Founder and Chief Executive Jacques-Antoine Granjon told Reuters the joint venture with the credit card group would give Vente-Privee access to an affluent client base of 40 million card holders, giving it instant credibility and brand recognition despite not being a household name outside Europe.But success in the U.S. is far from certain. Vente-Privee is arriving years after imitators of its flash-sales model such as Gilt Groupe and Rue La La, and also faces e-commerce giants such as Amazon, which recently launched a daily deal service hawking local merchants and restaurants.Unlike in France where sales are limited legally to twice-yearly set periods, U.S. consumers are used to getting deep price cuts on merchandise in factory outlet stores and discount chains such as T.J. Maxx and Marshalls.”The U.S. market is a difficult one where discounting is already very common, so we will have our work cut out for us,” said Granjon, whose wavy long hair and habitual uniform of jeans and chunky silver skull-shaped rings belie his status as one of France’s most respected entrepreneurs.”But we have big ambitions, and if we have the right offering and excellent brands, things will take off quickly.”To conquer the U.S., Granjon said Vente-Privee would stick closely to its formula of selling luxury goods to price-conscious fashionistas in two- to six-day sales, while helping major brands like Armani and Diesel liquidate unsold stock.The approach has put the decade-old company on track to hit more than 1 billion euros in sales this year and turned it into one of Europe’s biggest homegrown on-line retailers with a presence in six countries, including France, Germany, Spain, the UK and, from next week, the Netherlands.Vente-Privee, which has been profitable since 2004, has also been the subject of frequent speculation about an initial public offering or a takeover by a U.S. giant like Amazon.Granjon dismissed both scenarios, saying the company could afford to expand abroad without outside funds given its 150 million euros in cash and healthy 7 percent profit margins.”I’ve never raised money and I don’t need to now,” he said.BUCKING TRENDGranjon and the other founders own 80 percent of the group, which was valued at about 1 billion euros ($1.38) when U.S. private equity fund Summit Partners took a 20 percent stake in 2007 and could be worth three times that, according to analysts.But the e-retailer has so far struggled to replicate its success beyond France, where it earns more than three-quarters of sales, and has seen its model cloned by rivals like Spain’s Privalia, Germany’s Brands4Friends and the UK’s Brand Alley.Vente-Privee hopes to buck that trend in the United States by teaming up with American Express.After more than a year of negotiations, the two agreed in March to invest $15-20 million each in the joint venture. Soon after, they hired former Google executive Mike Steib to run the business and are on track to hire some 200 staffers for the New York headquarters by Christmas.The company has a batch of 30 flash sales ready for the upcoming launch of the U.S. site, Granjon said.Especially in the first few months, Granjon said Vente-Privee would showcase fashion from top brands to win the loyalty of new consumers. The company must also convince U.S. companies to sell unsold inventory on the site at a time when competition for such stock is intensifying.Granjon said the company planned to draw on the strong ties it already has with European brands such as Spanish shoemaker Camper and Italian designer clothes company Diesel, as well as signing up major U.S. retailers like the Gap.Asked what brands he was targeting, he referred to downtown Manhattan’s Soho district: “Think of the square of streets down there between Houston and Canal and West Broadway and Lafayette. I want all the brands that are there.”In a separate interview, Vente-Privee’s Steib said the site would offer 60-65 percent discounts on average and estimated such private sales in the U.S. would be a $1.5 billion market this year and grow to $5-6 billion in the next five years.
