India and the Middle East are emerging markets yet India is “close to the inflexion point to where China was 15 years ago,” said Sanjay Kapoor, managing director of Genesis Luxury Fashion Pvt. Ltd., which owns Indian fashion labels, operates stores and partners with foreign brands entering the country.
And the Middle East is “quite volatile,” observed Said G. Daher, chief executive officer of Azadea Group, which is based in Lebanon and manages over 35 brands in the region. “We live in a market where we are not sure what’s going to happen in the next week, especially after the Arab Spring, which is actually boosting the retail market.”
At the Global Sourcing Forum’s roundtable discussion, Kapoor said India retailing is undergoing “a second revolution.…The first time, when lots of brands came, rents were terribly high and productivity was terribly low. People were selling as much as they were paying rent. They tried to control businesses from Milan, Paris, Singapore or Hong Kong. But we are now seeing some real growth rates. In the last three, four years, same-store sales are going up 30 percent,” with urban areas growing more rapidly than rural areas.
The Middle East “enjoys great demographics,” noted Daher. “More than 50 percent of our population is actually below the age of 30. We are also blessed with countries that are extremely wealthy. We control the majority of production of oil. And the revenues from the oil are being invested into the region.”
Much of the female population doesn’t work. Instead, women shop often. “The Dubai Mall is magnificent. It’s actually a leisure center, not just a place to shop,” though sales per square foot are probably three times as much as major malls in America, Kapoor noted.
Also on the panel were Stanley Silverstein, executive vice president of international strategy and business development for Warnaco Inc., and Mortimer Singer, president of Marvin Traub Associates, who moderated.
Underscoring the potential of global growth, Silverstein said eight years ago Warnaco generated 20 percent of its revenues abroad. However, the business model changed and now 60 percent of revenues are generated overseas, and the company expects it to reach 70 percent in the next several years.
For Warnaco, China is red hot. The company does $170 million in revenues in China and sees the business growing to $400 million to $450 million in a “handful” of years. Brazil is also strong, accounting for $140 million in revenues which are seen doubling over the next several years.
India is a different story. Brands need to adopt “a longer-term horizon” for growth, Kapoor said. “Many brands may not be very well known. To create brand awareness you need to spend money. The brand building exercise is slightly longer. We do expect to break even in three to five years,” with brand partnerships. “I don’t think we are signing any contracts below ten years. Eight to ten years is really the bare minimum.”
“There’s a good deal of first-mover advantage in each of these markets. If I had a power brand I wouldn’t wait. I would figure out a way to put my flag down,” said Silverstein.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)