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Paytm’s parent, One 97 Communications Ltd, is taking steps to “strengthen the governance framework across our group entities (especially regulated entities)” by appointing subject matter experts as advisors of independent directors, says founder Sharma in letter to shareholders. Going forward in the ongoing fiscal, Paytm also anticipates reduction in employee costs.
“We saw revenue growth of approximately 29% for our India operations during Q1 FY2025 as compared to Q1 FY2024, led by robust operating momentum on the ground with healthy same-store-sales-growth of approximately 12%. We launched 13 Kalyan Franchisee-Owned-Company-Operated “FOCO” showrooms in India during the recently concluded quarter, with a strong pipeline of showrooms set to open in the coming quarters in line with our previously communicated guidance,” the release added.
Malabar Gold & Diamonds, the world's sixth-largest jewellery retailer, opened its second UK showroom in Leicester on Thursday. This new 2,000-square-foot store is on Belgrave Road's Golden Mile. The inauguration was done by Leicester City Mayor Peter Soulsby. The store features over 20,000 jewellery designs from 20 countries. It caters to various wear categories, including bridal and office, the company said in a statement.
"The auspicious week of Akshaya Tritiya witnessed double-digit growths (in Tanishq secondary sales) compared to the same period last year. However, high gold prices and their continued firmness had an impact on consumer demand," Titan said.
Gold demand in India, the world's second-largest gold consumer and a major importer, has slowed as rising prices deterred buyers who are awaiting a potential import duty cut in the upcoming budget.
Gold has performed remarkably well in 2024, rising by 12% year-to-date and outpacing most major asset classes. Gold has thus far benefitted from continued central bank buying, Asian investment flows, resilient consumer demand, and a steady drumbeat of geopolitical uncertainty. As we look forward, the key question in investors’ minds is whether gold’s momentum can continue or if it’s running out of steam.
PC Jeweller Ltd on Sunday said that Punjab National Bank has given its approval for one-time settlement of its outstanding dues. In a regulatory approval, PC Jeweller informed that "Punjab National Bank, the third largest bank after State Bank of India amongst consortium banks of the company in terms of its exposure, has conveyed its approval to the One Time Settlement (OTS) proposal submitted by the company."
In the April-June quarter, India's demand for gold dropped by up to 15% compared to the previous year, largely due to soaring prices deterring consumers. With fewer auspicious wedding dates in July, jewellery sales haven't seen a significant uptick, although some regions experienced sporadic increases during the Rath Yatra festival. Gold prices have risen sharply to around ₹73,000 per 10 gm, up 15% from the beginning of 2024. Jewellers are cautiously optimistic, expecting a potential revival in demand during the upcoming festive season and noting a shift towards investment in gold amid subdued jewellery purchases.
The gold trade is looking forward to the upcoming budget for measures to boost retail consumption and address issues like gold smuggling. Industry leaders are urging the government to reduce import duties on precious metals and revise the PAN card limit. Expectations include duty drawback on exports to enhance competitiveness and support growth in the jewellery retail sector.
Consumers are shifting from gold jewellery to gold bars and coins due to rising gold prices, as reported by the World Gold Council (WGC). Despite high prices dampening jewelry demand, gold bars and coins remain popular. The domestic gold price discount to the international price widened significantly in July.
PC Jeweller has reached a one-time settlement (OTS) with a consortium of lenders led by State Bank of India (SBI) to settle its debt by offering banks a mix of cash and equity in the Delhi-based company. The ₹2,250-crore offer represents a 20% haircut to lenders' principal amount and 64% recovery of total dues, including interest of ₹3,500 crore.
Union Budget 2024 proposes to cut the customs duty to 6% on Gold and Silver. Moreover, the finance minister has also proposed to reduce customs duty on platinum to 6.4%.
Speaking about this first-ever meeting with gem and jewellery trade from Kashmir, Vipul Shah, Chairman, GJEPC said, "We had a very productive discussion with trade members of Kashmir. We are committed to enhancing the prominence of Kashmiri sapphires and empowering local artisans with advanced skills. This initiative aligns with our mission to strengthen the gem and jewellery sector, facilitating growth, international recognition, and boosting exports from the region. We sincerely thank the Kashmiri trade for their engagement and look forward to fruitful collaborations ahead."
They are calling the Union Budget 2024 a game-changer for the diamond, gems, and jewellery industry and it has provided an opportunity for India to step closer to becoming a global diamond trading hub.
A few other relaxations, like ring-fencing old stocks, announced by the European Commission, the executive arm of the EU, would give a further breather to the local diamantaires which constitute the world's largest importer of rough diamonds. According to a statement issued by the Commission on Monday, the ban on import of Russian diamonds would not extend to either rough or polished stones which were there in the EU and other countries (like India) before the beginning of the sanctions in March 2024.
