, delivery
partners, and users of its app to
the Zomato platform.
India
Uniqlo will open its largest store yet at the recently refurbished
Mitsui Outlet Park in Japan this month. The space will host both
Uniqlo and sister brand GU in the same location with Uniqlo’s
sales area comprising 2182sqm and GU’s 1818sqm. Despite
turbulent times amidst the coronavirus pandemic, the retailer
will proceed with plans to open three large stores in Tokyo’s
metropolitan area in April-May, originally aiming to strengthen
its presence for the Tokyo Olympics 2020, although these have
now been postponed until next year.
Japan
6. 6 insideretail.asia – April 2020
The Jason Food Hall at Kuala Lumpur’s Bangsar
mall closed after 20 years. A spokesperson for the
store’s parent, Dairy Farm International’s Malaysian
joint-venture subsidiary Giant, said it had failed to
renegotiate a lease on satisfactory terms and was
closing the store with regret. A new concept to be
operated by the country’s fast-growing independent
grocery group The Food Purveyor, which operates the
B.I.G banner, will open in The Food Hall’s place.
Malaysia
The Singapore Retailers Association called
for“unprecedented rental relief measures”
from landlords to help retailers overcome
the coronavirus crisis. The association
has urged landlords to implement a
rental-payment structure for six months
capped at no more than 15 per cent of
gross turnover or a 50-per-cent base
rent reduction, whichever is lower. It also
asked landlords to allow retail businesses
who cannot sustain their operations to
exit before their lease expiration without
losing security deposits or risking punitive
legal action.
Singapore
The Philippines’first Mos Burger store opened on
the second floor of Robinsons Galleria at the Ortigas
Center. Mos Food Services chairman Atsushi Sakurada
said the store is just one of many branches planned
for Metro Manila this year.
Philippines
UK-headquartered Tesco accepted
a US$10.6 billion bid for its Asian
businesses from a consortium
of companies controlled by Thai
billionaire Dhanin Chearavanont.
The price represents a multiple of
12.5 times in earnings and marks
a significant premium on analysts’
estimates of the business being worth
about $9 billion. In winning the Tesco
business, CP Group beat rival local
bidders Central Group and TCC Group.
The decision was reached quickly by
the Tesco board given that final binding
bids closed on February 29. However,
the deal remains subject to regulatory
approval by Thai and Malaysian
authorities, so it won’t be settled until
the second half of this year.
Thailand
Lotte Shopping plans to shut down as many as 200 department stores
and large-format supermarkets in South Korea, marking one of the
biggest retail network culls in the nation’s history. Lotte reported a near
US$1 billion net loss for the fourth quarter. Kang Hee-tae, who heads
Lotte Shopping, cited an increase in the minimum wage and falling
Chinese tourist arrivals as contributors to the poor result. But analysts
in Seoul say Lotte Shopping’s problems are in part caused by a shift to
online shopping, where consumers can often pay less for goods.
South Korea
Vietnam’s largest company VinGroup sold its retail
unit in a merger with FMCG giant Masan Consumer
Holdings, aiming to form Vietnam’s largest grocery
retailer. Masan subsequently confirmed the closure
of up to 300 unprofitable VinMart-bannered
convenience stores, but promised to open up to 30
new supermarkets. Meanwhile, VinGroup closed
its network of VinPro appliance stores, and its
smartphone retail chain trading as the Vien Thong
A brand.
Vietnam
7. 7April 2020 – insideretail.asia
A
fter nearly a year of double-
digit year-on-year retail sales
declines in Hong Kong, just as we
thought things were starting to improve,
the Covid-19 (coronavirus) outbreak
escalated globally. This long crisis is already
profoundly shifting how people live, work
and shop.
In response to the crisis, brands,
retailers and mall operators are busy
trying to contain costs, renegotiate leases,
re-evaluate staff requirements, fix supply
plans and shift their focus to online
channels, as much as they can. But what
will happen when the crisis is over and how
will this affect their long-term outlook?
There is an optimistic view that“Hong
Kong always recovers”… as it did from
the 1997 Asia Financial crisis, the SARS
epidemic, the 2008 global financial
What will Hong Kong
retail be like when things
return to normal?
PERSPECTIVESPERSPECTIVES
After the virus...
By Pascal Martin andVeronicaWang
meltdown, the 2014 umbrella movement,
and so it will again from the current crisis.
However, our view at OC&C is that there
are structural factors that will make a
full recovery and“return to normal”very
difficult this time. The signs of these trends
were already visible before the crisis:
Narrowingpriceadvantage
Under pressure from the transparency
created by the online environment, and
consumers’propensity to research online
before shopping (as more than 60 per cent
of Chinese shoppers do), international
brands have adjusted their global pricing
structures to limit pricing differences
across markets.
Hong Kong’s price advantage over
Mainland China, which used to be in the
range of 30 to 40 per cent, has shrunk
to less than 15 per cent. Consequently,
bargain hunters no longer see Hong Kong
as a shopping paradise, particularly those
traveling from remote mainland locations.
ShiftsinMainlandChinesetourists
Easier visa rules for Chinese nationals,
in most countries, have expanded travel
and shopping options. Chinese people
– particularly those from higher income
and higher tier cities – are increasingly
travelling beyond Hong Kong to a variety
of“exotic”destinations in Asia, Europe and
Americas instead.
Meanwhile, there has been an increase
in the share of first-time visitors to Hong
Kong from lower income and/or lower
tier Chinese cities, with less spending
power. There are also more day-trippers
to Hong Kong from nearby locations, who
find it worth the trip to benefit from the
10-15-per-cent price advantage they can
find in Hong-Kong.
CompetitionfromtheGreater
BayArea
Continuous investment in commercial
properties in the Greater Bay Area,
especially Shenzhen and Guangzhou,
has heightened retail competition with
Hong Kong. These properties often boast
innovative retail formats and models,
making the Hong Kong retail scene less
distinctive and attractive than it used to be.
The longer the crisis, the more
ingrained new behaviours will be in
8. 8 insideretail.asia – April 2020
consumers’lifestyle and shopping habits.
Once consumers have experienced the
convenience of online shopping, it may
be less compelling for them to go back to
physical stores, even after the crisis. This
will likely affect basic shopping categories
such as grocery, electronics and pet
food the most, for which the shopping
experience is not particularly exciting
in itself. The luxury sector may be less
affected by this trend, as the shop visit is a
key part of the overall brand experience.
Adviceforbrands
The disruptions that we are experiencing
have simply accelerated the pace of
structural trends that were already in
motion before the COVID-19 outbreak.
To cope with these changes, brands and
retailers in Hong Kong must do four things:
1Become closer to local customers,
by understanding them better and
figuring out how to serve them with more
relevant products and services, which may
have been overlooked in the past. This will
require:
• Knowing how different consumers
are from each other, depending on
their income level, their purchasing
habits, preferences are from each
other, depending on their income level,
their purchasing habits, preferences
and service expectations. For many
retailers, it will mean conducting some
consumer research and segmentation
to“re-discover”neglected local
consumers.
• Developing membership and loyalty
programs that are meaningful to
them, balancing financial incentives
(eg. coupons, discounts) with
functional benefits (parking, delivery)
and emotional benefits (eg. lounge,
concierge service, special events, gifts).
2Engage with Customers through
Digital Media, as DFS is doing
through a WeChat mini-program that
pushes“monthly top discounts”to their
registered customers, or as IFC is doing
through a mini-program that pushes
lifestyle and trend updates and mall events
on a regular basis.
3Improve Online-To-Offline
shopping convenience across the
board, from payment methods (Alipay
and WeChat Pay are a must) to different
click-and-collect options, from product
information to product returns.
4Adjust store footprints in line with
more modest business ambitions in
the market. This is probably the rationale
behind Chow Tai Fook’s dramatic decision
to shut down a fifth of its store network
in Hong Kong. LV’s recent announcement
to close a store in Times Square, even if it
might just be a tactic to force an inflexible
landlord to cut rent, can be seen as another
example of this trend. In fact, many
international brands have more stores in
Hong Kong than in any other major cities
around the world. But with the reduced
flow of Chinese tourists and an increase in
online sales, it is time to re-evaluate how
many stores are really needed and where
are the best locations for them. As a result,
the next rounds of store renewals over
the next two to three years will be very
interesting to watch, with brands choosing
to close certain stores, or obtaining
significant reductions in rent conditions in
others.
In this context, landlords and mall
operators must also adapt along three
major areas:
Find ways to boost their customer
attractiveness by introducing more
trend-setting brands (e.g. recent openings
of Sephora and Brandy Melville in IFC), as
well as F&B and entertainment options that
may appeal more to local residents, even in
these tenants cannot afford the rent levels
paid by retailers.
Diversifying store formats is another way
to enhance attractiveness, and we have
seen more Mainland Chinese developers
introduce pop-up store formats. This
might be a win-win trial for both brands
and landlords, giving brands a low-cost
platform to test the market while allowing
landlords to maintain a sense of novelty for
consumers.
