Retail News CRM

Author: Mei Ling Tan

  • Vietnam fuel tax set to rise to highest level

    Vietnam fuel tax set to rise to highest level

    Prime Minister Nguyen Xuan Phuc will persist with a controversial plan to increase environmental tax on fuel to the highest level permitted, a source said.

    A Finance Ministry official who did not want to be named said the plan will be discussed at the meeting of the Standing Committee of the National Assembly, Vietnam’s parliament, which is scheduled on July 11-13.

    Should it pass, the new tax will take effect starting this October, three months later than the original schedule.

    The reason for the delay, the official said, was that the Finance Ministry did not want to impose the tax in September, as a majority of students would be starting a new school year then.

    The ensuing surge in transportation could affect the consumer price index, the source explained.

    Under the proposal, the environmental tax on petrol and diesel will increase by 33 percent, or VND4,000 (17 cents) per liter and VND2,000 per liter respectively.

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  • Pomelo to have first offline store in Singapore

    Pomelo to have first offline store in Singapore

    Bangkok-based online-to-offline retailer Pomelo Fashion is to open its first physical store in Singapore.

    Pomelo Fashion, founded by former Lazada Thailand MD David Jou and which includes JD and Central Group on its shareholder register, sees the move as a logical step in its Southeast Asia expansion ambition.

    The vertically integrated business sources its own materials and contracts manufacturing partners to produce the clothes it designs and retails. It allows customers to view and choose a product online before it is shipped direct, or to a store for trying on the fit, thus merging the convenience of online shopping with offline, in-store service.

    Despite being headquartered in Bangkok, Pomelo Fashion sees itself as”a global fast-fashion brand for a digital world,” always on-trend and affordable.

    Currently, Pomelo Fashion has just two “micro-retail sites” in Bangkok – at Interchange 21 in Asok and at All Seasons Place in the CBD. But it has identified 800 potential sites for such stores in Thailand in the long term. It has also opened short-term pop-up stores in prime shopping areas to help raise the brand’s profile, including a space inside Tang’s department store on Orchard Road. With its buy-and-try business model, the company does not have to shoulder the expense of leasing the larger-footprint stores its offline rivals require to display broad ranges.

    “Discovery for fashion is going online, where you’re not constrained by having to display the entire catalogue,” Jou said in a media interview last week. “But e-commerce for fashion is plagued by the problem of returns because the clothes don’t fit or they don’t look good. Having the online-to-offline model cuts down returns because the consumer only buys what they have tried on.”

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  • HBX announces an official partnership with G-SHOCK

    HBX announces an official partnership with G-SHOCK

    HBX announces an official partnership with G-SHOCK for their 35th Anniversary pop-up starting 30th June at SHOP B30, LANDMARK MEN, LANDMARK ATRIUM, 15 Queen’s Road Central, Hong Kong.

    The G-SHOCK 35th Anniversary Pop-up will display an array of G-SHOCK’s 35th Anniversary collection, which has re-imagined the first G-SHOCK ORIGINAL DW500C from 1983.

    Model DW-5000MD, one of the 5 newest collections, is specially collaborated with the fashion brand MADNESS.

    To bring out G-SHOCK’s youthful and trendy designs at all times, the store is designed to accommodate the stylish mix of its old and new models displaying 44 highly collective watches throughout history together on the acrylic wall aside, along with a series of display blocks to showcase the current 5 newest models at the storefront.

    In addition, a highlighted installation is placed at the centre of the store, built from a range of vintage TV’s from the 80s, displaying a series of branded showreels, and nicely placed on top of a set of concrete sculptures at the bottom to indicate a comeback of the classic vibe.

  • HIJUP UK debuts at London Eid Festival

    HIJUP UK debuts at London Eid Festival

    Malaysian-owned Hijup UK made its debut in London’s modest fashion scene at the recent London Eid Festival.

    Participating in the year’s largest international modest fashion showcase coincided with the launch of the Hijup UK online store.

    Hijup UK will follow this up with the opening of its first brick-and-mortar concept store and a fleet of mobile stores in London to make modest fashion more accessible to women.