Founder and Chief Executive Jacques-Antoine Granjon told Reuters the joint venture with the credit card group would give Vente-Privee access to an affluent client base of 40 million card holders, giving it instant credibility and brand recognition despite not being a household name outside Europe.But success in the U.S. is far from certain. Vente-Privee is arriving years after imitators of its flash-sales model such as Gilt Groupe and Rue La La, and also faces e-commerce giants such as Amazon, which recently launched a daily deal service hawking local merchants and restaurants.Unlike in France where sales are limited legally to twice-yearly set periods, U.S. consumers are used to getting deep price cuts on merchandise in factory outlet stores and discount chains such as T.J. Maxx and Marshalls.”The U.S. market is a difficult one where discounting is already very common, so we will have our work cut out for us,” said Granjon, whose wavy long hair and habitual uniform of jeans and chunky silver skull-shaped rings belie his status as one of France’s most respected entrepreneurs.”But we have big ambitions, and if we have the right offering and excellent brands, things will take off quickly.”To conquer the U.S., Granjon said Vente-Privee would stick closely to its formula of selling luxury goods to price-conscious fashionistas in two- to six-day sales, while helping major brands like Armani and Diesel liquidate unsold stock.The approach has put the decade-old company on track to hit more than 1 billion euros in sales this year and turned it into one of Europe’s biggest homegrown on-line retailers with a presence in six countries, including France, Germany, Spain, the UK and, from next week, the Netherlands.Vente-Privee, which has been profitable since 2004, has also been the subject of frequent speculation about an initial public offering or a takeover by a U.S. giant like Amazon.Granjon dismissed both scenarios, saying the company could afford to expand abroad without outside funds given its 150 million euros in cash and healthy 7 percent profit margins.”I’ve never raised money and I don’t need to now,” he said.BUCKING TRENDGranjon and the other founders own 80 percent of the group, which was valued at about 1 billion euros ($1.38) when U.S. private equity fund Summit Partners took a 20 percent stake in 2007 and could be worth three times that, according to analysts.But the e-retailer has so far struggled to replicate its success beyond France, where it earns more than three-quarters of sales, and has seen its model cloned by rivals like Spain’s Privalia, Germany’s Brands4Friends and the UK’s Brand Alley.Vente-Privee hopes to buck that trend in the United States by teaming up with American Express.After more than a year of negotiations, the two agreed in March to invest $15-20 million each in the joint venture. Soon after, they hired former Google executive Mike Steib to run the business and are on track to hire some 200 staffers for the New York headquarters by Christmas.The company has a batch of 30 flash sales ready for the upcoming launch of the U.S. site, Granjon said.Especially in the first few months, Granjon said Vente-Privee would showcase fashion from top brands to win the loyalty of new consumers. The company must also convince U.S. companies to sell unsold inventory on the site at a time when competition for such stock is intensifying.Granjon said the company planned to draw on the strong ties it already has with European brands such as Spanish shoemaker Camper and Italian designer clothes company Diesel, as well as signing up major U.S. retailers like the Gap.Asked what brands he was targeting, he referred to downtown Manhattan’s Soho district: “Think of the square of streets down there between Houston and Canal and West Broadway and Lafayette. I want all the brands that are there.”In a separate interview, Vente-Privee’s Steib said the site would offer 60-65 percent discounts on average and estimated such private sales in the U.S. would be a $1.5 billion market this year and grow to $5-6 billion in the next five years.
SONY ERICSSON (ERICb.ST)Mobile handset maker Sony Ericsson’s third-quarter profit
was in line with expectations, but it was tight-lipped about a
report electronics giant Sony was set to take full ownership of
the brand.Pretax profit was 31 million euros ($42 million), just higher
than the mean forecast of 27 million euros in a Reuters poll and
a swing back from a loss of 42 million in the previous quarter.For more on the companies, click on [ERICb.ST],DANSKE BANK , POHJOLA BANKCredit rating agency Fitch has put several large and
relatively highly rated European banks, including Danske Bank
and Pohjola Bank, under review for a possible downgrade.Currently Fitch rates Danske Bank a+/A+ and Pohjola Bank
aa-/AA-.For more on the companies, click onKESKOFinnish retailer and wholesaler said its sales increased 6.3
percent in September from the same month a year earlier. Its
total food trade rose 7.6 percent but hardware sales in Finland
fell 0.9 percent from a year ago.In August, Kesko’s sales rose 11.4 percent year-on-year.For more on the companies, click onTELIASONERATeliaSonera said late on Thursday it had acquired two
licenses in Sweden in the 1800 MHz frequency band in an auction.The licences are valid for 25 years starting from 2013, and
the costs for the new frequency blocks in total are 920 million
Swedish crowns ($137,6 million).The payment to the Swedish Post and Telecom Agency will be
made during the fourth quarter of 2011.For more on the company, click onLUNDBECKThe Danish pharmaceuticals group will establish its own
research center in Shanghai, China, it said on Friday. The
company is also planning to establish a local packaging factory,
aimed at servicing the Chinese market, it said in a press
release.For more on the company, click on** For a summary of upcoming results and forecasts, double
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* Sees Q2 rev $340.6 mln vs est $362 mln* Shares fall 2 pct in extended tradeOct 13 (Reuters) - Microchip Technology Inc
forecast disappointing July-September results, saying its
business did not pick up towards the end of the quarter as it
had hoped, as a weak economy squeezes demand in the chipmaking
industry.The company, which makes chip products used for a range of
embedded control applications, expects second-quarter adjusted
earnings of 45-47 cents a share on sales of $340.6 million.On Aug. 4, the company had forecast adjusted earnings of
50-54 cents a share, on sales of $352.0-370.8 million.Analysts, on average, were looking for a profit of 52 cents
a share, on revenue of $362 million, according to Thomson
Reuters I/B/E/S.”We experienced incrementally stronger headwinds and saw no
seasonal Christmas build, which in turn adversely impacted all
of our product lines and sales channels,” Microchip Chief
Executive Steve Sanghi said in a statement.The company, expected to report second quarter results on
Nov. 3, said its two facilities in Thailand, located almost 50
miles east of Bangkok, are running normally and meeting customer
demand for its products.Floods that have covered a third of Thailand and have forced
the closure of scores of factories in the country and have
impacted operations at a number of companies including U.S.
