Retail News CRM

Author: Mei Ling Tan

  • Oriental Watch sales, profit holds firm despite turmoil

    Oriental Watch sales, profit holds firm despite turmoil

    Oriental Watch has shrugged off the impact of ongoing Hong Kong protests, with sales down a mere 1.1 percent and improved gross profit in the half-year to September.

    Sales totaled HK$1.168 billion (US$149 million), gross profit rose 10.4 percent to $318.2 million and profit attributable to shareholders was down 3.6 percent to $61.7 million.

    “The Hong Kong operation of the group held up well during the period against a backdrop of uncertain economic and social conditions,” said chairman Yeung Ming Biu.

    Oriental Watch operates 61 stores selling high-end watches, 46 of them in Mainland China, 11 in Hong Kong, three in Taiwan and one in Macau.

    Same-store-sales growth reached 11 percent in China where the company has established a solid foothold across tier-one cities such as Shanghai and Beijing, in the Guangdong province, and other cities such as Taiyuan, Nanjing, Changsha and Chengdu.

    Figures for Hong Kong were not highlighted in the group’s half-year results but overall luxury-goods sales fell by around 50 percent in the last quarter.

    Yeung said the group believes Hong Kong tourism will regain its footing in the near future, and remains “cautiously optimistic” for the longer-term retail market, especially for the high-end sectors.

    “Oriental Watch will continue to deploy appropriate strategies to elevate the productivity of existing stores, strengthen cost management and optimize its inventory profile, as well as enrich its

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  • OCBC and DBS Provide Green Loans for Singapore Developer

    OCBC and DBS Provide Green Loans for Singapore Developer

    Singapore developer Tiong Seng has secured S$125 million of green loans and performance-linked facilitates from OCBC and DBS, respectively.

    OCBC and DBS provided around $51.4 million and $40.4 million, respectively, according to a regulatory filing.

    The OCBC loan will be used exclusively on green projects with «clear environmental benefits» such as certified green buildings and projects that improve resource efficiency or generate renewable energy.

    The DBS loan will include environmental performance-linked benefits including interest rate and performance bond commission discounts if certain predetermined targets are exceeded. Review and validation will be conducted by an external independent party at the end of each 1-year period.

    Apart from diversifying our sources of funding, these facilities will allow us to focus on our environmental and green objectives to make a positive difference in our society, said Tiong Seng Holdings chief executive.

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  • Standard Chartered Wants to Attract 7,000 Millennials in Singapore

    Standard Chartered Wants to Attract 7,000 Millennials in Singapore

    Standard Chartered attracted 7,000 millennials to open new accounts with its JumpStart offering which targets the youth segment with a focus on low fees and thresholds.

    The JumpStart savings account offering was soft-launched just two months ago and specifically targeted young customers between 18 and 26 years old. With no minimum deposit, no fall-below fee and no lock-in period, customers were able to secure an interest rate of 2 percent for their first S$20,000 ($14,681).

    In addition, JumpStart customers were offered a debit card with 1 percent cash back on spending, capped at $44 per month, and 100 percent rebates for the fees linked to the first $14,681 in investments through online trading and unit trusts.

    According to research commissioned by Standard Chartered, millennials were «mostly incognizant with banking products and services due to the lack of knowledge and funds. But over the next five years, key priorities included securing a stable job and planning for homeownership and marriage, both of which require intensive saving rates for the average Singaporean.

    Savings form the foundation of financial well-being, and we wanted to give young millennials a good reason and provide a great platform to start building healthy financial habits, said Dwaipayan Sadhu, Standard Chartered’s Singapore head of retail banking Singapore, adding that initial response to JumpStart has been overwhelming.

    This is an exciting start and we have plans to further broaden Jumpstart to cover other areas that are meaningful to this segment, such as financial seminars and giving back to society.

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  • SoftBank Seeks $2.8 Billion From Japan Banks

    SoftBank Seeks $2.8 Billion From Japan Banks

    SoftBank Group is in talks to get as much as 300 billion yen ($2.76 billion) in financing from three banks.

    Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group are currently in discussions with the investment company about its loans, various media reported.

