Weekly Insights by Fung Global Retail Tech August 5 …...button automatically throws a Poké Ball. The device is designed to help keep players from staring unsafely at their cellphones

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August 5, 2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

STATOFTHEWEEK

+5.4%

CHARTOFTHEWEEK

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D E B O R A H W E I N S W I G M A N A G I N G D I R E C T O R

F U N G G L O B A L R E T A I L & T E C H N O L O G Y d e b o r a h w e i n s w i g @ f u n g 1 9 3 7 . c o m

U S : 6 4 6 . 8 3 9 . 7 0 1 7 H K : 8 5 2 . 6 1 1 9 . 1 7 7 9

C H N : 8 6 . 1 8 6 . 1 4 2 0 . 3 0 1 6

August 5, 2016 • Thisweek’snote“FromtheDeskofDeborahWeinswig”looksatthePokéconomy,themultibillion-dollarbusinessesandopportunitiesthathavesprungupinconjunctionwithPokémonGo’smeteoricriseinthelastmonth.

• TransactiontimesusingEMVcards,orchipcards,areslowlygettingfaster,butmobilepaymentsseemtobetherealsolutiontotheproblem.Onaverage,achipcardpaymenttakes13seconds,whileamobilepaymenttakesonlysix.

• OnlinegiantAmazonhaslauncheditsAmazonDashhandheldshoppingdeviceintheUK.CustomerscanuseDashtoscanaproduct’sbarcodeandorderthatproductonAmazon.ThedeviceiscurrentlyavailableonlyinLondon.

• TheLandTransportAuthorityofSingaporehasbeenworkingontrialsof automated vehicles for public transportation since last year, andhasreceivedeightnationalandinternationalproposals,includingonefrom the UK’s Delphi Automotive. Delphi hopes to launch a fullyautomatedtaxiserviceby2022.

Source:IDC

EstimatedWorldwideSmartwatchShipments1.2%

• TheUSDepartmentofCommercereportedthatUSGDPinthesecondquarterwas1.2%,comparedwiththeconsensusestimateof2.6%.

• Nonresidentialfixedinvestment,ameasureofbusinessspending,declinedby2.2%,itsthirdstraightquarterlydrop.Privateinventoryinvestmentalsodecreased.

• ConsumerspendingwasresponsibleforalmostallofthereboundinGDPgrowthinthequarter.Itroseby4.2%(itsfastestpacesincethefourthquarterof2014)andoutlaysongoodsroseby6.8%.

Source:USBureauofEconomicAnalysis

1.0m 1.0m

1.9m1.3m

5.3m

6.1m

8.1m

4.2m

3.5m

Q22014 Q32014 Q42014 Q12015 Q22015 Q32015 Q42015 Q12016 Q22016

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August 5, 2016


FROMTHEDESKOFDEBORAHWEINSWIG

WelcometothePokéconomy!Injustthelastmonth,andmorethan20yearsafteritsinitial launch, Pokémon Go has become a globalobsession, having been downloaded more than 100million times and counting. Initially, the game waslaunchedinjustsixcountries,then26more,then,aftermuch anticipation, in Hong Kong and Japan. Mostrecently,PokémonGobecameavailable inCentralandSouthAmerica,offeringsomeseriouslocalcompetitionfor the Olympics, which start this Friday in Rio deJaneiro. In this letter, we take a look at the global“Pokéconomy.”

ThepreviousversionsofPokémongeneratedtotalrevenuesof$58billionfrom1995 through2015(averagingnearly$3billionperyear),andThePokémonCompanyisstilltakinginannualrevenuesof$1.5billion.Giventhatthefreegameappisaccessiblebyaglobalsmartphoneinstalledbaseofmorethan2billionusers(accordingtoeMarketer),revenuesfromthisgenerationofPokémonseemlikelytoblowpastthe$3-billion-per-yearaverage,andtherearelikelymoreversionsofthegametocome.

