Retail News CRM

Author: Mei Ling Tan

  • Luxury footwear label A.Testoni bought by Hong Kongese group Sitoy

    Luxury footwear label A.Testoni bought by Hong Kongese group Sitoy

    Hong Kong leather goods manufacturer Sitoy Group has acquired Italian luxury brand A.Testoni. Sitoy’s investment allows A.Testoni to maintain its brand identity and maximise on its artisanal heritage in a long-term strategy to drive the brand’s ongoing development.

    Sitoy’s chairman Michael Yeung Wah Keung said: “We are very pleased to welcome A.Testoni as a part of the Sitoy Group and work together to realise the full potential of the brand. As we celebrate our 50th anniversary this year, the acquisition marks an important milestone in the transformation of our retail and brand management business into a global dimension.”

    CEO of A.Testoni Bruno Fantechi said the acquisition comes after many years of fruitful partnership in Mainland China, where Sitoy has been a key partner in developing the brand’s distribution.

    “It recognises the inherent value in the brand’s unique levels of quality, craftsmanship and innovation which will drive significant future growth and development.”

  • US Cyber Monday online sales to reach record US$7 billion

    US Cyber Monday online sales to reach record US$7 billion

    American consumers were on track to spend US$ 7.8 billion in online shopping on Cyber Monday, up 18.3 percent from last year, according to Adobe Analytics, which tracks 80 percent of online transactions at 100 of the largest retailers in the US. Cyber Monday, which falls on the first Monday after Thanksgiving Day and Black Friday, is considered the biggest online shopping day of the year.

    Last year, it hit a record US$ 6.6 billion in online sales.

    With growing online sales, Black Friday might be stealing Cyber Monday’s thunder. Online sales for Black Friday reached US$ 6.22 billion, up 23 percent compared with last year.

    Smartphone-enabled purchases amounted to US$ 2.1 billion, accounting for one third of the overall sales.

    Figures from Internet Retailer, a publisher of e-commerce news and analysis, predicted that the total amount to be spent over the period between Thanksgiving Day and Cyber Monday will reach US$ 21.6 billion.

    For the whole holiday season, which will last until end of December, online sales could hit a record US$ 124 billion, up by 15 percent from last year, Adobe Analytics said.

    Figures from market research firm eMarketer put overall US holiday online sales at around US$ 123 billion, which accounts for 12 percent of the estimated 1 trillion retail sales for this holiday shopping season.

    According to an annual survey, US consumers will spend an average of US$ 1,007 dollars during this holiday shopping season, up 4.1 percent from last year, the National Retail Federation said earlier.

  • Roger Dubuis appointed new CEO

    Roger Dubuis appointed new CEO

    Effective December 1, Nicola Andreatta will be the new Chief Executive Officer of Manufacture Roger Dubuis. Nicola comes with 20 years of experience in the management of luxury and watch industries. In 2013, Nicola was appointed Vice President and General Manager of the Swiss entities of Tiffany & Co.

    Prior to that, Nicola founded N.O.A. Watch Company in Ticino, Switzerland, which he developed during more than 10 years. And before founding his own company as an entrepreneur, Nicola held various roles in Asia in the watch and luxury industries, as Managing Director, COO and CFO, with the companies, AC Services Ltd, Harwood Investments Ltd and Art Concord Ltd, where he has started his career in 1998.

  • Thai flagship store opened in Coupang

    Thai flagship store opened in Coupang

    South Korean e-commerce firm Coupang is planning to launch a flagship store in Thailand to boost the online sales of Thai-sourced products. Thailand’s Ministry of Commerce has been promoting Thai products on the platform since August, which has brought in more than THB118 million (US$3.57 million) for mostly food and beverage items. The ministry has just met with Coupang executives to seal an agreement to expand cooperation, resulting in the establishment of a Thai Mall on the platform.

    It is expected that the new partnership could result in an increase in sales to more than THB 200 million (US$6.06 million) over the coming year, a rise in export volumes to Korea by 7 per cent. Thailand’s total exports to South Korea were valued at $4.66 billion last year, an increase of 14.4 per cent from the year previous.

    Commerce Minister Sontirat Sontijirawong said “South Koreans know Thai brands from travelling here”, with 1.5 million of them visiting Thailand annually.

