Alpha Fashion Group’s Post

Mulberry Group (AIM:MUL), the maker of luxury handbags, said its sales have been impacted by a decline in luxury consumer spending.  In a trading update for the 13 weeks that ended 30 December 2023, it said group revenue fell 8.4% compared to the equivalent period a year earlier, as the company maintained its full prices in the days leading up to Christmas.    Mulberry said sales were hit by the tough economic climate.  "In the run up to Christmas, the macro-economic environment continued to impact consumer spending in the luxury retail sector, which Mulberry was not immune from," said chief executive officer Thierry Andretta.  “Despite this, the group maintained its discipline and focus on a full price strategy against an unusually high promotional environment.”    Retail sales alone fell 1.5% in the period, while UK sales slumped by 4% compared to 3.9% growth in sales abroad.  More at #Proactive #ProactiveInvestors #AIM #MUL #mulberry #luxury #handbags http://ow.ly/Fq3z1059hkX

"Dior paid a supplier €53 apiece, roughly $57, to assemble a handbag that it sells in stores for €2,600, or about $2,780, according to documents examined as part of the probe. Armani bags, meanwhile, were sold to a supplier for €93, then resold to Armani for €250, and ultimately priced at around €1,800 in stores, the probe found. Some of the raided workshops, all of which were in Italy, were also making products for other fashion brands, prosecutors said. “Why does it cost so little to manufacture the product?” said Fabio Roia, president of Milan’s court system, which has overseen the probe. “The brands need to ask themselves this question.” Source: WSJ [link below] ---- We thought sweatshops were only in China! Turns out they can be found in Italy too, where illegal immigrants do the work. Image: A workshop where Armani products were made in northern Italy is seen in a partially redacted photo provided by Italy’s Carabinieri police. #luxury #retail #armani #dior #ecommerce

The Indian jewellery retail market is changing drastically. Till now it was dominated by small and medium-sized family-led enterprises, but now large retail chains are entering the market. With the changing scenarios, standardization in this sector is slowly changing the landscape of the sector and buying patterns of the consumer.  #jewellerymarket #jewelleryretail #familybusinesses #standardization #consumertrends #modernization #luxurygoods #jewelleryindustry #goldjewellery

M&S’s Polo Some 30 years ago, BDALondon was working with M&S to help develop products that they could no longer make in their supply chain in the UK. At the time, 99% of goods sold in M&S were made in the UK, but they were under price stress from competitors sourcing from the East. Quality and styles had been compromised to hit commercial price points. We landed in Hong Kong (still a British colony) with lots of product ideas around 1990. One of the M&S buyers (or selectors, as they were called) for the leisurewear department (known as T28) was thrilled to have discovered the factory that made the polo shirt for Ralph Lauren, which was the gold standard at the time for quality, style, and fit. M&S developed a very similar polo with the said factory and realized they could hit a retail selling price of circa £5*, compared to RL's £25*. *These price points are what I remember, so don’t quote me, but it gives you an accurate relativity. (Please, anyone in my network, help with more accurate price pointing.) The assumption was this superior quality, fit, and style would offer the M&S customer such great value that sales would grow exponentially. However, what wasn’t factored in was the old dark arts of marketing! As you’ve probably guessed, there was no significant change in sales. The same guys came into the same store and bought the same amount of polos that they’ve always needed. From both brands. The strength of the M&S brand was so strong that customer loyalty drove a perception that M&S quality was always superior to anyone else’s. The strength of Ralph Lauren doesn’t need explaining. #innovation #offshore #sustainabilty #bdalondon #trendhub #marksandspencer #ralphlauren

Today's The Robin Report looks at #luxurywatches amidst the acquisition of Roberto Coin Inc. by Watches of Switzerland Group PLC Insightful and Informative and (as always) Unbiased #luxuryretail #retailjewelry Read and Subscribe for the Daily content 👇

