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January 17, 2014 April 19, 2013
Asia
Cautious Asian retailers crimp Richemont sales Third-quarter sales of Cartier jewellery maker up by nine percent
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ichemont, the maker of highend IWC watches and Cartier jewellery, said Asia Pacific retailers had been cautious in the three months to December, limiting sales growth to 9 percent at constant exchange rates, below forecasts. Luxury watch makers are grappling with weak demand in China, where the government’s fight against illegitimate gifting has hurt sales of Richemont’s expensive timepieces more than more affordable watches made by peer Swatch Group. “Compared to retail, slower growth in the wholesale channel reflected caution amongst the group’s business partners, primarily in the Asia Pacific region,” the Geneva-based company said in a statement yesterday. Sales rose to 2.941 billion euros (US$4 billion), short of a forecast for 3.049 billion euros in a Reuters poll. Analysts in the poll expected sales growth at constant exchange rates of 11.9 percent. Sales growth in Asia Pacific, the group’s biggest geographical zone just before Europe/Middle East, stood at 6 percent, a slight acceleration from 4 percent in the first half that Richemont attributed to an easier comparison base. Mainland China was the only major market in Asia Pacific to report lower sales, Richemont said.
Mainland China was the only major market in Asia Pacific to report lower sales
“A miss on consensus with Japan decelerating and China still weak,” said Kepler Cheuvreux analyst Jon Cox. “However retail sales are strong and sell out trends encouraging – it is just a matter of time before independent retailers start ordering again. We are closer to dawn than dusk in China.” Sales via the retail channel, meaning the group’s own stores, rose 14 percent, while wholesale
distribution was only up 3 percent, Richemont said. Swatch said last week it expected double-digit sales growth in 2014 after sales rose 9.1 percent in 2013. In the 11 months to November, Swiss watch exports to Hong Kong and China, which absorbed a quarter of total exports, were down 6 and 15 percent respectively. Richemont published its trading update before the year’s first big trade show that opens its doors in Geneva
on Monday and brings together Richemont’s watch and jewellery brands and a handful of independent niche players. Richemont shares have lost almost 10 percent of their value since early December after media reported very cautious comments on the outlook for the world economy by the company’s main shareholder, Johann Rupert, but have recovered since Swatch’s upbeat comments last week. Reuters
Singapore Airlines, Air NZ form alliance Carriers have deepened ties in a partnership on shared codes and flights
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ingapore Airlines (SIA) and Air New Zealand yesterday announced an alliance to expand services to both countries and boost their global reach as they look to capitalise on growing tourism traffic.
The alliance will enable SIA to operate its Airbus A380 superjumbos to New Zealand for the first time, progressively replacing daily services using the smaller Boeing 777-300ER, the firms said in a joint statement. Air New Zealand will launch
Flights under the new alliance could start as early as December this year
daily services between Auckland and Singapore using newly refitted Boeing 777-200ER aircraft, the statement said, replacing five flights currently operated by SIA. Air New Zealand last operated flights to Singapore in 2006. Singapore’s affluent population has become a key target for global tourist destinations. “Singapore’s luxury travel market appears to offer a huge opportunity for New Zealand, with local demand for high-end travel matching the Asian-wide upswing,” Tourism New Zealand said on its website. The two carriers are aiming to boost their capacity between Singapore and New Zealand by up to 30 percent. SIA’s daily Singapore-Christchurch service will continue as part of the alliance. The deal will also expand Air New Zealand’s connectivity to the rest of the world through SIA’s
extensive network. Air New Zealand passengers will be able to access codeshare travel on the SIA network to Europe, Southeast Asia and Africa, as well as on the network of SIA’s regional subsidiary, SilkAir. SIA customers will in turn enjoy codeshare travel across the Air New Zealand domestic network and to the Pacific islands. “This alliance is another example of our commitment to the important Southwest Pacific market, and our commitment to the further enhancement of our network,” said SIA chief executive Goh Choon Phong. Air New Zealand chief executive Christopher Luxon said the tie-up “clearly fits our business objectives of working with the right partners in the right markets to deliver seamless customer journeys”. The two carriers said flights under the new alliance could start as early as December this year.
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AFP