2021年1月29日
行業報導 - 2021年1月29日
1、工總料「香港製造」標籤爭端短期難變
(星島日報報道)美國前總統特朗普禁止香港生產商品以「香港製造」標籤出口到美國，港府早前促世貿設專家組審理爭端。據路透社報道，美國在世貿爭端解決會議上，阻止世貿批准香港提出成立專家組審理「香港製造」標籤爭端，不過報道指，美方只能阻止一次，香港作為世貿成員有權在下個月再提出要求。工總副主席陳祖恒指，新總統拜登上場後，相信會回復較傳統及正常方式執政，有利廠商安排生產計畫，但在委任官員的取態上，感受到拜登對華仍抱強硬態度，不認為中港在美國關稅問題及「香港製造」標籤爭端等，在短時間內有轉變。
另外，工總昨日發布《香港製造：香港工業啟新章》中期研究報告，團隊以中港數據庫分析，推算在二〇一八年，港資廠商在內地創造了約五千億港元產值，相當於當年香港本地生產總值約百分之十七點六。不過報告認為，現時的經濟數據未能讓公眾準確解讀香港工業的經濟貢獻，建議香港應參考內地、新加坡及台灣等經濟體修訂統計方法，包括在服務業中再細分「生產性服務業」行業作統計、因應經濟活動適時更新行業類型，以至收集離岸工業活動的數據等，才能全面反映香港工業的價值和影響力，作為制訂「再工業化」藍圖及長遠積效指標的基礎。
要推動香港「再工業化」，工總主席葉中賢說，食品製造、中成藥、環保回收及高端電子製造業都是適合在港發展的產業，其中廢物進出口問題令香港必須發展環保製造業，相信可製造新的就業機會。此外，「再工業化」需要培訓更多創新科技人才，涉及範疇包括自動化設備、資訊科技、數據分析、電腦管理及數碼科技營銷。
《香港製造：香港工業啟新章》中期報告全文
資料來源：星島日報 (2021年1月27日)
2、香港工業總會：歐美貨運船期緊張 運費升逾兩倍
【明報專訊】香港工業總會主席葉中賢昨日表示，由兩至三個月前開始，從香港到歐美的貨運船期供應趨緊張，以往只需提早一至兩個星期預訂貨櫃，現在要提早四至五個星期預訂，而且運費一般都上升了兩倍至三倍。
香港工業總會副主席莊子雄表示：「平日一個40呎貨櫃海運到歐美的收費大約是2000美元，近期有些最離譜的個案，運到歐洲居然要收費1.5萬美元，運到美國亦要收1萬美元。」
貨櫃運往歐洲收費1.5萬美元
他們估計，除了貨運船隻班次不足之外，新冠病毒疫情亦令到歐美部分物流業工人無法正常工作。
例如，貨船到了外國碼頭之後，沒有足夠的工人處理貨櫃，或者將它經陸路運到其他城市或國家。不過，港商的出口報價一般都只計算將貨品運到香港的碼頭；由香港碼頭運到外國那一段的收費，一向都是由外國客戶自行承擔。大部分外國客戶只能「硬食」，但亦有個別外國客戶提出，寧願遲一點才收貨。
資料來源：明報 (2021年1月27日)
3、加密貨幣交易所HKD.com開業
(星島日報報道)位於油麻地的香港加密貨幣交易所HKD.com日前正式開業，為本地投資者提供虛擬貨幣交易及諮詢服務，自去年九月開通24小時網上交易平台後，現時已有逾萬人開戶，目標明年年底開戶人數達到10萬人以上，預計當中一半為本地客戶。
現時客戶的交易總額若少於8000元，只需以電郵及電話號碼登記，總額高於8000元時才須實名制登記，包括提供身分證和地址等個人資料。
交易所亦為零售商戶提供以數碼貨幣運作的收款機系統（POS），顧客以虛擬貨幣付款，商戶可於翌日作港幣結算，現時交易所與超過100家商戶合作，當中包括零售和酒店商戶，期望於今年底增加至500個合作商戶，未來將會為商戶提供以虛擬貨幣或以港幣結算的不同選擇。
對於去年底證監會表示，將推出虛擬資產發牌制度，僅供專業投資者參與。公司創辦人兼行政總裁楊凱文表示，發牌制度有效提升虛擬貨幣權威，但同時需要給予業界市場發展空間，以及向市民作推廣，增加他們對虛擬貨幣的認知。
比特幣（Bitcoin）近期走勢十分波動，楊凱文指比特幣本身沒有實際價值，純粹透過供求定價，現時公司每天收到過百客戶關於比特幣的查詢，加上不少美國基金投資比特幣，預計價格升勢持續強勁，甚至有機會升穿10萬美元。
資料來源：星島日報 (2021年1月29日)
4、數碼港夥前海管理局 加強支援本港創科初創企業
數碼港今天與深圳市前海深港現代服務業合作區管理局（「前海管理局」）簽署合作備忘錄，加強雙方合作，將為兩地創科企業提供各種資源，包括人才、市場商機、技術支援、投資者網絡等支援。
