Retail News CRM

Author: Mei Ling Tan

  • VF next plan for Wrangler and Lee business

    VF next plan for Wrangler and Lee business

    Fast-growing apparel brand owner VF Corporation plans to spin off its Wrangler and Lee denim business into a second listed company.

    Dubbed NewCo for now, it would be a global leader in the denim category as well as incorporating the VF Outlet operations. Those businesses contributed US$2.5 billion to VF’s turnover last year.

    VF chairman, president and CEO Steve Rendle said since last year the company has been engaged in a disciplined reshaping of its brand portfolio to better position the company for long-term success in a quickly changing business landscape. In that time, VF has acquired Williamson-Dickie, and the Icebreaker and Altra brands, and sold Nautica and its Licensed Sports Group, including the Majestic brand. That has sharpened the company’s focus on activity-based outdoor, active and work lifestyles. Its brands now include North Face, JanSport, Smartwool and Eagle Creek,

    “The decision to separate these businesses will allow VF to sharpen its focus as a consumer-centric and retail-minded organisation anchored in activity-based lifestyle brands,” said Rendle.

    The Wrangler and Lee jeans business is both successful and sustainable with iconic global brands and a clear path to value creation as a standalone entity, he said.

    “This exciting step forward will mean that both VF and NewCo have the resources, management focus and financial flexibility to thrive in a dynamic consumer marketplace, creating an even brighter future for both organisations and all of their stakeholders.”

    With annual sales estimated at more than $11 billion, the trimmed-down VF business will have more flexibility to pursue its merger and acquisition strategy, explore new growth vectors and apply even more investment behind its organic brand portfolio, he said in a statement.

    Post split, VF would move its headquarters to metro Denver, a location it believes is more in keeping with its outdoor wear focus and an ideal home for its Global Innovation Center for technical fabrics and Digital Lab.

    “Locating these brands, along with select VF leaders, at the base of the Rocky Mountains will enable us to accelerate innovation, unlock collaboration across brands and functions, attract and retain talent and connect with consumers,” said Rendle, who will remain in his current role.

    NewCo’s Asian focus

    Meanwhile, the new Wrangler and Lee denim business will be free to pursue further expansion of its global footprint, with a sharp focus on Asia, building on its established presence in China. The company expects to unlock significant scale and cost efficiencies by streamlining operations, providing flexibility to pursue strategic acquisitions over time.

    Scott Baxter has been designated CEO of the new company and  Rustin Welton as CFO.

    NewCo will be headquartered in Greensboro, North Carolina where Lee will relocate its headquarters from Kansas City, joining Wrangler.

    The separation is anticipated to be complete in the first half of next year, following customary regulatory approvals and tax and legal considerations.

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  • AirAsia share price up marginally after selling stake in Expedia JV

    AirAsia share price up marginally after selling stake in Expedia JV

    AirAsia Group Bhd’s (AAG) share price rose 0.90% this morning after it divested its remaining 25% stake in its joint venture (JV) company, AAE Travel Pte Ltd for US$60 million (RM240 million).

    The airline sold its remaining stake to the 75% stakeholder in the company Expedia Inc’s Expedia Southeast Asia Pte Ltd — in a bid to monetise its investment and utilise the proceeds as working capital.

    At 10.41am, AAG was trading at RM3.38 with 2.18 million shares changing hands.

    AirAsia divested the other 25% interest it had in March 10, 2015.

    The group announced in a bourse filing yesterday that it has executed a share purchase agreement for the disposal and the cash purchase consideration is net of AirAsia’s concurrent purchase of AirAsiaGo.com domain names and related assets from AAE Travel Pte Ltd by Travel 360 Sdn Bhd.

    AirAsiaGo.com, which offers a full suite of travel products including AirAsia flight and hotel packages featuring Expedia Group lodging content, will continue to be powered by Expedia Group.

  • Go-Viet perks up competition in Vietnam’s ride-sharing market

    Go-Viet perks up competition in Vietnam’s ride-sharing market

    Go-Viet’s attractive perks for drivers are motivating many to shift from Grab, and the market leader is responding.

    He’s one of the first drivers to sign up with ride-sharing service Go-Viet, but Thanh Hung is still wearing the well-recognized green GrabBike uniform.

    “Too many drivers have just signed up for Go-Viet so there are not enough jackets,” Hung said.

    The 40-year-old motorbike driver said he was able to make VND800,000 ($34) in a day and a half since he began driving for Go-Viet, much higher than the VND500,000 ($21) he would get from GrabBike for the same work duration.

    Hung said he is also attracted by the tax exemption Go-Viet promises for the first six months and the bonus he’ll get if he finishes nine trips a day.