The recent customs duty cut in the budget has triggered a rush at jewellery stores as consumers buy gold in preparation for the wedding season. Prices fell sharply after customs duty cut announced in Budget 2024, sparking a 20% increase in demand. Jewellers have canceled artisans' leave to keep up with the surge.
Against the backdrop of the macroeconomic scenario, the council urged the government to take measures to revive exports in this sector. It also requested to introduce the sale of rough diamonds in SNZs (special notified zones); and "reduce the import duty on gold, silver, and platinum bars to 4 per cent; and introduce duty drawback on exports of platinum jewellery to take advantage of India UAE comprehensive economic cooperation agreement".
"The cut in basic custom duty on gold prices makes the yellow metal cheaper. While this can lead to weaker market sentiments due to the sudden change, retail investors stand to benefit from the new, more attractive pricing for gold," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities told PTI.
In the world of gold investment, tracking prices, inflation data, and the Federal Reserve's stance is key. Market dynamics shift based on factors like GDP estimates, equipment spending, and spot silver prices. Understanding these nuances is crucial for making informed investment decisions in a constantly evolving economic environment.
BUDGET NEWS: Indian gold demand remains subdued due to high prices, with expectations of an import duty cut in the upcoming budget. Meanwhile, Chinese demand also declined. Domestic gold prices hovered near Rs 71,600 per 10 grams, down from a peak of Rs 74,442 last month. Dealers offered discounts up to $9 per ounce on official prices, including taxes. The market anticipates increased activity closer to the festival season in Q3
Titan Company announced its expansion into Bangladesh by launching its jewellery brand Tanishq through a joint venture with Rhythm Group. This initiative, aimed at bolstering its international presence, will begin with the establishment of a manufacturing facility in Narayanganj. Titan already operates 17 Tanishq stores across various international markets including the UAE, US, Qatar, Singapore, and Oman.
The first tranche of a share buyback programme will begin in March 2024 and end on May 6 2025, the statement added, with Puma expecting to buy back and then cancel 100 million euros' ($108.43 million) worth of shares.
The trend of premiumisation is gaining momentum in the footwear, watches, and gym apparel market, with consumers seeking quality, exclusivity, and a deeper connection with their brands. Adidas and Myntra have seen a 30-40% increase in premium options on their website, reflecting this trend. India's large population aspiring for better products and a natural consumer behavior of constantly seeking improvement are driving this trend.
Nirdosh Chouhan is a member of the founding team at Agilitas Sports. He will lead tech at Agilitas.
Singapore’s Temasek and US-based Fidelity have invested around USD 200 million in eyewear company Lenskart via a secondary share sale.
JD, which sells Nike, Adidas and other sports fashion ranges, now expects profit before tax and adjusted items of 915-935 million pounds ($1.16-1.19 billion) for the year ending Feb. 3.
“We saw revenue growth of approximately 29% for our India operations during Q1 FY2025 as compared to Q1 FY2024, led by robust operating momentum on the ground with healthy same-store-sales-growth of approximately 12%. We launched 13 Kalyan Franchisee-Owned-Company-Operated “FOCO” showrooms in India during the recently concluded quarter, with a strong pipeline of showrooms set to open in the coming quarters in line with our previously communicated guidance,” the release added.
HBC, the parent company of Saks Fifth Avenue, announced on Thursday that it will acquire the department-store chain Neiman Marcus in a $2.65-billion deal. This acquisition is expected to give the companies stronger negotiating power with vendors and better control over costs
Malabar Gold & Diamonds, the world's sixth-largest jewellery retailer, opened its second UK showroom in Leicester on Thursday. This new 2,000-square-foot store is on Belgrave Road's Golden Mile. The inauguration was done by Leicester City Mayor Peter Soulsby. The store features over 20,000 jewellery designs from 20 countries. It caters to various wear categories, including bridal and office, the company said in a statement.
In this role, Duggal will oversee all aspects of Chupps’ operations by focusing on product development, sourcing, strategic planning and expanding sales channels, including a robust e-commerce presence, according to a statement.
While this marks KICL's direct entry into the retail segment of finished leather and non-leather products, a plant to manufacture Kickers shoes and accessories is also planned in Tamil Nadu.
Nisaba Godrej resigned as independent director from VIP Industries board due to differences in leadership accountability and succession planning, effective June 3rd, 2024. In a letter to Chairman Dilip Piramal, she praised the company but expressed diverging views. VIP Industries, a luggage category leader in India, faces challenges amidst reports of potential promoter stake sale, competition from Samsonite and Safari Industries, and declining profits despite a 10% rise in net sales last fiscal.
"The auspicious week of Akshaya Tritiya witnessed double-digit growths (in Tanishq secondary sales) compared to the same period last year. However, high gold prices and their continued firmness had an impact on consumer demand," Titan said.