前海管理局將會為優秀的數碼港初創企業，提供在前海落地的服務和相關政策支援，其中包括為獲得「數碼港創意微型基金」、「數碼港培育計劃」、「數碼港加速器支援計劃」 或「海外及內地市場推廣計劃」資助的項目，按一比一的比例提供資助金額，並協助它們開拓內地市場。同時，雙方將共同舉辦各類與創科相關的活動，互相推薦區內優秀企業，提供更多發展空間及機遇，促進深港科技生態圈發展。
數碼港主席林家禮表示，這次數碼港與前海管理局合作，將有利支持數碼港的初創企業在大灣區發展，協助他們開拓內地市場。同時期望更多深圳及粵港澳大灣區的企業，能善用數碼港作為國際跳板「走出去」，拓展東南亞及國際市場，同時把香港及海外科技企業「引進」內地，打造國內國際雙循環，助力大灣區發展成為國際科技創新中心。
資料來源：香港經濟日報 (2021年1月26日)
5、粵省長：推動灣區建設 粵港澳銜接 實施「廣東強芯」行動 挺穗深建國際消費城市
廣東人大政協兩會昨天揭幕，省長馬興瑞公布今年的工作重點，包括推動粵港澳大灣區建設及三地機制銜接、實施「廣東強芯」行動，大力發展數字經濟，推進人工智能等產業發展壯大等，在「十四五」的開局年打響頭炮。
擴大內需方面，支持廣州、深圳建設國際消費中心城市，布局一批區域消費中心城市，推動建設具有地方特色的市內免稅店，引導境外消費回流。
疫情衝擊下，廣東去年生產總值逾11.07萬億元人民幣，年增2.3%，年均增長連續32年全國第一，21個地級以上市增速轉正、經濟總量超過千億。今年目標取得6%以上增長。
「十四五」開局 今年GDP冀增逾6%
會上強調今年是「十四五」的開局年，廣東省主要發展目標是在現代產業競爭力贏得優勢，在創新、改革開放等方面取得突破，2035年實現全省經濟、科技、綜合競爭力大躍升。
省長馬興瑞要求落實「1+1+9」工作部署，重點做好10方面。首要為深入推動大灣區建設，推動粵港澳三地規則、機制銜接，實施「灣區通」、「數字灣區」等工程；加快全口徑跨境融資、「跨境理財通」試點；推進灣區幹綫鐵路、城際鐵路交通的融合；支持深圳打造數字貨幣試驗區等。
倡建地方特色免稅店 吸境外消費
其次為擴內需，打造新發展格局戰略支點，加快數據中心、工業互聯網等新基建，打造珠三角5G網絡城市群；釋放消費潛力，保就業、穩收入，支持廣深建設國際消費中心城市，引導境外消費回流。
然後為強化戰略科技力量，實施「廣東強芯」行動，在集成電路、工業軟件、高端設備等領域補齊短板；瞄準人工智能、區塊鏈、量子科技等前沿領域加強攻關。同時，加快建設大灣區國際科技創新中心、籌建一批省級製造業創新中心。
推動製造業高質量發展，聚焦新一代電子信息、高端裝備製造等領域；發展數字經濟，促進數字和實體經濟融合，推動人工智能、大數據、區塊鏈、物聯網等產業發展壯大。還有統籌區域協調發展、實施鄉村振興戰略、深化重點領域改革。
省統計局公布去年經濟數據，廣州、深圳對經濟貢獻最大，貢獻率共57.2%，拉動增長1.3百分點。規模以上工業回升明顯，增加值3.31萬億人民幣，年增1.5%。從增速看，數字經濟、新信息技術等新經濟增長3.0%，佔GDP比重25.2%。
資料來源：香港經濟日報 (2021年1月25日)
6、本地新晉針織品牌YanYan 香港未為人知卻已熱爆東京
雖然香港潮流文化比較崇洋媚外，覺得「隔籬飯香」，總認為歐美日韓，甚至台灣、泰國的設計，都比我們本土設計來得出色，如此狹窄的心態和目光，到頭來蝕底的，只是我們而已。
就好像針織品牌YanYan，於2019年才創立，卻經已在東京時裝界大放光芒，已被H BEAUTY＆YOUTH、SUPER A MARKET等頂尖時裝店引入，而《ViVi》、《SPUR》等潮流雜誌亦不時介紹，就連水原希子也曾穿上其針織上衣和長裙拍攝造型照，潛力實在不可估量。
或者看到YanYan前衞概念、細緻造工，以至在日系時裝圈的聲勢，相信大家都應該認定這乃是來自東洋的寶號了吧？實情品牌卻來自我們土生土長的香港，由前rag & bone Knitwear Director Phyllis Chan和本地設計師Suzzie Chung共同創立，之所以名叫YanYan，乃是取自廣東話讀音「人人」，顧名思義就是以人為本，希望每件服飾由原料採購到設計製作，都做到以穿衣者的品味和需要為依歸。