    At the London Eid Festival, the fast-fashion and lifestyle brand showed off its latest collection by Indonesian designers Dian Pelangi, Vivi Zubedi, Jenahara and Ria Miranda and displayed its range of clothing and scarves in mobile stores set up on site.

    Along with its own brands handpicked from popular designers from Indonesia, Malaysia, Australia, the UAE, US and the UK, Hijup UK will be retailing popular and versatile Aidijuma hijabs and luxury modest fashion labels carried by Haute Elan.

    The company says it will adopt the online-to-offline business model in the UK, complementing e-commerce with personal retail experiences in both concept and mobile stores to provide a seamless experience for consumers wherever they are.

    Hijup UK is owned by Hijup, the world’s first Islamic fashion e-commerce and modest fashion brand, and Aidijuma Colors Group of Companies from Malaysia.

    “Hijup UK will be the first modest-retail group to create retail revolution through the online merging offline platform which includes the breakthrough concept of having a mobile store to complement the consumer shopping experience,” said Norjuma Habib Mohamed, founder and CEO of Aidijuma Colors Group, which holds the majority stake in Hijup UK.

    “We have a clear vision and that is to bring fashionable modest wear to women wherever they are, through multiple retail platforms and at competitive prices.

    “There is a growing market for modest wear and we are making it even more accessible and mainstream in more and more markets to cater for the needs of women while developing the brand,” added Norjuma.

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  • Wealthy Vietnamese foot big bills for high-end furniture

    Wealthy Vietnamese foot big bills for high-end furniture

    Affluent Vietnamese have become big spenders on interior goods and Italian furniture is particularly favoured, industry insiders say.

    Research and consulting firm Concetti says Vietnamese consumers spent $15.6 million on luxury furniture from Italy in 2017.

    “With enhanced living conditions and developed taste, many wealthy Vietnamese are buying high-end, imported furniture from European countries,” said Pham Tu, Vice President of HCMC Architecture Federation.

    He was backed by Paolo Lemma, Italian Trade Commissioner to Vietnam, who said: “Over the last three years, import of furniture to Vietnam grew at an average rate of 33 percent. Italy ranks first among European countries exporting to Vietnam and the third worldwide, covering seven percent of Vietnamese market.

    Italian interiors are also popular among the well-heeled, and price is not a major factor when they make purchasing decisions.

    “Our prices range from $1,500 to $23,000 and can go even higher for customized products. We mainly focus on rich and upper class customers in Vietnam,” said Leonardo Cangioli, representative of an Italian lamp-making company.

    “We know the prices are not low, but we are confident that our products are going to sell well in Vietnam, because the number of moneyed and affluent people here is on the rise, as is the demand for imported goods,” Cangioli said.

    Below the top rung of luxury interiors, China remains the leading exporter of furniture to Vietnam, because its products are more diverse and cheaper.

    The “middle and affluent class” in Vietnam, categorized as those earning $714 a month or more, will double to 33 million people, about a third of the population, between 2014 and 2020, citing the Boston Consulting Group.

    Meanwhile, market research firm Nielsen estimates that the number of middle and affluent class Vietnamese citizens will reach 44 million by 2020 and 95 million by 2030.

  • Coty and DKSH join forces in Asia

    Coty and DKSH join forces in Asia

    DKSH’s Business Unit Consumer Goods, Asia’s leading Market Expansion Services provider for fast moving consumer goods of international and local brands, is the partner of choice for Coty Professional Beauty, to enhance its distribution capability to a wide base of Asian consumers.

    Part of one of the leading beauty companies worldwide, Coty Professional Beauty is geared towards servicing salon owners and professionals.

    The partnership will enable an improved delivery schedule and better inventory visibility, while expanding the availability of Coty’s international brands to consumers in Singapore and Malaysia.

    DKSH will provide distribution, logistics and sales order processing for Coty’s Professional Beauty division across the salon channel.