    Go-Viet, a Vietnamese version of Indonesian service Go-Jek, entered the Vietnamese market early this month, seeking its slice of the market pie that Grab has been dominating after the departure of Uber.

    Aiming to tailor its service to Vietnam with a different name and local teams, one of the first goals of Go-Jek in the country is to recruit drivers.

    “The company hopes to bring a stable income to tens of thousands of drivers through technology,” Nguyen Vu Duc, CEO of Go-Viet said in June.

    The company had contacted potential drivers months before the launch, either by meeting face to face or talking to them online, its communication representative Huong Cung said.

    Grab did not comment on the ploys Go-Viet is using to attract drivers, but it’s also deploying its own strategies.

    The company has just launched a campaign to reward drivers with five percent of the total revenue they make in a week, said Nguyen Thu An, communication director of Grab Vietnam.

    In early June, Grab also announced a plan to have over 100 stops for Grab drivers with free wifi, coffee and even vehicle washing service in Ho Chi Minh City and Hanoi.

    “There is a large number of drivers who don’t like Grab and want to work for Go-Viet,” said Vu Hoang Tam, a mobile app expert and one of the founding members of GrabBike in Vietnam.

    This creates a good supply of drivers for Go-Viet, which has learned a lot from the “previous battle,” Tam said, referring to the competition between Grab and Uber earlier this year.

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  • Japanese convenience store ready to fight new challenge

    Japanese convenience store ready to fight new challenge

    Healthcare is becoming a staple category for Japanese convenience store chains as they seek to counter the encroachment of pharmacies on their traditional product ranges.

    According reports, while Japanese drugstores are increasingly offering snacks and quick meals, convenience stores are now selling medicines and even setting up health consultation stations in stores.

    Lawson-branded stores have launched 17 in-store consultation corners and plans to expand this number to 100 locations.

    Lawson president Sadanobu Takemasu said the company wants to resolve the community issues that arise “in an age where many people live to be 100”. The service is intended to attract more families and elderly people.

    FamilyMart and Seven-Eleven convenience chains in Japan have also been found to be selling medicines, with some also offering pharmacy-style advice.

    Japanese drugstores have been increasingly expanding beyond medical products in recent years, which has paid off. The value of pharmacy industry sales has gone up five per cent in the past two years, as opposed to two per cent on convenience store sales over the same period.

    The number of pharmaceutical outlets increased 11 per cent since 2015, during which time convenience store expansion was limited to just three per cent.

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  • Malaysian economy could shrink if US-China trade war escalates

    Malaysian economy could shrink if US-China trade war escalates

    Malaysia’s gross domestic product (GDP) could contract by 1.3% in two years should the trade war between the United States and China intensify.

    CIMB Group chief economist Dr Donald Hanna said Malaysia’s economic growth could shrink in the event of continuous escalation in tariff imposition and a confidence shock in the financial market, which could result from, say, China offloading its substantial holdings of US debt.

    That will not only result in a reduction of global trade but will also affect Malaysia, which is an open economy – and trigger interest rate increases in the US.

    However, at current levels, Hanna noted that the impact of the trade duel between the two economic giants on Malaysia is small.

    He projected GDP growth to decelerate to around 5.1% in the second quarter (Q2) of 2018 from the 5.8% recorded in Q2 2017 – taking the cue from the slower growth in the Industrial Production Index for June, which rose only 1.1%.

    Full-year GDP growth is expected to be around 5.1-5.2%. This will be due to the natural moderation in GDP growth which started slowing down after a robust expansion in the second half of last year and not due to the US-China tensions.

    Hanna said the trade war appears to be one of US President Donald Trump’s policies that could see some longevity, compared to others on issues such as immigration and abortion.

    He noted that if Trump’s objective of waging a trade dispute is to shrink the US trade deficit, it is not likely to be achieved because of other macroeconomic policies that the US administration has in place.

    Hanna, who was speaking at the 13th CIMB Asean Research Institute’s Asean Roundtable Series: Trade War and Its Impact on Asean, also said Malaysia could be a preferred location for US and Chinese companies to relocate their investments – in the face of tariff slapping.

    Echoing that sentiment, European Union-Malaysia Chamber of Commerce and Industry CEO Roberto Benetello said China is likely to rethink its trade alliances in the region and get closer to partners in Asean.

    This could be a call to accelerate the Regional Comprehensive Economic Partnership (RCEP), which could see a slowdown in the ratification process, thanks to the ongoing spat.

    American Malaysian Chamber of Commerce executive director Siobhan M Das said that without the US market, Asean could become a dumping ground for China’s excesses.

