Kingsmen Creatives Ltd reported their revenue increases 10.8% to S$149.4 million for 1st half of 2016 (1H2016). Although revenue has increased, the gross profit still remains in the negative outlook as compared to 1H2015. Gross profit decreased 1.4% as compared to 1H2015.
I am quite keen to understand the performance of the 4 divisions in Kingsmen Creatives Ltd. As you can see below, all the three divisions (Exhibitions and Thematic, Retail and Corporate Interiors, Alternative Marketing) maintained their performance by reporting a revenue increase except for Research and Design which continues to report a revenue decrease. (Results for 1Q2016 here: Kingsmen Creatives Profit Fell for 1Q2016)
|Division||1Q2016 vs 1Q2015||1H2016 vs 1H2015|
|Exhibitions and Thematic||Revenue Increase||Revenue Increase|
|Retail and Corporate Interiors||Revenue Increase||Revenue Increase|
|Research and Design||Revenue Decrease||Revenue Decrease|
|Alternative Marketing||Revenue Increase||Revenue Increase|
What is Research and Design?
Being curious on the job functions in Research and Design, I did some search on the internet. This is what I found.
Kingsmen Design Pte Ltd is a subsidiary of Kingsmen Creatives Pte Ltd. As a part of the Group’s Research & Design division, Kingsmen Design Pte Ltd specialises in design consultancy, design implementation, design management, research & development, and shop drawing support.
The division’s client includes TAG Heuer, Procter & Gamble Co., Kate Spade and Michael Kors, and thematic projects in the region. As you can see these are big brands in luxury retail goods sector which is facing headwinds now. In the current headwinds, these big brands are bound to be investing less in design consultancy and thematic implementation.
From my point of view, there is no point for these big brands to invest in thematic promotions and design the shops when nobody is buying in the current economy right? Most likely, the big brands may be busy stacking their shelves with more products to increase sales instead. But of course, this is just my analysis. What do you think?