    The agreement covers popular consumer brands in the category professional haircare, such as Wella Professionals, System Professional, Nioxin and Sebastian Professional. Partnering with Coty gives DKSH the opportunity to showcase its full competence in Market Expansion Services, while the collaboration allows Coty Professional Beauty to reach an even wider audience in Asia.

    In Thailand, DKSH has already been successfully working with another division of Coty, Consumer Beauty, to distribute brands like Adidas body care & fragrances.
    Rui-Yuan Chen, Business Unit Lead, South East Asia and Korea, Coty Professional Beauty, said: “With this strategic partnership, we will improve Coty Professional Beauty’s service level to more salons across Asia. We rely on DKSH’s efficient distribution network to deliver our products faster, more accurately, with quality after-sales services in Singapore and Malaysia.”

    Martina Ludescher, Chief Commercial Officer and Head Business Unit Consumer Goods, DKSH commented: “Through this partnership with DKSH, Coty Professional Beauty is entrusting the distribution to a regional expert with more than 150 years of experience in the Asian markets and an omni-channel approach that offers a one-stop regional solution for its clients. DKSH provides customized services and a deep capillary distribution network that guarantees the direct-to-store distribution of Coty’s international brands in the two Asian markets.”

  • Duty-free market still dominated by South Korea

    Duty-free market still dominated by South Korea

    South Korea has maintained a dominant share of the global duty-free market, despite its recent political turmoil.

    According to a GlobalData report, with a 22 per cent share of sales, South Korea is the world’s largest duty-free market, which reached a sales high of US$11.7 billion last year. The past two years have seen sales growth of 23.1 per cent annually in the sector.

    These sales figures were achieved against the context of the Terminal High Area Defense (THAAD) missile row between South Korea and China that halved the numbers of Chinese tourists visiting the country.

    Maureen Hinton, retail research director at the data and analytics company, said: “The deployment of the THAAD missile system in South Korea and the consequent ban on Chinese travelers visiting the country was potentially very significant. As the Chinese are the big spenders and a key driver of the market, a decline in sales should have been the outcome.”

    Despite this, Chinese shuttle traders, who on-sell high quantities of Korean duty-free products back in China, combined with international attention on the Seoul Winter Olympics, have been major factors in the country’s dominance of the market sector.

    Hinton added: “GlobalData forecasts that by 2022, South Korea will account for nearly a quarter of all duty free spending at 24.1 per cent of the global market. However, optimism about a new settled relationship with North Korea could drive its sales even higher if the border opens.”

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  • Chinese and Russian business key to Lotte Duty Free’s success

    Surging Chinese and Russian visitor numbers suggest a strong future for Korean travel retail giant Lotte Duty Free’s new store at Cam Ranh International Airport in Nha Trang, opened on 30 June.

    As reported, Lotte Duty Free has been awarded an exclusive ten-year duty free concession. The contract to operate some 1,680sq m of departures and arrivals space runs until mid-2028.

    Lotte Duty Free CEO Jang Sun-wook opened the store in the airport’s new terminal on 30 June.

    The store sells a wide range of traditional duty free items, including cosmetics, fragrances, watches, fashion, liquor and tobacco. The departures shop, sited directly in front of the main gates, covers 1,507sq m and the arrivals store 173sq m. Key Korean brands include The History of Whoo and Sulwhasoo, while blockbuster international names include Saint Laurent, Dior and Jo Malone.

    It is Lotte Duty Free’s second operation in Vietnam after the retailer’s opening at Danang Airport on 1 November last year. The company expects to generate sales of around 700 billion won (US$625.3 million at current exchange rates).

    Cam Ranh International’s new two-storey terminal covers 50,000sq m. It is expected to handle up to 8 million outbound travellers by 2030.

    Nha Trang is the most popular tourist destination in central Vietnam. Some 2 million foreign tourists visited the area in 2017, a number set to rise by some 20 percent this year. Critically from a retail perspective, Chinese nationals comprise the largest visitor group with 58.9 percent of arrivals, ahead of Russians (27.4 percent). Koreans only make up around 2 percent of arrivals, but that number is expected to climb rapidly in the future as Jeju Air has added a new service to the city.