Shift focus from big box tenants to
smaller tenants to create newness and
excitement: The recent split of the Zara
store in IFC into three smaller outlets
including Sephora and a smaller Zara is
a good illustration of this trend. In doing
so, landlords are not only improving mall
attractiveness, they are also maximising
average rent yield because smaller units
typically pay higher rent per square foot
than larger ones. But this strategy has its
limits – once big brand anchor tenants are
shrunk or gone and all units are down to
a minimum size – it will become harder to
fight against an irresistible trend toward
rent erosion.
Prepare to become more aggressive
in competing with other malls on
marketing, promotions and events, not
only within the Hong Kong marketplace
but within the Greater Bay Area. This
will require landlords to explore deeper
collaboration and exchanges with their
tenants, develop more distinctive value
propositions toward their target customers,
either local or foreign visitors, and engage
with customers more proactively through
smarter membership programs.
On this topic, unfortunately, as summarised
by one of the Hong Kong landlords we
recently interviewed, many landlords
are still lagging behind in customer data
and analytics, and will need significant
investment in technological capabilities to
catch up.
Pascal Martin and Veronica Wang are
partners at OC&C Strategy Consultants.
9. 9April 2020 – insideretail.asia
H
ong Kong’s turbulent retail sector
has posted its 13th consecutive
month of downturn.
Combined retail sales for January
and February fell by 31.8 per cent year
on year, battered by a steep drop in
Mainland tourists attributable to months of
political unrest followed by the COVID-19
epidemic which emerged just before the
Lunar NewYear.
Tourist arrivals have plummeted at their
fastest rate since 2003 and in February,
average daily traffic plunged to just 3000
people after the closure of border crossings
and travel bans. Compare this with 2018,
when 40 million mainland visitors chose
Hong Kong as their number one destination
to purchase luxury goods.
Despite the sharp pullback in retail sales,
we have not yet seen a corresponding fall in
rents. Many shopping centre landlords have
offered short-term rental relief but there
needs to be a long-term rental adjustment
to match the new“sales norm”which most
luxury retailers currently feel is around 50 to
60 per cent from peak 2014 levels.
Shopping centre landlords’reluctance
to adjust rents significantly will present
considerable challenges to mall-based
retailers. Large adjustments are unlikely to
happen until the general situation becomes
clearer and as a result, retailers will need
to either“bite the bullet”or vacate. Many
retailers will take the latter ►
PERSPECTIVESPERSPECTIVES
Vacancies and rent
pressure loom as Hong
Kong’s retail sector
tries to recover from
the steep decline in
mainlanders visiting.
The next
revolution
By Nick Bradstreet
10. 10 insideretail.asia – April 2020
course and therefore vacancies are
expected to rise across most centres.
Over the years, spending from Chinese
tourists has cemented Hong Kong’s
position as Asia’s most important luxury
hub, hailed as the“Great Mall of China”.
Chinese tourists have typically accounted
for 40 per cent of luxury demand and are
more focused on hard luxury (watches
and jewellery) rather than soft luxury
(handbags and accessories). Thanks
to its mainland tourists, Hong Kong
contributes approximately 5 to 8 per cent
of the world’s luxury sales.
Since February last year, Hong Kong
retail sales have seen negative growth
against a backdrop of a weak RMB, as well
as China’s economic slowdown and the
ongoing trade war. Chinese consumers
are shifting luxury purchases back home
to China where consumption taxes have
been lowered, undermining the need to
travel overseas for discounts. Retailers
are now more focused on first-tier cities
in China with the highest retail sales
including Shanghai, Beijing, Guangzhou,
Chongqing and Chengdu.
Butallhopeisnotlost
Hong Kong remains one of the wealthiest
cities in Greater China with plenty
of attractions for visitors. Upcoming
infrastructure will see eight major new
transport projects providing much better
connectivity including the airport’s third
runway, estimated to handle more than
30 million passengers annually.
For shopping mall landlords, it is an
opportunity to rethink and refresh the
traditional trade mix. Vacant shops are
likely to be turned into pop ups or let
on short-term leases costing a fraction
of a long-term lease. Shops will become
smaller to maintain affordability and
malls will include more F&B to help
surrounding retailers by attracting more
foot fall.
For retailers new to Hong Kong, now
is a good time to test the market; to be
in shopping malls or street locations
which they would never have been able
to afford previously. This year’s tough
retail climate underlines the importance
for retailers and landlords to adapt to
changing consumer preferences and
spending patterns in order to maintain
competitive. And for some, the focus will
return back home to Hong Kong – to its
local consumption.
Nick Bradstreet
is MD and head of
leasing at Savills.
11. 11April 2020 – insideretail.asia
FASHION FORWARDSFASHION FORWARDS
B
eyonce’s January drop of her
latest Ivy Park collection included
a subtle shift: it’s positioned as
gender neutral.
Whether you want to call it“gender
neutrality”,“androgyny”or“unisex”, gender
expression is being reworked by younger
consumers. They’re abandoning the notion
of binary definitions of“male”and“female”.
Of course, the blurring of gender lines is
nothing new in fashion. Icons include Yves
Saint Laurent’s 1966 Le Smoking tuxedo
for women and Jean Paul Gaultier’s 1985
skirt for men. What is new is the broader,
consumer-driven cultural conversation
around gender and sexuality.
Digital platforms have enabled
marginalised people to form community
online, amplifying understanding of
diverse viewpoints. Gender is now
operating on a moving scale – consumers
can use the scale as an expression on any
given day.
Data suggests this is an enduring shift in
values rather than a passing fad. According
to research by GLAAD, an organisation
that champions LGBTQ rights, 12 per
cent of American millennials identify as
transgender or gender non-conforming.
That’s double the amount of the preceding
generation. The report also found that 27
per cent of millennials know someone who
is transgender, versus just 9 per cent of
Americans over the age of 45.
And in a survey of 4500 Gen Z
consumers, Wunderman Thompson
Intelligence’s Generation Z Asia report
found eight out of 10 respondents say
gender doesn’t define a person as much as
it used to.
Whoworeitbest?
A look at Gen Z’s current role models
highlights the broad range of gender non-
conforming personas. Harry Styles stands
out, with his 26 million Instagram audience
fanatical for his pastel nails, pearl necklace,
brocade fabric suits and pussy bow shirts.
In a December interview with the
Guardian on the subject of his style, he
stated,“[I don’t do it] because it makes me
look gay, or it makes me look straight, or
it makes me look bisexual, but because I
think it looks cool. And more than that, I
dunno, I just think sexuality’s something
that’s fun.”
It was perhaps 2019’s Met Gala theme,
“Camp: Notes on Fashion”, hosted by Styles
in a sheer blouse and single pearl earring,
that launched Timothee Chalamet onto the
global fashion scene. He won the top male
spot in Lyst’s Most Influential in Fashion
2019 report, which takes into account
search volume, social media, sales and
designer ranking.
Chalamet is often seen in fluid tailoring
and feminine blouses on the red carpet.
But his style isn’t limited to subversive
or camp gender- mixing. He also dresses
androgynously, including the cerulean
blue Haider Ackermann colour-block look
he wore for the Sydney premiere of The
King, his latest film.
At the Academy Awards last year, actor
Billy Porter appeared on the red carpet in
a jaw-dropping tuxedo gown designed by
Christian Siriano, arguably propelling him
into fashion icon status. ►
Say goodbye to old stereotypes: younger consumers are
rewriting the narrative on gender.
GENDER-BENDING
By Katie Smith
13. 13April 2020 – insideretail.asia
“My goal is to be a walking piece
of political art every time I show up.
To challenge expectations. What is
masculinity? What does that mean?
Women show up every day in pants, but
the minute a man wears a dress, the seas
part,”Porter wrote in Vogue about his outfit
choice that night.
“People are going to be really
uncomfortable with my black ass in a ball
gown – but it’s not anybody’s business but
mine.”
The hugely influential K-pop stars in
Southeast Asia have driven consumers
locally. Its stars, like Kang Daniel of Wanna
One and the Gucci-drenched BTS band
members, are pros at mixing jewellery,
accessories, atypically feminine garments
and makeup.
According to Amelia Teh, head of
business intelligence at Omnilytics,“Korean
fashion is known to defy the boundaries of
stereotypical gender-labelled clothing and
diverging towards a more gender-neutral
approach. The rise of streetwear further
blurred the lines of gender specification.
Åland, Seoul’s leading streetwear retailer
which operates a flagship store in
Brooklyn, New York, has over 60 per cent
contribution of unisex assortment.”
Teh attributes the shift to“exponential
economic success”of the region, with more
“affluent families sending their children for
education overseas, their new influences
break down the traditional conservatism of
the older generations”.
Acropofnewbrands
Not only are existing brands, like Acne
Studios, Adidas Originals, H&M and Tommy
Hilfiger responding to the gender-neutral
shift with crossover merchandise, but
there is also a wave of new entrants to the
market. Tomboyx, a new brand from the
US, produces ungendered underwear. A
range of lengths ensures fit“no matter your
size or equipment”!
In retail, The Phluid Project is an
ungendered retail store that opened in
Brooklyn in late 2018. The store also acts as
a platform for community, hosting events
and discussions.
Australia has its own gender-inclusive
brands too, including Melbourne-based
Best Jumpers, Ten Pieces and A.BCH, which
was founded in 2017 by Courtney Holm.