    Malaysia Productivity Corp board member and former ambassador of Malaysia to the World Trade Organisation (WTO) Datuk Muhamad Noor Yacob said the focus should be on the WTO’s Dispute Settlement Body.

    Although observers have voiced their concerns over the possibility of Trump pulling the US out of the WTO, the country has been one of its active users, accounting for more than 100 of the 500 disputes attended to by the body since 1995. It has also been an active respondent to many disputes.

    The roundtable also saw speakers stressing on the importance of the RCEP and free trade agreements between the regional trading bloc and potential trading partners.

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  • Vietnam most vulnerable in ASEAN to US-China trade war

    Vietnam most vulnerable in ASEAN to US-China trade war

    Vietnam will be the most vulnerable country in Southeast Asia should the U.S.-China trade war persist, according to recent research.

    This is because Vietnam is the most export-dependent of the ASEAN big five, which also includes Indonesia, Malaysia, the Philippines, and Thailand, quoted from Financial Times Confidential Research report.

    Vietnam’s exports were worth $214 billion last year, 21 percent up from 2016, according to Vietnam’s Customs. The U.S. was the largest importer of Vietnamese goods last year, buying goods worth over $41.6 billion.

    “Vietnam’s exports to the U.S. rank first among the ASEAN five, making the country sensitive to softening U.S. consumer demand,” the report said.

    Another reason that Vietnam and other ASEAN member countries would be impacted by the escalating trade tension is the strengthening of the U.S. dollar, it said.

    The dong has been devalued by 1.5 percent this year, and the government could take more aggressive action if exports slow significantly, it said.

    But Vietnam, Thailand and Malaysia might still benefit from the currency weakness “if foreign direct investment shifts away from China as more companies hedge against the risk of trade action,” it added.

    Trade tension between the U.S. and China continues to escalate. A Reuters report cited Beijing as saying last week that it would slap additional tariffs of 25 percent on $16 billion worth of U.S. imports.

    The announcement came after Washington said it would impose 25 percent tariffs on another $16 billion in Chinese goods after imposing tariffs on $34 billion last month.

    So far, China has now either imposed or proposed tariffs on $110 billion of U.S. goods, representing the vast majority of its annual imports of American products.

    Vietnamese experts too have cautioned that the country would suffer collateral damage because of this trade war.

    A report released last week by the Ministry of Planning and Investment’s National Centre for Socio-Economic Information and Forecast said Vietnam’s GDP growth would take a hit from the trade tension.

    The report predicts a drop of 0.03 percent this year, 0.09 percent next year and 0.12 percent in 2020 and 2021.

    In money terms, it translates into VND8 trillion ($344 million) in 2021.

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  • L’Oreal China get fuel from Colorlab by Watsons

    L’Oreal China get fuel from Colorlab by Watsons

    International health and beauty retailer AS Watson has teamed up with L’Oreal to launch Colorlab by Watsons, a new concept makeup store in China.

    The first Colorlab launched in Shenzhen early this year as a trial, followed by more openings in Guangzhou and Shanghai. Now the company has revealed plans to roll out a further 50 stores across China by the end of this year. The stores feature modern black interiors to convey a fashionable and trendy experience-led makeup space, with access to on-hand makeup artists.

    L’Oreal brands occupy more than 30 per cent of retail space, and such an arrangement is exclusive to Colorlab only.

    With the rise of online shopping and changing shopping behaviours of younger customers, it is expected that the focus on innovative physical spaces and refreshing shopping experiences will help attract younger buyers.

    AS Watson Group COO Malina Ngai said: “Makeup was identified as a huge growth area for Watsons, and working with L’Oreal on the development of this new store concept meant that we had the expertise of an established makeup supplier at the forefront. Colorlab stores put the customers experience first and rather than just purchasing makeup, we wanted to give customers access to advice and expertise from skilled makeup artists, as well as the opportunity to try out different looks and play about with new products.”

    View the gallery below (4 images) :
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  • Lazada, Shopee, 11Street top e-commerce ranking in Malaysia

    Lazada, Shopee, 11Street top e-commerce ranking in Malaysia

    Lazada, Shopee and 11Street have been ranked the top three companies in terms of the most visited website in Malaysia in the second quarter (Q2) of 2018, according to iPrice Group’s Map of E-Commerce (MoE) list.

    Based in KL, iPrice Group is a privately owned online shopping aggregator. According to its portal, the MoE ranks Malaysia’s top 50 e-commerce players based on their average quarterly traffic, mobile application ranking, social media followers and number of staff. The data was collected in July 2018.