    Several mid-to-long-term infrastructure development projects are set to increase tourism. A new terminal is being built at the airport and more 4-5 star hotels are being added locally. Six shopping malls are in development while plans are well advanced for the area to develop an eco-tourism programme, including spa and craft village facilities, plus an international-class marina and resort.

    Lotte Duty Free said that corporate social responsibility will be key to its approach. For example, the company is cooperating with local authorities to help children receive surgery and other treatment at medical facilities in Danang. In October 2017, the company funded surgery for six Vietnamese children, and plans to continue the programme this year.

    During July, Vietnamese women from multicultural families are planning a one-off event to invite about 100 parents to the women’s homeland in Vietnam. Lotte Duty Free will help fund the programme.

    With plans to open further stores (including downtown) in Hanoi, Ho Chi Minh City and Danang, Lotte said it hopes to become Vietnam’s largest duty free brand within the next three years.

    Jang said the company aims to post a profitable return in year one. “We are especially focused on making a strong local social contribution,” he said. “I will do my best to create a strong brand.”

  • Federer moves to Uniqlo after leaving Nike

    Federer moves to Uniqlo after leaving Nike

    20-Grand-Slam champion Roger Federer has walked away from a decade long partnership with Nike, signing on to a new deal with Japanese fashion retailer Uniqlo.

    Federer will represent Uniqlo at all tennis tournaments throughout the year, starting with The Championships at Wimbledon 2018.

    Mr Federer is one of the greatest champions in history; my respect for him goes beyond sport,” said Tadashi Yanai, Uniqlo founder and chairman, president and CEO of fast retailing.

    “Our partnership will be about innovation on and off court. We share a goal of making positive change in the world, and I hope together we can bring the highest quality of life to the greatest number of people.

    “Uniqlo will help Mr. Federer continue taking tennis to new places, while exploring innovations in a number of areas including technology and design with him.”

    Federer noted that he was deeply committed to tennis, but also shared Uniqlo’s values.

    “We share a strong passion to have a positive impact on the world around us and look forward to combining our creative endeavors,” said Federer.

    It is interesting to note that Uniqlo is not a sports company, but describes itself as a life company that creates LifeWear, “apparel that comes from the Japanese values of simplicity, quality and longevity.”

    In addition to Federer, the Uniqlo global brand ambassadors are Kei Nishikori (tennis), Shingo Kunieda and Gordon Reid MBE (wheelchair tennis) and Adam Scott (golf).

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  • Vietnam’s first driver-less car gets the green light

    Vietnam’s first driver-less car gets the green light

    An FPT Software request to pilot its self-driving cars in Vietnam’s hi-tech zones and software parks has received a positive response from the Transport Ministry.

    The ministry said it supports FPT’s plan because it was in line with global trends and confirmed to the Government’s agenda to foster the fourth industrial revolution (Industry 4.0).

    It instructed FPT to seek authorization from the high tech parks’ management board before testing the autonomous cars on internal roads of the Saigon High Tech Park in Ho Chi Minh City’s District 9 and take responsibility for traffic security during the trial.

    The tech giant has also been asked to report on tests carried out with the driver-less car and propose solutions to tackle any possible problems that may arise once it is put to test on public roads.

    Pham Minh Tuan, general director of FPT Software, said that the company had established two years ago a strategic unit specializing in automotive technology solutions.

    FPT Global Automotive (FGA) has three main focuses: self-propelled car, safety system, and entertainment system, he said.

    The unit now has a 2,000-person team dedicated to hardware and software development, and mechanical design. It is ready to develop most of the car’s functions, he said.

    FPT had introduced the first self-propelled car in Vietnam on October 31, 2017.

    The Hanoi-based company has been operating autonomous cars around the FPT complexes in the central city of Da Nang and F-town campus within the Saigon High Tech Park.

    The self-driving vehicles have an average speed of 20-25kph and can reach up to 40kph on straight stretches. They can self-align, change lanes and avoid obstacles or tripping when needed. The vehicles have had over 1,000 hours of self-steering, with no problems in weathering different conditions including sunshine, rain and low light.