Though the brand’s website is separated
into men’s and women’s, most items
are styled on either gender. The brand’s
aesthetic, muted tones, natural fibres and
boxy shapes perfectly appeal to all.
It’s almost by chance that things turned
out like this. ►
14. 14 insideretail.asia – April 2020
“When we did our first round of style research
and development, we’d designed specific pieces for
men and women but we also encouraged people to
try on anything they wanted and purposely didn’t
display the pieces in categories,”Holm shared.
“What we noticed was that men tried on
traditional women’s pieces and vice versa. They
didn’t even realise at the time.”
Subsequently the brand is“always looking for
ways to make our clothes more inclusive and
wearable for all”, with its linen shirts, trousers, boxy
shorts and sweatshirts selling best across genders.
Wheretostart?
According to JWT Intelligence research, only 37 per
cent of Gen Z and 36 per cent of millennials shop
the accessories category by gender. Accessories
only currently account for 9.6 per cent of Australia’s
gender neutral assortment. It’s an easy way in,
without constraints of fit.
A good place to start is with the styling and
casting of models in campaign imagery – make
it inclusive and give the stylist free rein over both
men’s and womenswear.
As Holm pointed out,“It’s up to us as the brand
to portray through our digital communications and
imagery just how great garments can look on men,
women, non-binary, short, tall, slim, curvy, mature,
youthful and everyone in between.”
It’s crucial to talk to your customers to find out
what they want and need. Open the conversation
and find ways for store staff to share anecdotal
insight on which products have non-binary appeal.
From here, shift the way your customer profiles
are built, making them less prescriptive and
encapsulating the new values.
The real challenge lies not in fit, but in the way
retail businesses are structured and stores are laid
out. Designers and buyers at most retailers are
separated into men’s and women’s teams, with
reporting and budgets specific to each. As we move
into the future of fashion, we’ll need to take a more
agile approach to team function.
Whether you see a future with product defined
by occasion or fit and not gender, or whether it’s
styling the occasional men’s piece on women, our
consumers are changing and so must the industry.
Defying that change will only alienate Gen Z
consumers.
Katie Smith is a retail and trends
strategist, with a deep love of data-led
insights and technology. Her research
is used by brands and retailers on
four continents to build out effective
product offerings and connect with their
consumers. Contact: hi@katiesmith.me
15. 15April 2020 – insideretail.asia
FASHION FORWARDSFASHION FORWARDS
Androgynous
Fashion:
Behind the movement to redefine
gender through clothing
By PhungYi Jun
16. 16
T
he genderless movement in fashion
has come a long way.
Alok Vaid-Menon, performance artist,
designer and a champion of LGBTQ rights, was
once dismissed early from a photoshoot for
a major fashion publication. They overheard
the photographer ask the editor:“do you want
the best photo, or do you want the politically
correct photo?”
Vaid-Menon later found out they were cut
from the magazine cover.
“My beauty is so tremendous it had to be
edited out of magazines, whitewashed from
history… just to prove it does not exist,”they
declared in BoF Voices 2019.
This isn’t a singular case. For years, fashion
has been homogenous. Most runway shows
are gendered. Brands strictly separated their
clothing into two genders, subscribing to the
narrow identity of what makes a man and
a woman. Unisex items are often confined
to just plain t-shirts, jackets and uninspired
drabs. While there have been instances of
blurred gender lines in fashion (Jean Paul
Gaultier’s 1985 skirts for men come to mind),
the notion wasn’t prevalent across the
industry.
That is, until recently.
Changingtimes
The younger generation is increasingly
rejecting binary labels, and instead, reclaiming
their personal identities.‘They’, a pronoun
preferred by non-binary individuals such as
Sam Smith, Alok Vaid-Menon and Vittorio
Franco, saw a 313-per-cent increase in
searches on Merriam-Webster – signifying
increasing awareness of the non-binary
movement. A study by the Pew Research
Center showed that 59 per cent of Gen Zs
believe forms should not include traditional
gender pronouns – and 35 per cent know
someone that identifies as gender non-
conforming.
Transgender and gender non-binary
influencers played a large role in changing the
narrative.
Jamie Windust, editor-in-chief of Fruitcake
Magazine and a non-binary model, uses
their strong platform of 39,000 followers to
continuously fight for LGBTQIA+ rights and
representation. Windust set a strong example
themselves, as they quit the set of Fantastic
Beasts 2 due to“misogynistic, homophobic
and transphobic”members of the cast. Chella
Man, a trans activist who was recently cast in
DC’s Titans, fights for the same cause too.
“There is an extreme lack of representation
for young, deaf, queer, Jewish, Asian,
transgender artists… so, I decided to be my
own representation,”Chella Man told Teen
Vogue.
Meanwhile, in Asia, Geena Rocero broke
barriers as the first Asian Pacific transgender
Playboy playmate. Born and raised in the
Philippines, she’s sending a clear message to
everyone – no matter their sexuality, gender
or beliefs – their dreams are valid. Andrea
Razali, recently crowned as Miss International
16 insideretail.asia – April 2020
17. Queen of Singapore, is vocal about her
experiences with gender dysmorphia – and
actively contributes to the transgender
community.
Celebrities, too, are breaking the
boundaries of fashion across red carpets,
photoshoots and on the streets. Harry
Styles, Billy Porter and K-pop stars like
2AM’s Jo Kwon and f(x)’s Amber Liu are just
some of the names challenging the norm.
There’s a cultural embrace of gender
fluidity – and the industry is finally
listening.
Fashionisfluid
Telfar, a brand founded by designer Telfar
Clemens, saw a strong 82-per-cent sell
out in the past six months, and according
to Omnilytics, 43 per cent sold out at
full-price. One of its most popular items,
the Telfar bag, became the industry’s‘it’
accessory, helmed for its affordability and
practicality.
But it isn’t as simple as that. The bag
stood on the shoulders of Clemens, a black,
queer designer that didn’t design for a
specific niche. Telfar creates genderless
products that are“not for you”, they are“for
everyone”– an inclusive messaging that
many fashion brands lack.
Androgynous brands often stem from
the gap that fast fashion left: creating
timeless, exclusive pieces for everyone,
including the marginalised. And in today’s
world where brand values are more
important than ever, it explains why
androgynous brands are on the rise.
Toogood, a unisex brand from London,
is making waves in the
industry. Data from
Omnilytics showed that
even though Toogood
had a median price almost
four times higher than the
average (above US$1000),
it still achieved a 90-per-
cent sell-out at full price.
Other gender-neutral brands with a
premium price point, such as Eckhaus Latta
and Ader Error, had decent sell-out rates
at 76 per cent and 82 per cent respectively
– further proof that customers are more
than willing to pay for products that strike
a chord.
Global brands are tapping into
the opportunity too. In 2018, Asos
announced it would focus on expanding
its genderless clothing. Three years later,
the company has quadrupled its unisex
offer and is now ranging colourful tops,
overalls and accessories. H&M launched
a similar strategy with its Denim United
collection.
Puma collaborated with South
Korean label Ader Error and birthed a
streetwear-inspired collection, each piece
representing a different
subculture with bright
colours, progressive
silhouettes and
evergreen styles. The
collection was successful
with 76-per-cent sell-
out, but this comes as
no surprise – streetwear
was the pioneer in blurring gender lines.
The one to keep an eye out for is
the collaboration between Telfar and
Gap, expected to drop next September.
Clemens, who has long used his
artistic style to promote clothing that
encompasses gender, is positive the
collaboration would help spread his
message further.
We are not a
trend. We are not
a moment. We are
a movement.
17April 2020 – insideretail.asia
18. 18 insideretail.asia – April 2020
It’samovement,notatrend
While strides were taken to empower the
gender-neutral movement, it’s to be made
clear: genderless fashion is not a trend.
For many trans and non-binary
individuals, stepping out in clothing
they feel comfortable in is a life-or-death
situation. In the US alone, violence against
trans has increased since 2016 – a statistic
that proves more needs to be done.
“The gender-neutral movement isn’t to
be commercialised for sales,”says Katie
Smith, a retail and trends strategist.“For
retailers that want to expand into this
market, it needs to come from a place of
authenticity, not aesthetics.”
To start, retailers need to widen the
conversation. Amelia Teh, the head of
business intelligence of Omnilytics,
recommends going directly to the source:
the customers.“Seek to understand
how you can best support the LGBTQI+
community,”says Teh.“Look into your
brand positioning, how your retail store or
website is set up – the little details matter.”
Once that’s established, Teh suggests
to start with a small capsule collection in
extended sizing, to be shared during a key
event that speaks to the community, such
as Pride Month.“Monitor the performance
closely and listen to what your customers
are saying.”If it proves to be successful, the
next product expansion strategy can be a
collaborative capsule, engaging a non-
binary influencer for marketing or designs.
“More importantly,”Teh says,“the
genuine heart to help the community
needs to be present.”
In the words of Alok Vaid-Menon:“We
are not a trend. We are not a moment. We
are a movement.”
Phung Yi Jun is the lead content editor
at Omnilytics, a data platform powering
business decision making with deep and
actionable insights. Jun built her career as
an independent fashion writer and covering
news and trends in retail before transitioning
to her current position at Omnilytics.
