Author: Mei Ling Tan

  • Instagram update brings dark mode in iOS 13

    Instagram update brings dark mode in iOS 13

    Instagram made many headlines in the last week or so, as the company is bringing new features to its audience and testing others before releasing them to the general public. After introducing a brand new Threads app and removing one of its most controversial features, Instagram is once again in the spotlight, but for a very different reason.

    The social network has just pushed out another update for its iOS app, which brings the highly-anticipated dark mode. The changelog published in the App Store doesn’t mention anything other than bug fixes and performance improvements, but The Verge confirms native dark mode support for iOS 13 is there.

    Still, you will not be able to turn the dark mode on or off within the application. Instead, the iPhone’s system-wide settings are the ones that dictate Instagram’s behavior, so if you choose to use the dark theme on your iPhone, the app will match it with its own.

    We’re not complaining, but it would have been nice to be able to switch it on and off directly from within the app. All in all, it’s great that another popular iOS app is getting important visual improvements like the dark mode.

  • Maruti Suzuki’s Production Improves Amid Festive Season

    Maruti Suzuki’s Production Improves Amid Festive Season

    The prolonged slowdown has been denting production of some of the leading carmakers in India, but the month of September has shown some signs of improvement. Maruti Suzuki in September 2019 has witnessed a lesser de-growth in sales compared to what it recorded in the previous month and that has reflected in production figures as well. Despite a two-day plant shutdown (September 7 and September 9), Maruti Suzuki has recorded a 17.37 percent decline in production last month which is better than 33.67 percent slump it witnessed in August 2019.

    In September 2019, Maruti Suzuki rolled out 130,264 units of passenger vehicles compared to 157,659 units in the same month a year ago, which is a year-on-year decline of 17.37 percent. However, the company had manufactured 110,214 units in August 2019 compared to 166,161 units in the same month last year, witnessing a YoY production decline of 33.67 percent. The improvement is also possible on the anticipation of better festive season sales. The company has recorded 24.8 percent YoY sales decline selling 1,22,640 units in September 2019 including 112,500 units in the domestic market and 2,952 units of domestic OEM sales whereas 7,188 units were exported. However, in August 2019 it witnessed a year-on-year sales decline of 34 percent.

    Maruti Suzuki is already providing attractive discounts across its product range. The company has also slashed prices by ₹ 5000 on select models like the Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza and S-Cross. Interestingly, the compact vehicle segment where almost all products underwent a price cut has seen the least production cut at 4.2 percent with a total of 75,264 units being rolled out as compared to 78,589 units. It includes products like the Swift, Dzire, Ignis, Baleno Celerio and the new WagonR. The company is offering discounts of up to ₹ 1.01 lakh on the Vitara Brezza subcompact SUV and production has also improved in the UV segment. The UV segment witnessed a de-growth of 17.05 percent at 18,435 units while the mini segment (including the recently launched S-Presso) recorded a de-growth of 37.61 percent manufacturing 23,073 units. The company rolled out 2350 units of the Ciaz mid-size sedan, down by 50.41 percent and the Vans segment recorded a de-growth of 26.24 percent at 11,142 units.

  • BNP Announces Key Appointments

    BNP Announces Key Appointments

    BNP Paribas on Wednesday appointed new co-CEOs in its Asia Pacific Wealth Management division, replacing Pierre Vrielinck.

    Andy Chai, currently head of Wealth Management for Greater China, and Arnaud Tellier, head of Wealth Management Singapore and Southeast Asia, have been appointed as co-CEOs for Wealth Management in Asia Pacific, BNP Paribas said in a media statement on Wednesday. They will replace Pierre Vrielinck, who has held the position of CEO Asia Pacific previously.

    Both will report hierarchically to co-CEO of BNP Paribas Wealth Management, Vincent Lecomte, and functionally to CEO Asia Pacific of BNP Paribas Group, Eric Raynaud.

    «Our Wealth Management franchise is a cornerstone of our “One Bank” approach, enabling us to meet both the personal and professional financial needs of high net worth clients across Asia. With the rich experience of Andy and Arnaud, spanning both corporate and institutional banking as well as private banking, I look forward to the strong and sustainable growth of our Wealth Management platform for years to come,» said Raynaud.