TwoclearwinnersinthePokéconomyareAppleandGoogle,whichofferthegameappthroughtheirrespectiveiOSandAndroidappstores.AlthoughtheappisfreetodownloadandplayerscanobtainPokéBalls(whichthey“throw”atPokémoncharactersinordertocapturethem)inthecourseofgameplay,playerswilllikelywanttovisitthein-appstoretopurchasemorePokéBalls—aswellasincense,eggs,luremodulesandeggincubators—unlesstheyareanexpertshotwithPokéBalls.Thecostof100PokéCoins(whichcanbeexchangedfor20PokéBalls)is$1.49,and14,500 PokéCoins cost $159.99. The game’s daily revenues have recently risen to $10million, according to appintelligencefirmAppAnnie.Annualizingthatfiguremeans$3.65billionayear inrevenueforAppleandGoogle, ifthelevelofplayremainsthesame.

Thusfar,Nintendo,theoriginalcreatorofPokémon,hasnotbenefitedmuchfromtheboom,butthatcouldchange.Shortlyafterthegamewas launched,thecompany’smarketvaluedoubled,to$42billion.However,thecompanycautioned investors that itholdsonly32%of thevotingpowerofThePokémonCompanyand,duetoaccountingrules,itdoesnotconsolidatePokémon’sresults.Nintendodoeshaveanewgadgetinthepipeline—thePokémonGoPlus wristband—which lights up or vibrates when the player is near a Pokémon or a PokéStop, and pressing itsbuttonautomaticallythrowsaPokéBall.Thedeviceisdesignedtohelpkeepplayersfromstaringunsafelyattheircellphoneswhilewalking.Theaccessoryispricedat$35,anditsshipmenthasbeendelayeduntilSeptember.Somego-gettersareofferingguaranteeddeliveryofabandfor$130–$200onAmazon’sMarketplace.

Therearenumerouswaysthatretailersand individualscanbenefit fromjumpingonthePokémonbandwagon. Intheirphysicalstores,manyretailershaveseenanincreaseinfoottraffic(bothappreciatedandunwelcome)whentheir locationscontainPokéStopsorPokémon.RetailerscancreatetheirownluresorPokéStops inordertobringplayersintotheirstoresandadvertisetheseofferingsviatraditionalmeansorsocialmedia.

While it isabitearly totalkabouttheholidayshoppingseason, therecouldbehugeopportunities for toymakersandapparelmanufacturersthatofferPokémontoysandclothingthisyear—althoughthegame’ssuddenresurgenceofpopularityhas takeneveryoneby surprise. Lastyear, theUS toymarketwasworth$19.4billion,up6.7%yearover year, according to TheNPDGroup, and themarket should be even bigger this year. Anything “Poké” couldeasilybecomethehottoyoftheseasonandgrababigshareofthemarket.

Individuals have been creating businesses around Pokémon Go, leveraging their cleverness and abilities. Somegamersareplayingthegamessolelyforthepurposeofresellingthemafterachievinghigherlevels,anddevelopershavelaunchedscanners,trackersandmapsthathelpplayersfindPokémonmoreeasilyandgivethelocationofthehigh-valuePokémon.Sinceplayingthegameisusuallyasolitaryeffort,onedeveloperlaunchedthePokeMatchapp,which helps singles find each other while they are out seeking Pokémon. Criminals have also latched on to theattractivespotsandhavelaininwaitfordistractedplayers.

The meteoric success of Pokémon Go has dropped some welcome excitement on the retail sector, which isexperiencingpocketsofsoftnessintheUS,theUKandelsewhere.Now,thechallengefortheindustryistogetthosePokémon-themed toysandT-shirts ready for theholiday season,and to findadditionalways toparticipate in thePokémonboom.GivenPokémonGo’shugesuccess, there isconsiderable incentive forThePokémonCompany tomultiplyitsrevenuesbykeepingthefranchisegoingwithfutureversionsofthegameaswellasspin-offsandrelatedproducts.

