Michael Kors to buy luxury shoemaker Jimmy Choo for $1.2 billion

LONDON- US retailer Michael Kors has agreed to buy luxury shoemaker Jimmy Choo for $1.2 billion, snapping up a British brand launched in the east end of London and made famous by celebrity fans including Princess Diana.

Founded in the 1990s by bespoke shoemaker Jimmy Choo, the brand is known for its stiletto heels and accessories and sells in cities from London to Paris, New York and Tokyo.

It put itself up for sale in April after its majority owner JAB signalled its intention to focus on consumer goods. At 230 pence in cash per share, the group is receiving a premium of 36.5 percent to its share price before the sale process was announced.

Michael Kors, once the hottest name in affordable luxury with a hugely popular handbag range, has been struggling in recent quarters with declining same-store sales as fewer people visit its shops.

In response, it has expanded into dresses and menswear, and invested in its online business. It said Jimmy Choo would continue to operate as it does today, under its existing management team.

"Jimmy Choo is an iconic premier luxury brand that offers distinctive footwear, handbags and other accessories," said Michael Kors, honorary chairman and chief creative officer.

"We admire the glamorous style and trend-setting nature of Jimmy Choo designs."

Jimmy Choo floated on the London Stock Exchange at 140 pence in 2014. It closed on Monday at 195 pence.

source: news.abs-cbn.com

Samsonite to buy US luxury baggage maker Tumi for $1.8-B

HONG KONG - Luggage giant Samsonite said Friday it would buy US luxury bag maker Tumi in a deal worth $1.8 billion that analysts said would give the firm a foothold in the lucrative Chinese high-end market.

In a statement to the Hong Kong exchange, where it listed five years ago, Samsonite said it would pay $26.75 a share for the firm -- a third more than its value on Wednesday before the likely buyout was sounded.

Samsonite, which saw its shares bounce nearly five percent to HK$24.85 ($3.20) after the announcement, said Tumi was a "perfect strategic fit" for its business.

"This is a transformational acquisition for Samsonite. It will meaningfully expand our presence in the highly attractive premium segment of the global business bags," Samsonite chief executive officer Ramesh Tainwala said in a separate statement.

Financial analyst Jackson Wong at brokerage Simsen Financial group told AFP the purchase was a "good move".

"Tumi is a premium brand name ... higher end names would enhance their brand image," Wong, at brokerage Simsen Financial, told AFP.

"Chinese people love to buy Samsonite. However in the last few years they have been buying extremely luxurious suitcases, and that's why they are trying to go upscale."

US-based Samsonite raised $1.25 billion in an initial public offering in Hong Kong in June 2011, one of several Western brands -- including Prada and Esprit -- seeking to use the southern Chinese city to boost their presence in fast-growing Asian markets, particularly China.

Luxury bag maker Tumi has more than 170 stores worldwide with plans to open up to 20 more this year, according to Bloomberg News.

"Samsonite will bring Tumi to new and growing markets, while still maintaining the high-quality Tumi is known for," its chief executive officer Jerome Griffith said in the statement.

Samsonite is planning to double annual sales to $4.7 billion by the end of 2020 and has announced nine acquisitions since 2012.

source: www.abs-cbnnews.com

China shoppers snap up Chanel bags as euro drops

SHANGHAI - Chinese shoppers are mobbing Chanel stores and counting their savings after the French fashion house slashed handbag prices in the world's biggest luxury market due to the slumping euro.

Long lines formed at Chanel stores in commercial hub Shanghai and shopping mecca Hong Kong, a special administrative region of China, this week as word spread of deep discounts, according to media reports.

China is widely considered the world's biggest luxury market as a rising middle class and corrupt officials drive a shopping frenzy, but domestic prices are high due to hefty import taxes and huge retail mark-ups.

At one branch of Chanel in Shanghai, dozens waited anxiously in line for their turn, fearing the shelves might be stripped bare before a shop assistant could escort each person one-by-one into the tightly guarded store.

Miao Sijia, a well-dressed woman in her 20s who said she does not work, rushed 50 kilometres from a nearby city to buy a limited-edition, gold-coloured 2.55 bag for a discounted 19,700 yuan ($3,200).

"I rushed from Kunshan to buy a Chanel bag after a store clerk told me they were making a special price adjustment," Miao, a VIP customer of the store, told AFP.