細心觀察YanYan的毛衣服飾設計，便會發現她是一個具玩味又具前衞創見的品牌，毛衣每每走修身設計，結合「花哩花碌」的撞色設計和立體刺繡，搞怪之餘，又有着數十年前Twiggy Knits般的懷舊風味，親切又富美感。然而YanYan出色之處，正是沒有全然因循歷史，許多現代元素，亦被設計師注入其中，跟據Phyllis Chan與Suzzie Chung的服裝觀點，針織服裝從來並非中華傳統服飾領域中經常出現的典型媒介，因此較之利用絲綢去製作唐裝、旗袍和錦襖，毛冷的確是華人設計師相對較少涉獵的範疇。
因此從世界各地尋找優質毛冷材料，再將中華元素結合到Knitwear之中，正正是YanYan的拿手好戲，將配有中式結紐的棉襖，轉以毛冷呈現，衣身上再織有中國配以左、右衣身撞色不對稱設計，或將種種古代的民間圖案，編織在毛衣冷褲之上，堪稱針織版的《清色上河圖》。
資料來源：香港01 (2021年1月27日)
7、網銷適合各行各業？香港青年設計師：只適合賣低價位衣服
新冠肺炎疫情爆發，不少行業都將生意轉移到網上，但這招並非萬能，尤其服裝業要面對多個難關。香港青年設計師黃梓維擁有個人品牌「HARRISON WONG」，在香港商場等場地共有 6 間分店，受新冠肺炎疫情影響生意驟降，商場租金更未有下調，百上加斤。到生意轉移到網上，做網購是否好出路？
黃梓維說：「我們品牌至今仍未有網店，技術上要實現不難，但價錢、貨品定位、資金的回報週期等等都要做審慎考慮，事實上香港服裝界暫時未有人品牌做網購是成功的。這方面是受到香港環境的先天性影響，港人很少會透過網路購買中高檔次的衣服，更不要說購買一件未試過的 2、3000 元衣服，在國外或者還有可能。」
雖然香港人經常透過淘寶買衣服，惟衣物質量有目共睹。一些高質量的日常衣服當然有市場，香港亦曾有數間大型連鎖品牌瞄準市場缺口，惜全部網店最後都走向失敗。黃梓維表示失敗的原因甚多，例如香港人居住環境狹隘，閒睱時更想出街，久而久之養成了外出購物的習慣，網購較時尚款式的動力較少。
另一方面，經營網店的成本未必就比實體店來得少。黃梓維指出，網店需要維護、宣傳、更要拍攝大量硬照，涉及的人力物力非常高，業界有不少公司最後便是被網店拉垮的。要為品牌打響知名度甚至困難，除了花錢打廣告之外便是參與不同的展覽，例如 HARRISON WONG 便參與去年在香港舉行的 Juxtaposed 2020，盼跟其他香港本地品牌產生協同效應。
黃梓維說：「網店肯定是未來的發展方向，但可能只適合某個價位的衣服。淘寶在這方面已有極之成熟的系統，有網紅帶貨，帶貨前會和布廠、工廠開始協調，因為一次帶貨隨時可以賣出過萬件衣服；我們的模式非常不同，一款衣服可能只有十多件，想做到這麼商業化是難的。但不要說我們，就算國際大品牌的網店亦要面臨極激烈的競爭，有時某些網店會是門市的 7 折價錢，其他同業根本無法賣同一個價位，畢竟實體店需要交舖租、員工薪金。鬥到最後可能便是有些人會在實體店試完後再在網上買，壓縮所有實體店的生存空間，而新公司又會很難和這些知名品牌在網店上競爭，非常兩難。」
資料來源：香港經濟日報 (2021年1月28日)
8、Fung Business Intelligence : Asia Sourcing Update - Southeast Asia (January 2021)
Asia Sourcing Update - Southeast Asia (Cambodia, Indonesia, the Philippines, Thailand and Vietnam)
https://www.fbicgroup.com/sites/default/files/ASU_SE%20Asia_202101.pdf
Source: Fung Business Intelligence (26 Jan 2021)
9、2021 Fashion Playbook: Diversification, Digitization and Demand-Based Sourcing
For the fashion industry, 2020 was a lesson in preparedness and flexibility.