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August 5, 2016


USRETAILEARNINGS

Company

Revenues(USDMil.) YoY%Change

GrossMargin(%) Change(bps)

NetIncome(USDMil.) YoY%Change

StoreFleetEOP

Period 2016 2015

2016 2015

2016 2015

2016 2015

AvonProducts Q22016 1,434 1,823 (21.3) 60.6 60.9 (27) 33 29 14.6 — —

Clorox Q42016 1,600 1,557 2.8 45.4 45.6 (16) 165 191 (13.6) — —

CVSHealth Q22016 43,725 37,169 17.6 16.0 17.2 (118) 924 1,272 (27.4) 9,818 8,018

Hanesbrands Q22016 1,473 1,522 (3.2) 37.8 37.3 51 128 95 35.0 — —

KateSpade Q22016 320 281 13.7 59.7 61.0 (135) 27 9 213.5 426 250

Procter&Gamble Q42016 16,102 17,790 (9.5) 47.9 48.0 (2) 1,951 521 274.5 — —

SallyBeautyHoldings Q32016 998 968 3.1 50.0 49.7 27 68 62 8.7 5,072 4,941

StevenMadden Q22016 325 324 0.6 37.2 35.9 130 25 25 0.7 180 161

TumiHoldings Q22016 148 139 6.5 58.4 58.9 (50) 13 17 (21.0) 199 164

Source:Companyreports

USRETAIL&TECHHEADLINESAfterDigitalSpree,RetailersSpendingonStoresAgain(August2)Women’sWearDaily• Afterspendingbigondigitaltechnologythelastfewyears,retailersareonceagainspendingontheirphysicalstores,whichproducethelion’sshareoftheirsales.Thatdoesnotmeanretailersare abandoning e-commerce or omni-channel operations, but that they are looking to makesmallerstorebasesmoreenticingtodistractedconsumers,whilebetterpoweringtheeffortwithtechnology.

• Retailersarefocusingontheirbiggestandboldeststores,suchasflagships,toavoidhavingtoomany stores and toomuch inventory. So,many are filling a smaller base of storeswithmoretechnologytoengagecustomers.

NordstromExpands:SettoOpenTwoRackStoresinCanada(August3)Nasdaq.com• Successwithitsfull-linestoreinCanadahasledNordstromtoexpanditsRackstorebaseinthecountry. The retailer plans to open its second and thirdRack stores in Canada, inAlberta andOntario,inspring2018.

• Nordstrom has made significant progress with its store expansion plans in Canada, which itannounced in 2012. Since then, the retailer has opened three full-line stores and intends tointroducethreemoreintheTorontoareathroughfallof2017.

ChipCardNightmares?HelpIsOntheWay(August2)TheWallStreetJournal• Transaction timeusingEMVcards,or chip cards, is slowlygetting faster,butmobilepaymentsseemtobetherealsolutiontotheproblem.Onaverage,achipcardpaymenttakes13seconds,whileamobilepaymenttakesonlysix.

• Mobile payments provide the same EMV process as chip cards—protecting your paymentinformation—butrequirefewersteps.Infact,mobilepaymentscouldevenbeconsideredmoresecurebecausetheyrequireauthentication—intheformofafingerprintorPIN—fromtheuser.

WEINSWIG’SWATCHING

Thisweek,theFungGlobalRetail&TechnologyteamattendedtheBigData&AnalyticsInnovationSummitShenzheninShenzhen,China

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August 5, 2016


EUROPERETAILEARNINGS

Company

Revenues(USDMil.)

ChangeinUSD(%)

ChangeinReportingCurrency

(%)Gross

Margin(%)Change(bps)

NetIncome(USDMil.)