    We are evaluating our options flexibly while considering cash on hand, said SoftBank spokeswoman Hiroe Kotera, who was quoted in «Bloomberg». Bank loans are one option, but nothing has been decided, she added.

    The loans are part of the company’s regular financing, said the newswire’s source, but Nikkei reported that SoftBank is raising money to pay for its $3 billion tender offer to WeWork shareholders.

    Last month, the investment firm agreed on a $9.5 billion rescue package for WeWork, in a deal that handed it 80 percent of the troubled co-working company. Masayoshi Son’s company reported an operating loss of close to $6.5 billion in the quarter, after writing down the value on a string of high-profile investments.

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  • China to Step Up Fintech Regulation

    China to Step Up Fintech Regulation

    The People’s Bank of China will introduce new standards in 17 areas, including blockchain, cloud services and artificial intelligence.

    China has plans to step up regulation in 17 areas of fintech to «guide the application of new technologies» applied across the financial industry, according to an article published by state news portal Xinhua.

    Speaking at the 2019 working conference of the National Financial Standardization Technical Committee on Wednesday, Fan Yifei, deputy governor of the People’s Bank of China, said the introduction of new standards is urgently needed to fill shortcomings in key areas, with a particular focus on data security, the publication reported.

    Fan noted that China currently has 65 national financial standards and 252 financial industry standards, which include mobile financial payment client technical specifications, voiceprint identification and more, but financial services and management standards are still weak.

    Explaining the rationale behind the regulatory push, Fan said that high-quality financial development requires high-quality financial standards.

    He also highlighted the need to expedite the internationalization of financial standards, actively carry out financial standardization research, cultivate a new generation of regulators savvy in this field, and to use fintech regulation to modernize financial governance systems and governance capabilities, the report said.

    China recently passed a new law on cryptography aimed to facilitate development concurrently with the country’s central banking efforts to launch its own digital currency, which will be effective January 1, 2020.

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  • Pork price hikes drive up related food costs

    Pork price hikes drive up related food costs

    Pork prices have surged following the African swine flu outbreak in Vietnam, driving up prices of related food in supermarkets and restaurants.

    Over the last two months, the prices of pork products at many supermarkets and food stores in Ho Chi Minh City rose 5-25 percent.

    For instance, the price of pork sausages has risen from around VND120,000 ($5.2) to VND150,000 ($6.5) per kilogram, and that of higher-end sausages from VND150,000 ($6.5) to VND210,000 ($9.1).

    Hoa, the owner of a food store in HCMC, said that over the past week, all suppliers have announced price increases of VND3,000-20,000 (13-86 cents) on each kilogram of pork, forcing her to adjust prices accordingly.

    “Many merchants have advised me to buy in bulk now and store the pork because prices will rise even further as demand rises and supply dries up,” Hoa said.

    Similarly, restaurant owners in HCMC have raised the prices of rice and noodles dishes with pork as an ingredient, which on average cost around VND30,000 ($1.3), by VND2,000-5,000 (9-22 cents) each.

    “I can’t raise prices too much or it will shock my guests, so I have to do a balancing act of cutting smaller portions of pork, finding cheaper suppliers,” said Hue, a restaurant owner in Go Vap District, HCMC.

    Vietnam has had to cull 5.9 million pigs infected with African swine fever since the beginning of the year, equivalent to 337,000 tons of pork, according to Phung Duc Tien, Deputy Minister of Agriculture and Rural Development.

    This has resulted in pork prices rising by 19 percent since last November, and could rise by a further 10-15 percent by the end of this year with an expected shortage of 200,000 tons, according to the General Statistics Office (GSO).

    While the consumer price index in November is forecast to reach 0.8-1 percent, pork alone is expected to contribute 0.75 percentage points to this increase, GSO officials said at a government meeting urgently called Monday to find ways to limit the surge in pork prices.

    At the meeting, the government assigned the Ministry of Industry and Trade to monitor and forecast upcoming pork shortages every month, so that the government could import enough quantities to ensure balance in demand and supply and control prices.