    Chai and Tellier will assume joint responsibility for the strategic direction and operations of BNP Paribas’ Wealth Management business in the region, effective on Wednesday. Chai will have oversight of the Greater China markets including mainland China, Hong Kong SAR, and Taiwan and lead the strategic client segment across Asia.

    Tellier will cover Southeast Asia, India, and International markets while investment services and key support functions will report to him. David Lim, a market head for Southeast Asia, is appointed Head of Wealth Management Singapore and Southeast Asia, reporting to Tellier.

    Pierre Vrielinck, who has held the position of CEO Asia Pacific since 2017 and has grown the franchise, will return in December to a senior leadership role within BNP Paribas Wealth Management in France. Meanwhile, veteran BNP Paribas banker Mignonne Cheng will retain her role as Asia chairman for Wealth Management and continue to bring her strategic vision and client knowledge to the franchise.

    The French bank has been under pressure in Greater China recently due to a controversial post on Facebook by a previous staff in Hong Kong. The bank has since issued a statement of apology.

  • Xiaomi’s next Mi Band could come with NFC support in the states

    Xiaomi’s next Mi Band could come with NFC support in the states

    Xiaomi has a good thing going with its Mi Band fitness tracker. IDC said that last year, the manufacturer shipped 23.3 million units of the Mi Band 3, up 44% over 2017’s deliveries. The device accounted for 13.5% of the wearables market in 2018 behind only the 26.8% share belonging to the Apple Watch. And when the Mi Band 4 was released this past June, 1 million units were sold in the first eight days. At one point, Xiaomi was ringing up over 5,000 units an hour.
    Ever since the first Xiaomi Mi Band was launched in June 2014, demand for the product has been strong. That’s because it offers a number of useable features at a very reasonable price. And it is one of the few Xiaomi products that can be purchased in the states. For example, the Mi Band 4 is available from Walmart for less than $33. And for that price, you’re getting a band that will not only monitor your heart rate, but will also track your sleep, activities, and alert you to phone calls, app notifications, and texts.

    The Mi Band 4 also can act as a stopwatch, an alarm clock, and a timer. And while the device uses Bluetooth 5.0 connectivity, a variant is available in China with support for NFC. That allows users in the country to make mobile payments through Alipay. The version of the Mi Band 4 offered in the U.S. is the one without NFC. But next June, that is going to change according to a report from TizenHelp. The report cites a source who states that the Mi Band 5 will offer NFC service to those both inside and outside of China. Besides allowing users to make mobile payments, NFC support would allow th

    The Mi Band 4 is equipped with a with a .95-inch color AMOLED display carrying a 120 x 240 resolution. The fitness tracker is equipped with 512KB of memory along with 16MB of storage and is water-resistant to a depth of 5ATM (169 feet). The battery runs as long as 20 days between charges and the device is compatible with phones running Android 4.4 or higher and iOS 9.0 and higher.
    The new report adds that the Mi Band 5 will have a more rugged, durable design and will be released during the second quarter of 2020. One feature that was rumored for the Mi Band 4 but failed to make the cut just might be found in the next iteration of the fitness band; that would be an electrocardiogram (ECG). The big breakout feature on the Apple Watch Series 4, an ECG monitors the user’s heart looking for an abnormal rhythm that could be a sign of atrial fibrillation (AFib). The latter can lead to blood clots, strokes, heart failure, and death. Just recently we told you the story of yet another person whose life was saved by the Apple Watch, with the ECG monitor providing the heroics this time. The company that builds the Mi Band for Xiaomi, Huami, has already built a smartwatch with an ECG. While the Amazfit Verge2 does track heart rhythms, its sensor has not been approved by the FDA.
    Besides working on the Mi Band 5, Huami could be developing a new smartwatch for Xiaomi that will run on Google’s Wear OS. The name of the new timepiece is rumored to be the Xiaomi Mi Watch and the device might also be offered in the United States. Hidden code found in the latest version of the Wear OS app revealed the possible existence of this device.
  • VF Corporation incurs consumer wrath over Vans contest ‘censorship’

    VF Corporation incurs consumer wrath over Vans contest ‘censorship’

    American brand Vans, known for its skateboarding culture and popular among youth, is facing backlash over the retraction of protest-themed submissions for its Custom Culture shoe design contest.