Chanel said it was harmonising the prices of its products around the world, including the 2.55, 11.12 and Boy bag collections, but did not specify the size of the discounts in China, or price rises in the eurozone.

According to China-based luxury publisher the Hurun Report, Chanel is considered the second best brand for gifting to women, behind Apple but ahead of French fashion compatriot Louis Vuitton.

White collar worker Wang Lei, also in her 20s, gave up 5,500 yuan ($894) of her salary to buy a Cambon purse but marvelled at the 21 percent discount. "It was almost 7,000 yuan ($1,138) before," she told AFP.

source: www.abs-cbnnews.com

Pinay included in Forbes list of top social entrepreneurs

MANILA, Philippines - A Filipina who has tapped poor communities to make "eco-ethical" bags has been included as one of Forbes magazine's top young social entrepreneurs.

Reese Fernandez-Ruiz, 29, is the only Filipina included in Forbes' "30 Under 30 Social Entrepreneurs" for 2015.



Fernandez-Ruiz is the co-founder of R2R (Rags2Riches Inc), a for-profit social enterprise creating bags and home accessories using upcycled scrap cloth, organic materials and indigenous fabrics. Women from poor communities have bee

Forbes noted that Rags2Riches is the "first fashion and design house empowering community artisans in the Philippines."

"It has trained 900 artisans and directly employ 50 people--professionals, in-house artisans, marketers, and strategists who are all working together towards the same goal. The organization experienced a consistent 100% annual growth rate for their first five years in existance (2007-2012)," the magazine said.

This is not the first time Fernandez-Ruiz has been recognized for her efforts. The Ateneo graduate also received the Rolex Young Laureate award in 2010.

According to its website, R2R was started in 2007 in Payatas, where many women make rugs from scrap fabric. R2R tapped these women workers and provided them with skills training.

R2R is known for its fashionable "Buslo" bags, as well as designer collaborations with Rajo Laurel, Oliver Tolentino, Amina Aranaz-Alunan, and Olivia d’Aboville.

source: www.abs-cbnnews.com

A 'perfect' bag for your iPad arrives in PH

MANILA - When it comes to portable technology like the iPad Mini, finding a comfortable and practical way of carrying it around can be troublesome.

Booq, a new line of bags that recently arrived in the Philippines, may just save you the hassle.


Based in California, Booq boasts bags of varying sizes to fit each one's "personality and style," as well as several of Apple's current offerings.

Made from polyurethane-backed ballistic nylon, each bag is designed to be water-repellent and to stay completely dry even during heavy rainfall.

The line also features a metal tag dubbed Terralinq, which can be used to locate lost bags through an online database system.

Booq currently has five specific line of bags available to Filipinos, namely: Boa, Cobra, Mamba, Taipan, and Viper.

Dubbed as the "heavy duty travel partner," Boa is the biggest of the bunch, whose backpack line can fit a 17-inch MacBook easily, as well as one's DSLR camera.

Cobra, which is the smallest, is a compact shoulder bag that can carry any 10-inch iPad model, while the Mamba, Taipan and Viper can fit pretty much any device in between the two previously mentioned.

Booq can be found in select Power Mac Center, iStudio, and Switch outlets. It is also available online through Lazada

source: www.abs-cbnnews.com

How Pinay's love for bags led to DIY business

MANILA -- A businesswoman's fondness for bags led her to establish her own bag business.

Sharon Co of Mix and Much bags explained how she started her do-it-yourself (DIY) bag company.

A self-confessed bag lover, Co said she always dreamed of owning expensive bags. She used to work in the corporate world, and for her, a woman's bag is part of her everyday outfit.

However, she was one of the employees who were affected when her company went on retrenchment.

Having a bachelor's degree in management, Co decided to establish her own business, especially since she is aware of how difficult it is to work for other people.

"Noong nagtatrabaho na po kasi ako, siyempre mahirap po talaga ‘yung nangangamuhan. So it came to a point na gusto mo rin naman mag-run ng sarili mong business. And since management grad naman po ako, so napag-aralan naman po ‘yan. May thesis naman po. So why not naman i-try," she told dzMM's "Radyo Negosyo."

It took her a while to conceive her business, especially since she had to learn more about her market.