    Coupang is South Korea’s largest and fastest-growing e-commerce firm. It recently received an investment of US$2 billion from the SoftBank Vision Fund. It offers more than 120 million items for sale and 4 million available for guaranteed one-day delivery.

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  • Malaysia projected 4.9% retail sales growth for 2018

    Malaysia projected 4.9% retail sales growth for 2018

    The Malaysia Retail Chain Association (MRCA), which expects retail sales growth to come in at 4.9% for 2018 in line with the country’s gross domestic product growth, has pointed out that some of its members face difficulties in retailing online amid the push for e-commerce.

    MRCA, in releasing its first quarterly retail sales survey for the third quarter (Q3) today, highlighted that online sales make up only 3.9% of its retail revenue.

    The sample of respondents for the survey include 10% of MRCA’s members, representing 59 brands and 2,266 stores across a variety of trade categories, including food & beverage (F&B), fashion, health & beauty, supermarket & department stores, entertainment, optical, education, home improvement and more.

    MRCA president Datuk Seri Garry Chua said the association constantly reminds members to bring their businesses online and be part of the digital ecosystem, adding that MRCA also has digital membership for players like Lazada, Lelong and 11street, which are all its members.

    “We can also work closely with them (digital players) to reinforce and increase the market share for online. We’re confident the (industry) sales from online retail is going to be double-digit growth every year as more brick and mortar retailers go online, as with many start-ups,” Chua said.

    MRCA vice-president Datuk Liew Bin said although all members have an online presence, most of its members rely on the brick and mortar model and “survive happily on brick and mortar”, whereby online sales is regarded as a bonus to them.

    “With so many years in brick and mortar, it’s difficult for our members to turn to online. This is one of the challenges that our retailers face because (the) online (wave) is coming on strongly. This should be an alert to our members, as 3.9% is still a small figure,” Liew said, adding that MRCA expects online sales to grow 5% next year.

    Individually, he said some retailers have seen a 20% growth in their online retail sales.

    MRCA projected retail sales growth to grow 6.1% year-on-year in Q4 this year as year-end school holidays and the festive season are expected to bolster consumer spending; while an increase in the number of outlets is also expected to boost sales growth.

    It said retail sales grew 5.7% year-on-year in Q3 with the tax holiday between June and August that had encouraged consumers to spend.

    In Q2, retail sales grew at a slower rate of 2.1% year-on-year, affected mainly by the general election in May, where consumers held back on spending due to economic uncertainty.

    Retail sales grew 5.7% year-on-year in Q1 due to Chinese New Year sales and promotions.

    F&B, health & beauty and other retailers reported encouraging growth rate of 5.4%, 3.1% and 21.3% year-on-year respectively. However, fashion retailers suffered a negative growth in Q2 and Q3 at -2.2% and -2.8% year-on-year respectively.

  • DFS Group Kicks Off Its Seasonal Gifting Campaign

    DFS Group Kicks Off Its Seasonal Gifting Campaign

    DFS Group has kicked off its annual gifting campaign at T Galleria by DFS in Okinawa. The “Give Joy”-themed campaign opened on November 24, showcasing DFS’s first ever “Personalisation Gift Shop” concept, where an assortment of specially curated luxury gifts can be personalised, along with services. The concept will now be rolled out in T Galleria by DFS stores in Hong Kong’s Canton Road and Macau’s City of Dreams, along with stores in Singapore, Angkor (Cambodia), Saipan, Bali, Guam, Okinawa, Hawaii and Sydney.

    The store was transformed into a “gifting wonderland” at the launch as guests were invited to try the personalisation services – monogramming leather goods, and adorning t-shirts and tote bags with Foxy’s six DFS exclusive emoji iron-on patches.

    DFS Group executive VP merchandising Ariel Gentzbourger said: “Thanks to our unique approach to gifting, and our understanding of what our customers are seeking, we have created a shopping experience that is a joy in itself.”

    Gifting-themed entertainment at the event included a life-size advent calendar overflowing with holiday treasures, a special visit from Santa Claus and a “candygram” corner for guests to pick and mix sweet treats.