Gold demand in India, the world's second-largest gold consumer and a major importer, has slowed as rising prices deterred buyers who are awaiting a potential import duty cut in the upcoming budget.
2023 was a record year for India’s luxury market. The affluent population in India is expanding rapidly, with the number of high net worth individuals (HNIs) expected to reach 16.5 lakh by 2027, up from 7.9 lakh in 2022. Similarly, the number of ultra-high net worth individuals (UHNIs) could surpass 19,000 by 2027, compared to about 12,000 in 2022, as per Bain's estimates.
Over the next 18-36 months, the brand plans to further invest Rs 40 crore in expanding its production capacity next to this warehouse unit.
Gold has performed remarkably well in 2024, rising by 12% year-to-date and outpacing most major asset classes. Gold has thus far benefitted from continued central bank buying, Asian investment flows, resilient consumer demand, and a steady drumbeat of geopolitical uncertainty. As we look forward, the key question in investors’ minds is whether gold’s momentum can continue or if it’s running out of steam.
Despite a solid holiday quarter, Foot Locker said it would achieve its long-term profit margin target two years later, in 2028, dashing hopes of a steady recovery in margins, which have been crimped due to a surge in promotions.
Banking on Indian consumers’ growing discretionary spending coupled with an increased affinity towards homegrown brands, the company aims to reach the mark of 5,000 watches annually in the next 3 years, shared Nirupesh Joshi, the co-founder and creative director, Bangalore Watch Company.
PC Jeweller Ltd on Sunday said that Punjab National Bank has given its approval for one-time settlement of its outstanding dues. In a regulatory approval, PC Jeweller informed that "Punjab National Bank, the third largest bank after State Bank of India amongst consortium banks of the company in terms of its exposure, has conveyed its approval to the One Time Settlement (OTS) proposal submitted by the company."
Noting the trend of premiumisation, the report said that an emphasis on premiumization would push the premium footwear market share from 47 per cent in FY2021 to 49 per cent by FY2025. Additionally, the consumer price index is expected to increase the prices of footwear, which in turn will lead to the growth of the footwear industry. In the last 3 years, India has seen an average CPI of 5.5 per cent, the report read.
Revamped and newly trendy shoes from the 1970s and 80s like Puma's Palermo and Adidas' Samba have helped boost sales for sportswear brands at a time when consumers have cut back on spending and retailers are struggling with excess stocks.
Many of the brands have been forced to take footwear off the shelf - online and offline - or are selling a much smaller range with old stock, industry executives said. The BIS Quality Control Order (QCO) mandates compulsory certification for factories making the final product and some specified key components, such as rubber, PVC or polyurethane soles and heels.
In China, the world’s largest textile producer and consumer, more than 26 million tons of clothes are thrown away each year, according to government statistics. Most of it ends up in landfills.
Fashion designer Gaurav Gupta is combatting counterfeit luxury products in India, filing nine lawsuits in the Delhi High Court. Gupta, whose designs are worn by stars like Beyonce and Cardi B, seeks ₹2 crore in damages from each counterfeiter and aims to secure restraining orders. The court has upheld Gupta's intellectual property rights, leading to destruction of counterfeit goods and payment of damages. His legal efforts set a precedent for protecting designers' rights against a growing global counterfeit market projected to reach $81 billion by 2026.
Khadi and Village Industries' annual turnover surpassed Rs 1.5 lakh crore for the first time in the fiscal year 2023-24, creating over 10 lakh new jobs, Chairman Manoj Kumar announced on Tuesday. The provisional figures for 2023-24 released by KVIC indicate significant growth over the last decade, with a 315 percent increase in production and a 400 percent rise in sales.
The Italian brand, which opened its first store at DLF Emporio, plans to open its next store in Mumbai this year and in either Hyderabad or Bengaluru over the next 2-3 years.
For the full financial year 2023-24, Relaxo's net profit rose to Rs 200.47 crore, from Rs 154.47 crore in the previous fiscal.
"Consumer confidence is low in North America, likely impacted by sticky inflation. And so we are seeing an overall more cautious consumer," CEO Joanne Crevoiserat said.
VIP Industries posted a 10% rise in net sales at Rs 2,215 crore last fiscal. However, net profit plunged to Rs 28 crore in FY24 from Rs 161 crore in the previous fiscal.
Nike forecast a surprise drop in annual sales at the end of June, adding to investor worries about the sportswear giant falling behind established peers and newer rivals alike.
Why the name Dweep? - "It holds a special significance. Derived from the Hindi word for island, Dweep reflects Indian roots and the universal appeal of the brand,” said Manushi Chhillar, Miss World, Actor and Founder - Dweep.
Premium sportswear brands are enjoying robust growth in China as they take to directly courting their main customers, posing yet another setback to mega brands Nike and Adidas as they grapple with local competitors in the $55 billion sportswear market. Compared to other premium brands, Lululemon is a veteran with a decade-old presence in China. It took a slow-and-steady approach to expansion, opening its 100th store last year to coincide with its 10th anniversary, but has since ramped up its strategy, saying it intends to have 220 stores by 2026.