AlokVaid-Menon with Sam Smith at the premiere of Judy at the
Samuel GoldwynTheater in Beverly Hills last September.Geena Rocero
19. 19April 2020 – insideretail.asia
T
oshio Yamada is a young Japanese
entrepreneur who wants to
preserve the craftsmanship of his
country’s apparel industry.
Yamada has created his own uniquely
Japanese brand Factelier, which designs
and sources clothing and accessories for
men, women and babies from experienced,
typically family-owned, clothing factories
spread all over the nation. They are sold
online and shipped to 100 countries,
through a small network of boutiques
in Japan and Taiwan, and in selected
department stores.
Yamada’s vision is to preserve the rich
heritage of apparel manufacturing and let
the suppliers he works with emerge from
the unavoidable anonymity that comes
with supplying global brands.
Thirty years ago, Japan, one of the
world’s largest apparel markets, used to
produce 50.1 per cent of its domestic sales.
Today, thanks to the rise of fast fashion
and the outsourcing of manufacturing
to countries like China, Bangladesh and
Vietnam, that share has slumped to just
3 per cent. More than three quarters of
the companies manufacturing clothing in
Japan in 1990 are no longer trading today.
Yamada was born into a family which
ran a women’s clothing store for 100 years
in Kumamoto, on the island of Kyushu.
Living upstairs, he helped out on the shop
floor from early childhood, surrounded by
quality locally made clothes in an era when
‘made in Japan’was a familiar label.
Later, as a student, Yamada interned
with luxury brand Gucci in Paris. There
the realisation dawned on him that labels
like Gucci, Hermes and Louis Vuitton
were all born in factories.“So they respect
craftsmanship. Now I’m hoping to revive
the local craftsmanship in Japan.
“Our dream is to create world-class
brands made in Japan, and build a
sustainable and profitable link between
these local artisans and consumers around
the world, by selling clothes from Japanese
factories directly to consumers, cutting out
the middleman.”
Factelier was created via an astonishing
commitment to researching the industry.
Yamada personally visited some 600
factories the length and breadth of ►
A Japanese
entrepreneur has built
a direct-to-consumer
fashion label that
celebrates the skills
and identity of clothing
factories usually hidden
behind luxury brands.
FASHION FORWARDSFASHION FORWARDS
Celebrating the craft
By Robert Stockdill
20. 20 insideretail.asia – April 2020
Japan before selecting 55 of them as
suppliers, all of them with experience in
supplying top international brands.
“A lot of these companies did not have
a homepage, right, and Google did not
know about them. So I would take a
train and get off at a station and go to
a telephone box and use the telephone
book to find them.”He would then phone
the factories he found listed and ask if he
could stop by.
Somewhat surprised, they invariably
welcomed him.“It was a very old style
approach,”he recalls in an interview with
Inside Retail Asia on the side of the Asian
E-tailing Summit in Hong Kong.
Having built the network, he not only
maintains constant personal contact
with his suppliers, but their company
names appear beneath Factelier on the
clothing labels. The connection between
craftsmanship and consumer runs even
deeper: Yamada’s company runs regular
factory tours for customers so they can
see the art and commitment that goes
into the clothing they buy.
“We know the stories behind the
factories, how they make the products,
and it’s very interesting – when our
customers go to the factories and they
see the craftwork behind the clothes they
become loyal customers.”
It took Yamada three years to build the
base of the business, living off a part-
time job as he travelled from factory
to factory and developed designs and
products. Eight years since his mission
began, Factelier has grown to a 50-strong
team with four stores and a warehouse
in Japan, two stores in Taipei – and even
a cafe. Sales are currently doubling twice
a year with 80 per cent of orders from
Japan. The largest overseas markets are
the US, Mainland China, Taiwan and Hong
Kong.
“Fashion manufacturing used to be a
declining industry in Japan, but I think if
we have the passion and the vision, I think
we can revive it. And more importantly,
[our customers] will spend more for better
products.”
Factelier’s garments are of similar
quality (but not design) to those being
supplied to the likes of Gucci or Hermes
– but sell for about half the price. It helps,
of course, that Factelier is not paying for
massive international advertising budgets
and other overheads associated with
luxury brands. Typically the factory gets a
higher price for the clothing it produces
21. 21April 2020 – insideretail.asia
for Factelier because the two parties
jointly decide on the retail price, rather
than the label dictating pricing and how
much the factory gets for making it.
“It’s a very, very different business model
from traditional brands,”says Yamada.
That said, the factories could not survive
on Factelier alone – the Japanese label
typically only accounts for between 5
and 10 per cent of a partner factory’s
production. But they are getting a
better deal and Yamada says many are
finding themselves able to employ more
graduates to expand their business.
The closer relationship between brand,
manufacturer and customer has produced
an unexpected spinoff: consumers are
starting to influence the range and style of
clothing being produced, especially in the
field of functional clothing.
“One day a customer asked us to
manufacture clothes that would repel
mosquitos. That’s a very, very difficult
request.”Diligently working with factories
and textile suppliers, Yamada’s team
succeeded by incorporating a herb in the
fabric that sends the mozzies packing.
During the interview, Yamada wore a
stylish blue wrinkle-free jacket.“If I pack
it in a trunk, it does not crease.”Another
product uses baseball-uniform techniques
to create 3D pattern effects.
Factelier also sells stain-proof white
jeans. Spill soy sauce, wine, coffee or
ketchup over the denim and it comes off
immediately without leaving a stain. This
was another product designed to fulfil a
customer’s request.
Besides his interest in functional
clothing, Yamada is committed to
sustainability. The company uses natural
fibres and biodegradable fabrics and it
recently planted an organic cotton farm
near Mount Fuji. Japan imports 99 per cent
of its cotton and he wants to change that
reliance on other countries.
Yamada is optimistic there is a strong
future for direct-to-consumer brands.“The
size of the B2C market in Japan expanded
to US$180 billion in 2018. It grew by $160
million, or 9 per cent, in that year.
“Yes, craftsmanship is very big. I want to
spread the idea of craftsmanship all over
the world.”
22. 22 insideretail.asia – April 2020
T
he last year has seen a number of
social-media giants take the leap
and enter the e-commerce market
in a bid to expand their offering.
The latest example of this is TikTok,
which has roughly 625 million active
users. According to Tryzens’latest
consumer-insight survey, 63 per cent of
consumers have bought an item that
they first saw on social media, so this is a
channel that we think retailers should be
considering as a means of building brand
and product awareness.
Since its merger with Musica.ly in
2018, TikTok has exploded for the 16-24
market and shows no signs of slowing.
It has learned from the commerce
evolution undergone by Instagram,
and within the space of three months,
added features such as paid advertising,
curated feeds and links to shop products
off the platform. As an example, Beats by
Dre has recently started to advertise on
the platform with pop icon Billie Eilish
flaunting a set of headphones that users
can click on a link to‘buy now’. While
we predict a global rollout of in-app
shopping to be a little while away, we
would recommend that retailers and
brand owners start to experiment with
the platform and begin to find their
unique voice on the platform.
There are a number of high-profile
brands, such as Burberry, Showpo, NFL
and Ralph Lauren that are jumping to
become an early adopter of TikTok and
are using it to build an audience. We
are also seeing the emergence of TikTok
influencers as we did on Instagram.
Like most new innovative platforms,
TikTok has certainly had its fair share of
‘teething problems’. Unfortunately, the
popularity and potential of the video
sharing app has been overshadowed
by claims that harmful content has
been exposed to its users, damaging
the likelihood of brands considering
advertising on the app.
However, it is rumoured TikTok may
launch a curated feed where retailers
can advertise separately from content
creators, ensuring their content won’t
appear alongside inappropriate videos.
While the use of TikTok may be a daunting
prospect for retailers and brands at
present, if it can work to address the
current issues it is facing, it may well
By Kate Maszluch
FASHION FORWARDSFASHION FORWARDS
TikTok: time for
another social
media channel?
[Photo by Oliver Sjöström on Unsplash]
23. 23April 2020 – insideretail.asia
become a very attractive platform for
retailers in the future. So, with a high
chance TikTok could be the next new way
consumers shop, it is imperative retailers
start preparing now and begin creating
unique social-commerce strategies for
the array of social media apps, including
TikTok.
Although it may be possible to
sell the same product on TikTok and
Instagram, they are two completely
different social-media apps that require
very different ways of connecting with
their audiences. Retailers and brands
need to be sure to take into account
the nuances of each platform. This will
enable them to understand the way in
which they need to develop their different
types of content to ensure it accurately
portrays their brand. As a starting point,
it is critical retailers and brands keep
on top of what is trending and who
TikTok’s main influencers are, as well as
understanding its current offering, like
paid advertisements and sponsored
hashtags.
Retailers that can find their voice and
produce content that appeals to TikTok’s
users will flourish on the platform. What
this means for actual conversions is
heavily dependent on their offering and
audience.
Kate Maszluch is VP of marketing at Tryzens,
based in London, UK.
One size does
not always
fit at all
By Dean Blake
I
s it worth investing in TikTok, yet
another social media channel?
TikTok can be“a great place to find
new customers”if that is where your ideal
customers are spending time, the author
of Sell Like Crazy and founder of digital
agency King Kong Sabri Suby told Inside
Retail in Australia.