    View the gallery below for the report of the event (11 images) :

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  • China could use Vietnam to avoid US tariffs: experts

    China could use Vietnam to avoid US tariffs: experts

    Experts said the U.S.-China trade war puts Vietnam at risk of fraud as capital moves into the country to avoid U.S. sanctions. Vietnamese products would face tough competition from China in both the domestic and overseas markets, Nguyen Thi Thu Trang, director of the Vietnam Chamber of Commerce and Industry’s (VCCI) WTO Center, said at a recent conference on the impact of the Sino-American trade spat.

    In the domestic market, China might seek to dump its goods on Vietnam to avoid Donald Trump’s tariffs. Cheaper Chinese goods competing with Vietnamese goods will not benefit Vietnam’s economy.

    In overseas market, China might borrow the “made in Vietnam” label to dodge U.S. tariffs.

    If this cannot be controlled, there could be grave consequences for Vietnamese firms since the U.S. might apply the same tariffs as they have done on China, according to industry insiders.

    Ho Duc Lam, chairman of the Vietnam Plastics Association, said his industry has been impacted by having to compete directly with Chinese companies as China might borrow the “made in Vietnam” label to dodge U.S. tariffs.

    Tran Dinh Thien, an economist and member of the Prime Minister’s Economic Advisory Group, noted that the trade war brings both opportunities and challenges for Vietnam, but it is up to local companies to identify the opportunities.

    He said the trade war has hit investors’ confidence causing them to pull out of emerging markets including Vietnam. The global supply chain is badly disrupted as a result, and the investment environment has become uncertain, he said.

    Lam argued that to protect domestic companies the government should consider import taxes if there are signs of a safeguard action.

    It should not issue licenses if there is no guarantee that more than two thirds of the production chain would be in Vietnam, and should promote free trade agreements with Europe and others to reduce Vietnam’s dependence on the U.S. and China, he added.

    Trang of the VCCI said since the trade war shows no signs of ending soon production enterprises should monitor the situation to respond nimbly to changes and should know where and how to take advantage of potential opportunities.

    It is known which goods face sanctions, so businesses should research about customers for those goods and offer them a better deal, she said.

    The U.S.-China trade war escalated in September with the U.S. levying an additional 10 percent tariff on about $200 billion worth of Chinese products. Washington is set to raise the tariffs to 25 percent in January if there is no agreement between the both sides.

    China retaliated with 5 and 10 percent tariffs on $60 billion worth of U.S. products.

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  • Uniqlo online Hong Kong launches soon

    Uniqlo online Hong Kong launches soon

    Uniqlo Hong Kong will launch its online store on December 4. A spokesperson for the company said the online platform for Hong Kong and Macau is a fitting solution considering rising rentals and limited space for retailers in Hong Kong, along with the strengthening popularity of e-commerce in the region.

    The brand has operated an online flagship on Alibaba’s Tmall for nine years and has had its own online shop since October.

    According to Uniqlo’s CEO for Greater China Ning Pan, the two existing e-commerce platforms take 15 per cent of sales in China, the majority of that figure from Tmall.

    He explained that while TMall remains an important strategic partner, the new platform will allow the firm to leverage analytics and AI to evaluate buyer preferences.

    The Hong Kong site is now under testing, and will be fully operational come launch day in December.

  • Genting sues The Walt Disney Co for cancelled theme park contract

    Genting sues The Walt Disney Co for cancelled theme park contract

    Genting Malaysia Bhd’s share price fell as much as 18.6% today on news that it is suing Twenty-First Century Fox Inc and The Walt Disney Co for more than US$1 billion (RM4.19 billion) for terminating their contract to develop a Fox-branded theme park at Resorts World Genting in Malaysia. The Fox theme park is a key selling point of the Malaysian casino resort group’s multi-billion ringgit Genting Integrated Tourism Plan.

    Genting Malaysia told Bursa Malaysia today it is suing Fox Entertainment Group, LLC, Twentieth-Century Fox Film Corp, FoxNext, LLC (collectively known as FOX), Twenty-First Century Fox, Inc (21CF) and The Walt Disney Co for the termination of a memorandum of agreement (MoA) relating to the theme park project.

    The Walt Disney Co is in the process of acquring Twenty-First Century Fox.

    Genting Malaysia was the most actively traded counter on the local stock market today, closing 16.7% lower at RM3.00 with some 276.3 million shares traded. It opened lower at RM3 and fell as much as 67 sen from its last adjusted closing price of RM3.60, to trade at a low of RM2.93.