The operator of Japan's high-street fashion giant Uniqlo on Thursday hiked its full-year net profit forecast, predicting record results despite an underwhelming performance in China. Retail behemoth Fast Retailing said it was on course to make 365 billion yen (USD 2.26 billion) in the year to August, upgrading its previous estimate of 320 billion yen.
In the April-June quarter, India's demand for gold dropped by up to 15% compared to the previous year, largely due to soaring prices deterring consumers. With fewer auspicious wedding dates in July, jewellery sales haven't seen a significant uptick, although some regions experienced sporadic increases during the Rath Yatra festival. Gold prices have risen sharply to around ₹73,000 per 10 gm, up 15% from the beginning of 2024. Jewellers are cautiously optimistic, expecting a potential revival in demand during the upcoming festive season and noting a shift towards investment in gold amid subdued jewellery purchases.
Shoppers Stop declined to comment. Since its inception over three decades ago, Shoppers Stop has been mostly selling merchandise for the masstige or bridge-to-luxury segment. The decision to foray into luxury retailing comes amid a spike in the number of wealthy people in the country. “For us, premiumisation is not just selling luxury products…but (if) a person who used to buy from the roadside has now started buying from the mall, (that) is also a premiumisation,” Kavindra Mishra, managing director and CEO of Shoppers Stop, had told ET last month.
“Our partnership with Apparel Group is a strategic move for us as we continue to expand our business in India. We are confident that this collaboration will enable us to leverage their strategic network and commitment to experiential opportunities,” stated Sumit Dhingra, VP and General Manager- India, Middle East and Africa, Crocs.
As major Swiss luxury watchmakers turn towards India, smaller independent brands like HYT are also establishing a presence to tap into the market's potential and engage with the collector community.
Intune currently is competing with the likes of similar value formats such as Trent's Zudio and Landmark's Max Fashion. Earlier, Shoppers Stop shared that it is planning to open 60 Intune stores in this fiscal year 2025 backed by strategic investments in merchandising, store operations, and customer analytics capabilities.
Adidas has been battling to right itself after it cut ties with Kanye West in October 2022, suspending sales of the highly profitable Yeezy sneaker line. In CEO Bjorn Gulden's first year in the role, he resumed sales of Yeezy sneakers to clear remaining stock while seeking to boost popular products like Samba and Gazelle shoes, and improve relationships with retailers. Shares in Adidas have staged a recovery, outperforming Nike and Puma since he took over.
French sports retailer Decathlon considers India a "big priority" market and aims to be among its top five global markets within the next five years. It plans to add 10 new stores annually, increase online sales, and raise local sourcing to over 90% to boost competitiveness in the Indian sports and athleisure segment. Decathlon's sales in India grew by 37% in the financial year ending March 2023.
Safari Industries' total income for the fourth quarter of FY24 grew to Rs 370.48 crore as against Rs 305.38 crore in the same period a year ago. The company's total expenses rose to Rs 314.56 crore in Q4 FY24 from Rs 255.80 crore in Q4 FY23, it said in the regulatory filing
The brand, which currently boasts of 101 stores across India, plans to open 60 more by this fiscal end. Going ahead, it plans to focus more on tier II and beyond cities.
Raymond Lifestyle appointed Vineet Nayar, GC Chaturvedi, Anisha Motwani, and Dinesh Lal as directors. Gautam Singhania is likely MD, with Sunil Kataria on board. NCLT approved restructuring creates Raymond Lifestyle, Realty, and Raymond. Realty is developing Thane and Bandra projects, with substantial market potential. Focus on shareholder value, strategic governance, and leveraging cash flows for real estate and quality execution.
Hyderabad, now a luxury hub, has 87 names on the 2023 Hurun Rich list, attracting brands like Sabyasachi Mukherjee and Rahul Mishra. Radisson Collection and Hansgrohe India expand here. Q1 2024 saw a 28% upscale growth. Fashion sales rise, notes Malvika Poddar. Banjara Hills welcomes VRK by Khanna Jewellers. Anas Rahman Junaid and Nikhil Sharma highlight the market’s potential.
Despite its 1.4 billion population, India was in 22nd place for Swiss watch exports in 2023, just ahead of Switzerland's Alpine neighbour Austria.
Established in 2016, Trase witnessed ARR of Rs 18 crore by 2020 while being bootstrapped. In 2021, it was acquired by Upscalio as part of its strategy to build a diversified portfolio of brands in utility categories.
Active-wear retailer TechnoSport has crossed the Rs 300 crore revenue mark in FY24 and is eyeing a high double-digit growth of 30 - 40 per cent over the next few years, the company’s co-founder Sunil Jhunjhunwala told ETRetail.