Shein acquires Missguided; case study on its growth to largest online fashion seller. 💲 SHEIN, the Chinese fast fashion giant, has acquired the IP and trademarks of Missguided from Frasers Group who had rescued the company from administration last year. Frasers will retain Missguided's real estate and employees who have been integrated into Frasers' fashion division. Shein has entered an agreement to license the Missguided brand to Sumwon Studios, a joint venture between Shein and Missguided's founder Nitin Passi. The brand will now be managed through this JV, with products manufactured through Shein's on-demand model and sold on Shein and Missguided.com Shein company profile: Shein has grown tremendously since starting in 2008, now generating $30B in revenue with over 74M active shoppers globally including 13.7M in the US. Its rapid inventory turnover of 2,000 new items daily and app-only model has driven strong growth even during the pandemic, initially in China and now globally. Shein surpassed rivals like ASOS.com and Zalando in size and now dominates the fast fashion space in terms of scale, outselling other players many times over. Rising costs have recently impacted profits but Shein remains the largest online fashion seller worldwide and continues to grow rapidly through expansion and acquisitions like Missguided. #ecommerce #shein #novalglobal

Digital is playing an increasingly important role in retail; however, strong brick-and-mortar trends have proved that physical retail has its place and isn’t going anywhere. According to the NRF, “As the role of brick-and-mortar stores has evolved in recent years, they remain the primary point of purchase for consumers, accounting for approximately 70% of total retail sales.” See which online and retail brands are launching their flagship locations or are growing their presence through store expansion strategies. 👉https://ow.ly/I1en50QjcP3 #storestrategy #retail #retailnews SWAROVSKI Citizen Watch Southern Glazer's Wine & Spirits TYR Sport, Inc. UNIQLO MINISO USA Mizzen+Main

November in southern China is shaping up to be a tale of two cities. At the start of the month, fashion insiders gathered in Shenzhen for the re-staging of Chanel’s latest cruise show. On Nov. 30, they’ll gather again for Louis Vuitton, this time in Hong Kong — across the border in China’s special administrative region but just 15 minutes away by high-speed rail — to see Pharrell unveil his second menswear collection on the city’s Avenue of Stars. The spectacle will be held in partnership with local tycoon Adrian Cheng, who owns the K11 Musea mall that sits beside the attraction. Until recently, few brands staged local activations in Shenzhen, calculating that the city’s wealthy could easily visit nearby Hong Kong or Guangzhou to shop. But three years of Covid restrictions, which put Hong Kong off-limits for mainland Chinese, and Shenzhen’s growing tech wealth, have made the city more important to brands. At the same time, Hong Kong’s image and economy have both suffered from the squashing of pro-democracy protests by Beijing’s contentious national security law and three years of population decline, including a wave of locals moving permanently overseas and the departure of more expatriate talent. Read the full story below. #LouisVuitton #China

Luggage manufacturer VIP Industries Ltd. has opened the first outlet of its handbag brand Caprese in Delhi’s South Extension. VIP Industries Limited | Caprese Bags Click on the link below to know more... #retailnews #retailtrends #retailsector #retailindustry #retailing #retailresults #retailupdates #businessnews #retailgrowth #retailsectornews #retailindia #retailtrends #retailbusiness #ir #IndiaRetailing 

Another luxury retailer that becomes a luxury brand owner… Interesting move for Watches of Switzerland Group PLC, owner of multiple retail chains that mostly retail luxury watches and a few luxury jewelry brands to purchase premium fine jewelry brands Roberto Coin S.p.A. We think it’s interesting as we have seen in the past that publicly listed Singapore based PMT THE HOUR GLASS owned watches brands in the past but has decided to de-invest and never to invest in watch brands again as an ingsstoe and solely be their retail partner. We also have seen that privately owned retailer Govberg Jewelers | The 1916 Company started pre-owned watch powerhouse WatchBox | The 1916 Company and with that holding bought ultra luxury brands De Bethune & Manufacture Reuge. So, this move by WoSG is interesting as one publicly listed luxury retailer moved away from this strategy and now history repeats itself. But times are different, as most of the brands today have become retailers and therefore are verticalizing. So, these retailers buying brands is not that weird, as it is a reversed vertical integration. Read more: https://lnkd.in/e4x5tzkN #WatchesOfSwiterland #WoSG #RobertoCoin #TheHourGlass #Luxury #Strategy #Retail