“But the principle of good marketing
remains the same, whatever the channel.
If you can fully understand a potential
customer’s psyche and drill down into
what drives them, it’s possible to create
incredible returns on investment.”
While TikTok is still largely untapped
in terms of the retail market, much like
other‘new’social media platforms, its
consumer base is smart and tight-knit.
Simply generating the same content
used for a seperate audience is likely to
backfire.
“As feeds reach saturation point,
average content will no longer fly. People
know their value as a customer, so unless
you are providing them at least that same
value in return, they will simply scroll on
past,”Suby said.
“The same is true of TikTok. Unless
marketers can learn how to create
content that’s as good as, if not better
than, regular users, then they don’t stand
a chance.”
A report by Hootsuite seems to support
that view. If a brand isn’t suited, Hootsuite
concluded, then it is better off investing
its time and energy elsewhere. But for
retailers with a funny and playful tone,
TikTok could be worth keeping an eye on.
According to the report,“if TikTok
evolves beyond formulaic, meme-based
content and attracts a broader user base,
you may want to get in on the action”.
“For now, monitor trends that bubble
up on TikTok and adapt the ideas that
make sense for your brand into other
social content.”
The report also recommends brands
try out other short-form video formats
that might be better aligned with its
messaging – Instagram, Facebook and
Snapchat, to name a few.
However, smaller platforms can punch
above their weight, according to Gartner
research, which found that retailers with
large shares of social traffic to their sites
tend to see as much inbound traffic from
smaller platforms than large ones.
Dean Blake writes for Inside Retail in
Australia. This is an abridged version of an
article published in Inside Retail Weekly,
our digital subscriber-only publication.
More details insideretail.com.au/shop
24. By Robert Stockdill
FASHION FORWARDSFASHION FORWARDS
Grasping glocal
‘G
localisation’is a trend retail
chains have been embracing for
more than a decade. It’s the art
of fostering a local appeal to a globalised
retail offer, empowering regional decision
making in the hope of creating a bond
with people in communities of consumers
a world away from the company’s head
office, but continuing to enjoy the
advantages of critical mass in production,
logistics and other back-of-house
operations.
But the fashion industry, trapped in
the pressure cooker of seasonality-driven
product design and release, has been slow
to respond on a global scale. While luxury
brands have always found an insatiable
audience of consumers in markets like
China, where wearing a brand is a sign
of status and success, some mainstream
global fashion brands have foundered
abroad. Gap failed in Australia, Victoria’s
Secret had mixed success after discovering
its styles, fits and sizes weren’t really a
As fast-fashion label
H&M expands its focus
both online and offline
in Asia, the Swedish
company is tapping
Asian models and
creative partners to give
it more of a local appeal.
24 insideretail.asia – April 2020
25. 25April 2020 – insideretail.asia
natural match for typically petite Asian
physiques. River Island and Banana
Republic never took off in Singapore, Marks
& Spencer quit Mainland China – and labels
like Forever 21 and Macy’s struggled to
make any headway on the mainland.
And that’s before you consider some
of the public relations disasters in recent
years by brands large and small who
were tone deaf to cultural differences and
regional geopolitical tinder points (think
Versace, Coach and Givenchy, who learned
the hard way not to project Hong Kong,
Macau and Taiwan as territories separate
from China…)
Given that context, H&M has begun
to stand out from its peers by steadily
building affinities with local personalities,
influencers and designers – and most
recently models. Not just in China, but
regionally, this is one of the few continents
where the company is aggressively
expanding its store networks as growth
wanes in Europe and North America.
The move has been subtle and
undertaken without fanfare (H&M declined
to comment for this feature) but it gained
momentum last year when the company
appointed musician and artist Lay Zhang
Yixing as its spokesperson for its menswear
collection in Greater China.
Most recently, the company assembled
a group of models from around Asia for
a photoshoot for its upscale H&M Studio
Spring Summer 2020 collection, choosing
women well known in their home markets.
While H&M has long embraced diversity in
the talent modelling its new lines, this was
something quite unique for the label.
FromGotlandtoSumba
While top international models posed in
the new collections on beaches and sand
dunes in America, far away on the island
of Sumba in Indonesia, five Asian models
created a very different look for the range.
The five were Quynh Anh Shyn of Vietnam,
who has her own fashion line; Iman Fandi
Ahmad of Singapore; and three Malaysians:
designer Kittie Yiyi, blogger Rachel Wong
and fashion and beauty entrepreneur Bella
Kuan.
The move drove widespread exposure
for the brand and the range across
Southeast Asia as the models-cum-
influencers shared their experiences during
the photo shoot, which one Vietnamese
fashion magazine described as an“island
boot camp”.
“Free, colourful and bravery – adjectives
to describe H&M Studio Spring Summer
2020 – are also adjectives easy to relate to
Quynh Anh Shyn’s fashion style during the
past year,”it wrote.
That’s grassroots glocal praise for a
fashion brand bedded in Sweden and a
27. 27April 2020 – insideretail.asia
range inspired by a research trip to the
Swedish island of Gotland, according to
H&M creative advisor Ann-Sofie Johansson.
“The SS20 collection muse is a forward-
looking free spirit – someone who surfs,
climbs, explores and who wants to
experience new things,”she explained at
the US launch.“The collection is both raw
and refined: natural fabrics with raw edges
are mixed with refined elements, such as
shiny metallics and futuristic accessories.
There’s a freedom in the way the collection
can be worn, too: we want our customers
to feel that anything goes.”
Some of the new Studio pieces went on
sale in February this year and the balance
will be launched in late May.
Chinafocus
Unsurprisingly, perhaps, a core focus of
H&M’s‘glocalisation’in Asia is Mainland
China.
Lay’s appointment was a first for the
brand’s menswear collection. The 28-year-
old Chinese singer was a member of the
South Korean-Chinese boy band EXO and
has starred in films including The Island
and Golden Eyes. Lay has also served as
an ambassador for other global fashion
brands, including Converse, Mac Cosmetics,
Chaumet Paris and Ray-Ban. Last year
he also signed on as Calvin Klein’s first
Chinese global spokesperson and publicly
terminated a similar contract with Samsung
after the company violated the One China
policy.
When he was signed with H&M, the
company said in a statement that the
move was aimed at continuing to enhance
its market competitiveness and brand
influence.
“The brand is taking a bigger step
developing further its business in Greater
China based on its menswear products with
design and quality.”
“I hope everyone can see the versatility
of H&M men’s wear through Lay’s
interpretation,”added Magnus Olsson, GM
of H&M Greater China, at the time.
In late September, H&M released its first
collaboration with Chinese designer Angel
Chen, which it says was inspired by the
theme of“Kung Fu”. “The collection portrays
a surprising, unique East-meet-West street
style via a groundbreaking combination
of vivid colour and embroidery,”Chen’s
publicity explained.
Educated in London but now Shanghai-
based Chen has her own successful label,
which is now sold through 70 retailers
around the world, including department
stores Bergdorf Goodman in the US, Lane
Crawford in Hong Kong, Galeries Lafayette
in France and Selfridges in the UK. She has
tailored garments for influential celebrities
including Bella Hadid, Chris Lee and Fan
Bingbing, all influential pop culture figures
in Mainland China.
Lunar NewYear provides an opportunity
for many international brands to plug in to
a core feature of China’s culture and H&M is
no different.
This year, the brand released what was
probably its most extensive range yet,
spanning women, men and children.
Celebrating theYear of the Rat, items
featured motifs, bold red colour swatches
and comfortable silhouettes, spanning
more than 100 SKUs. The accompanying
campaign and photography focused on
families sharing time together, a core aspect
of the festive season across Asia.
H&M has a long way to go in its Asian
journey. While it has an established
presence in Southeast Asia, there was –
before the coronavirus pandemic – a plan
to open stores in smaller cities.
India is H&M’s fastest-growing market
globally, with 47 stores in tier-one cities
(compared to Zara’s 22) and an online
presence achieving 49-per-cent year-on-
year growth last year. It is now targeting
smaller cities and has announced
a collaboration with local designer
Sabyasachi Mukherjee to launch a new
collection this year.
With their rapidly rising middle class,
parts of Asia represent a huge opportunity
for global fashion brands. Using local
models, influencers and celebrities is a sure-
fire way to engage with consumers, adding
local context to a global brand name.
28. 28 insideretail.asia – April 2020
Sustainable, Insta-worthy and size-inclusive, here are a few
emerging retailers set to hit their stride. By Emma Sharley
I
n a year in which results are predicted
to be mixed, retailers are exploring
new ways to align with the changing
needs and expectations of customers, and
inventive ways to reconcile online and
in-store experiences.
Established global brands are likely to
continue increasing in value, and will be
closely managed in 2020. It’s often those
on the cusp that are the most provocative
and interesting to watch,
so let’s take a look at the fashion
forward-thinkers that are showing early
promise across sales, customer growth,
scalability, community and diversity.
Fabricant
thefabricant.com
Why it’s one to watch: Pioneers in the
digital-only clothing sector.