  • Vingroup unit partners with Google to make TVs

    Vingroup unit partners with Google to make TVs

    VinSmart, a unit of private conglomerate Vingroup, will produce smart televisions in partnership with Google, the company announced Wednesday.

    The partnership will allow the electronics producer to develop its Vsmart TVs on Google’s Android operating system.

    VinSmart is set to release the first five models, which have 4K resolution and Google Assistant in Vietnamese, next month.

    The TVs, which will have Dolby sound systems, will be made in Hanoi’s Hoa Lac Industrial Park.

    After Google, VinSmart will look for international partners to develop more smart products meeting global standards under a Vietnamese brand, Vingroup’s deputy director Le Mai Tuyet Trinh said in a statement.

    Tech expert Tran Manh Hiep said that VinSmart TVs will find it very difficult to compete in the high-end segment dominated by Samsung and LG. He said it is better that the Vietnamese company focuses on the affordable segment.

    VinSmart, established in June last year, has already introduced eight smartphone models, and exported them to Spain, Myanmar and Russia. It had announced in May that it has plans to expand this to India, Thailand, Laos and Cambodia this year. The company also said that it was looking into making air conditioners and refrigerators.

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  • Vietjet Air signs $140 million loans for fleet expansion

    Vietjet Air signs $140 million loans for fleet expansion

    Vietjet Air has signed a syndicated loan agreement worth $140 million with three foreign banks to fund its aircraft purchase plans.

    The lenders were South Korea’s Woori Bank and KEB Hana Bank; and the Industrial and Commercial Bank of China, the airline said in a statement Tuesday.

    The low-cost airline is eyeing new routes to the Middle East, Eastern Europe and Australia using the 20 Airbus A321XLR aircraft it ordered last month.

    The A321XLRs are scheduled to be delivered from 2023 and the carrier plans to add 10 international routes every year, Thao said.

    Vietjet currently flies 40 domestic and 66 international routes. It operates 385 flights daily within Vietnam and to places such as Japan, Hong Kong, South Korea, Taiwan, Singapore, mainland China, Thailand, Myanmar, Malaysia and India.

  • Vietnam reduces penalties for illegal currency exchange

    Vietnam reduces penalties for illegal currency exchange

    Vietnam has significantly lowered penalties for illegal currency exchanges following outrage over a man being fined VND90 million ($3,900) for exchanging $100 last year.

    The fine was revoked after a public outcry erupted over disproportionate punishment.

    An individual or a shop illegally exchanging up to $1,000 will receive a warning instead of a fine of up to VND100 million ($4,300), according to a new government decree set to take effect December 31.

    The fine will increase progressively, with a maximum penalty of VND100 million levied for illegally exchanging more than $100,000, the decree says.

    Illegal exports and imports of currency will be fined up to VND250 million ($10,800).

    The legal amendments come after a resident of the southern city of Can Tho was fined VND90 million ($3,900) in October 2018 for exchanging a $100 note at a gold shop.

    It is a common practice for Vietnamese citizens to exchange currencies at local gold shops that offer better prices than banks, even though very few of the shops are licensed exchangers.

    Can Tho authorities revoked the punishment after Deputy Prime Minister Truong Hoa Binh said such a heavy fine should be reviewed, and lawyers and lawmakers also said it was unreasonable?

    However, the province confiscated the $100 note from the man, an electrician who makes VND4 million ($171) a month.

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  • Japanese used luxury-goods chain Komehyo has opened in Bangkok

    Japanese used luxury-goods chain Komehyo has opened in Bangkok

    Japanese used designer products retailer Komehyo has launched in Bangkok.

    The CentralWorld shopping complex outlet opened on Friday in cooperation with local partner Saha Group. It is part of the firm’s drive to expand throughout Southeast Asia.

    “With no other major competitors having a presence, Thailand offers hidden opportunities for Komehyo,” said president Takuji Ishihara in a Nikkei report.

    Komehyo has set up a purchasing office near its Bangkok location to facilitate sourcing used fashion products.

  • E-commerce firm Sendo nets $61 mln in latest funding round

    E-commerce firm Sendo nets $61 mln in latest funding round

    Sendo, Vietnam’s second-most visited online market place, has secured $61 million in the latest Series C funding round.