    In a filing with Bursa Malaysia, Genting Malaysia said it has filed legal proceedings in the US against FOX, 21CF and Walt Disney, in response to a notice issued by FOX in which it terminated the MoA and claimed about US$46.2 million (about RM193.6 million) in accelerated payments.

    “Genting Malaysia denies that FOX had grounds to terminate the MoA, denies any liability resulting therefrom, and has pursued cause of action against FOX for breach of contract, and breach of the implied covenant of good faith and fair dealing, among others,” it said.

    The group has also pursued cause of action against Disney and 21CF for inducing breach of contract and for interference with contract.

    The group said it intends to fully enforce its rights under the MoA, claim for the cost of its investments and consequential and punitive damages that in total will exceed US$1 billion, and such other reliefs to be determined by the court.

    Genting Malaysia said the litigation is not expected to impact its current business operations. It said the validity of the causes of action as well as the availability and extent of Genting Malaysia’s damages cannot be ascertained at this juncture.

    To recap, Genting Malaysia entered into the MoA dated June 1, 2013 with Twentieth-Century Fox Licensing & Merchandising, a division of Fox Entertainment Group, Inc. Genting Malaysia was granted a licence to use certain intellectual property rights associated with Fox theatrical motion pictures in connection with the design, development, construction and operation of what was to be called the Twentieth-Century Fox World Theme Park. The MoA was subsequently amended on June 10, 2014 and June 9, 2017.

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  • Nike appointed two new leaders

    Nike appointed two new leaders

    Nike Inc is bolstering its executive management with its two latest hires. The U.S. sports giant has announced earlier in the month that Carl Grebert, currently the Vice-President, General Manager of the Global Jordan Brand, will become the company’s new Vice-President, General Manager of its Asia Pacific and Latin America (APLA) geography, effective December 1.

    In his prior role at Jordan, Grebert worked for 18 months and drove the basketball brand’s global product engines and marketing, merchandising, and oversaw Jordan category management teams for the brand, pushing the business into a position for the next phase of growth.

    Before Jordan, Grebert headed up the Japan geography team as Vice-President, General Manager of Nike Japan.

    He has also held senior roles in marketing and ran territory business units in Europe.

    Grebert replaces Ann Hebert, who will become the new Vice-President, Global Sales, after working as APLA head for two and a half years.

    Hebert will be responsible for driving Nike’s global sales teams and partnering with Nike Direct “to build a seamless Nike network that will continue to elevate service to consumers around the world,” said Nike in a statement.

    She replaces Mike Best, who has decided to retire after a nearly 30-year career stint at Nike.

    Likewise, Hebert has been at Nike for 23 years and served in various leadership roles.

    Prior to her APLA role, the Nike veteran was VP of the Global Nike Direct Partner business and led the North America sales team as the VP, North America Sales.

    Both new management roles will report to Elliott Hill, Nike’s President of Consumer and Marketplace.

     

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  • Link REIT Buys Beijing Mall for RMB 2.56B

    Link REIT Buys Beijing Mall for RMB 2.56B

    Link REIT has reached a conditional agreement to acquire a RMB2.560 billion (US$368.8 million) shopping centre in Beijing. The property, Beijing Jingtong Roosevelt Plaza, is a seven-storey mall housing 268 retail tenants, with 576 car parks on two additional underground levels. Link said in a stock exchange filing that the property is located in Tongzhou, the eastern gateway to China’s capital, a rapidly developing district about 20km from central Beijing. It is in an established residential area with 30 per cent of the district’s population living within a 3km radius.

    The property has good connectivity, located on Beiyuan South Road, the district’s main artery, is a high-quality community mall with an occupancy rate of 96.2 per cent and a dynamic mix of retailers including food and beverage, fashion/accessories, kids/education and lifestyle, health and beauty, along with a cinema.

    Leases for about 20 per cent of the four year old centre’s tenancies (by space) expire in 2020, providing Link with an opportunity to enhance rental reversion and performance of the property by upgrading the trade mix.

    Link expects the net property income of the mall will increase, in turn bosting the capital value of the property, benefiting unitholders.