The coronavirus’ staggered spread throughout the globe halted production, stalled shipments and slowed retail spending. As business as usual got turned on its head, brands and retailers and their suppliers had to scramble to adapt. The silver lining was that Covid-19 caused companies to reconsider their usual practices and embrace new manufacturing models, technology and sourcing opportunities.
Sourcing Journal’s Sourcing Report 2021 indicates that supply chains are still recovering from the disruptions of 2020, and it will take time to return to a sense of normalcy.
“2021 won’t be a normal year,” said industry consultant and sourcing veteran Carlos Arias in the report about the situation in Central America. “We have the risk of partial closings and economic uncertainty, and this will weigh until the pandemic is controlled.”
Despite the obstacles that remain due to the ongoing pandemic, the industry is setting itself up to be able to better weather any further disruption.
Even before Covid, the geographic footprint of fashion and footwear supply chains was changing as firms sought to guard themselves against risk.
“A balanced country-of-origin mix and vendor mix protect us from trade uncertainty and pandemic issues,” Fran Horowitz, CEO of Abercrombie & Fitch Co., told Sourcing Journal. “We avoid relying too much on one supplier, while still maintaining meaningful partnerships and relationships.”
In recent decades, China has become the dominant sourcing hub for apparel and footwear. But due to issues including the trade war and a shift away from fast fashion, companies had been diversifying beyond China over the past few years. Now, with reports of forced labor in the Xinjiang Uyghur Autonomous Region, there is an additional obstacle for brands sourcing from China. With the Biden administration just settling in, it also remains to be seen whether the new president will roll back some of the trade policies that have made it more difficult to manufacture in China.
As some sourcing may move away from China, locations including Bangladesh, India, Vietnam and Pakistan could be poised to pick up orders.
Another trend that is on the rise is U.S.-based manufacturing. Fueling fashion’s interest in onshoring are the ability to mitigate the risk that comes with importing from overseas and the shift away from mass produced, inexpensive goods. Some aspects of U.S. production that have been hurdles—including limited capacity and higher costs—are actually a positive for brands seeking small-batch or on-demand manufacturing. By shrinking production runs or even producing made to order, the added costs are negated due to fewer retail markdowns, more productive inventory and savings on logistics.
“It doesn’t have to be the cheapest solution that wins anymore, but the one that has the most flexibility,” said Patrik Berglund, CEO of Xeneta, about sourcing diversification.
Nearshoring, such as producing in Central or South America, also has the benefit of shorter lead times and more demand-based ordering. In the North, industry insiders see the potential for Canada to return as a denim sourcing destination for the U.S. due to its close proximity, trade status and transparency.
Early in the pandemic, with factories closed and cancelled orders, making do with less SKUs was a necessity. But throughout 2020, companies including Abercrombie & Fitch Co. and Macy’s discovered the financial benefits of leaner inventory strategies.
As some companies take a more conservative approach to buying, it has become a competitive advantage for factories to be able to fulfill requests for smaller order sizes. Increasingly, even large retailers want to be able to test out a small batch of products at retail before committing to a bulk order.
Since there are set prices for product development steps including sample making, producing in smaller quantities is more expensive per unit. However, one aspect that could help bring down costs is digital design tools, which streamline the sample making process. While fashion had previously been dragging its feet to adopt 3D design, digital sampling took off amid office closures as a means to continue collaborating remotely.
From technology adoption to shifting sourcing tactics, it will take collaboration between suppliers and retailers in order for fashion to execute on these targets. Last year strained buyer-vendor relationships, as order cancellations and extended payment terms left manufacturers and suppliers in the lurch. Aside from taking responsibility and committing to their orders, experts suggest that brands focus on areas including factory worker well-being to rebuild trust.