chipmaker ON Semiconductor Corp and Microsemi Corp
.Chandler, Arizona-based Microchip’s shares were down 2
percent at $34.71 in extended trade. They had closed at $35.31
on Thursday on Nasdaq.
* Eyes on China dataBy Chikako MogiTOKYO, Oct 13 (Reuters) - Asian shares rose on Thursday on
growing hopes that Europe is taking concrete steps to contain
the region’s debt woes and head off a systemic banking crisis.Strengthening investor confidence in the euro zone
underpinned the single currency, while receding concerns about
the banks’ problems threatening the wider financial system
sharply tightened Asian credit markets.MSCI’s broadest index of Asia Pacific shares outside Japan
rose 0.6 percent, following a 1.4 percent gain
in the MSCI world equity index , which posted an
increase for the sixth session in a row on Wednesday.The Nikkei average opened up 1.07 percent on
Thursday. On Wall Street, the benchmark S&P 500 stock index
compiled a gain of 9.8 percent over the past seven
sessions, its steepest advance since mid-March 2009.The euro stayed bid early in Asia on Thursday, having jumped
to a near one-month high on the dollar as Europe took a step
closer to shoring up its financial rescue fund.Lawmakers in Slovakia struck a deal on Wednesday to ratify a
plan to bolster the euro zone’s rescue fund by Friday,
effectively ending a crisis that had threatened the currency’s
main safety net. Slovakia is the only country in the 17-nation
bloc left to approve the revamp of the fund.Adding to the sense of urgency, the President of the
European Commission, Jose Manuel Barroso, said Europe needed to
take decisive action on Greece and outlined a broad plan to
contain the debt crisis.As European officials step up efforts to provide a more
specific roadmap to resolve its debt woes and recover investor
confidence, the European Union is expected to announce a bank
recapitalization plan designed to cushion the impact any default
by Greece could have on the region’s banks.Germany and France, the leading powers in the bloc, have
promised to propose a comprehensive strategy to fight the debt
crisis at an EU summit on Oct. 23.In credit markets, which had been feeling the strain of
waning confidence in the financial system in recent months, the
iTraxx Asia ex-Japan investment grade index
narrowed by about 15 points.Oil prices fell on Thursday, with Brent crude futures down 0.1 percent at $111.21 a barrel after rising the
day before for an 11.6 percent gain over six sessions. U.S.
crude futures fell 0.85 percent to $84.84 a barrel, after
snapping a five-session streak of higher closes on Wednesday.Asian markets are focused on China’s trade data due at
around 0100 GMT to gauge the strength of the world’s
second-largest economy.A stronger-than-expected reading would boost investor
confidence about a soft landing for the Chinese economy, while a
weaker outcome would add to worries about global growth.