    Open to entrants globally, artists were invited to customize the brand’s signature white-canvas Authentic skate shoe with their own design. The contest awards the artist with the highest votes USD$25,000 and production of the winning design on a global scale.

    When voting commenced on October 1 (coincidentally also China’s National Day), a design by Canadian-based artist using the pseudonym “Naomiso” quickly lept to the top of the poll. The design featured a black shoe with a red Hong Kong Bauhinia symbol on top of an eyelet, and a group of masked individuals bearing goggles, mask and a yellow hard hat – all representations of the current anti-extradition protest movement.

    Five days into the voting, Naomiso’s work had drawn 140,579 votes thanks to the efforts of netizens and Hongkongers spreading the word on social media platforms to support the entry. The runner-up had attracted just 10,147 votes.

    The sheer volume of votes caught the attention of Vans, which immediately disqualified Naomiso’s entry, issuing a statement on its Facebook page on Saturday morning: “…As a brand that is open to everyone, we have never taken a political position and therefore review designs to ensure they are in line with our company’s long-held values of respect and tolerance, as well as with our clearly communicated guidelines for this competition.”

    However, those terms and conditions (“guidelines”) referred to “trademarked or copyrighted material, business or brand logos, images of celebrities, professionals, sports team logos or mascots, nudity, images of weapons/violence, images referencing drugs, alcohol or smoking, offensive content, obscenity or hate” as grounds for rejection and Naomiso’s protest-themed design featured none of those. The disqualification was made in fear of repercussions for Vans in the Chinese market.

    Shortly after, another user “Lock.E” also submitted a protest-themed entry from the UK in hopes of bypassing the censorship, but that was ultimately was retracted.

    Vans’ statement on Facebook kicked off more than 48,000 reactions, with angry netizens leaving comments to share their disappointment. Many loyal owners of Vans claimed the company had backtracked on its mission statement of “celebrating creativity and spreading positivity”, by evidently bowing to China’s “Great Wall”.

    Vans’ parent, VF Corporation, reported that organic revenue in China increased by 17 percent last year and now represents 6 percent of its global sales. The US-headquartered retail group emphasizes as one of its four focuses in its 2021 Global Business Strategy “Distorting our investments toward Asia, with a heightened focus on China”. Recognizing the growth opportunity of China, the group is supported by investments through Demand Creation locally and holds a strong partnership with Tmall and Alibaba.

    Boycott and trashing

    Soon after the phenomena of #boycottVans begin circulating on social media, netizens started sharing images of themselves trashing their Vans collections. Some opted for a more graceful approach: applying their own pro-democratic design onto their existing Vans shoes instead.

    Meanwhile, a netizen on LIHKG (a Hong Kong forum that plays a key role in protests) compiled a list of brands all under Vans parent group – VF Corporation – calling for a boycott of all the labels. That includes denim labels Lee and Wrangler, which were spun off into a new subsidiary, Kontoor Brands earlier this year.

    The Vans label is one of the company’s largest brands, contributing to 24-per-cent growth in their US$13.8 billion revenue last year.

    Disruption in the distribution model

    There are more than 700 VF-owned stores (16 percent of those in Asia), but the brand largely operates through independent distributors and licensees.

    Hong Kong streetwear distributors, especially more well-known retailers Manhood and Dahood, issued statements saying they were removing Vans merchandise from their shelves in response to the censorship controversy.

    However an anonymous employee alleged on LIHKG that Dahood’s statement was deceptive, issued to gain support and business from pro-democratic supporters when the owners and employees of the retailer held an opposing stance.

    As the long-running protests escalate to boycotting businesses – even to the extent of trashing storefronts of businesses considered to be pro-Beijing – many Hong Kong retailers have statements on standby so they can react quickly to any negative commentary on social media in the hope of avoiding vandalism and being blacklisted by protestors.

  • Spotify update adds Siri support on iOS 13

    Spotify update adds Siri support on iOS 13

    Spotify quietly released a new update for its iOS app which brings important improvements and new features. The most important is Siri support on iOS 13, which means that you’ll be able to control your Spotify app on iPhone, iPad, Carplay, Airpods, and HomePode via Airplay.