The company's retail network now spans over 1,850 stores, including over 500 franchise stores, 650 plus sneaker studios, and over 125 Hush Puppies stores. Its distribution network has also expanded to over 1,500 towns, and with technology in-store availability increasing to 72 per cent, the company said.
The Apparel Export Promotion Council (AEPC) suggested the government should increase the rates under the interest equalization scheme to 5 per cent for all the apparel exporters for a period of five years.
Gunjan Shah, Bata India CEO, strategizes to propel Power brand growth through EBOs, targeting wider audience accessibility. Leveraging trends in athleisure, the focus is on premiumisation and meeting consumer aspirations through digital and retail expansion. Shah says: "We are not going to stop at just one store. In the next 18 months, we plan to have at least about 50 stores across the country."
Samsonite, Safari, and VIP Industries faced growth declines in India. Samsonite's business fell 10%, Safari's growth slid to 21%, and VIP Industries saw sales taper to 14%. China regained Samsonite's top market position post travel restrictions. Neetu Kashiramka discussed industry growth, and the shift towards hard luggage was highlighted in a RedSeer report.
The company, which also owns high-end Swiss watch brands, such as Piaget and Jaeger-LeCoultre, said sales fell to 4.80 billion euros ($5.21 billion) in the three months to the end of March.
An online sports retailer in Russia, owned by Zenit soccer club, continues to sell Nike products despite the company's exit from the market. Wijnand Herinckx, a Dutchman in Moscow, imports Western goods, including Nike and Lego products, into Russia without sanctions. The business indirectly supports the Russian economy and provides Russian consumers with foreign goods.
India's luxury watch market, driven by TEPA and Swiss-India Free Trade Agreement, is set to hit $30 billion by 2030. Social media and rising incomes, along with CHF 218.8 million in Swiss exports, boost popularity. Watches are top gift items; brand consciousness and e-commerce drive online shopping, echoing survey results and growth.
EssilorLuxottica has agreed to buy streetwear brand Supreme from VF Corporation for $1.5 billion, both companies said on Wednesday, marking the first acquisition of an apparel company for the French-Italian eyewear maker.
German fashion house Hugo Boss on Monday cut its sales guidance for the year to a range of between 4.20 billion euros ($4.58 billion) to 4.35 billion euros over weakening global consumer demand especially in markets like China and the UK. The company earlier expected sales for the year at around 4.30 billion to 4.45 billion euros.
Chief Executive Bjorn Gulden, in the job since the start of 2023, has been driving a turnaround at the company bruised by its break-up with rapper Ye, formerly known as Kanye West, which left Adidas with unsold Yeezy shoes worth 1.2 billion euros. The profit upgrade comes after Adidas said its second-quarter sales rose 9% from a year earlier to 5.82 billion euros.
LL Bean has been sued by footwear maker Skechers USA, which accused the clothing and outdoor gear company of illegally copying its shoes, which have sold in the millions. According to a complaint filed late Monday in Manhattan federal court, the world's third-largest footwear company believes LL Bean's Freeport casual shoes infringe two patented designs for "heel cups" that surround the back of the foot.
Agilitas, headed by former Puma India Managing Director Abhishek Ganguly, will buy the brand license from New York investment firm WHP Global and aim to launch the Lotto products in India by early 2025.
Sales of personal luxury goods grew by four per cent to 362 billion euros (about USD 388 billion) from 349 euros in 2022, due largely to a resurgence of U.S. and Asian tourism to Europe fueling purchases. Add in luxury travel, fine art, cars and yachts, the vast global luxury market expanded to 1.5 trillion euros last year - highlighting a trend toward experiences over tangible goods.
The brand, which offers 10 premium brands like Swarovski, Victorinox, Movado, Frederique Constant, Versace, Tissot, Balmain, and Xylys, has recently expanded its portfolio further by introducing Charriol, Swiss luxury watchmaker to the Indian market through an exclusive partnership.
"The industry witnessed subdued consumption due to prolonged heat waves, elections, fewer weddings and inflation... This has impacted our profits, however, we have a strong recovery plan," Shoppers Stop Managing Director and CEO Kavindra Mishra said.
Peyush and Neha Bansal led the round with Rs 70.70 crore and 70.39 crore investment followed by Rs 9.60 crore from Chaudhary and Rs 9.35 crore from Kapahi.
With this fund raise, Newme aims to strengthen its position enhancing its omnichannel presence and optimizing its tech-driven supply chain. The GenZ women-focused brand which raised Rs 45 crore earlier this year, has witnessed an 8-9x growth in revenue in the last 18 months and expects a 3-4x growth this year.
The gold trade is looking forward to the upcoming budget for measures to boost retail consumption and address issues like gold smuggling. Industry leaders are urging the government to reduce import duties on precious metals and revise the PAN card limit. Expectations include duty drawback on exports to enhance competitiveness and support growth in the jewellery retail sector.