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  • Malaysia is Airbnb’s fastest growing market in Southeast Asia

    Malaysia is Airbnb’s fastest growing market in Southeast Asia

    Malaysia, one market in the region which has not stifled the growth of short-term accommodation, is Airbnb’s fastest growing market in Southeast Asia, welcoming over two million guests in the past 12 months as of July 1, marking a 99% growth year on year. Airbnb head of public policy for Southeast Asia Mich Goh said that Airbnb, as a platform, is not illegal in Malaysia and there is no clear consensus on what the policy is for short-term rental here as it is a new phenomenon.

    There are now 44,000 listings in Malaysia on Airbnb, which is almost a 60% year-on-year increase.

    Goh said the Malaysian government has been consultative and open to dialogue with the home-sharing platform, where there has been willingness to listen to insights and to hear about how it could help Malaysia to evolve its tourism industry.

    “We treat every country differently. We’ve seen countries all around the world where they reach a moment when they decide whether or not they need to regulate short-term rental. Where we see these discussions go well is where governments are open to discussing this with multiple stakeholders, not just us but open to speaking with hosts, guests, hotel group, local communities and neighbourhoods.

    “Where these discussions have been holistic and involve multiple stakeholders, we’ve seen it reach a stage where smart and innovative policies are implemented that allow the short term rental activity to continue and to thrive to the benefit of the community while making sure any concerns that groups may have are addressed through the regulatory framework,” said Goh.

    Airbnb has signed a memorandum of collaboration (MoC) with the Malaysian Productivity Council (MPC) and a memorandum of understanding (MoU) with Malaysia Digital Economy Corp (MDEC) to drive inclusive, sustainable development of tourism in Malaysia.

    As part of the MoC with MPC, Airbnb will share relevant data and best practices to inform recommendations on short-term accommodation policy in Malaysia, and will assist MPC in shaping national policy plans related to the development of Malaysia’s tourism industry and infrastructure, as well as local communities.

    Airbnb’s MoU with MDEC is focused on promoting digital inclusion and empowering local hospitality entrepreneurs in Malaysia, while building capacity in both homes and experiences throughout the country.

    In Malaysia, Airbnb is having discussions with authorities including the Ministry of Finance, the Royal Malaysian Customs and the Ministry of Tourism and Culture to discuss the implementation of Voluntary Collection Agreements (VCAs) to collect and remit tourist tax.

    The VCA is a tool designed by Airbnb to collect taxes from its host and guest community and remit them on their behalf. This helps to facilitate a streamlined process and lighten the administrative burden for local and state governments, as well as Airbnb hosts.

    Asked on plans by the government to tax e-commerce, Goh said Airbnb will comply once it is implemented. “We’re waiting to see how it would apply in Malaysia and how we would comply when the time comes.”

    In 2017, the Airbnb community contributed RM200.4 million to the local economy. Its typical host earned US$1,200 (RM5,200) renting out their space 19 nights a year. The top five inbound markets for Airbnb in Malaysia are Singapore, China, the US, Indonesia and Australia. Seniors (aged 60 and above) make up Airbnb’s fastest growing age group of guests in Malaysia.

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  • Online Black Friday runs lackluster campaign in Vietnam

    Online Black Friday runs lackluster campaign in Vietnam

    Online Black Friday retailers failed to enthuse customers with usual discounts, while brick and mortar stores saw heavy traffic. E-commerce giant Lazada combined its Black Friday and Cyber Monday into a four-day promotional event, offering discounts of up to 70 percent, mostly on cosmetics and fashion items.

    New items were discounted by 15 percent, and the strongest price reductions were offered on low-value items of unpopular brands.

    Other e-commerce services claimed to offer bigger discounts, of up to 91 percent on Tiki and 99 percent on Shopee, but these were restricted to a particular time frame after which the discounts passed on to other items.

    However, such “flash sales” are familiar to online shoppers as daily offerings made by most e-commerce services.

    Thus, retailers failed to enthuse customers with the discounts.

    Minh Tien, an office worker in Ho Chi Minh City’s District 1, said that he regularly checks flash sale items on these websites. “It’s the same method this time, and I’m in no rush as the event will last three to seven days.”