    After applying the latest update, simply say “Play [artist] on Spotify” and your iOS 13-powered device should do the rest. Be sure to mention Spotify though, otherwise, Siri will start Apple Music by default.

    Another important new addition is Apple TV support, which means that you can now download the app via the tvOS App Store or enable “automatically install apps” in tvOS settings to install it.

    Last but not least, Spotify has introduced low data mode on iOS 13. Basically, this means that the app will now turn on Data Saver when your iOS device’s Low Data Mode is turned on.

    All the improvements added in the update should work with all the devices running iOS 13, but 9to5mac discovered that the HomePod does not recognize Siri song requests yet. The issue might be addressed in a future iOS update, so you might want to try again after iOS 13.2 gets released.

  • Burberry partners with The RealReal to promote circular fashion trend

    Burberry partners with The RealReal to promote circular fashion trend

    Global luxury brand Burberry has collaborated with The RealReal, an authenticated luxury consignment marketplace, to help promote the concept of circular fashion.

    The purpose of the partnership is to promote the advantages of a circular economy for fashion by encouraging customers to give unwanted branded items a second lease of life through resale, as billions of dollars are lost annually due to clothing not being used or recycled effectively.

    “Leading the way in creating a more circular economy for fashion is a key element of our responsibility agenda,” said Pam Batty, VP corporate responsibility at Burberry. “The RealReal shares our ambition to promote the circular economy and keep clothing in use for longer. We know that the enduring quality of Burberry pieces means their appeal and value is long-lasting. Through this new partnership, we hope to not only champion a more circular future but encourage consumers to consider all the options available to them when they’re looking to refresh their wardrobes.”

    According to The RealReal, resale demand for Burberry has increased by 64 percent year on year, with searches for Burberry on the site rising fastest among millennials and Gen Z customers.

    “A brand as storied as Burberry embracing the circular economy demonstrates the power of resale’s impact on both the luxury market and the planet,” said Julie Wainwright, CEO of The RealReal. “I hope together we’ll be a part of pioneering a future in which circularity is a consideration for every luxury brand.”

    Burberry and The RealReal have contributed to Materials for the Arts to support its work in helping people reconsider the way they look at materials and waste, raise awareness of the importance of creative reuse.

  • Social unrest, trade tensions erodes Tse Sui Luen profits

    Social unrest, trade tensions erodes Tse Sui Luen profits

    Weak consumer sentiment based on “social unrest” in Hong Kong and the ongoing Sino-US trade tension has cost Hong Kong-listed jeweler Tse Sui Luen a cut of more than 90 percent in its half-year profit.

    In a profit warning, chairman Annie Lau said a preliminary review of the company’s management accounts for the six months to September 30 show a 14 percent decrease in turnover.

    “The group has recorded the weakest sales in its Hong Kong market in the months of August and September … which is expected to drop by approximately 45 to 55 percent year on year. Given the challenging and uncertain market conditions on our retail business, the group is expected to record a significant decrease in the profit attributable to the owners of the company for the six months … by more than 90 percent as compared with that for the corresponding period last year.”

    She said the company has introduced cost-saving measures and applied “more proactive operating tactics” to weather the current unfavorable economic and business environment.

    “We are negotiating with landlords for rental relief or reduction, in particular for shops situated in the key areas of the social incidents in Hong Kong, and managing our rental and staff expenses as well as general and administration costs at a stable and reasonable level with respect to the business performance. At the same time, we have formulated plans to lower our inventory level to reduce the holding cost, and adjust our product mix and marketing strategies to stimulate sales,” she said

    “We will continue to monitor the relevant economic conditions and the ever-changing retail landscape, including cost pressure and the increasing downward pressure of the domestic economy.”

    Lau reassured shareholders that the company’s financial position remains healthy with sufficient cash on hand to meet its business needs.

    The half-year results for Tse Sui Luen Jewellery are expected to be released by the end of November.

  • Vietjet Celebrates Autumn with Hundreds of Thousands of Promotional Tickets

    Vietjet Celebrates Autumn with Hundreds of Thousands of Promotional Tickets

    Vietjet has announced its latest deal with hundreds of thousands of promotional tickets going from S$0 to travel around Asia in the Autumn season.

