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01-12-2010, 07:35 AM
This should have positive effects for Kingsmen too, as they work closely with FJ Benjamin!
Business Times - 01 Dec 2010
FJB taking its Raoul brand global
SINGAPORE fashion retailer FJ Benjamin plans to bring its in-house brand Raoul to shoppers in fashion capitals such as New York and Paris, and expects the line to start contributing to its profits in 12-18 months, its chief executive said.
The company operates franchise stores of international brands such as Guess and Givenchy, but also has its own label Raoul, which sells men's and women's fashion wear and accessories. Currently, Raoul contributes slightly less than 10 per cent to the firm's total sales and has stores mainly in South-east Asia, but has been unable to break even due in part to the investment costs involved for its expansion.
'A year-and-a-half ago, we said it's time we took this brand overseas. Just to be a brand in South-east Asia doesn't lend any merit to the brand,' FJ Benjamin chief executive Nash Benjamin told Reuters in an interview last week.
'We felt Raoul is a brand you can take global, depending on how you approach it,' he added.
The company is close to signing a deal with a major US department store to carry its Raoul collection, Mr Benjamin said.
Raoul is currently carried by department stores Harrod's and Matches in London.
The label's clothes and accessories have been featured in top fashion magazines such as Vogue, which has helped to raise its international profile.
As a part of its plans to expand into big fashion markets in the west, FJ Benjamin has opened a Raoul showroom in New York and the brand also shows in Paris fashion week twice a year.
FJ Benjamin plans to enter the US and European markets by selling its collection through department stores or multi-label speciality stores first, so that it has a better gauge of the demand in different markets before committing to opening its own stores.
Besides ramping up sales in the US and Europe, FJ Benjamin has also set its sights on tapping into China's booming affluent middle-income group.
Mr Benjamin said the company could open its first Raoul stores in China in autumn of 2011 or 2012, and would likely start out by opening its own stores as its distribution channels are not as sophisticated.
'Besides the domestic market in China which is growing, China also has a huge amount of tourists who travel overseas and shop when they do, so having a presence in China is important for the total internationalisation of the brand,' he said.
The firm also owns the franchise to operate stores for US clothing chain Gap in South-east Asia, where it has seen double-digit growth in same-store sales.
This is in contrast to Gap sales in the US, which have been sluggish ahead of the Christmas holiday season amid a faltering economic recovery.
'Our Gap stores are doing very well. We've had double-digit (same store sales) growth, not just in Singapore but in Malaysia and Indonesia as well. It's very much the product for South-east Asia: everyone wears jeans and T-shirts here,' Mr Benjamin said.
He expects to open six new Gap stores over the next three years in South- east Asia, as the region's booming economy boosts retail demand.
FJ Benjamin also operates four stores in Marina Bay Sands. Mr Benjamin said that sales at these stores were below expectations, but expects to see their business progressively improving.
'We are confident on the growth potential of Raoul given its strong revenue growth from $1 million in 2006 to $20 million in 2010, and its recent break- through into the Europe and the US,' says Standard Chartered in a report.
The broker, which has an 'outperform' rating and target price of $0.55 on the stock, said that it expects Raoul to grow into a $300-$400 million business in the next five to 10 years.
Shares of FJ Benjamin were down half a cent to 37 cents yesterday. The stock has gained about 17 per cent so far this year, outperforming a 9 per cent gain for the broader Singapore market -
Business Times - 01 Dec 2010
FJB taking its Raoul brand global
SINGAPORE fashion retailer FJ Benjamin plans to bring its in-house brand Raoul to shoppers in fashion capitals such as New York and Paris, and expects the line to start contributing to its profits in 12-18 months, its chief executive said.
The company operates franchise stores of international brands such as Guess and Givenchy, but also has its own label Raoul, which sells men's and women's fashion wear and accessories. Currently, Raoul contributes slightly less than 10 per cent to the firm's total sales and has stores mainly in South-east Asia, but has been unable to break even due in part to the investment costs involved for its expansion.
'A year-and-a-half ago, we said it's time we took this brand overseas. Just to be a brand in South-east Asia doesn't lend any merit to the brand,' FJ Benjamin chief executive Nash Benjamin told Reuters in an interview last week.
'We felt Raoul is a brand you can take global, depending on how you approach it,' he added.
The company is close to signing a deal with a major US department store to carry its Raoul collection, Mr Benjamin said.
Raoul is currently carried by department stores Harrod's and Matches in London.
The label's clothes and accessories have been featured in top fashion magazines such as Vogue, which has helped to raise its international profile.
As a part of its plans to expand into big fashion markets in the west, FJ Benjamin has opened a Raoul showroom in New York and the brand also shows in Paris fashion week twice a year.
FJ Benjamin plans to enter the US and European markets by selling its collection through department stores or multi-label speciality stores first, so that it has a better gauge of the demand in different markets before committing to opening its own stores.
Besides ramping up sales in the US and Europe, FJ Benjamin has also set its sights on tapping into China's booming affluent middle-income group.
Mr Benjamin said the company could open its first Raoul stores in China in autumn of 2011 or 2012, and would likely start out by opening its own stores as its distribution channels are not as sophisticated.
'Besides the domestic market in China which is growing, China also has a huge amount of tourists who travel overseas and shop when they do, so having a presence in China is important for the total internationalisation of the brand,' he said.
The firm also owns the franchise to operate stores for US clothing chain Gap in South-east Asia, where it has seen double-digit growth in same-store sales.
This is in contrast to Gap sales in the US, which have been sluggish ahead of the Christmas holiday season amid a faltering economic recovery.
'Our Gap stores are doing very well. We've had double-digit (same store sales) growth, not just in Singapore but in Malaysia and Indonesia as well. It's very much the product for South-east Asia: everyone wears jeans and T-shirts here,' Mr Benjamin said.
He expects to open six new Gap stores over the next three years in South- east Asia, as the region's booming economy boosts retail demand.
FJ Benjamin also operates four stores in Marina Bay Sands. Mr Benjamin said that sales at these stores were below expectations, but expects to see their business progressively improving.
'We are confident on the growth potential of Raoul given its strong revenue growth from $1 million in 2006 to $20 million in 2010, and its recent break- through into the Europe and the US,' says Standard Chartered in a report.
The broker, which has an 'outperform' rating and target price of $0.55 on the stock, said that it expects Raoul to grow into a $300-$400 million business in the next five to 10 years.
Shares of FJ Benjamin were down half a cent to 37 cents yesterday. The stock has gained about 17 per cent so far this year, outperforming a 9 per cent gain for the broader Singapore market -
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