YoY%Change

StoreFleetEOP

Period 2016 2015

2016 2015

2016 2015

2016 2015

Adidas 1HEJun30 10,259 8,914 15.1 15.0 49.1 48.8 37 716.6 412.8 73.6 N/A N/A

GroupeCasino* 1HEJun30 21,958 24,078 (8.8) (8.8) N/A N/A N/A 2,880.8 88.1 3,168.5 14,529 15,160

L’Oréal 1HEJun30 14,392 14,302 0.6 0.6 72.4 71.7 70 1,653.9 2,101.1 (21.3) N/A N/A

MetroGroup 3QEJun30 15,353 15,458 (0.7) (2.7) 19.1 19.5 (36) (42.9) 107.4 (140.0) 2,060 2,074

SalvatoreFerragamo 1HEJun30 793 806 (1.6) (1.7) 67.0 65.8 118 100.6 100.2 0.4 662 647

YooxNet-A-PorterGroup 1HEJun30 1,001 883 13.3 13.3 39.6 39.6 (4) 41.3 35.8 15.3 N/A N/A

Source:Companyreports

EUROPERETAILHEADLINESAmazonDashAvailableintheUK(July29)Retaildetail.eu• Online giant Amazon has launched its Amazon Dash handheld shopping device in the UK.Customers can useDash to scan a product’s barcode andorder that product onAmazon. ThedeviceiscurrentlyavailableonlyinLondon.

• Amazon is offering Dash for users of the recently launched AmazonFresh UK online groceryservice.AmazonFreshusersreceiveafreeAmazonDashaftertheirsecondgroceryorder.

MorrisonsCutsPricesbyanAverageof18%(August1)Retailgazette.co.uk• UKsupermarketchainMorrisonshascutthepriceof1,045productsbyanaverageof18%asitseekstocompetewithdiscountersAldiandLidl.

• Each of the big four supermarket chains—Tesco, Sainsbury’s, Asda and Morrisons—hasexperiencedadeclineinsalesinthepastquarter,accordingtomarket-measurementfirmKantarWorldpanel,asstrongpricecompetitionhascontinuedinthesector.

LidltoBeginPrivate-LabelBabyBrandTrial(August2)Retail-week.com• LidlUKissettolaunchanewrangeofprivate-labelbabyproducts,calledLidl’uns.TheretailerispartneringwithparentingwebsiteMumsnetinordertoreceivefeedbackfromusers.

• Thenew label is set to augment Lidl’s current Toujours rangeof diapers andwipeswith babyfood,toiletriesandothernonfooditems.

Sainsbury’sExpandsOfferinginChina(August1)Retailgazette.co.uk• UKsupermarketchainSainsbury’s is increasingitsChinesepresencebydoublingthenumberofproducts it sells through the Tmall Global online platform. Sainsbury’s began selling on theplatforminSeptemberlastyear.

• Sainsbury’s CFO John Rogers said, “Chinese online shoppers are increasingly demanding high-qualityinternationalproducts.Manycustomersalsowanttoreplicatetastesandoccasionsthattheyhaveenjoyedorheardaboutthroughinternationaltravel.”

TravisPerkinsPostsRobustComps(August2)Companypressrelease• TravisPerkins,theownerofDIYchainWickes,postedcomparablesalesgrowthof3.1%andtotalsalesgrowthof5.8%forthesixmonthsendedJune30.Adjustedpretaxprofitacrossthegroupstoodat£184million(US$245million),up10.2%.

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August 5, 2016


• TheresultsareseenasanindicatorofthehousingmarketfollowingtheUK’sreferendumonEUmembership on June 23. CEO John Carter commented that the company had seen weakerdemandintherun-upto,andimmediatelyfollowing,theBrexitvote,butthattherehadbeenagradualimprovementintradingacrossJuly.

IrishGroceryRetailSeesaBoost(August2)Kantarworldpanel.com• Datafrommarket-measurementfirmKantarWorldpanelshowthattheIrishgrocerysectorgrewsalesby3.3%yearoveryearinthe12weeksendedJuly17.

• Market leaderSupervalugrewsalesby3.4%,whilesecond-placeTescosawa1.9%declineandthird-placeDunnesStoresincreasedsalesby6.5%.DiscountersLidlandAldigrewsalesby4.5%and3.7%,respectively.