    Promotional tickets are available for purchase on Vietjet’s official website or on the “Vietjet Air” mobile app from now until 10 October 2019, between the golden hours of 1.00 pm – 3.00 pm (GMT+8). The promotion includes daily return tickets from Singapore to Hanoi and Ho Chi Minh City, and all international routes between Vietnam and Japan, South Korea, Taiwan, Hong Kong, India, Indonesia, Thailand, Malaysia, Myanmar and Cambodia. All routes operated by Thai Vietjet are also applicable for this promotion.

    Vietjet Vice President Nguyen Thanh Son said, “With an expanding flight network across Asia that includes convenient departure timings with more than 400 flights daily and super-saving tickets priced from just VND0, VND99,000, VND199,000, etc., customers can easily fly anytime and anywhere. Vietjet aims to bring millions of flying opportunities to everyone, meeting air travel demands of passengers, pioneering new direct routes such as Da Nang – Taipei/ Tokyo (Haneda), Ho Chi Minh City – Bali; Ho Chi Minh City/ Hanoi – New Delhi, which helps save transit time for passengers and give them more time to experience the destinations. Besides Hanoi, Ho Chi Minh City and Da Nang, travelers from other localities like Hai Phong, Nha Trang, Phu Quoc, etc. can now easily take direct flights to Japan, South Korea and Taiwan.”

  • Cebu Pacific introduces online chatbot for customer support

    Cebu Pacific introduces online chatbot for customer support

    Philippines-based low-cost carrier Cebu Pacific has launched its online travel assistant, Charlie the Chatbot, to provide 24/7 support for customers.

    Charlie, now available on the airline’s website and official Facebook page, can help answer customers’ frequently asked questions, which include flight bookings, inflight meals, baggage allowance and so on.

    Customers who need help can type in their queries in English one at a time, or choose from a variety of suggested topic options when they open the chatbox.

    Charlie’s capabilities also include assisting passengers with their flight check-in, providing flight itineraries and boarding passes, and sharing details of the airline’s ongoing seat sales and promotions.

    “We’ve always talked about being an enabler of fun and accessible travels, and as part of our thrust to enhance customer experience with the airline, we created Charlie,” said Candice Iyog, vice president for marketing and customer experience at Cebu Pacific.

    “As we officially launch our chatbot, we hope to offer convenience and helpful information within our travelers’ fingertips.

    “Charlie still has a long way to go in terms of learning – just like any chatbot. Rest assured, we are continuously working on expanding Charlie’s knowledge in order to provide our passengers with the best customer experience possible.”

    The airline says Charlie has engaged with more than 393,000 passengers since its inception in January this year.

  • Honda Acquires Drivemode, Developer of Smartphone Apps for Drivers

    Honda Acquires Drivemode, Developer of Smartphone Apps for Drivers

    Honda has acquired all the outstanding shares of the California-based Drivemode, Inc., in order to further strengthen Honda’s vision to create digital and connected mobility products. With the acquisition, Drivemode became a wholly-owned subsidiary of Honda R&D. Drivemode is a startup that develops and operates smartphone-based connected services, excelling in multiple areas such as the development of the user interface and application as well as cloud-based technologies. Honda R&D and Drivemode have been collaborating and conducting joint development activities since 2015. In April 2019, Honda newly established the Digital Solution Center within Honda R&D, which will focus on creating new value through the utilisation of digital technologies.

    With this acquisition, the Digital Solution Centre and Drivemode will work together to accelerate new value creation in the area of connected mobility services. Toshihiro Mibe, President and Representative Director of Honda R&D said, “As a step toward the realization of value creation for mobility and enhancing people’s daily lives, which is an integral part of Honda’s 2030 Vision, we decided to further enhance our collaborative relationship with Drivemode.”

    With the support of Honda, the Drivemode team will focus on providing safe, meaningful software solutions for drivers, and the innovation on mobile-based technology will be for both connected cars and motorcycles.

  • Standard Chartered Launches Sustainable Deposit Solution

    Standard Chartered Launches Sustainable Deposit Solution

    Standard Chartered will offer both its corporate and retail clients in Singapore access to a deposit solution focused on supporting financing needs related to the United Nations’ Sustainable Development Goals.