Partnerships between suppliers and brands also play a key role in delivering on sustainability and transparency. With this in mind, last year, Ralph Lauren established a supplier engagement strategy to identify its key suppliers and raise its portion of production with these partners from 60 to 80 percent by 2022.
“Uncertainty and volatility in the supply-demand space are here to stay,” Halide Alagöz, executive vice president, chief supply chain and sustainability officer at Ralph Lauren Corp., told Sourcing Journal. “Therefore, making sure we have the right balance of agility and resilience to face future unexpected global disruptions is so important. And, as part of this challenge, we’re also accountable for ensuring that we, as a company, along with our partners and suppliers, are acting responsibly during this unprecedented environment.”
Learn more about the state of apparel and footwear sourcing, including the outlook for trade and raw materials.
Download Sourcing Journal’s Sourcing Report 2021 here.
Source: www.sourcingjournal.com (22 Jan 2021)
10、Bangladesh Garment Job Losses 6 Times Higher Than Estimates: Report
Unemployment within Bangladesh’s garment industry may be more dire than previously estimated.
As many as 357,000 of Bangladesh’s 4.1 million garment workers may have lost their jobs due to the pandemic, or more than six times the official figure of 56,372, according to a recent survey of 610 factories in the major industrial clusters of Chittagong, Dhaka, Gazipur and Narayanganj.
Between December 2019 and September 2020, the average number of workers per factory fell from 886 to 790, researchers from the Centre for Policy Dialogue and Mapped in Bangladesh have found. Some 232 factories, accounting for 6.9 percent of all factories in Bangladesh, have shuttered due to the pandemic, according to the study, titled “Vulnerability, Resilience and Recovery in the RMG Sector in View of Covid Pandemic: Findings from the Enterprise Survey.”
Researchers found that more than 59 percent of the factories they polled also drafted new workers during the outbreak, with the recruitment rate described as “high” at factories in Dhaka and Gazipur. As many as 37 percent of factories both retrenched and recruited workers amid the Covid-19 outbreak, with laid-off workers usually rehired with reduced pay, downgraded contracts and loss of benefits.
In addition, most garment factories did not adhere to labor laws and rules when laying off or terminating workers, researchers said. Just 3.6 percent of the facilities surveyed complied with the compensation principle, meaning they paid salaries, benefits and cleared dues, researchers said. Roughly 70 percent of the factories paid salaries only. Non-compliance, they said, was much higher in large-sized factories and factories located in Narayanganj.
Though the sector’s overall gender composition did not noticeably shift, as many as 33 percent of factories employed a lower post-outbreak share of female workers, a finding that squares with the International Labour Organization’s assessment that women are disproportionately affected by the fallout of the pandemic.
The study also found that most factories, including those belonging to large enterprises, did not have a plan or financial backup to help them cope with the immediate crisis. Only 44 percent of the factories polled said they were confident about the work orders coming in through April. More than half (56 percent) said they faced different levels of uncertainty and 11 percent reported experiencing high uncertainty.
While subsidized credit offered under the Bangladesh government’s stimulus package, plus the slow uptick in production orders, are helping, recovery remains slow, especially for smaller factories or those not affiliated with either of the two big apparel trade groups, the Bangladesh Garment Manufacturers and Exporters Association and the Bangladesh Knitwear Manufacturers and Exporters Association, researchers found. Out of desperation, some 10 percent of factories said that 50 percent to 100 percent of the orders they accepted did not cover production costs. Most factories were operating their units at a loss of between 10 percent and 20 percent, according to the study.
“Risk is absorbed by the supplying country and suppliers but the buyers and brands are largely risk free,” Rehman Sobhan, chairman of the Centre for Policy Dialogue, said at a virtual presentation on Saturday. “Workers’ health risk is a big challenge for the industry.”
Earlier this month, Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association said that the garment sector will “collapse” without additional financial assistance or deferment of stimulus repayments. The perception that the industry is on the road to recovery and “getting all the favors from the government,” she added, must “kindly be reassessed.”
Source: www.sourcingjournal.com (26 Jan 2021)
11、Cambodia urged to upskill garment sector to Industry 4.0 level
A study from the Asian Development Bank (ADB) has suggested Cambodia should consider developing industry transformation maps in key sectors to enable the transition to the Fourth Industrial Revolution (4IR) with adequate investment in skills development for new and repositioned jobs……
Source: www.just-style.com (27 Jan 2021)
12、Ralph Lauren Shares Are Jumping. What’s Going On?
Shares of Ralph Lauren on Friday saw heavy trading on the Big Board as talk of a takeover titillated the Twittersphere.