    Lazada came out top in traffic ranking with 27.99 million visitors and the number of Facebook followers with 25.5 million followers. It took second place for app downloads and Twitter with 31,035 followers.

    Shopee took second place in traffic ranking with 12.3 million visitors, while 11Street came in third place with 6.4 million visitors.

    However, iPrice said that Shopee inched closer to Lazada’s monthly traffic by two fifths in Q2 2018. In Q1 2018, Shopee’s was one over five to Lazada’s monthly average visitors.

    Fashion Valet and CJ Wow Shop entered the top five most visited Malaysian-based e-commerce platform in Q2 2018, while Lelong remained as the most visited Malaysian-based e-commerce platform with 5.2 million visitors.

    The top three most visited Malaysian-based e-commerce platforms were Lelong, GoShop (818,000 visitors) and Hermo (758,000 visitors).

    In the fashion, health and beauty category, Hermo, Fashion Valet, Poplook, Babydash and Naelofar Hijab are the five most visited Malaysian-based e-commerce platforms as of Q2 2018.

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  • Nike drops matching “Qixi Festival” editions

    Nike drops matching “Qixi Festival” editions

    Nike is celebrating China’s Qixi festival, taking place this Friday, 17 August, with a duo of Classic Cortez Nylon colorways for Men and Women.

    The special edition pack features two colorways inspired by the “Dusk till Dawn” Chinese folklore of Niulang and Zhinu. The Chinese Valentine’s Day celebrates the yearly reunion of the couple, banished to the opposite ends of the Sliver River, on the seventh day of the seventh lunar month through a bridge formed by magpies.

    The Men’s edition features a gradient “Dark Obsidian” hue and the Women’s version a “Flash Crimson” wash, each boasting galaxy stars to represent the fading sky of the summer night. The constellation of Vega (Zhinu star) and Altair (Niulang star) are printed on the heel counter in glow-in-the-dark ink, while a tongue tab branded with “Today is the Day” rounds out the limited edition pair.

    Nike’s Classic Cortez Nylon “Qixi Festival” pack will launch exclusively in China on August 18 via Nike’s SNKRS app and select retailers.

  • Yoyoso plans its entrance to India

    Yoyoso plans its entrance to India

    Chinese lifestyle brand Yoyoso has partnered with Indian retail operation Tablez to bring its outlets to India.

    Ma Huan, president of Yoyoso, said Indian is one of the most important parts of the global market for the business.

    “It’s a great opportunity for both Yoyoso and Tablez.”

    Tablez’ parent company LuLu Group also has plans to open hypermarkets in Yoyoso’s base city of Yiwu, as well as other Chinese cities.

    Tablez MD Adeeb Ahamed said: “Through mutual cooperation, we are confident that Yoyoso will bring plenty of surprises and happiness to a new generation in India.”

    Yoyoso is a discount store, similar in nature to Miniso and Mumuso.

  • 11street Malaysia will take advantage of the new partnership

    11street Malaysia will take advantage of the new partnership

    Online marketplace 11street Malaysia is being overhauled following a partnership with PUC Ventures.

    The e-commerce retailer says the changes will enhance the user experience and further contribute to the Malaysian digital economy.

    The revamp will involve improved payment options and shopper experience; better logistics systems; a new mobile app; an influencer and celebrity store, as well as a platform for micro-influencers and convenient e-voucher sales management for sellers.

    The platform aims to offer new advantages to sellers by bringing together overseas buying and selling channels to encourage SME growth.

    11street CEO Cheong Chia Chou said: “As everything in our world becomes digitised, there is a need for a stronger e-commerce ecosystem where a customer’s physical digital journey can be fully integrated. Businesses are pushed to ride the wave of this rapid industry expansion to ultimately grow their businesses at a larger scale for better profitability and presence.”

    The partnership was made to expand integration and interoperability across platforms involved in Malaysian e-commerce. A statement released by the firm noted that the Malaysian digital economy has grown exponentially with 15.2 million online shoppers in Malaysia spending an average of RM321.15 (US$78.35) per year.

    The e-commerce industry revenue is expected to show a compound annual growth rate of 17.9 per cent over the next four years.

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  • Public Bank Malaysia Q2 earnings up 4.8%

    Public Bank Malaysia Q2 earnings up 4.8%

    Public Bank Bhd’s net profit for the second quarter ended June 30, 2018 rose 4.8% to RM1.40 billion from RM1.33 billion a year ago mainly due to higher net interest income, higher income from Islamic banking business, lower loan impairment allowance and higher net fee and commission income.

    Its revenue jumped 5.2% to RM5.44 billion compared with RM5.17 billion in the previous year’s corresponding quarter.