Origin: Amsterdam, Netherlands
Last year, The Fabricant, in collaboration
with Dapper Labs and artist Johanna
Jaskowska, sold the world’s first piece of
bespoke digital couture,‘Iridescence’, for
$9500 as a blockchain digital asset. The
dress wasn’t made of silk or wool. Instead,
it was a computer-generated image,
made of pixels and superimposed on a
photograph of its wearer.
‘Iridescence’generated global hype
but, more importantly, it legitimised the
concept of virtual fashion and digital
houses. By designing clothes that exist
solely online, digital fashion offers
newness and diversity for social media
feeds without the need to create physical
garments – providing a powerful and more
sustainable alternative to fast fashion.
Summersalt
summersalt.com
Why it’s one to watch: Data-backed, size-
inclusive travel-wear.
Origin: St. Louis, Missouri
With sales reportedly exploding by 610
per cent over the last two years and US
$17.3 million under its belt following
Series B funding, this direct-to-consumer,
eco-friendly brand is making waves in
the lucrative, rising travel wear market.
Created for a mindset, not a demographic,
Summersalt appeals to curious women
who love to explore with fashion
that’s designed for both culture and
convenience. The best part? It’s all available
at an affordable price point from $25 to
$125.
Summersalt’s strategic expansion
into travel-focused apparel comes at a
prime moment. In recent years, the travel
trend has skyrocketed among high-end
consumers, with annual spend on travel
increasing by 6 per cent. The rise of travel
wear is also fuelled in part by Instagram:
97 per cent of millennial travellers post
on social networks when holidaying,
according to research from Chase Bank.
A crucial part of Summersalt’s success
lies in its eco-friendly design ethos. Ninety
per cent of the collection is made with
recycled materials and its packaging is
entirely compostable. On top of this, the
retailer has a rapid development cycle,
quick-response supply chain, design
library of over 10,000 shapes, and a patent
for recommending garments based on
body shape and customer preferences.
Summersalt also brings data to fashion:
the brand took over 1.5 million body
measurements from women around the
world to design the perfect swimsuit. A
smash hit, the swimsuit sold out 25 times
in one year and catapulted Summersalt
into the global fashion arena.
ForDays
fordays.com
Why it’s one to watch: An innovative
circular T-shirt company.
Origin: Los Angeles, California
At first glance, For Days looks like a simple
subscription-based T-shirt company.
But every single purchase goes towards
addressing the waste problem created by
fast fashion.
According to the Environmental
Protection Agency, more than 15 million
tons of textile waste is generated annually
FASHION FORWARDSFASHION FORWARDS
6 OVERSEAS BRANDS
TO WATCH
29. 29April 2020 – insideretail.asia
forward-thinking mindset. All of Ninety
Percent’s materials are responsibly
sourced and built to last. But what makes
this company different is its dedication
to supporting causes they believe in.
Reflecting its namesake, 90 per cent of the
brand’s profits are donated to charity. Once
a customer orders a piece of clothing, they
can choose an organisation to donate to
from a list of charities that tackle various
social and environmental causes.
Jacquemus
Why it’s one to watch: Filter-free fashion
that’s instagrammable
beyond doubt.
Origin: Paris, France
If anyone knows how to sell clothes in a
1080-pixel square, it’s fashion’s favourite
Instagram brand, Jacquemus. Last year,
brand creator Simon Porte Jacquemus
shared a photo of actress Emily Ratajkowski
wearing little more than a straw sunhat
with the circumference of a 44-gallon drum
— and had so much demand that his hat
manufacturer ran out of straw.
As one of the newest brands making
headlines around the world, Jacquemus
is living proof that self-made fashion
brands can survive and thrive. The brand
reportedly expects to double revenue in
2020 and shows no signs of slowing down
anytime soon.
As more disruptive brands enter the
fashion industry, the list of visionary
fashion retailers will only pick up in the
future. Some other more well-known
fashion brands to watch in 2020 include
Aday, Fenty, Rimowa, Mejuri, Ganni,
Outdoor Voices, M.Gemi and Veja.
Unsurprisingly, these brands has
integrated culture and/or convenience
into its approach and brand philosophy,
exemplifying how customer aspirations
and retail business models are shifting.
These brands also demonstrate
the importance and constant pace of
innovation and cause existing and new
brands to make the right bets on what will
drive future demand.
Emma Sharley is the director of Sharley
Consulting, co-founder of personalised
shopping app Shop You, a startup adviser
and a board member of Independent Fashion
Advisory Board.
in the US, with Americans throwing away
about 36kg of used clothing per person
each year. For Days aims to answer this
problem by making permanent changes in
the customer’s consumption pattern.
Founder Kristy Caylor has developed
a unique closed-loop system that’s
empowering customers to be more
responsible with purchasing. Instead of
throwing away a T-shirt once it’s worn out,
it’s taken back to For Days where it’s broken
down into pulp and upcycled into another
T-shirt – zero-waste genius.
In addition, For Days gamifies
sustainability with a rewards system, where
customers are encouraged to buy and swap
as much as they want. For Days tracks the
water, energy, and landfill waste savings
from every purchase and then converts
them into“impact points”which can be
used on future purchases.
Norrøna
norrona.com
Why it’s one to watch: Championing the
“loaded minimalism”movement.
Origin: Lysaker, Norway
One of the most innovative makers of
outdoor gear in the world, Norrøna has
recently expanded to the US. This family-
owned brand pushes the boundaries of
functional apparel with a collection of
eco-friendly products, designed to meet
the diverse needs of outdoor sports
enthusiasts and beginners alike.
Norrøna stands out in today’s fashion
world for its unique approach to
manufacturing. Every product is sold with a
100 per cent guarantee, and Norrøna retail
stores double down as repair centres for
customers to bring their damaged apparel.
The brand also advocates for transparency
and sustainability: the materials and
hardware for every product are openly
available online, along with the factories
they were manufactured in.
Ninetypercent
ninetypercent.com
Why it’s one to watch: A sustainable,
contemporary agent of change.
Origin: London, UK
Another key player in the sustainable
fashion space, Ninety Percent is dedicated
to giving back to the environment and
society. This luxury brand is a driver in the
#DressBetter movement, encouraging their
customers and other companies in the
fashion industry to embrace a sustainable,
30. 30 insideretail.asia – April 2020
Pavilion Kuala
Lumpur CEO Joyce
Yap talks about
how the centre has
evolved in the 12
years it has been
open, the role of
flagships and the rise
of O2O.
PROPERTYPROPERTY
The maturing mall mix
I
n May next year, Kuala Lumpur’s next
supermall will open in the suburb
best known for hosting the 1998
Commonwealth Games.
Pavilion Bukit Jalil shopping centre is
being developed by the same team behind
the downtown Kuala Lumpur Pavilion. Once
completed, the 1.8 million sqft development
will have a catchment of 1.9 million people,
85 per cent of them locals, the balance
tourists. The centre will feature a 300,000sqft
multi-storey Parkson department store, and
smaller anchors Dadi Cinema, China’s second-
largest cinema group; Harvey Norman; Food
Republic and a grocery concept called The
Food Merchant.
Dato JoyceYap, CEO of Kuala Lumpur Pavilion,
is the retail planner of Pavilion Bukit Jalil.
Inside Retail Asia sat down and talked to her
about how retail in Malaysia has evolved in
the 15 years since Pavilion Kuala Lumpur was
conceived and how the next venture will differ.
PavilionKualaLumpurhasbeen
tradingfor12yearsnow.Whathaveyou
learntinthattimethatwillinfluencethe
newproject?
Theory is theory. How you actually execute
it – and execute it in the right timing – is
very important. Fifteen years ago, when
we started planning for Pavilion Kuala
Lumpur, everybody told us there should be
only one luxury mall in Malaysia. We went
against that thought, by working together
with researchers who understand the retail
market. I learnt that no matter how much
By Robert Stockdill
The Pavilion Kuala Lumpur
has now been trading
for 12 years, but it has
changed a lot in that time.
31. 31April 2020 – insideretail.asia
research you do, you have to look at the
real situation in terms of not only human
character, but the business trends also –
the wants versus the needs.
For the past 12 years, we have been
learning, learning, learning. But now not so
much. Now I can sit together with retailers
to come up with a formula to mitigate the
risk for all stakeholders. I think that is very
important ... to base the relationship on
trust. To me, everything has to be correct.
Firstly, at the conceptualisation stage:
You have got to know how to plan the
project, you have got to understand the
demographic, you have got to understand
the current market and how you foresee
for the next three years – not too far ahead.
Then, after conceptualisation, you need
to run focus groups with the people that
you think should anchor your tenant mix.
Then, because of our relationship with our
tenants, I usually get a very frank opinion.
Never ever ask a retailer how much rent
they will pay you, because nobody’s going
to pay you more, okay? But they will more
or less tell you what sales they forecast.
How do they see this market? What do they
need in terms of technical requirement or
assistance from the landlord? Then after
you get this, you have to identify who are
your category killers and anchors because
when the leader comes, the followers will
follow.
Once open, you have to look at
your marketing. You must have a very
aggressive team which understands
that the success of a marketing strategy
is not based on just traffic. It has to be
based on how traffic translates into sales.
Sometimes you do not look at the sales
or at the traffic, but you look at the value
creation, or the social-media profile or the
community.
