This article talks about H&M and Ambercrombie & Fitch, which are both done up by Kingsmen.
The Straits Times
Aug 25, 2011
New fashion entrants to shake up Orchard Road
Other retailers brace themselves for H&M, Abercrombie & Fitch
By Huang Lijie
FASHION shops in Orchard Road are bracing themselves for a shake-up when popular apparel chains H&M and Abercrombie & Fitch debut here soon.
Retailers The Straits Times interviewed said the launch of the first South-east Asian stores by both brands will likely fuel a craze among shoppers that may last as long as nine months.
The opening of these two sprawling flagship stores is also expected to shave as much as 30 per cent from the revenue of existing fashion players initially, according to retail industry analysts.
Faced with such stiff competition, some retailers are pulling out all the stops to woo customers by launching new brands and beefing up service standards.
Some, however, have chosen to downsize operations or simply wait for the dust to settle.
When Swedish fast-fashion retailer H&M opens its three-storey, 33,000 sq ft shop at Orchard Building on Sept 3, it will be the largest high-street fashion store here.
Currently, American brand Forever 21 holds that title, with its 22,000 sq ft flagship store at the Orchard Exchange that opened in June.
In December, American casualwear brand Abercrombie & Fitch will debut its 21,000 sq ft store spanning four floors at the Knightsbridge mall.
With such keen competition, Mr Chua Shenzi, director of casualwear brand NewUrbanMale, closed 15 of its 17 outlets this year to 'consolidate' its business.
He said: 'The opening of big 'cheap and chic' brands like Forever 21 and H&M has shrunk our business here and the best strategy for us is to expand overseas where we are presented with opportunities to open franchise stores.'
It is opening four outlets this year in Taiwan, Malaysia, the Philippines and Indonesia.
He said NewUrbanMale, however, will continue to grow its brand here by launching a new clothing line in its stores and expanding its range of merchandise to include stationery.
Others, like fashion chain bYSI are adopting a wait-and-see approach.
The chain's business development manager, Mr Jonathan Cheng, said it is eyeing expansion in Orchard Road, but plans to see how the two mega-stores in the Somerset area will affect shopper traffic in nearby malls before deciding on where to open a store.
The Jay Gee Group, which carries brands such as denim jeans store Levi's and British high-street label New Look, is not holding back on its expansion.
It is launching the popular American casualwear brand Aeropostale next month with two outlets at VivoCity and CityLink Mall. It is also opening its fifth New Look outlet at CityLink Mall this week.
Jay Gee's managing director, Mr R. Dhinakaran, said he is optimistic about the company's business growth because it has built up a strong and supportive customer base over the years.
He added: 'We have seen Singaporeans go after new brands and queue up for them, but after the honeymoon, interest in the brands evens out.'
Ms Lau Chuen Wei, executive director of the Singapore Retailers Association, welcomed the competition as an impetus for local retailers to step up their game with better merchandise, more attractive price points and savvier marketing efforts.
Mr Steven Goh, executive director of the Orchard Road Business Association, said the entry of these big brands will cement Singapore's reputation as a shopping haven. He added that the location of the two brands in the Somerset area will help the cluster become as bustling as the other end of Orchard Road dominated by luxury brands in busy malls such as Ion Orchard and Ngee Ann City.
But he cautioned that demand for retail staff with the opening of H&M and Abercrombie & Fitch may overstretch the already tight retail labour market and cause service standards to dip.
Still, shoppers such as account executive Ng Hwei Yun, 24, are excited about the opening of the two stores.
She said: 'I used to visit H&M stores in London and Hong Kong because I couldn't get its clothes in Singapore. Now it is opening here, I will definitely pop by.'
[email protected]
Homepage
PR Newswire