    U.S. dollar deposits were co-developed with sustainability research firm Sustainalytics and liquidity raised from sustainable deposits will be used to fund SDG-related activities in Asia, Africa and the Middle East. This follows what the bank claims to be the world’s first SDG deposit product launched in Europe by Standard Chartered in May 2019.

    While green deposits – dedicated to renewable energy – are increasing in popularity, this is the first time any bank has launched a deposit product linked to sustainability and the SDGs, said Patrick Lee, CEO of Standard Chartered Bank Singapore.

    The Sustainable Deposit offers both retail and corporate clients an opportunity to address global challenges such as poverty and inequality in some of the world’s fastest-growing economies.

    With corporate banking and asset management clients already in the midst of adopting environment, social and governance-related factors when making decisions, the bank focused on the untapped potential of the retail market.

    A recent sustainability survey by Standard Chartered said that 68 percent of high net worth individuals want to create a better future through sustainable investing with a high portion of Singapore’s wealthy (43 percent) exhibiting knowledge about the space

    We are taking a cue from our clients to make sustainable retail banking a reality, and have created the world’s first Sustainable Deposit for our individual clients, Lee said.

  • AirAsia wins World Travel Awards

    AirAsia wins World Travel Awards

    AirAsia continued its winning streak, taking the top honors at the World Travel Awards Asia and Oceania 2019 for the seventh year in a row.

    AirAsia emerged ahead of regional players such as Scoot, Jetstar, SpiceJet, Nok Air and Firefly to win the top low-cost carrier awards, Asia’s Leading Low-Cost Airline and Asia’s Leading Low-Cost Airline Cabin Crew.

    The awards were accepted by AirAsia Malaysia CEO Riad Asmat in the presence of industry representatives and key figures from across the region at a gala ceremony held at the Vinpearl Convention Centre In Phu Quoc at the weekend.

    AirAsia Malaysia CEO Riad Asmat and a group of AirAsia’s pioneer cabin crew accepted Asia’s Leading Low-Cost Airline and Asia’s Leading Low-Cost Airline Cabin Crew awards from President and Founder of World Travel Awards Graham Cooke.

    AirAsia Malaysia CEO Riad Asmat said: “It is an honor to receive these awards. Being recognized by guests and industry colleagues as Asia’s best is a testament to our ongoing efforts to develop new and innovative guest-obsessed products and services.”

    World Travel Awards founder Graham E Cooke said, “AirAsia continues to set the benchmark for low-cost aviation in Asia and beyond. Its dedication to improving its services remains unrivaled, and I am delighted that it has been acknowledged by both the travel trade and the public having been voted ‘Asia’s Leading Low-Cost Airline 2019′ and ‘Asia’s Leading Low-Cost Airline Cabin Crew 2019′.”

    The World Travel Awards are one of the most prestigious, comprehensive and sought after awards programs in the global and tourism industry.

    Established in 1993, they acknowledge, reward and celebrate excellence across key sectors of travel, tourism and hospitality. The World Travel Awards brand is globally recognized as the ultimate hallmark of industry excellence.

  • KBank issues USD denominated subordinated notes worth800 million USD, with oversubscription rate at 4.4x

    KBank issues USD denominated subordinated notes worth800 million USD, with oversubscription rate at 4.4x

    KBank has announced its successful issuance of USD denominated subordinated notes (the “Notes”) with a USD800 million offering that were oversubscribed four times. Such high oversubscription rate reflects the international investors’ confidence in KBank. It is the largest South-East Asia Reg-S-Only Tier-2 note issue in more than five years, and also the first USD-denominated 12NC7 Basel-III Tier-2 tenor from Asia (excluding Japan) in nine years.

    Mr. Predee Daochai, KBank President, said that KBank issued USD denominated subordinated notes worth 800 million USD with a 12-year tenor which will be due in 2031 and can be called in their 7-years (12NC7), offering at a fixed rate of 3.343 percent per annum. The objective of the issuance of the Notes which can be counted as KBank’s Tier 2 capital is to support KBank’s foreign operations. KBank also aims to strengthen funding position for suitable long-term funding cost.