Yousaidyoupolledtheretailers,your
prospectivetenants.Whatdidthey
tellyouthatmighthavesurprisedyou
orchangedyourvisionforthecentre?
Number one is the trend of food &
beverage. Previously we felt that F&B
should not be more than a certain
percentage of the total space, but with
today’s trends, it needs more space. Some
of them will need delivery access for
GrabFood-style services. So, their business
model has to change. They may not need
a very big kitchen or they may not need
a very big outlet, but they will ask you
in return for space for them to pack the
delivery orders.
Secondly, the services. For example, in
Australia, some Westfield Centres have
valet parking and a very good valet car-
park lounge.
Next, you look at the entertainment
element. In the past we would always say
if there is an area nobody wants, you can
turn it into a gaming or entertainment
centre or whatever. Now it is a component
you must put in, especially if you are going
to entice families.
Isthere anythingspecificthat15
yearson,you’retakingacompletely
differentapproachto?
Over the last 12 years, the Pavilion
tenant mix and model has changed
tremendously. For example, we used to
have a lot of large format, so-called mini
anchors and department stores, which
we have converted into other purposes.
For instance, Tokyo Street. It used to be
a designer furniture corner. At the time
we opened there were a lot of high-end
condominiums around us and we thought
a high-end furniture zone would cater very
well to them.
Unfortunately, it did not turn out right
because these high-end people ask the
retailers to go and see them – they ►
Kuala Lumpur’s next Pavilion centre is scheduled to open in May next year at Bukit Jalil.
32. 32 insideretail.asia – April 2020
don’t come here [to a showroom] to talk.
Secondly, if I want to buy very expensive
furniture, their showroom in the mall is not
big enough for me to see the whole range.
So in the end, our traffic was low and it was
very difficult for us.
Through our exit surveys, we found that
our Japanese restaurant was continuously
doing well – and Asians and Malaysians
love Japanese concepts. So we changed the
whole precinct – 36,000sqft – and invited
a Japanese architect and an operator and
marketing manager to create Tokyo Street,
which has won us a lot of awards. The traffic
to that space has gone up three times and
my return has doubled. But the challenge
now is sustainability. Can we keep on
getting authentic Japanese food? That will
be our challenge.
The other precinct we have changed is
where we used to have a Tangs department
store. We had strong demand from specialty
stores wanting to come into the centre, so
we reconfigured that area and invited 36
brands there.
Didyoutakealookatanycentres
overseaswhenyouwereplanning
PavilionBukitJalil?Wheredidyouget
theideasforthedesign?
Usually we go to Japan for inspiration. I go
to Thailand to really understand the flagship
store, the services and things like that,
and the supermarket food offering is so
interesting. Then we usually go to Australia
to learn concepts about cafes and food, and
also centre management. In the UK we like
to look at department stores like Selfridges
and Harrods, which are continuously so
successful. And also, you know Harrods’
owner is a strong partner in Pavilion. And
nowadays I love to go to Dubai, because it
is a very interesting country where all the
brands converge. When I was young we
used to go to Hong Kong. But it has lost the
magic now, and so has Singapore.
Inthenewcomplexthere’snoluxury
componentasthereisinPavilionKL?
No. I’m looking at the highest as affordable
luxury, brands like Coach, Michel Kors or
Kate Spade. The rest of it I want in trend
with the performance store concept. The
performance category is the‘in thing’. So I
need to have a good JD Sport store, a good
Adidas, a good Nike, and a good Lululemon.
And that part of the city is traditionally a
sports hub.
Soyou’regoingtohaveasportshubin
recognitionofthesportsheritageof
thearea?
Yes, because we also have 80 acres of
parkland connected to this property. So
we intend to tell our retailers that okay,
besides running your zumba dance classes
or your gyms in our piazza, if you want,
you can adopt a small area in the park for
a badminton court, or a jogging track, a
One of the mini anchors at Pavilion Bukit Jalil will
be a new grocery conceptThe Food Merchant.
A bird’s eye view of the Pavilion Bukit Jalil
currently under construction.
Entertainment elements are an
essential part of today’s retail
malls, says JoyceYap.
33. 33April 2020 – insideretail.asia
bicycle trail, things like this. It has to be
something different.
Howdoflagshipsfitintothemodern
malldesign?Istheeraofflagship
storesover?
No, no, no. I think the definition of a
flagship should not be confined to size. It
should actually include examples of your
merchandise. For example, can this store
feature limited-edition products? Secondly,
for personal services, such as a private
room. Number three is does this flagship
store give me something more compared
to your other stores? So besides size, these
are the things I’m looking at.
The exception may be Hermes or Cartier,
for example, that can have only one or two
stores in the city, not 10. You cannot tell
them you can only have a flagship store.
But you can tell them that if you want it in
my centre, I demand something more. But
SinceTokyo Street replaced a high-end furniture precinct at Pavilion KL, foot fall in the zone has trebled.
for, like, The Body Shop, we can say: You
may have 140 shops but why would people
come to the Pavilion for The Body Shop
when the traffic is so bad in town? So I tell
them that you need to give me something
more.
Manypeoplehavebeensayingthat
KualaLumpurhastoomanyshopping
malls.What’syourviewonthat?
Government statistics define shopping
centres to even include arcades. That is
not a very good definition. We should be
talking about quality. During the past 20
years … less than 10 quality centres have
not only survived, they have survived very
well. The difference between them and
the rest is the occupancy rate and per-
square-foot sales compared to all those
older ones.
Today, retailers are selective. That’s why
I say that unless you do not want to be in
this business anymore, you need to be in
the good shopping centres. How many
good shopping centres are out there?
I mean, you can count them. Only this
week, a shopping centre only 40 years old
is being demolished because the model
was not right. It was strata titled. Today
if you’re in a strata title ... I won’t say you
will die, but it is hard to compete. So I say
that if you believe you can build a quality
shopping centre, you should do it.
But you should build it as an integrated
project, don’t build a stand-alone mall.
They will need a lot of effort to promote
and build up. Next, you need to look at
the content. Even if you build the largest,
it may not be the best, but the largest
promises to give you flexibility of area to
cater for more concepts, more brands and
make it more of a community centre so
you can command more market share.
But you must know how to plan and
manage it.
Whatareyoudoinginthenewcentre
torespondtotheO2Otrend?Areyou
talkingtoallyourtenantsandasking
themtobringsomethingdifferentto
thetable?
You cannot ignore O2O. It will definitely
come. For the retailers now, the statistics
show that 10 per cent of the people
are using online to gain knowledge
and information. Ninety per cent of the
purchasing is still done in physical stores
and they find that people who have done
the online research and come to the
physical stores will buy more than what
they would usually order online.
Next, online for them is not about cost
saving. The logistics cost is very high. When
Alibaba talks about how many billion
dollars worth of goods they sell during
11.11, they never tell us how much of that
was returned.
But you cannot ignore this and a lot of
high-end brands are using O2O as well.
JoyceYap, CEO of Pavilion
Kuala Lumpur and retail plan-
ner for Pavilion Bukit Jalil.
34. 34 insideretail.asia – April 2020
How artisan bakeries
and patisseries are
exciting the taste
buds of consumers
all over the world.
TRENDSTRENDS
Rising to the occasion
B
akeries and patisseries are going
upmarket. Gone are the days of
whacking some loves of bread
on the counter, popping some sausage
rolls and custard tarts in the window and
calling it a day. Now, it’s all about Insta-
worthy shop fitouts, artisanal products and
offering special in-store experiences.
A 2017 Mordor Intelligence report on
global baking pegs the total market size of
bakery products at US$530 billion by 2021,
with a 4.5 per cent CAGR. This is driven
primarily by developing regions such as
Africa and Asia Pacific, although according
to a Grandview Research study, specialty
stores are expected to remain dominant
even in Western markets, accounting for
33 per cent of stores selling baked goods
globally by 2025.
In many Western markets, baked
By Norelle Goldring
Edible sourdough from Margot Bakery in London.
35. 35April 2020 – insideretail.asia
goods volume growth is flat. An
IBISWorld’s report on bread and cake
retail in Australia last year estimated
industry annual growth between
2014 and 2019 at minus 0.2 per cent,
theoretically making it tough for
the 96.8 per cent of bread and cake
retailers that are small businesses
employing fewer than 20 people.
There has been a downward shift
in volume – people are eating less
bread – but this has been offset by
an increasing move to premium and
artisan products – as has been the
case with liquor. Because of the shift
to premium goods, IBISWorld Australia
forecasts that baked goods industry
revenue will actually rise 1.7 per cent
annually from 2016 to 2021, to reach
US$2.55 billion.
Artisan bakeries are growing at the
expense of traditional bakeries and
hot bread shops, with the number
of independent bakeries in Australia
expected to decline over the five years
through 2018-19, as some traditional
stores struggle to compete against
the large franchises and the rollout
of in-store supermarket bakeries with
artisanal bread offerings.
Artisanal bakeries are increasingly
differentiating themselves not just
with product, but with design and
experience.