ASIATECHHEADLINESDidiChuxingtoAcquireUberinChina(August1)Bloomberg• Didi Chuxing, the dominant ride-hailing service in China, will acquire Uber’s operations in thecountry.TheacquisitionwillputDidiChuxing’svaluationatUS$35billion.

• Didi founder Cheng Wei and Uber CEO Travis Kalanick will join each other’s boards. UberTechnologieswillreceive5.89%ofthecombinedcompany,withpreferredequityinterestequalto17.7%oftheeconomicbenefits.

SingaporetoEmbraceDriverlessTaxiTesting(August2)TechinAsia• TheLandTransportAuthorityofSingaporehasbeenworkingontrialsofautomatedvehiclesforpublictransportationsincelastyear,andhasreceivedeightnationalandinternationalproposals,includingonefromtheUK’sDelphiAutomotive.

• Delphihopestolaunchafullyautomatedtaxiserviceby2022.Itwilltransportpassengersfromtheirhomeorwork to thenearest convenientpublic transportation station insteadof ferryingthemendtoendasUberdoes.

ChineseInvestorsBuyMobileGamingCompanyPlaytika(August1)ZDNet• Agroupof11Chineseinvestors,ledbyChina’sonlinegamescompanyShanghaiGiantNetworkTechnology,acquiredmobilegamingcompanyPlaytikainadealworthUS$4.4billion.

• Playtika,soldbyCaesarsInteractiveEntertainment,willcontinuetooperateindependentlyfromitsheadquartersinHerzliya,Israel.Thecompany’srevenuestotaledUS$725millionlastyear.

SonyRepositionsItself,ShiftingFocustoLucrativeAreas(August1)TheStarOnline• Sony reported that PlayStation 4 was its biggest growth driver in the first half of 2016. Thegamingdivisiongeneratedhalf-yearprofitsof¥44billion(US$435million),upfrom¥19.5billion(US$193million)inthefirsthalfof2015.

• Faced with price competition from Asian rivals, Sony has shifted its expansion target fromsmartphonestolucrativeareassuchasvideogames,entertainmentandcamerasensors.

LGtoLaunchNewPremiumSmartphoneinSeptember(August1)Reuters• South Korea’s LG Electronics revealed its plan to sell a new premium smartphone, the V20,beginning inSeptember. It isbelieved thenewdevicewillhelp improveLG’s strugglingmobilebusiness.

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August 5, 2016


• LGsaidtheV20willbethefirstproducttorunonNougat,Google’slatestversionoftheAndroidmobile operating system. Rivals Samsung and Apple will also introduce new products inSeptember.

LATAMRETAILHEADLINESRioTourismShowsSignsofSoftnessAheadofOlympicGames(August2)TheWallStreetJournal• TicketsalesfortheOlympicGamesinRiodeJaneiroarelaggingthoseofpreviousOlympics,andthedemand forhotelsand flights isalsonotashighasanalystshadexpected.AsofAugust1,about79%oftheticketsfortheGameshadbeensold.

• Whilesomesaythatticketsalesarefineat79%—which ishigherthanthesalesfiguresfortheAthens and Atlanta Games—hotel bookings are approximately 30% lower than had beenexpected.Inresponse,travelagenciesareissuingdealsonhotelroomnightsaimedatlocals.

ToFoilCounterfeiters,Rio2016MakesItsOwnKnockoffs(August2)Bloomberg• Whenperusing the stores sellingRio2016merchandise,onenoticesadifferencebetween theprices and quality of goods at the store in Copacabana versus the store just down the street,becauseRio2016haschosentoofferhigher-endgearattouristpricepointsandtolicenselower-quality,cheapergoodsinordertopreventsalesofcounterfeits.

• Thetwo-tieredpricingsystemallowsbothtouristsanddomesticfanstoshowtheirOlympiclove,astheBrazilianrealhasfallen46%againsttheUSdollarintheyearssinceRiowasawardedtheGames.