    Market observers said another reason that Black Friday online sales in Vietnam failed to catch fire was the Chinese Singles’ Day promotional event held earlier this month and the upcoming Online Friday hosted by the Vietnam E-commerce and Digital Economy Agency (iDEA), under the Ministry of Industry and Trade, on December 7.

    But in contrast to the online market, the shopping atmosphere was vibrant at brick-and-mortar stores. People started to queue up at large shopping centers in Hanoi and HCMC early Friday.

    A large fashion store on Ba Trieu street in Hanoi offered a discount on all items for five hours, attracting a large number of customers.

    In other stores, customers had to wait for up to two hours to buy household items. Office workers joined the shopping frenzy at lunch time, only to find out they were late because shops stopped letting new customers after 11 a.m.

    As of 10 p.m. Friday night, customers were still queuing up at major shopping malls in Hanoi.

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  • TM posts RM175m net loss in Q3

    TM posts RM175m net loss in Q3

    Telekom Malaysia Bhd (TM) suffered a net loss of RM175.59 million during the third quarter ended Sept 30 compared with a net profit of RM211.82 million a year ago, due to an impairment loss on network assets recognised during the quarter.

    In a filing with Bursa Malaysia, TM said it recognised a provision of RM934.8 million during the quarter for the impairment of fixed and wireless network assets following the continued pressure from challenging business, industry and economic conditions.

    It said that the impairment losses were projected based on an assessment of the recoverable value in use of the affected network assets at respective entity levels and it will continue reviewing the economic circumstances revolving around these assets in coming periods to reflect any potential impairment or recoverable value.

    Its core net profit, excluding non-operational items, stood at RM266.4 million, a 71% improvement sequentially while revenue for the quarter rose marginally to RM2.95 billion from RM2.94 billion a year ago on the back of higher data as well as other telecommunication related services revenue.

    During the quarter, UniFi recorded a loss of RM808.3 million compared with a profit of RM56.7 million a year ago, due to the impairment loss on network assets while revenue fell 2% to RM1.33 billion from RM1.36 billion a year ago due to lower revenue from voice services in line with a decrease in customer base and usage.

    This was partially offset by higher UniFi revenue in line with increase in customer base at 1.24 million as at end-September compared with 1.04 million a year ago.

    TM ONE recorded a 13.2% drop in profit to RM147.5 million during the quarter from RM170 million a year ago due to high operating costs, including the allocated impairment loss of network assets.

    Revenue for the segment rose 1.9% to RM1.12 billion from RM1.10 billion a year ago due to higher revenue from customer projects.

    As for TM Global, profit rose 9.1% to RM103.3 million from RM94.7 million a year ago due to lower operating costs while revenue rose 2.6% to RM562.8 million from RM548.4 million a year ago due to higher revenue from voice services.

    For the nine months ended Sept 30, net profit plunged 87.21% to RM83.5 million from RM652.74 million a year ago while revenue fell 1.74% to RM8.73 billion from RM8.89 billion a year ago.

    “The recent industry and market challenges have had major impact to the overall revenue estimates and earnings of TM Group in the financial year. TM anticipates that the challenging environment will persist for both our retail and wholesale segments,” the group said.

    In the midst of these challenges, TM said it will continue to focus on strengthening the performance of its core business and operations.

    In a separate filing, TM announced a revised dividend policy of distributing yearly dividends of 40-60% from its net profit, effective from the next dividend declaration.

    The group said that dividends will be paid depending on overall business and earnings performance, capital commitments, financial conditions, distributable reserves and other relevant factors.

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  • Casa Perú Opens Its Doors In Beijing Mall

    Casa Perú Opens Its Doors In Beijing Mall

    The Peruvian Ministry of Foreign Commerce venture House of Peru has opened a store in Beijing. The outlet, which opened in Shimao Gongsan Plaza, Sanlitun, serves as a promotional platform for products from the South American nation as well as to popularise tourism in the region among consumers in China.

    Local store representative Huang Zhaohui commented that Peru is well-known for its alpaca wool clothing. The warm, light material has been promoted globally by Peru since establishing the Alpaca label in 2014.

    At the opening ceremony, Huang Zhaohui was awarded the title of “Peru-china Friendship Envoy” by the foreign trade and tourism minister of Peru to honour her contribution to the trade and exchanges between both countries.

    The store also retails food, coffee and Pisco wine.

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