The sportswear giant has invested in selling more through its own sales channels, including stores and online, instead of increasing inventory at wholesalers to bolster its margins.
For the Lee Cooper brand "Shoes Don't Judge" is more than just a campaign, it's a movement that celebrates one’s choices and preferences with zero judgement, the company stated in a press release.
The CEO - appointed in January 2023 to lead the company as the next generation of its founding family gets ready to pick up the reins - said he did not know when the change at the helm would take place. Lorenzo Bertelli, one of the two sons of Prada's founders Miuccia Prada and Patrizio Bertelli, is expected to be appointed CEO after Guerra. In first quarter results published last month, Prada defied a slowdown across the luxury sector, reporting booming demand for its high fashion brand Miu Miu and continued growth in Asia.
“Miraggio’s success is because of the space that we have created. The handbag market is defined into two segments - below Rs 2,000 and above Rs 6,000 price point. However, the Rs 2,000 to 6,000 bracket is empty. Additionally, post-pandemic the buying preferences of consumers have changed and now the aspirational customer is not limited to tier 1. And in this space, we are the first mover,” founder and CEO Mohit Jain said.
“Consumers are back and there are signs of recovery in the July-September quarter. Q3FY25 is expected to be stronger due to the advancement of the festive season and a number of weddings. We are seeing growth at the store level and overall double-digit growth (in July),”Devarajan Iyer, chief executive of department store chain Lifestyle International told ET on Saturday.
The proposed federal class-action lawsuit, which was filed this week in San Francisco, alleges that Hermes is violating antitrust law by making customers buy other goods in the store before being granted the privilege of buying a Birkin bag from Hermes.
OLYMPICS-2024/LUXURY (PIX)Cartier, LVMH look to stores outside Paris for Olympic retail boost
Eume plans to open its first flagship store this year, starting in Mumbai and tapping the aspirational population in tier II and III cities are among the company's top priorities. The Mumbai-based luxury brand offer diverse products like luggage, vegan handbags, and accessories, among others. Eume's sales are split equally between its own website and marketplaces.
Consumers are shifting from gold jewellery to gold bars and coins due to rising gold prices, as reported by the World Gold Council (WGC). Despite high prices dampening jewelry demand, gold bars and coins remain popular. The domestic gold price discount to the international price widened significantly in July.
Akash Agarwal, director of V2 Retail said, “We have increased our full price sales to 88% in last year. The target for this year is 92%. By selling at full price, the ASP increases. However, as we are increasing our volumes simultaneously, the economies of scale kick in. So, the ASP should not be impacted more than 5-10% and we want to maintain that. We are not looking to change our gross margins.”
PC Jeweller has reached a one-time settlement (OTS) with a consortium of lenders led by State Bank of India (SBI) to settle its debt by offering banks a mix of cash and equity in the Delhi-based company. The ₹2,250-crore offer represents a 20% haircut to lenders' principal amount and 64% recovery of total dues, including interest of ₹3,500 crore.
Dykes highlighted the potential of India's vast domestic market, noting that 60% of Decathlon products sold in India are already made in the country. "We want to get to 90% to 95%, if possible," Dykes said. "India is already in the top 10 markets and we want it to get into the top five. I feel we are really on the right track at the moment. And let's hope within the five years it will be in the top five," he added. The company has 122 stores in 19 states.
Nike CFO Matt Friend told investors the company was cutting back on supplies of "classic" shoes, including the company's Air Force 1 sneakers, to focus on upcoming launches and new product development.
"The FTC's decision to sue is surprising because there's no shortage of competition for fashion, apparel and accessories. The commission has latched onto a marketing term - 'accessible luxury' - and treats it like a unique market that exists in a vacuum," said Howard Hogan, chair of the fashion, retail and consumer practice at law firm Gibson Dunn.
M&S made profit before tax and adjusting items of 716.4 million pounds ($913 million) in the year to March 30, ahead of analysts' forecasts of 665 million to 705 million pounds and the 453.3 million pounds made in 2022/23. Sales rose 9.4% to 13.1 billion pounds, with food sales up 13.0% and clothing and homewares up 5.3%.
The tie-up will endeavour to establish an exclusive store network across all the six countries in the Middle East -- Saudi Arabia, UAE, Oman, Qatar, Bahrain, and Kuwait.
Union Budget 2024 proposes to cut the customs duty to 6% on Gold and Silver. Moreover, the finance minister has also proposed to reduce customs duty on platinum to 6.4%.
The Delhi High Court has restrained three local firms, Adidas Weaving Mills, Adidas Textile Industries, and Adidas Merchandise, and their directors from manufacturing, trading, selling, or dealing in textile goods under the "ADIDAS" mark or any other marks deceptively similar to Adidas AG's trademark. Adidas AG sought damages of Rs 20 lakh, but Justice Sanjeev Narula rejected the claim, stating it was entitled to nominal damages of Rs 3 lakh.