After opening at $106.91, shares reached a high of $112.89 in intraday trading, with nearly 1.25 million shares changing hands, outpacing the average three-month volume of 1.5 million.
The action seems to stem from a British deal blog, which sent an alert Friday advising subscribers that French luxury giant Kering was mulling an offer for the American fashion brand that both President Biden and Second Gentleman Doug Emhoff sported on Inauguration Day.
A Ralph Lauren spokeswoman declined to “comment on rumor or speculation.” A spokeswoman for Kering did not immediately respond to a request for comment.
Although the speculation remains unconfirmed, the post began circulating on Twitter, with one usrs pointing to Ralph Lauren CEO Patrice Louvet’s decision to sell 29,023 shares on Jan. 12. Another hoped the speculation would push the stock to as much as $140 a share.
RBC Capital analyst Kate Fitzsimmon on Jan. 15 upgraded the Ralph Lauren shares to “outperform,” setting a target price of $138. On Thursday, Deutsche Bank analyst Paul Trussel maintained his “Hold” rating on the shares, but raised his target price to $127 from $75.
Years ago, Betaville blogged that Coach Inc., before it became Tapestry, was working with Evercore for a possible $20 billion Burberry merger. That rumbling has since gone through several repeats, and to this day both Tapestry and Burberry remains separate firms, which would seem to discredit the current speculation around Ralph.
Like its peers, Ralph Lauren has faced numerous trials throughout coronavirus pandemic, shedding 3,600 jobs in a September reorg, while refocusing on future-proof digital investments.
“The changes happening in the world around us have accelerated the shifts we saw pre-Covid, and we are fast-tracking some of our plans to match them—including advancing our digital transformation and simplifying our team structures,” Louvet said at the time. “These steps will enable us to progress our brand elevation journey and deliver Ralph’s vision in today’s dynamic environment—inspiring our consumers around the world and creating value for all of our stakeholders.”
One month later, the fashion titan reported lower second-quarter sales, though adjusted diluted earnings per share—$1.44 a share versus Wall Street’s estimates of 90 cents—bested analysts estimates. The company’s restructuring drove improvement in speed to market, even with global supply chain challenges. Twenty-five percent of orders are now completed in three months or less, and sales in Mainland China are also recovering.
So far, it seems that the company’s strategic initiative to “Lead With Digital” under the oversight of Louvet is working. But one question lurking in the background centers on succession and the future of the company should Ralph Lauren, who is chief creative officer, decide to retire.
Source: www.sourcingjournal.com (22 Jan 2021)
13、Levi Strauss Lost $127 Million Last Year
Jeans giant Levi Strauss reported “significant” improvement in the fourth quarter from the prior three months, while posting a loss for the year.
In a Nutshell: Levi Strauss & Co. (LS&Co.) said Wednesday in reporting fourth-quarter and year-end financial results that it expects business and results of operations, including net revenues, earnings and cash flows, will continue to be significantly adversely impacted for at least the first half of 2021.
The company said there remains the possibility of additional COVID-19 related inventory and other charges. During the quarter, the company experienced temporary door closures in geographies affected by rising COVID-19 cases, with approximately 40 percent of the full store footprint in Europe, and 17 percent globally of all company-operated doors and franchisee doors currently closed and others operating on reduced hours.
While sales remain down compared to the prior year, LS&Co. continues to mitigate ongoing traffic declines by driving meaningfully higher conversion. As store locations have reopened, Levi Strauss’s e-commerce net revenues growth have been strong, at 38 percent growth for the quarter as compared to the prior year.
As the company continues to navigate the COVID-19 pandemic and its impact, it remains focused on the areas that it believes will drive value and enable it to emerge stronger on the other side, including elevating its brands, investing in digital tools and capabilities, and accelerating efforts to diversify across geographies, product categories and distribution channels, including its direct-to-consumer and digital businesses.
Although quarterly trends appear to be improving sequentially, the recent resurgence of the virus underscores that the ultimate impact of the COVID-19 pandemic remains highly uncertain, it said.
“We delivered strong results through the last months of our fiscal year despite the ongoing impact of the pandemic, including beating our revenue and adjusted EPS expectations, while posting a record fourth-quarter gross margin,” Harmit Singh, chief financial officer of Levi Strauss & Co., said. “While the future impact of COVID-19 remains uncertain in the near term, our sequentially improving performance, financial discipline and focus on operational excellence have given us the confidence in our ability to execute our strategies against the things within our control, and, if conditions do not worsen, return the company to pre-pandemic revenues by the end of 2021, with adjusted EBIT margins of 12 percent or more.”