    The Notes were issued through KBank’s Hong Kong branch on October 2, 2019 and were rated Baa3 by Moody’s, and BBB by Fitch Ratings, and were listed on SGX. The notes were offered to institutional investors and they were fully subscribed quickly. Of the total investors, 81 percent were in Asia and 19 percent were in Europe. Given the rarity of a Thai bank issuance, the Notes were deliverable to high quality investors with 80 percent being taken up by funds/asset management companies, with pensions/insurers and sovereign wealth funds buying up to 8 percent. Bank treasuries accounted for 3 percent of the orderbook, with the remaining 9 percent being taken up by other institution types. BNP Paribas, Citigroup, and Standard Chartered Bank acted as joint book-runners and joint lead managers.

    The issuance of KBank subordinated notes succeeds in several aspects. For example, the total books reached USD3.5 billion, representing 4.4 times of the value of the subordinated notes offered by KBank. Such high oversubscription rate reflects the international investors’ confidence in KBank and the Thai economy. This is because it is the largest South-East Asia Reg-S-Only Tier-2 note issue in more than 5 years and longest dated Basel III Tier 2 in Reg S Only format from Asia (excluding Japan).

    Moreover, the Notes have the lowest coupon as well as spread for a South-East Asia Tier-2 note issue in more than two years. The issuance is also the first USD-denominated 12NC7 Basel-III Tier-2 tenor from Asia (excluding Japan) in 9 years and the first ever 12NC7 from Thailand.

  • Asia cited as Ted Baker swings to a loss

    Asia cited as Ted Baker swings to a loss

    UK fashion house Ted Baker has slumped into the red in the first half of the year, its position not helped by a 15.2-per-cent fall in sales in Asia.

    Global revenue was down by a more modest 0.7 percent (or by 2.5 percent in constant currency) to £303.8 million, but pre-tax profit turned from a £25 million surplus in the first half of last year to a loss of £2.7 million. The company took a £11.8 million one-off hit on the restructure of its Asian business, where it has appointed partners in Greater China and Japan, and £3.5 million relating to the purchase of a footwear business in January.

    Sales in Asia were £9.5 million and sales per square foot excluding e-commerce sales decreased by 4.6 percent.

    E-commerce concession businesses in China and Japan delivered sales of £1.4 million, down from £1.7 million, which represented 14.7 percent of Ted Baker’s Asian sales.

    Licensed stores across Asia continued to perform well with existing license partners in Thailand, Singapore and India opening new stores. However, in Indonesia and South Korea, several partner stores were closed.

    Despite the loss, Ted Baker is optimistic about its future prospects, saying its Autumn/Winter collections have been well received and that it is excited about new product initiatives including monthly product drops and speed to market developments.

    “Despite the structural challenges and cyclical pressures on the industry, we remain confident in Ted Baker’s ability to navigate the market and further develop as a global lifestyle brand,” the company said in a results statement. “This confidence remains underpinned by the group’s flexible, omnichannel model, the continuing strength of the brand, and the skill, passion and commitment of our talented teams worldwide.

    “We are continuing to pro-actively manage the significant challenges impacting our sector including weak consumer spending, macro-economic uncertainty, and the accelerating channel shift towards e-commerce. However, we are not immune to these pressures which have impacted our financial performance during the first half of the year.”

    Emily Salter, retail analyst at GlobalData, said it was worrying that Ted Baker’s online sales had declined given its strong multichannel proposition.

    “The retailer can therefore not solely blame the troubles of the physical high street for its fall from grace, as it has previously performed strongly online even as retail revenue growth became more subdued. This points to more significant problems with demand for the brand and the impacts of regular discounting.”

    Salter says that for Ted Baker to be able to revive itself without its founder and former leader playing a key role, it needs to re-establish its brand identity, retain its loyal shopper base and reduce its reliance on discounting.

    “The retailer should take the opportunity to poach Karen Millen and Coast shoppers who are reluctant to purchase online, as the premium brands’ stores and concessions are now closed as a result of the acquisition by the Boohoo group. Ted Baker should review its sales channels, as it sells through department store retailers and online pureplays, leaving it exposed to the troubles of players such as House of Fraser and Debenhams. Moving its childrenswear license from Debenhams to Next in Spring 2020 will help to address this as Next’s leading online platform will be able to generate much stronger growth than the embattled department store,” she said.