CAFTAAllowanceProgramDoesNotLiftDominicanExports(August1)WWD.com• Since it was implemented seven years ago, the Earned Import Allowance Program has notprovided enough incentives to boost Dominican apparel exports to theUSmarket, despite itsinitialintention.TheprogramissupposedtoallowDominicanmanufacturerstouseUSfabricinordertoearncreditthatallowseligibleappareltobeshippedtotheUSdutyfree.

• Only fiveof the12 firms registered for theprogramareusing it, indicating that theprogram’sincentivesarenotsufficienttospurincreasesinexportstotheUSfromtheDominicanRepublic.

OlympicCover-Up:WhyYouWillNotSeeSomeShoeLogos(August3)TheNewYorkTimes• Normally,theclothingthatathleteswearattheOlympicsservesasamarketingopportunityforathleticwear. But in track and field, some athletes do notwant theworld to see the logos ontheirshoes,andsomemaybeprohibitedbytheirsponsorstowearcompetingbrands.

• MembersoftheUStrackandfieldteamarerequiredtowearNikeuniformsshowingthefamiliarswoosh.However,theathletesareallowedtowearanybrandofshoethattheychoose,asshoesarethemostimportantpieceofequipmentforprimeperformanceinthesport.

NumberofRetailStoresinBrazilDown17%in18Months(August3)Valor• ThenumberofretailstoresinBrazilhasdecreasedby17%inthepast18months,accordingtoBraziliannewspaperValor.Inthefirsthalfof2016,67,900shopsclosed,followingtheclosureof99,000in2015.

• Theeconomiccrisishashitretailershardasgrowinginflation,risingunemploymentandacreditcrunchhavecausedconsumerstowatchtheirmoneymoreclosely.

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August 5, 2016


EARNINGSCALENDAR

Company

EarningsReleasePeriod Date

Sales(Mil.) EPS

CurrencyConsensusTY LYActual ConsensusTY LYActual Coach(COH) 4Q16 Aug9 1,165 1,004 0.41 0.30 USD