"A strong Indian garment industry with a complete value chain and unique offerings provides huge scope for Japanese trading companies to source from India. Further, stronger opportunities for trade diversion are emerging with continuous fall in Chinese share in this market. Indian suppliers have built-in flexibility and can cater to both small size customised orders as well as large orders," Chairman AEPC Sudhir Sekhri said.
The Indian economy has recovered and expanded in an orderly fashion post-pandemic and the real Gross Domestic Product (GDP) in 2023-24 was 20 per cent higher than its level in pre-pandemic 2019-20, according to the Economic Survey 2023-24 tabled on Monday in the Parliament.
Speaking about this first-ever meeting with gem and jewellery trade from Kashmir, Vipul Shah, Chairman, GJEPC said, "We had a very productive discussion with trade members of Kashmir. We are committed to enhancing the prominence of Kashmiri sapphires and empowering local artisans with advanced skills. This initiative aligns with our mission to strengthen the gem and jewellery sector, facilitating growth, international recognition, and boosting exports from the region. We sincerely thank the Kashmiri trade for their engagement and look forward to fruitful collaborations ahead."
Cricketer Hardik Pandya has inked an exclusive licensing pact with FanCode Shop, the online merchandise store of Dream Sports-owned FanCode, to launch his own performance wear range.
On its financial performance, Anuj Sawhney, managing director of Swiss Military Consumer Goods said, “We have achieved another strong financial quarter, thanks to robust turnover growth and significant brand development initiatives. Swiss Military is debt-free and asset-light with a very strong research-based approach to solving customer problems."
Metro Brands saw a 126.3 per cent increase in year-on-year net profit for the fourth quarter of FY24, amounting to Rs 155.57 crore. The company extended its retail agreement with Crocs, gaining exclusive rights in western and southern India. CEO Joseph expressed satisfaction with the 11 per cent sales growth despite post-Covid challenges.
The Indian government is proposing a 1% tax collected at source (TCS) on luxury products like watches, handbags, and high-end televisions priced over ₹10 lakh. This move is aimed at tracking high-value expenses and widening the tax net. Retailers and market experts believe the tax will not impact sales, as luxury is booming in the country.
They are calling the Union Budget 2024 a game-changer for the diamond, gems, and jewellery industry and it has provided an opportunity for India to step closer to becoming a global diamond trading hub.
Kering had warned on March 19 that sales over the period were likely to drop by around 10%, dashing hopes it had stemmed sales declines at Gucci, the century-old Italian fashion house which accounts for half of group sales and two-thirds of profit.
Luxury watch brand Jaipur Watch Company has raised Rs 2.4 crore in a new fundraise diluting around 8 per cent equity stake, the company’s founder Gaurav Mehta told ETRetail.
A few other relaxations, like ring-fencing old stocks, announced by the European Commission, the executive arm of the EU, would give a further breather to the local diamantaires which constitute the world's largest importer of rough diamonds. According to a statement issued by the Commission on Monday, the ban on import of Russian diamonds would not extend to either rough or polished stones which were there in the EU and other countries (like India) before the beginning of the sanctions in March 2024.
Meeru Gupta has been appointed as general counsel and head of legal at Bata's local subsidiary. She brings over two decades of experience, including roles at Varun Beverages and Philips India.
Shein, founded in China, and its rival Temu have aggressively expanded worldwide as online shopping has surged after the COVID pandemic. They have been accused of exploiting tax loopholes by exporting China-made products in small quantities to avoid higher duties.
The recent customs duty cut in the budget has triggered a rush at jewellery stores as consumers buy gold in preparation for the wedding season. Prices fell sharply after customs duty cut announced in Budget 2024, sparking a 20% increase in demand. Jewellers have canceled artisans' leave to keep up with the surge.
Luxury group, LVMH half-year net profit slid 14 percent amid an uncertain geopolitical and economic environment. "The results for the first half of the year reflect LVMH's remarkable resilience and the responsiveness of its teams in a climate of economic and geopolitical uncertainty," said chief executive Bernard Arnault.
"The duty relaxation in trims, accessories and raw materials will help bring down costs and make the apparel industry more competitive," said Rahul Mehta, chief mentor of the Clothing Manufacturers' Association of India. Other measures in the Budget, such as incentives and subsidies for employees, and benefits for labour-intensive industries will also aid the sector, he added.
Fears of a slowdown in luxury spending among Chinese consumers have been growing for some time, and recent events have underscored this concern. Kering SA, the parent co of Gucci, experienced a significant decline in its market value following a warning about slumping sales of Gucci products in China.
Italian luxury group Ermenegildo Zegna also saw revenue fall in the first quarter, dragged down by declining sales of its Thom Browne label in the Greater China region.