    For the six months period, the bank’s net profit increased by 8.6% to RM2.80 billion from RM2.58 billion a year ago, mainly due to higher net interest income, higher net fee and commission income and higher income from Islamic banking business.

    Its revenue jumped 5.8% to RM10.79 billion compared with RM10.20 billion in the previous year’s corresponding period.

    Public Bank founder and chairman Tan Sri Dr Teh Hong Piow said the higher profit for the period was largely driven by growth in its loan and deposit business, with further impetus from a 4.9% growth in non-interest income.

    “Sustained business strength continued to place the group in a strong competitive position, with its net return on equity standing at 15.0%. Similarly, the group’s cost-to-income ratio of 33.1% and gross impaired loans ratio of 0.5% remained the best in the domestic banking industry,” Teh said.

    The board of directors declared a first interim dividend of 32 sen per share, which will be paid on Sept 19, 2018, resulting in a total dividend payout of RM1.24 billion.

    “The Public Bank group will continue to ride on the growing economy to strengthen its banking business along its organic growth strategy. The group’s resilient fundamentals, consistent financial performance, agility to market changes and strong customer service culture will continue to be the essential qualities in driving the sustainability of the group’s business, for the interests of all its stakeholders,” Teh said.

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  • Dong dips to new low against the greenback

    Dong dips to new low against the greenback

    The U.S. dollar strengthened against the Vietnamese dong on Tuesday as the central bank upped its reference rate.

    The State Bank of Vietnam (SBV) set its highest-ever reference rate for the greenback at VND22,686 on Tuesday, up VND10 from last Saturday.

    Eximbank and Vietcombank were selling the U.S. dollar for VND23,350 at 10:29 a.m. Tuesday, up VND10 from last Saturday.

    A recent report by the Ho Chi Minh City Securities Corporation (HSC) estimates that the SBV has sold about $2.5 billion in total since July, intervening to keep the exchange rate stable.

    The report forecast that the U.S. dollar will continue to strengthen against the dong to reached VND23,500 in the upcoming months.

    The SBV might sell $6-12 billion of its foreign exchange reserves by the end of this year, including the amount it has already sold, the HSC report said.

    Experts have forecast the dollar to rise by 3 percent this year against the dong.

  • Dover Street Market Beijing launched with revamp

    Dover Street Market Beijing launched with revamp

    Dover Street Market Beijing, formerly I.T Beijing Market, has opened for business with a brand-new interior.

    The four-storey, 2200sqm glass house fashion landmark was restructured and redesigned, before a soft opening in April. This week, I.T Group has formally launched the new store, with further upgrades and additions, while renewing the brands and visual displays in line with other DSM stores around the world.

    Much of the interior was redesigned by Rei Kawakubo of the Comme des Garcon team.

    New features include a “village hut” installation at the entrance as well as diverse and contrasting layouts, materials, and colors on every floor, attempting the DSM signature “Beautiful Chaos” style.

    Highlights include a Molly Goddard white dress and wooden-blind partition theme on the second floor; raw industrial metallic silver displays weaving throughout the third floor, and a dynamic white sneaker space and T-shirt space gallery on the fourth level.

    The market has released a full adjusted space and brands schedule for the Fashion Week 2018 season.

    View the full gallery below (9 picture) :

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  • Macau’s Suncity again defers Hoiana casino-resort stake purchase

    Macau’s Suncity again defers Hoiana casino-resort stake purchase

    Hong Kong’s Suncity Group Holdings has twice delayed a deal in the last two months to acquire 34 percent of a casino-resort in Quang Nam Province.

    In a statement to the Hong Kong Stock Exchange, the Macau casino operator and investor said it is waiting for the joint venture between VinaCapital and Hong Kong’s Chow Tai Fook to obtain approval from a Vietnamese bank, which has given a loan to the developers of Hoiana.

    So it is postponing completion of the deal, worth $76.8 million, until August 31 this year, the firm said.

    “It is expected that the bank consent will be obtained on or before August 31, 2018. Save for the condition relating to the bank consent, all other conditions have been fulfilled.”

    In June Suncity had said difficulties in acquiring land for the project caused it to put off the deal until July 31.

    VinaCapital and Chow Tai Fook have since acquired the 163 hectares required for phase 1 of the development.

    Suncity announced plans to acquire the stake in the casino and resort in July last year.

    The $4 billion project was initially planned by VinaCapital and Malaysia’s Genting Group, but in 2012 the latter pulled out, and in 2015 Chow Tai Fook came on board.

    Hoiana is one of eight casinos to be licensed in Vietnam now.

    To be built in seven phases it will have a casino with 140 tables and around 1,000 slot machines, guest rooms and a golf course.

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