Fossil(FOSL) 2Q16 Aug9 672 740 0.09 1.22 USD

Wayfair(W) 2Q16 Aug9 783 492 (0.41) (0.23) USD

ElizabethArden(RDEN) 4Q16 Aug10 194 189 (0.78) (2.02) USD

MichaelKors(KORS) 1Q17 Aug10 953 986 0.74 0.87 USD

RalphLauren(RL) 1Q17 Aug10 1,530 1,618 0.89 1.06 USD

Alibaba(BABA) 1Q17 Aug11 30,101 20,245 4.15 1.87 CNY

Kohl’s(KSS) 2Q17 Aug11 4,165 4,267 1.03 1.07 USD

Macy’s(M) 2Q17 Aug11 5,750 6,104 0.45 0.64 USD

Nordstrom(JWN) 2Q17 Aug11 3,660 3,701 0.56 1.09 USD

Zalando(ZAL.GR) 2Q16 Aug11 918 733 0.19 0.09 EUR

JCPenney(JCP) 2Q17 Aug12 2,929 2,875 (0.14) (0.42) USD

Dillard’s(DDS) 2Q17 Aug15(E) 1,477 1,551 0.29 0.75 USD

Coty(COTY) 4Q16 Aug16 1,053 1,020 0.06 0.18 USD

Dick’sSportingGoods(DKS) 2Q17 Aug16(E) 1,875 1,823 0.68 0.77 USD

HomeDepot(HD) 2Q17 Aug16 26,472 24,829 1.97 1.71 USD

TJXCompanies(TJX) 2Q17 Aug16 7,855 7,364 0.81 0.80 USD

UrbanOutfitters(URBN) 2Q17 Aug16 885 868 0.56 0.52 USD

Abercrombie&Fitch(ANF) 2Q17 Aug17(E) 783 818 (0.19) (0.14) USD

LBrands(LB) 2Q17 Aug17 2,853 2,765 0.57 0.68 USD

Lowe’s(LOW) 2Q17 Aug17 18,285 17,348 1.41 1.21 USD

Target(TGT) 2Q17 Aug17 16,164 17,427 1.13 1.22 USD

Tencent(700.HK) 2Q16 Aug17 33,227 23,429 1.07 0.74 CNY

Gap(GPS) 2Q17 Aug18(E) 3,776 3,898 0.48 0.63 USD

RossStores(ROST) 2Q17 Aug18 3,127 2,968 0.67 0.63 USD

Walmart(WMT) 2Q17 Aug18 120,365 120,229 1.02 1.08 USD

Williams-Sonoma(WSM) 2Q17 Aug18(E) 1,167 1,127 0.58 0.58 USD

EstéeLauder(EL) 4Q16 Aug19 2,663 2,524 0.40 0.40 USD

FootLocker(FL) 2Q17 Aug19 1,763 1,695 0.91 0.84 USD

SteinMart(SMRT) 2Q17 Aug19 326 312 0.07 0.09 USD

Chico’sFAS(CHS) 2Q17 Aug23(E) 634 680 0.22 0.26 USD

Westfield(WFD.AU) 1H16 Aug23 655 532 0.16 0.22 USD

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August 5, 2016


EVENTCALENDAR

Event Location Date(s)

FungGlobalPresenting/Attending

NACDSTotalStoreExpo Boston,MA Aug6–9 √NRFTech SanDiego,CA Aug7–9 ICSCMOCIAL+MarketingAdvertising&SponsorshipinaDigitalAge SanFrancisco,CA Aug10–12 eCommerceDayBuenosAires BuenosAires,Argentina Aug11 MAGIC LasVegas,NV Aug15–17 √StoreBrandsInnovation&CollaborationSummit Orlando,FL Aug15–17 ICSCFloridaConference&DealMaking Orlando,FL Aug21–23 LATAMRetailShow2016Congress&Expo SãoPaulo,Brazil Aug23–25 InnovationEnterpriseWearableTechinSportSummit SanFrancisco,CA Aug24–25 MulticulturalRetail360Summit SanDiego,CA Aug24–26 ICSCWesternConference&DealMaking SanDiego,CA Aug30–Sep1 ConnectedHealthSummit SanDiego,CA Aug30–Sep1 eCommerceDayBogotá Bogotá,Colombia Sep1 PepcomDigitalFocusGlobal@IFA Berlin,Germany Sep4 MakeUpinNewYork NewYork,NY Sep7–8 GoldmanSachsAnnualGlobalRetailConference NewYork,NY Sep7–8 √NRFRetailIndustryLeadersDinner Dallas,TX Sep8 NewYorkFashionWeek NewYork,NY Sep8–15 √MOBX2016 Berlin,Germany Sep9 E-CommerceParis Paris,France Sep12–14 InternationalRetailDesignConference Montreal,Canada Sep13–15 PepcomHolidaySpectacular!East NewYork,NY Sep15 √ONA16 Denver,CO Sep15–17 LondonFashionWeek London,UK Sep16–20 CTAInnovate!andCelebrate SanJose,CA Sep20–22 WWDDigitalForumNewYork NewYork,NY Sep21–22 √MilanFashionWeek Milan,Italy Sep21–27 design:retailForum Brooklyn,NY Sep22–24 √ICSCVRNFallOutletConvention NewYork,NY Sep25–27 Shop.orgRetail’sDigitalSummit Dallas,TX Sep26–28 HermesRetailWeekSupplyChainAwards London,UK Sep29

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August 5, 2016


DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comAmandaByrneMarketingAssociate

RachaelDimitResearchAssociate

JohnHarmon,CFASeniorAnalyst

JohnMercerSeniorAnalyst

KirilPopovSeniorAnalyst

StevenWinnickResearchAssociate

HONGKONG:10thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223002470NEWYORK:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017LONDON:242–246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988FBICGROUP.COM

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Weekly Insights by Fung Global Retail Tech August 5 …...button automatically throws a Poké Ball. The device is designed to help keep players from staring unsafely at their cellphones