    The investment will come from existing shareholders as well as new international investors including Indonesia’s EV Growth and Thai banking group Kasikornbank, Sendo said in a press release Wednesday.

    Existing investors including financial services company SBI Group, retailer BEENOS, private equity firm Daiwa PI Partners, and web services consultancy Digital Garage from Japan, as well as venture fund SoftBank Ventures Asia of South Korea, all of which had previously backed Sendo’s $51 million Series B round in 2018, returned for its Series C round.

    Hai Linh Tran, CEO and co-founder of Sendo, said that the funds will be used to expand the breadth of its existing integrated platform offering to both sellers and consumers, as well as to further deepen its technology moat.

    Founded in 2012 as a spin-off of Vietnam’s largest IT service company FPT Corporation, Sendo focuses on tier 2 cities largely untapped by other e-commerce firms, home to 70 million Vietnamese people.

    The company claims it caters to 500,000 sellers, with an estimated 17 million distinct items listed on its platform, as well as 12 million customers.

    In the third quarter of 2019, Sendo surpassed domestic rival Tiki to rank second among top 10 e-commerce sites in Vietnam with the highest monthly traffic numbers, according to Malaysia-based market research firm iPrice’s latest data released recently.

    Sendo’s web visits reached 30.9 million per month in Q3, up 10.1 percent against Q2, second after Singapore-based Shopee, which remained in top position with 34.5 million, down 10.6 percent from Q2.

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  • KFC expands delivery offer with Menulog

    KFC expands delivery offer with Menulog

    QSR chain KFC has extended its partnership with Menulog for three more years after seeing a strong response to its offer on the food delivery platform over the past 12 months.

    The agreement will see the chicken chain offering delivery in more suburban and regional areas as it brings more restaurants onto the platform. More than 360 KFC restaurants currently offer delivery through Menulog, and that figure is set to rise by almost 10 per cent by the end of this year. KFC also offers delivery through rival platform Deliveroo.

    Competition in Australia’s food delivery space is intense, and the key players – Menulog, Deliveroo and Uber Eats, the market leader – all see restaurant chains with national footprints and sizeable marketing budgets, such as KFC, McDonald’s and Hungry Jack’s, as an important path to expansion.

    Since US delivery giant DoorDash entered the local market in September, the race to strike deals with QSR brands has only heated up. DoorDash recently offered free Oporto burgers as part of a promotion to mark its launch into Sydney. And Menulog’s managing director Ben Carter said the platform will continue to take advantage of co-marketing opportunities with KFC.

    “Kentucky Fried Chicken is a favourite with our customers and so there is a very compelling co-marketing opportunity that we will continue to take advantage of over the next three years,” Carter said in a statement.

    “Customers can expect to see some very exciting, creative and truly integrated work that will add value and enjoyment to the KFC and Menulog delivery experience.”

    Menulog recently announced it had signed its 16,000th restaurant in Australia. The platform is owned by UK-based company Just Eat, which is in the middle of a merger with the Dutch Takeaway.com.

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  • How video can boost online shopping experiences

    How video can boost online shopping experiences

    By the end of 2019, there will be 20.3 million online shoppers. For e-commerce brands and retailers, that translates to an abundance of opportunities to engage with consumers – whether it be gaining new customers or building brand loyalty with existing.

    With the rise of social media, mobile usage, and third-party retail sites, it’s become even more critical to stand out to consumers, so retailers must ensure their products are portrayed in an engaging, attention-grabbing way.

    Leveraging video, retailers can merge the tangibility of offline shopping with the convenience of e-commerce, resulting in an experience that offers the best of both worlds while also allowing a brand to show their products in action.

    Visuals are More Influential

    80% of people remember what they see, so visuals have become a powerful tool in the world of e-commerce as consumers are much more keen to purchase a product after they’ve seen what it looks like in a real-life scenario.

    Video takes visual inspiration to the next level as it’s interactive, appealing, and it allows for a higher engagement rate with its viewers. It’s also changing the buyer’s journey as consumers can leverage videos in various ways when they’re considering what to buy; they can consume or share user-generated content, view influencer content, share product reviews and more. In fact, a study conducted by Brightcove last year found that 53% of adults engage with a brand after watching a video.