That could weigh on property developers and put pressure on
the benchmark as banking shares, which have led the charge over
the past two sessions, stabilise.The Hang Seng index closed up 2.4 percent at 18,141.6
on Tuesday and is up about 2,000 points over the past week. The
China Enterprises index rose 4.4 percent.With short-selling activity still relatively high and low
turnover in Hong Kong suggesting caution, traders say the market
could be in for some profit-taking.Elsewhere in Asia, the Nikkei was down 0.7 percent
while South Korea’s KOSPI was 0.8 percent lower as of
0100 GMT.STOCKS TO WATCH:* Angang Steel , the listed arm of
China’s Anshan Steel Group, said on Tuesday it plans to issue up
to 6 billion yuan ($941 million) in short-term bonds and 8
billion yuan of medium-term notes, raising proceeds to repay
loans, restructure finances and lower financing costs.* Great Wall Motor Co Ltd , China’s top
manufacturer of sport utility vehicles and pick-up trucks, will
not appeal an Italian court ruling that its GW Peri compact
infringes Fiat’s patent, saying the ruling would have
no impact on it.* Great Wall Motor said it is on track to meet its 2011
sales target of 500,000 vehicles, allaying worries that slower
growth in the world’s largest auto market may cut into sales.* Russian state bank VEB will sign a deal with China
Development Bank (CDB) under which CDB will provide $1.43
billion for building the first stage of UC RUSAL’s
750,000-tonne Taishet aluminium smelter, VEB head Vladimir
Dmitriev said.* Property developer Shui On Land Ltd has returned
to the loan market for the second time this year with an up to
$410 million deal to refinance existing debt and fund expansion,
banking sources said.* Asia’s top refiner China Petroleum & Chemical Corp
(Sinopec) will cut crude oil throughput
this month at its Gaoqiao refinery by about 13 percent from
September as a fire-hit coking unit will not come back online
until late this month, an industry source said.* PetroChina’s Dushanzi refinery will
resume normal operations this week after an almost two-month
turnaround, an industry source said on Tuesday.* Changsha Zoomlion Heavy Industry Science and Technology
Development Co Ltd said on Tuesday it
expected net profit in the first three quarters to rise as much
as 92 percent on higher sales.* Emperor Watch & Jewellery Limited said it had
commenced discussion with independent third parties on possible
investment opportunities to expand its existing business but no
formal agreement had been entered. For statement click here* Chinese developer Guangzhou R&F Properties Co., Ltd
said contracted sales in September amounted to 3.01
billion yuan, up 50 percent from last month. Given upcoming
launches, full year sales are expected to remain on pace if
policies stay stable, it added.
The measure orders the Democratic governor’s Department of Finance to establish a uniform method of measuring the economic consequences of regulations put forward by other state agencies.Starting in 2013, those agencies will be required to consider the job gains or losses, advantages or disadvantages to various businesses, and investment increases or declines projected as a result of any proposed regulation with an economic impact of more than $50 million.The Department of Finance will create guidelines for other agencies to follow in conducting those impact assessments.”This new law creates a standard yardstick everyone is measured against — both the regulatory agency and those who offer alternatives that they say are more cost-effective,” California Chamber of Commerce President Allan Zaremberg told Reuters.”It ensures the state follows an accepted practice of doing an economic impact analysis, takes any stakeholder recommendations for what is the most cost-effective approach and — if the agency doesn’t adopt the most cost-effective approach — it must explain why.”The chamber and other business groups, including the California Manufacturing and Technology Association, hailed the legislation as a victory because they say for the first time the state is required to assess the potential harm new regulations impose on the state’s economy.”Our legislation will ensure that businesses spend fewer dollars on regulation compliance and more on innovation and expansion,” said state Senator Ron Calderon, who authored the bill along with fellow Democratic Senator Fran Pavley.The genesis of the bill is in part a reaction to the regulations created by the state Air Resources Board implementing the state’s landmark greenhouse gas measure.Business groups still complain over what they consider a lack of concern about compliance costs shown by the board in its economic analysis of the law, which demands a 20 percent cut in emissions of heat-trapping air pollutants by 2020.The board rejected arguments by critics that the true price tag of implementing the law was far higher than estimated, generating short-term job losses and higher energy costs. Instead, the board insisted its plan would be a net economic gain for California.There are some potentially major loopholes in the regulation measure signed by Brown.Each state agency decides whether a proposed regulation will generate the $50 million in economic impacts set as a trigger for the new law’s provisions. And the densely worded 20-page measure contains no criteria for such a determination.