Total inventories, net of reserves, at quarter’s end decreased 8 percent compared to the year prior, reflecting the company’s inventory management efforts. Total available liquidity was $2.3 billion, and cash and cash equivalents at quarter’s end were $1.5 billion.
Sales: Net revenues for the fourth quarter ended Nov. 29 declined 12 percent to $1.39 billion, a significant sequential improvement from the reported third-quarter net revenue decline of 27 percent.
LS&Co. said the decrease was primarily due to the impacts of the COVID-19 pandemic, including reduced traffic and ongoing closures of company-operated and third-party retail locations for portions of the quarter in certain markets. This was partially offset by the benefit of a 53rd week and Black Friday, which collectively benefited the year-over-year net revenues growth comparison by about three percentage points.
Direct-to-consumer (DTC) revenue declined 5 percent, as company e-commerce revenue increased 38 percent with growth across all regions, partially offsetting a decline in brick-and-mortar store revenues. The company’s global digital revenues, which includes owned e-commerce sites and the online business of its pure-play and traditional wholesale customers, grew approximately 34 percent compared to the same period in the prior year, and comprised approximately 23 percent of fourth-quarter 2020 revenues, up from 15 percent in the fourth quarter of the prior year.
Wholesale revenues declined 15 percent, a significant sequential improvement from the third-quarter decline of 29 percent.
In the Americas, net revenue fell 12 percent, an improvement from the third-quarter decline of 29 percent. The region’s DTC net revenues declined 5 percent and wholesale net revenues were off 15 percent as a result of the continued adverse impact of COVID-19. The decrease was partially offset by growth in the company’s e-commerce business and broader digital footprint due to increased traffic and higher conversion as consumer spending continued to shift towards online shopping experiences, as well as growth in the Signature by Levi Strauss & Co. brand.
In Europe, after a much stronger start to the quarter, net revenues declined 9 percent, as a surge in COVID-19 resulted in temporary store closures in much of the region in November. Despite the store closures, this was a significant sequential improvement from the third-quarter decline of 16 percent. The fourth-quarter net revenues decline was across channels, with the exception of e-commerce broader digital footprint, which experienced strong growth due to increased traffic and higher conversion.
In Asia, net revenues declined 14 percent, a significant improvement from the third-quarter decline of 42 percent. The fourth-quarter decrease in net revenues was due to the impacts of COVID-19 across channels and markets, with the exception of e-commerce, which grew in the region on increased traffic and higher conversion.
The most significant market impact was a $18 million reported decline in India where the impacts of the pandemic to shopper traffic remained severe, despite most stores being open during the period. The company is increasing its investment and focus on Asia, where the Levi’s brand has high brand awareness and significant opportunity to accelerate sales growth.
For the year, net revenue fell 22.7 percent to $4.45 billion compared to $5.76 billion in the prior year.
Earnings: The company reported net income for the fourth quarter of $57 million and adjusted net income of $81 million, as compared to $96 million and $108 million, respectively, in the fourth quarter of the prior year. The decline was primarily attributable to the adverse revenue impact of the pandemic. Higher interest expense reflected additional borrowing earlier in the year to enhance its liquidity position.
Operating income for the fourth quarter was $92 million as compared to $132 million in the same quarter in the prior year. primarily due to adverse impacts of the COVID-19 pandemic, including the recognition of $22 million of net restructuring charges.
Gross margin increased 100 basis points to 55.3 percent, its highest fourth-quarter gross margin in recent history. Adjusted gross margin increased 30 basis points to 54.6 percent, primarily due to price increases, a higher proportion of sales in the higher-margin direct-to-consumer channel, lower promotions and healthy inventory.
For the year, LS&Co. had a net loss of $127.14 million compared to net income of $394.98 million in the previous year.
CEO’s Take: Chip Bergh, president and CEO of Levi Strauss & Co., said: “In this most extraordinary year, I’m proud of the team and our accomplishments in the face of so much adversity. The steps we took on structural costs, cash management, agility and new capabilities helped drive results far ahead of our own expectations and give me great confidence in our future. We will double down on elevating our iconic brand, investing in direct engagement with our fans, advancing our fast-growing digital business and further diversifying our portfolio. As we continue to accelerate these strategic focus areas, we will emerge a stronger, more profitable, more agile company.”
