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Made in the shades
Luxottica Retail picks Hawaii to launch
a new global chain of high-end sunglass
boutiques, Sole Mio. Not for the faint
of wallet, the store offers specs
at prices up to $1,500 a pair
Forget Rodeo Drive -- luxury retailers are saying the future's so bright in Hawaii they gotta wear shades.
Sole Mio
Parent company: Luxottica Retail, an Italy-based eyewear and watch company. Other divisions within the company include Sunglass Hut, LensCrafters, Watch Station and Watch World.
Concept: A high-end boutique catering to consumers who value brand names and are willing to pay high prices. Launch plans: Hawaii will be the prototype store, but the company plans to open 40 to 50 more around the United States by the end of next year. Location: Sole Mio occupies 1,350 square feet on the second floor of Ala Moana Center. Brands: Include Cartier, Chanel, Versace, Prada, Ferragamo. Price range: $80 to $1,500 with most models retailing for about $300.
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Italy-based Luxottica said it launched Sole Mio, a planned global chain of high-end sunglasses boutiques, at Ala Moana Center to take advantage of "the fashion capital of the Pacific."
While sales at Hawaii's luxury stores have motivated many high-end retailers to expand here, it's rare to see the islands chosen as a launching pad for new concepts, said retail analyst Stephany Sofos.
"Unless they were a born-and-raised retailer, I can't think of anyone else that's tried to launch a concept in Hawaii," Sofos said.
Many retailers have found the isles' high start-up costs and limited retail space daunting, she said. Hawaii's fluctuating visitor arrivals also create uncertainty as retailers struggle to identify their targets in an increasingly global marketplace, Sofos said.
"This just shows you how sophisticated our market has become," Sofos said. "Depending on the success of Sole Mio, we could see lots of start-ups entering our market."
Hawaii's retail market has a strong mix of local consumers and global tourists, said Marlene De Costa, the state director for the International Council of Shopping Centers.
"The luxury market is even better than it has been during the last few years because the whole tourist industry is improving," De Costa said.
More high-end retailers are considering coming to Hawaii or expanding, she said.
"They are responding to the marketplace -- it's an indication that they believe higher-spending visitors are coming," De Costa said.
Some eye Hawaii as a stepping stone to Japan. Others are already in Asia and want to use Hawaii as a bridge to the mainland United States, she said.
Luxottica chose Hawaii because it is a "fashion capital" with ties to the Pacific, said Michele Yanchar, regional manager for Sunglass Hut and Sole Mio in Hawaii.
There are more than 1,500 Luxottica-owned Sunglass Hut locations and 300 Watch Station and Watch World stores in shopping and tourist destinations, Yanchar said.
"Hawaii is one of the top performing regions for our company," she said. "It's a place where eyewear trends are set."
Sole Mio sells high-end sunglasses with the most expensive pair being a Cartier 18-karat white gold pair priced at $1,500.
"We're experiencing tremendous growth at the center, especially in the luxury market," James said. "Sales have rebounded to pre-9/11 levels and our forecast for the end of the year indicates that we are on track to have the best year that we've ever had."
Shopping centers like Ala Moana and Royal Hawaiian have led some retailers to view Honolulu as a destination that may be able to hold its own against Rodeo Drive.
"Hawaii is a good indicator of the United States and Asian customers and Ala Moana profiles within the community as a good location for multi-cultural retailing," Yanchar said.
While New York is traditionally on every retailer's radar screen for rolling out international brand concepts, times are changing, James said.
"More recently, we've seen some deciding to launch from the West Coast," James said. "Hawaii could be next. It's perfectly suited to capturing customers from mainland markets as well as those from Japan, Australia, China and other tertiary markets."
Many of the big luxury retailers like Cartier and Prada are already here, and their Honolulu stores are among the busiest within their chains, De Costa said.
Sole Mio, Italian for "my sun," will distinguish itself from its sister store by carrying more expensive brands including Cartier, Chanel, Versace and Dole Gabana as well as Ray Ban, Maui Jim, and Revo.
By the end of 2005, the company plans to open 40 to 50 Sole Mio stores, Yanchar said, at locations where consumers are willing to shell out up to $1,500 for a pair of shades.
"If Sole Mio can tap into the office lady market they will likely be successful (in Hawaii)," said University of Hawaii marketing professor Mark Rosenbaum, who recently co-published a survey on the shopping habits of Waikiki tourists.
Sole Mio, at Ala Moana Center, is designed with a European flair; the tile floor and light fixtures are imported from Italy. Owner Luxottica is banking that wealthy shoppers who frequent high-end boutiques also will open their wallets for pricey sunglasses.
The challenge will be in convincing shoppers that buying from Sole Mio is as exclusive as buying from high-end boutiques, where even the branded shopping bags have status, Rosenbaum said.
"I believe that Hawaii follows the trends; it does not set trends. Fashion brands are built in places such as Soho and South Beach," Rosenbaum said. "Hawaii merely sells what has already been established. Simply having a store that sells high-luxury items is not a guarantee for success, especially if they can get those items at boutiques like Neiman Marcus, Cartier or the Duty Free Shops."
Sole Mio, with a European-style design, has attempted to create a feeling of exclusivity. The store interior is built around imported Italian tile and light fixtures and is designed to appeal to those who associate Europe with high-end goods.
"It's intimidating, yeah?" said Marilou Adao, manager of Sole Mio, as she gestured toward a wide expanse of sunglasses all bearing a touch-me-not shine. "It looks quite different from our Sunglass Hut store downstairs."
But the store's upscale image hasn't prevented customers from shopping, Adao said. Her first customer of the day bought four pairs.
"The customers who shop here are more likely to buy multiple pairs of sunglasses," Adao said. "They view sunglasses as accessories -- they want a pair for every ensemble."
While Hawaii will never be Rodeo Drive, it's not so far-fetched to think of the islands as the sunglasses capital of the world, said Anne Murata, marketing director of the Festival Cos., which manages the Royal Hawaiian Shopping Center.
"It's already considered a prestigious location for resortwear and beachwear," Murata said. "Why not sunglasses?"