    FPT is working to perfect the vehicle’s brake system and other functions like GPS, direction guide and built-in voice response control.

    The new initiative builds on FPT Software’s work in implementing more than 150 projects in the automotive industry for more than 20 clients in Japan, South Korea, Europe and the United States.

    It aims to reach $200 million in automotive-related sales by 2020, including software, design, analysis and IC design.

    The corporation also aims to supply 10 per cent of the world’s self-propelled automotive software by 2025.

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  • HK’s first ever Lipstick Tasting Bar at Harbour City

    HK’s first ever Lipstick Tasting Bar at Harbour City

    Women use lipstick as a statement; Lipstick Lex as a tool to create art.

    Until 22 July, Harbour City presents “Sun Kissed Summer – lipstick art exhibition” in the Atrium II of Gateway Arcade.

    The renowned American lipstick artist Lipstick Lex is holding her first solo exhibition in Hong Kong.

    Lex demonstrates how to use over ten thousand kisses to create her largest piece of kiss print “Victoria Harbour Sunset” in Harbour City.

    Harbour City, as the mall with the largest number of beauty brands (over 320 brands) in Hong Kong, also holds the first ever “Lipstick Tasting Bar” which have 34 brands and over 200 shades of lipsticks in one stop for trial.

    To create a better customer experience, Harbour City is using Facebook Chatbot and digital panel to make an interactive game for customers try on the desired lip colors according to the game result.

    “Sun Kissed Summer – lipstick art exhibition” will now exhibit 22 pieces of Lex artworks of which more than half is newly created for this exhibition.

    The inspiration behind this new series comes from the animals and plantations in Florida’s tropical environment such as Flamingo, Sea Turtles, Plum trees and pineapples etc. Her artwork combines the colorful lipstick colors and kiss prints in order to spread a positive message of love, merriment, beauty and feel-good vibes all around.

    Besides, Lex is using the theme of “Victoria Harbour” to tailor make her giant artwork – “Victoria Harbour Sunset” for this exhibition. This is the largest piece which she has ever created, 3-meters long, made by more than ten thousand kiss prints and lipsticks from over 20 brands. The drawing is about a beautiful sunset scene with a sailboat sailing to Victoria Harbour.

    Alexis Fraser, a.k.a. Lipstick Lex, is an artist from the United States, Florida. Starting at an early age, Lex enjoyed and excelled at creating art in fun and interesting methods. Back in 2012 Lex was challenged to create a portrait of Marilyn Monroe, utilizing a non-traditional method that would still correlate with Marilyn.

    Utilizing 100% lipstick and her fair share of kiss prints, Lex soon launched her alternative contemporary art brand, “Lipstick Lex”. Videos showing her unique lipstick painting skills have also gone viral in Youtube and other social media platforms. Lex has previously exhibited her works in Japan, Europe, Canada and the United States; and has held speaking engagements discussing her artworks mission.

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  • Chinese’s Pinduoduo seeks US$1 billion

    Chinese’s Pinduoduo seeks US$1 billion

    Chinese e-commerce startup Pinduoduo is seeking US$1 billion in a US IPO, going head to head with industry giants such as Alibaba.

    The company’s business model, in which users recruit friends via social media to enjoy group-discount offers direct from manufacturers, has seen its transaction volumes reach 141.2 billion yuan (US$21.3 billion) in 2017, tripling the company’s revenue. It was founded by ex-Google engineer Colin Huang and is backed by Tencent and Sequoia Capital, among others.

    Pinduoduo raised more than US$1 billion in its last fundraising round in April, against a valuation of around US$15 billion. Its sales have been strongly supported by its large user base in lower-tier Chinese cities. The site’s daily active users reached 55.9 million last month, more than 20 million more than the popular JD e-commerce platform.

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  • Vietnam textile firm bets on eco-friendly products

    Vietnam textile firm bets on eco-friendly products

    For price conscious Vietnamese consumers, an organic product more expensive than its normal version is not an attractive option, but one firm has decided to be persistent.