    Consumers spend countless hours browsing digital channels, so brands need to capitalize on this habit by communicating in a way that’s familiar to consumers, while simultaneously offering convenience and the opportunity to easily purchase the products they desire.

    Investing in Video

    To reap the benefits of this hyper-connected world, there are many types of video content that retailers can incorporate into their e-commerce strategies.

    ● Shoppable Videos: When a consumer desires a product, purchasing should be immediate and seamless. Shoppable videos offer calls-to-action and add-to-cart- functionality that turns inspiration into a sale within seconds. In fact, Endeavour Drinks Group (EDG) has seen 41% of its viewers add products to their cart as a result of interactive video.

    ● Live Videos: Live streamed videos offer a level of authenticity that pre-recorded videos cannot as they allow viewers to be in the moment with a brand. Whether it be a product announcement or a demo, live videos add an element of credibility and allow audiences to relate to a brand more closely.

    ● Product Demos: Demonstrating all that a product has to offer is critical to proving its value. Online electrical retailer AO uses video to give more insight into product descriptions, giving its customers the confidence they are making the right choice.

    When investing in a video strategy for e-commerce, it’s critical for brands to understand how it’s performing. Leveraging video analytics is key to evaluating metrics like view count, engagement scores, play rate, etc. so that retailers can understand what videos are driving ROI and which need improvement.

    Consumers today want an e-commerce experience that correlates to their everyday lives, and video gives them just that – an interactive, engaging experience that offers authenticity and an immediate path to purchase.

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  • Amazon Hub launches to meet rising demand for flexible delivery

    Amazon Hub launches to meet rising demand for flexible delivery

    Amazon has launched a new service in Australia that allows customers to collect their parcels from hundreds of locations in shopping centres and on high streets in a bid to improve its delivery offer before the biggest online shopping days of the year.

    First launched in the US in 2011, Amazon Hub allows shoppers to ship parcels to convenient third-party locations, rather than their home address. The service includes a “counter” option, where shoppers can collect parcels from bricks-and-mortar retail partners such as convenience stores, and a “locker” option, where they can collect parcels from self-service kiosks in shopping centres, banks and other places.

    The marketplace has now partnered with more than 100 Commonwealth Bank of Australia branches, Victorian Authorised Newsagents Association locations and Stockland shopping centres to bring the service to Australia.

    Hundreds more Amazon Hub locations are due to launch by the end of the year, and thousands more will launch across the country in 2020, the company said in a statement.

    Patrick Supanc, global director of Amazon Hub, said the new service would extend Amazon’s “exceptional customer service” to the delivery experience.

    “Since launching Amazon.com.au in 2017, we’ve committed to making e-commerce rooted in low prices, vast selection and convenience a part of everyday life for Australian customers,” he said.

    “We’re excited now to partner with large and small businesses in Australia to extend Amazon’s exceptional customer service and innovations in delivery by offering a quick and simple pick-up experience.”

    Parcel pick-up on the rise

    The launch comes just one week before Black Friday and Cyber Monday, which are now the biggest online shopping days of the year in Australia.

    E-commerce purchases by volume were up more than 28 per cent year on year during Cyber Week in 2018, according to an annual online shopping report by Australia Post. The five weeks from November 11-December 15 accounted for 15 per cent of all e-commerce transactions that year.

    Australia Post on Monday announced the expansion of its own parcel pick-up service in partnership with fulfilment company Doddle. Booktopia and Peter’s of Kensington are among the first retailers to use the service, which lets customers send their online orders to IGA supermarkets, Priceline pharmacies, shopping centres and other locations.

    Nathan Huppatz, co-founder of ReadyToShip, a shipping platform that lets retailers select the best delivery options for each order and print labels, says parcel pick-up is gaining traction, though it’s not exactly new. Major retailers, such as eBay, The Iconic and Glassons, have offered it as a delivery option for some time through ParcelPoint.

    But Huppatz says consumer demand for flexible delivery times and advancements in the technology that allows retailers to integrate different delivery options at checkout is contributing to arise in pick-up services.