Source: www.sourcingjournal.com (28 Jan 2021)
14、Why 5G Could Be What Retailers Need to Recover in 2021
The hype of 5G wireless technology is catching on within retail circles, with 77 percent of the industry’s decision makers indicating that businesses that do not adopt 5G will fall behind their peers, according to a Verizon Business survey.
Of the 200 retail decision makers polled, 84 percent said that 5G is valuable for two major reasons. First, 5G can enable real-time data processing, which can potentially maximize cost efficiency from the point of sale to product delivery. And second, retailers say it could improve their ability to analyze foot traffic, and better pinpoint dwell points in store. which in turn would enable dynamic floor plans and displays that maximize product positioning.
Although retailers think these scenarios are the most valuable, 60 percent say their top priority in using 5G tech right now is enhancing wireless internet speed and reliability. This “fifth generation” of cellular technology is designed to give companywide employees real-time, immediate visibility into enterprise-wide level data via mobile device to perform tasks more efficiently, and in the long run may foster autonomous checkout and even last-mile autonomous delivery adoption.
Michele Dupré, group vice president of retail, hospitality/travel and distribution vertical at Verizon Business, recommended retailers to take after their sports and entertainment counterparts to capitalize on other untapped opportunities.
“For instance, many venues within sports and entertainment are already using 5G to elevate the fan experience,” said Dupré. “Understanding this, retailers should look to promote their brand into a fan environment that will drive unparalleled engagement and unleash a new way to connect with consumers.”
For example, 78 percent of sports, entertainment and media decision makers pointed to the benefits of leveraging 5G to activate AR and VR experiences.
Luckily, it seems retailers are getting the picture here—80 percent believe that giving customers the ability to shop from anywhere using AR and VR via 5G would be a valuable use case. Now, retailers can leverage the tech for two different kinds of shoppers: those who have returned to the store and those who are still uncomfortable resuming in-person shopping.
“For both cohorts, AR/VR can enhance the customer experience and create an immersive environment for shoppers, bridging the physical experience with the virtual while still providing convenience,” said Dupré. “Shopping from anywhere with access to detailed product visualization takes e-commerce to a new level. Also at the core of AR/VR will be driving brand awareness and creating unique engagements that entice consumers, such as product comparisons, virtual fitting rooms and more.”
Of course, another major area retailers have sought to get a tighter hold on via digitization, specifically throughout the pandemic, has been the supply chain. Of the retail executives surveyed, 78 percent said having 5G technology would enable them to better digitally process and track inventory in real time. Dupré noted that 5G can improve automation in the supply chain by providing retailers with real-time data for loss prevention, allowing them to better measure inventory.
“Retailers clearly understand the importance of 5G,” Dupré said. “With this in mind, I think retailers are all at different levels of planning and execution when incorporating 5G applications. I think the success that the early adopters will have will spur on the next rung, seeing the competitive advantage it provides.”
The concerns about the supply chain are even more prominent on the manufacturing side, where 88 percent of execs link 5G’s value to its ability to track the supply chain in real time, whether it’s knowing where a product is from shipment to shelves or aiming to combat theft and fraud, all while responding to inventory demands. Eighty-seven percent also agree that the technology allows for real-time tracking of capacity and production.
Nearly half (49 percent) of the 200 manufacturing respondents surveyed said that 5G deployment would have a “transformational” impact on supporting system automation, the highest rank among all industries surveyed. On average, 37 percent of respondents across industries believed 5G to be transformational to the automation of processes and operations.
Confidence in 5G is rising
Across the various industries surveyed, it appears there is confidence that 5G is going to be at least a part of the solution for businesses going forward. Sixty-nine percent of the 700 business technology decision makers polled across the U.S. believe 5G will help their company overcome the negative impact of the Covid-19 pandemic.
Eighty percent of the survey respondents agreed that 5G would provide new growth opportunities for their companies. While 5G’s upfront costs ranked as the highest barrier to adoption (41 percent), an inability to make a clear business case (10 percent) ranked among the lowest barriers, highlighting the high confidence among business executives regarding the power of 5G.
When asked how 5G will transform their industry, decision makers most commonly referenced faster speed (25 percent), with enhanced productivity and data transfer capabilities coming in at 9 percent each.
Nearly half (48 percent) of decision makers said their companies have already provided or are planning to provide a 5G-capable smartphone or device to employees within the next six months.
The survey was conducted in partnership with Morning Consult to gauge interest in deploying 5G and specific use cases within various industries, including retail, manufacturing, sports/entertainment/media, government/public sector and healthcare.
Source: www.sourcingjournal.com (27 Jan 2021)