    The Phong Phu Textile and Garment Company introduced its made-in-Vietnam eco-friendly towel brand last December, attracting media attention as one of the first firms in the country to produce an organic textile product.

    The Mollis Organic towels are made from 100 percent organic cotton. No genetically modified organism, chemical fertilizer or pesticides are used in the making of this product, the company asserts.

    The company would strive to bring organic products to its customers although their production costs are high and profits uncertain, Pham Xuan Trinh, CEO of the Phong Phu Textile and Garment Company said.

    The company prices its organic towels from VND60,000-250,000 ($2.62-$10.91) depending on the size, about 20 percent higher than conventional products, while made-in-China towels are sold for just VND15,000 ($0.65).

    Since awareness of the importance and advantages of organic products is relatively low among a majority of Vietnamese consumers, Phong Phu is struggling to sell its organic towels to local customers.

    “We’ll continue to invest in organic products despite low profits with the hope that one day Vietnamese customers will see the true value of organic products,” he said.

    The company spent VND4 billion ($174,600) last year on research and development for its organic products.

    As Vietnam’s conditions are not currently suitable for growing organic cotton, the company imports its material from Bangladesh, India and Israel. The processing and manufacturing processes happen in Vietnam.

    The company has so far exported its organic towels to Japan and South Korea, aiming at the high-income customers in these countries.

    Phong Phu recorded a profit of VND149 billion ($6.5 million) in the first half this year, a growth of 7 percent from the same time last year, but most of it came from conventional non-organic products, including towels and denim jeans.

  • CBRE appoints appointed Tom Gaffney for The Greater Bay Area and Hong Kong

    CBRE appoints appointed Tom Gaffney for The Greater Bay Area and Hong Kong

    CBRE has appointed Tom Gaffney as Regional Managing Director for The Greater Bay Area and Hong Kong with immediate effect. In this newly created role, Gaffney oversees all CBRE’s business activities in the newly-formed economic hub.

    Gaffney joined CBRE in 2016 as the Managing Director for CBRE Hong Kong, Macau and Taiwan.

    The establishment of CBRE’s new business geography reflects the firm’s goals to enhance its market leadership in the fast-growing area.

    The Greater Bay Area, comprised of Hong Kong, Macau, Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Huizhou, Jiangmen and Zhaoqing, represents the growth of a connected economic powerhouse and offers vast business opportunities.

    CBRE currently runs three corporate offices in the region: Hong Kong, Guangzhou and Shenzhen with numerous site offices across the other cities in the region.

    Ben Duncan, CEO, Greater China, CBRE, said, “Tom has been a tremendous leader who has grown our businesses across all metrics. The new role speaks to his capabilities and our firm’s commitment to deepen our roots in the Greater Bay Area. It is already the world’s the largest bay area in terms of land area and population and presents unprecedented potential for our clients and for CBRE.”

    Gaffney has more than a decade of experience in the real estate industry. Prior to joining CBRE, Gaffney was at JLL as Head of Retail, Hong Kong and China. Before JLL, he worked for Hongkong Land in Commercial and Retail Asset Management in Hong Kong, Singapore and Thailand.

    Tom Gaffney, Regional Managing Director, The Greater Bay Area & Hong Kong, CBRE, said, “I am honoured to have been given this responsibility to drive the firm’s growth in the Greater Bay Area. These are exciting times for the region and the firm, and we are confident that our team will effectively leverage on the opportunities opened to us from the Southern China economic powerhouse.”

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  • Gucci to launch limited-edition tattooed handbag

    Gucci to launch limited-edition tattooed handbag

    Gucci is launching a faux-leather tattooed handbag collection with Italian artist Gabriele Pellerone, best known for his cutting-edge paintings.

    The fashion house will take orders for 100 handbags from next January.

    Customers will be able to choose from a set of designs developed by the Gucci design team with Pellerone and displayed on Gucci’s website.

    Prices have not yet been disclosed.

    There will be a demonstration of the tattooed handbags at the “Autumn Equinox: Collective Visions in Abstraction and Figuration” exhibition on September 21 at the Agora Gallery in New York City.