    Until recently, most of the volume going through ReadyToShip has been standard delivery, Huppatz said. But in the last 12 months, there’s been greater uptake of Australia Post’s new on-demand delivery options, including same-day evening and Saturday delivery.

    “There’s definitely a demand out there from consumers to have flexibility, and these days there are more and more solutions to enable that,” he said.

    Integration can be a hurdle

    This is mostly good news for retailers, though Huppatz says parcel pick-up can present problems if the carrier’s integration requires retailers to make too many changes.

    “As soon as a retailer has to start modifying the checkout process or their order or warehouse systems, that’s where it can be a hurdle to overcome,” he said. “If the integration is simple, or you can use an existing carrier, it becomes much easier.”

    Still, he expects to see more retailers offering parcel pick-up in the coming months and is considering how he can stay on top of consumers’ changing preferences.

    “We think over the next 12-24 months, we will see growing demand for access to crowdsourced delivery options, especially for local metro areas,” he said.

    But Huppatz, who also owns the e-commerce site Costumes.com.au, believes there’s another reason Amazon may have launched its parcel pick-up service in Australia.

    “EBay and Amazon are competing with each other quite strongly and are looking to plug any holes they can find in their customer experience,” he said, noting the marketplaces’ recent partnerships with Afterpay and Zip, respectively.

    “Amazon has a ruthless customer focus. Everything is designed to make buying, searching, basically anything to do with their platform better for the customer. If they see a need for customers to pick up their products, you can bet they’ll work on that.”

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  • Tse Sui Luen profits plummet as Hong Kong protests impact sales

    Tse Sui Luen profits plummet as Hong Kong protests impact sales

    Tse Sui Luen profits plummeted in the first half as Hong Kong protests took their toll, especially during the September quarter.

    The company, which operates stores under the TSL banner, has reported a 14 percent year-on-year decline in sales to HK$1.6552 billion  ($US211 million) while Tse Sui Luen profits attributable to shareholders fell by 94 percent to just $1.6 million ($204,000).

    Chairman and executive director Annie Lau said the year to date has been challenging for all businesses operating in Hong Kong, where TSL’s sales fell by 23.9 percent in the half-year and same-store sales were down by 26.4 percent.

    “The outbreak of citywide protests and social unrest in Hong Kong in June has, when combined with the downward economic pressure being felt from the protracted US-China trade tensions and Renminbi depreciation, all conspired to devastate our retail business in Hong Kong.”

    She said the depreciation of the Renminbi has reduced spending by mainland visitors, impacting Hong Kong sales, and shrunk earnings from Mainland China businesses in Hong Kong dollar terms, (where the company is listed).

    “While the US and China have resumed trade talks, the economic outlook remains gloomy and shrouded in uncertainties as a trade consensus continues to appear beyond reach.”

    Lau said the social unrest since June has weakened local consumer sentiment and the protests have made it challenging for retailers to operate.

    “The hardship the local retail industry is facing is likely to persist or even worsen in the remainder of this financial year.”

    She said the company was continuing to optimize its store network in Hong Kong and work with landlords to reduce its rental costs.

    In Mainland China, TSL sales through self-operated stores were down by 8.5 percent overall and same-store sales fell by 7.5 percent, “mainly attributed to the protracted US-China trade war with tit-for-tat tariffs”.

    During the six months, seven new self-operated stores and 41 new franchised stores were opened, taking the Mainland China network to 448.

    “Going forward, we will take a cautious approach and optimize our retail network in Mainland China with the volatile market conditions being taken into consideration,” said Lau.

    Meanwhile, TSL has now expanded its Malaysia store network to six after opening at Mid Valley Southkey Megamall in April. Sales there were up 16.5 percent.

    On a more positive note, TSL’s e-commerce business grew by 27.7 percent year on year.

    “We believe that this sector will grow to be a significant source of revenue for the group going forward,” said Lau. “Encouraged by the great response received from the group’s official website for Mainland China, we are working on developing an official website for Hong Kong and establishing our online presence on e-business platforms in order to further facilitate the online-to-offline and offline-to-online retail practice.”

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