Creativityandcarbs
A broad range of consumer trends are
driving the rise of the artisan bakery,
stretching back 15 years or so to the
beginnings of the cupcake bakery
craze in the mid-noughties. Cupcakes
were prized for their creativity,
flavour combinations, visual appeal
and personalisation. A similar rise of
macarons ensued, driven by a rising
interest in baking as a result of cooking
reality TV shows such as MasterChef
and Great British Bakeoff.
At the other end of the spectrum,
rising health consciousness has driven
spend on healthier baked goods.
Consumers are moving away from
sliced white bread into artisanal,
wholemeal, seeded, organic and
dietary-specific products. This has
motivated bakeries to include fortified
and functional ingredients such
as legumes, oats and probiotics in
products. Noglu, in Paris, is a bakery
dedicated to gluten-free baked goods.
Bread categories perceived to
contain fewer carbohydrates, such as
flatbreads, are also doing well.
From a channel standpoint, the
authentic, customised and niche
nature of artisan bakeries taps into
broader consumer trends towards
personalised experiences in locations
with a sense of place, ideally deemed
Panscape bakery in Kyoto.
AVyTA Boulangerie in Italy.
A Panscape bakery display.
37. 37April 2020 – insideretail.asia
shareable and Insta-worthy. Design is
becoming increasingly important.
Bringingbeautyintothebakery
Although the products may be rustic,
designer bakery spaces may be the
opposite. Many designs are minimalist,
understated and clean to better show off
the products. VyTA Boulangeries, located
throughout Italy, feature light oak and
black polymer surfaces and hexagonal
beehive detail, giving it the air of a high-
end fashion boutique or bar.
At the other end of the spectrum,
some designer bakeries leverage the
authenticity their historic location lends.
New York’s Arcade Bakery, located in a
1920s Tribeca office building, is nearly
invisible as its bakery window is built into
a wall, but the fold-down tables which fall
out of the walls give it away. And in the
UK, architect Lucy Tauber has transformed
a derelict post office in north London into
an artisanal bakery with its kitchen on
show, using bespoke industrial elements
such as steel and ribbed glass to convert
the space into the Margot Bakery.
Many designer bakeries are squeezed
into small spaces. Despite a tiny space of
26sqm, Japan’s Panscape bakery in Kyoto
has components of cement and aluminium
and also features a half- tonne log.
The Bake cheese tart chain’s Kyoto
storefront features a service counter
made of Lego bricks. Tokyo-based Yusuke
Seki designed the Kyoto outlet, telling
Dezeen website that Lego connects with
visitors.“This architectural fabric serves as
the shared language of communication
between those whose spoken language
may differ,”he said.
Atablewithaview
And then there are those featuring unique
products or elements. Copenhagen
breakfast, dessert and ice cream sweet
specialist Winterspring, until 2018 a
caterer, recently opened a Nordic-feel
space featuring Swedish ceramics and
embroidered linens.
In Hangzhou, China, the N2 patisserie
pairs pastel pink and white surfaces with
glass bricks to make a 40sqm space appear
much larger.
The bakery is located in a busy shopping
area, and the designers, YPYC Architects,
installed a wall of glass bricks across the
storefront to blur the view, muffle the
sound and filter and diffuse direct sunlight.
Lune Croissant’s space features a
futuristic, temperature-controlled cube in
which patrons can view croissants being
rolled. Melbourne’s Q Le Baker at the
Prahran Market sports kitchen- viewing
windows and Hollywood-style dressing-
room mirror lights to impart the feeling of
theatre.
As the supermarkets attempt to compete
in artisanal baked goods, independent
bakeries increasingly look to not only
products, but experiences and design the
supermarkets cannot provide.
This feature originally appeared in
Inside Retail Weekly’, our Australian
sister company’s subscriber-only edition.
Subscribe at: www.insideretail.com.au/shop
Norelle Goldring has 20 years’ experience
in retail, category, channel and customer
strategy, marketing and research and has
worked with global retailers, manufacturers
and consulting houses. Contact:
norrellegoldring@hotmail.com
38. 38 insideretail.asia – April 2020
New stores in Asia
Sephora Malaysia launched a new flagship store at
Fahrenheit88 shopping mall in Kuala Lumpur, the French
beauty brand’s largest outlet in Southeast Asia. The
17,000sqft store is also home to the brand’s first Beauty
Loft in the region. Sephora Fahrenheit88 also features
Sephora University, a Sephora Lounge for events, and a
photography studio for beauty-brand takeovers to engage
with the customers, influencers and KOLs.
Sephora,KualaLumpur
The Fendi Nihonbashi Mitsukoshi store,
which has relocated and reopened with
the latest global style concept, shows
selected materials and unmatched
craftsmanship in every detail. The
boutique features a diagonal mink design
inspired by the iconic Astuccio fur and
the“FF”logo designed by Karl Lagerfeld.
It carries a wide selection of women’s
products from fur and leather goods,
shoes, accessories, and textiles that
represent the brand.
Fendi,Japan
A glimpse inside some of the exciting retail concepts
to open around the region in the last quarter.
Taking over the Tiger Balm factory on Neil Road, Shake Shack’s second
store design was inspired by the Chinatown neighbourhood and
colourful Peranakan architecture. The store also introduces two new
local dishes, Eye of the Tiger and Open Sesame, based on local flavours.
To support the local art community, 5 per cent from sales of the local
products will be contributed to Very Special Arts Singapore (VSA),
a non-profit organisation providing opportunities for the disabled
through arts.
ShakeShackNeilRoad,
Singapore
39. 39April 2020 – insideretail.asia
Located at One Raffles Place, the first
standalone M&S Food store in Singapore
features take away hot food, ice cream
and coffee, besides M&S-branded
groceries. The store also features self-
checkout machines, digital ticketing and
digital menus. The M&S Food store allows
customers to pre-order coffee through
Facebook Messenger and pick it up at the
store after paying with a digital wallet.
M&SFoodstore,
Singapore
Starbucks Ecopark is the brand’s first store
opening for 2020 in Vietnam. Designed
by local company Vietnambuilding,
Starbucks Ecopark features a mixture of
rural and modern aesthetics. The new
Starbucks cafe’s exterior features wooden
louvres across the entire ceiling. The
designers incorporated the exterior brick
into the space and used natural materials
such as wood finishes to amplify the
atmospheric mood.
Starbucks
Ecopark,
Vietnam
Designed by Jun Aoki and Peter
Marino, the Louis Vuitton Maison
Osaka Midosuji flagship store features
the brand’s first cafe and restaurant:
Le Cafe V and Sugalabo V. Both the
cafe and restaurant are overseen
by Japanese renowned chef Yasuke
Suga, offering cuisine with Franco-
Japanese influences. Inspired by
sailing vessels, the store’s facade
resembles a floating ship with a light
and airy white structure.
LouisVuitton,
Japan
40. 40 insideretail.asia – April 2020
Pop up of the Quarter
TOASTING HENNESSY AT CHANGI AIRPORT
H
ennessy recently closed what was
one of the longest-running pop-up
retail installations for both the
brand and Singapore’s Changi Airport.
Located in Terminal 1, the pop-up
was adapted for its final six weeks to
mark Lunar New Year. The liquor brand
collaborated with contemporary Chinese
artist Zhang Huan to create an experiential
zone offering special New Year-packaged
products and interactive features with
souvenir photos, personally engraved
products and celebratory cocktails.
At the heart of the promotion was
the commissioning of a work of art from
Zhang Huan called Eaux-de-vie. The
artwork, featured throughout the space,
including on limited-edition packaging, as
a backdrop to photos in a selfie booth and
on red packets.
Described as“a vibrant and resonant
dreamscape”, Zhang Huan’s Eaux-de-vie
spans more than five metres. He says he
sought to create a work of art that would
express a reflective quality that captures
the essential meditations every New Year
brings.“Making art is about using an object
as a vehicle to express inner thoughts, or a
spiritual side,”he explains.“Eaux-de-vie is
intended as a natural, living expression.”
Adding to the experience, a‘molecular
tasting bar’allowed travellers to taste
two different Hennessy VSOP cocktails
encapsulated in‘pearls’that pop in the
mouth.
The core of the installation, however,
which dated back to its October launch,
was a multi-sensory experience which
highlighted features of the flavour of
Hennessy cognac. Think of it like an art
gallery where audio-visual rendering
explained the tasting notes of a wine
connoisseur.
Visitors were greeted by a stunning
video directed by British filmmaker Ridley
Scott before progressing through seven
different rooms, each highlighting a tasting
note of Hennessy, including chocolate,
honey and chilli.
“At Hennessy, we recognise that travel
retail is an amazing platform to build
brand desirability in front of affluent and
sophisticated consumers,”said Laurent
Boidevezi, Moet Hennessy’s global travel
retail president.
“Crafting experiences is at the heart of
Moet Hennessy’s DNA. This Chinese New
Year, along with DFS Group and Changi
Airport Group, we wanted to combine
the traditional with the modernity by
presenting customers with a revolutionary
molecular tasting experience using
Hennessy VSOP”he said.
An experiential journey allowed visitors to identify tasting notes of
Hennessy on a multisensory trail.
For Lunar NewYear, a‘molecular tasting bar’allowed travellers to taste two different
HennessyVSOP cocktails encapsulated in molecular‘pearls’that pop in the mouth.