The big buzz late last month in the Asian fashion and retail industries was news that Isetan Co. Ltd. and Mitsukoshi Ltd. were merging, which followed reports in WWD that Isetan was looking to expand its reach in China.
Meanwhile, WWD reported that accessory suppliers and retailers were “in a panic” over regulation of lead in jewelry – an issue brought to the spotlight following Mattel’s woes concerning lead levels in toys sourced from China.
In late August, sources in the accessories industry said they are trying to figure out how to standardize the regulation of lead levels in jewelry. Mike Gale, executive director of the Jewelry Fashion Trade Association, said his group is lobbying for a single, national regulation for lead levels in jewelry.
Gale told WWD that if a “large organization has regional or national distribution, they want to be compliant and meet the law. But how do you order your goods? How do you specify what’s going to Illinois, a state that requires a 5-inch-by- 5-inch warning? You can’t tell your manufacturers, ‘I’m ordering 10,000 pieces, send 500 with a label.’ It’s an impossible situation.”
Sources said the biggest challenge is the testing of products because test results can vary. Also, there is no guarantee factories in China are 100 percent lead free.
In Japan, WWD reported the kick off of the fifth Japan Fashion Week. Thirty-eight brands were said to be holding runway shows for the spring season.
The Tokyo Midtown in the Roppongi area was set up as the main venue for the event. European designers were showcased at a special feature. Prior to the launch of the show, event spokesperson Nobuyuki Ota told WWD that inquiries “are not limited to the Asian countries, but also from Europe and the U.S. People in the industries from overseas pay high attention to the collections.”
Ota said show organizers expected more than 22,000 visitors this year.
On the retail front, Isetan said it had agreed to merge with Mitsukoshi Ltd. in a deal that would create the largest department store chain in Japan. Sales of the proposed, combined company would be over 1.58 billion yen, which is about $14 billion.
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WWD reported that, if approved, the Iseten-Mitsukoshi merger would “surpass J. Front Retailing Co., which is being formed next month through the integration of Daimaru and Matsuzakaya and will have total sales of 1.17 trillion yen, or $10.3 billion.”
Separately, Isetan is looking to expand its operations in China with the addition of 10 stores. WWD reported last month that the impetus for growth “is the Mei Long Zhen Isetan in Shanghai, which opened in 1997. The store is performing extremely well and is one of five units Isetan currently operates there.”
The store is a hit with consumers in a younger demographic, the company said, adding that those shoppers will be the target of a marketing and merchandise push. Akifumi Morita, managing director of the Mei Long Zhen Isetan, told WWD that “more people born after the one-child policy started in 1979 have had foreign experiences. They’re good department store customers and we would like to cater more to this group.”
For more information, see these archived articles:
Industry Tackles Nationwide Lead Policy
Japan Fashion Week Gains Overseas Attention
Isetan, Mitsukoshi Join Forces
Isetan Homes In on Its Customer