THG and Frasers have also agreed on a partnership across several areas including with THG Ingenuity, the online platform that serves third-party brands, and online sports nutrition brand Myprotein. Frasers, the British sportswear and apparel retailer controlled by Ashley, has been bolstering its luxury offering, which includes FLANNELS.
The Council for Leather Exports (CLE) urged the government to extend the Production-linked Incentive (PLI) scheme for the leather and footwear sector to boost job creation and manufacturing. At a pre-budget meeting, CLE Chairman Rajendra Kumar Jalan also requested import duty exemptions on wet blue, crust, and finished leather to enhance competitiveness.
"We've strategically opted for a smaller raise at a reasonable valuation, setting the stage for our Series A round later this year or early next year. This approach allows us to maintain our growth momentum while preparing for larger-scale expansion," said Lokesh Daga, co-founder and director, Nasher Miles.
Reliance Retail’s ethnic handicrafts initiative, Swadesh, has launched its first partnership with luxury designer label Falguni Shane Peacock. This collaboration, which may expand into a deeper strategic alliance, aims to enhance Swadesh's ethnic handicrafts offerings.
Metro Brands has appointed Nandadeep Jayakar as business head of Foot Locker India. Jayakar, with experience from Adidas India and others, will report to Alisha Malik. Metro Brands aims to elevate sneaker culture and expand its market presence.
According to Chatterjee's LinkedIn profile, he resumed the role of the company CEO in February 2024. Chatterjee who has been associated with the brand for over 13 years, earlier held the position of Country Digital Leader for Decathlon Sports India.
Titan Eye+, an eyewear retailer, will resume network expansion from July. The company, an arm of Titan, has over 900 stores across 350 cities and recorded earnings of INR 707 crore in fiscal year 2023-24. The company is aiming to expand its premium eyewear market share to 10% or less, with the launch of retail store Runway for premium sunglasses.
Against the backdrop of the macroeconomic scenario, the council urged the government to take measures to revive exports in this sector. It also requested to introduce the sale of rough diamonds in SNZs (special notified zones); and "reduce the import duty on gold, silver, and platinum bars to 4 per cent; and introduce duty drawback on exports of platinum jewellery to take advantage of India UAE comprehensive economic cooperation agreement".
Entrepreneur Ravi Jaipuria and actor Akshay Kumar have invested in the Fashion Entrepreneur Fund (FEF), a platform dedicated to providing early-stage investments and mentorship for fashion entrepreneurs, as announced in a press statement on Friday. The fund will have a corpus of $3 million. However, the exact amounts contributed by Jaipuria and Kumar were not disclosed.
"The cut in basic custom duty on gold prices makes the yellow metal cheaper. While this can lead to weaker market sentiments due to the sudden change, retail investors stand to benefit from the new, more attractive pricing for gold," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities told PTI.
Sportswear companies including Adidas, Nike, and Puma, have seen demand weaken as customers battling with inflation cut spending on non-essential goods.
In the world of gold investment, tracking prices, inflation data, and the Federal Reserve's stance is key. Market dynamics shift based on factors like GDP estimates, equipment spending, and spot silver prices. Understanding these nuances is crucial for making informed investment decisions in a constantly evolving economic environment.
Chief Executive Regis Schultz said in a statement on Thursday that the current trading environment "remained challenging due to less product innovation and elevated promotional activity, especially online".
BUDGET NEWS: Indian gold demand remains subdued due to high prices, with expectations of an import duty cut in the upcoming budget. Meanwhile, Chinese demand also declined. Domestic gold prices hovered near Rs 71,600 per 10 grams, down from a peak of Rs 74,442 last month. Dealers offered discounts up to $9 per ounce on official prices, including taxes. The market anticipates increased activity closer to the festival season in Q3
Nike reported higher profits due to cost-cutting efforts Thursday, but shares fell sharply on the company's tepid outlook despite a hoped-for boost from the upcoming Olympic Games. He also vowed an impressive marketing blitz at the upcoming Olympic Games in Paris.
"The results for the quarter are a factor of resilience despite sluggish demand conditions to drive growth in a sustainable manner with strong margin performance," said an earning statement from Bata India.
Titan Company announced its expansion into Bangladesh by launching its jewellery brand Tanishq through a joint venture with Rhythm Group. This initiative, aimed at bolstering its international presence, will begin with the establishment of a manufacturing facility in Narayanganj. Titan already operates 17 Tanishq stores across various international markets including the UAE, US, Qatar, Singapore, and Oman.
Bengaluru-based Techno Sportswear has raised $25 million from A91 Partners for its performance wear brand Technosport, marking its first fundraise.
British sportswear retailer JD Sports Fashion on Friday reported a 6.4% drop in first quarter sales in its home market, blaming a volatile clothing market, sending its shares sharply lower.