With the help of a friend, who helps her in designing bags, Co established her DIY bag business.

"'Yung bag po kasi ay by component, hindi po siya kagaya ng traditional bag na you will buy a bag na isang buo po. With us kasi you will assemble the bag. It’s a DIY po kasi," Co explained.

Her bags are composed of four components: the bag bottom, the bag body, the handle and studs. Customers can choose from different designs and colors, and they can even mix and match different components to create different bags.

Co added that although the materials are imported, all of the bag components are locally made.

source: www.abs-cbnnews.com

Hermes as collateral: HK firm gives handbag-backed loans

HONG KONG - In designer-obsessed Hong Kong, keeping up appearances can be hard on the pocketbook. One company has an answer: cash-strapped shoppers can get money quickly by pawning their Gucci, Chanel, Hermès or Louis Vuitton luxury handbags.

Yes Lady Finance, a mortgage brokerage, offers loans within half an hour of up to 50 percent of the new bag's value, giving customers four months to repay at an interest rate of 4 percent.

If the client fails to pay back the loan, the bag is sold by the company's retail arm Milan Station Holdings Ltd at one of its second-hand designer stores.

But most people repay to retrieve their prized possessions, said Byron Yiu, Yes Lady Finance's chairman and chief executive.

"Milan Station buys handbags. We give cash to our clients to buy their items for good. And then we realised many clients attach a sentimental value to their bags," he said.

"They don't want to sell them for good but they need money. So we came up with the idea of running a financial company that lets people use their handbags to borrow money ... It turns out to be a very popular service."

Loans start at the equivalent of around $200 and can go far higher, depending on the quality of the bag. This month, Yiu said, one client brought in a crocodile-skin handbag and got a loan for HK$250,000 ($32,200).

"We have both male and female clients. The majority bring relatively posh handbags," he said. "We have seen people bringing several of these handbags here to get a big sum."

Every designer bag is assessed for authenticity by an expert from Milan Station. If it is a fake - which Yiu says is seldom - staff at Yes Lady Finance do not reveal that, shielding the customer from embarrassment by making up another reason for not authorising the loan.

One client, Benson Chan, said his wife owns a dozen luxury bags and he has pawned three of them for a total of $51,500, claiming it was with her consent to get money for investments.

"This is the fastest way to get cash," he said. "Also, my wife wants these bags back."

There are about 180 pawn shops in the Asian financial centre, the website of the Hong Kong & Kowloon Pawnbrokers' Association shows. But Chan prefers the flexibility of Yes Lady Finance's approach for his wife's bags.

"Why don't I bring them to traditional pawn shops? It's because those don't give you any grace period," he said. "Here I can also get my bag back any time."

In central Hong Kong, surrounded by designer stores, shoppers liked the idea.

"I would consider pawning a handbag," said one woman, declining to give her name. She said does not buy as many bags as she used to but still gets three or four a year costing around $4,000 each.

Yiu said Yes Lady Finance makes most of its money by broking mortgages but the handbag business is growing fast and carving out a niche in the pawn industry across Asia.

source: www.abs-cbnnews.com

Kim receives Prada bag from Xian

MANILA, Philippines -- Actress Kim Chiu has received a luxury bag from actor Xian Lim, who's now romantically being linked to her.

In an interview with "KrisTV" aired on Monday, Chiu said that Lim gave her a pink Prada bag.

"Mahilig kasi siya sa pink and mahilig siya sa bag. Parang 'yan ang passion niya sa life. Hindi ba 'yun ang gustong gusto mo?" Lim told Chiu.

The actor said he bought the bag in Singapore, where he had a show.

"Mahilig siya sa designer bag, so naisip ko matutuwa siya kapag dinala ko," Lim added.

Chiu said Lim used his talent fee from his show abroad to buy the bag. "Yung TF (talent fee) niya ang pinambili niya," Chiu said.

Asked if he bought the bag as his gift to Chiu for their "monthsary," Lim told the show's host Kris Aquino: "Wala lang, wala lang."

Last July, Chiu gave Lim a pair of brown Louis Vuitton (LV) shoes and a gray LV bag.

Currently, Chiu and Lim are promoting their upcoming series "Ina Kapatid Anak," which will premiere on October 8.

source: abs-cbnnews.com