Retail News CRM

Author: Mei Ling Tan

  • Food inflation lower at 3.8% in January

    Headline inflation moderated to 2.7% in January, mainly due to lower transport inflation at 5.7% compared to 11.5% in December 2017, said Bank Negara Malaysia (BNM).

    “Although RON95 petrol averaged slightly higher at RM2.28 per litre in January 2018 (December 2017: RM2.27 per litre), the higher base of RON95 price in January 2017 (RM2.10 per litre) compared to December 2016 (RM1.90 per litre) resulted in lower inflation in the transport category,” the central bank said in a statement today.

    BNM said food inflation was also lower at 3.8% (December: 4.1%), reflecting lower inflation in the fish and seafood category.

    It said there was a higher current account surplus in the fourth quarter of 2017 (4Q 2017) as the current account surplus widened, reflecting a larger goods surplus and lower secondary income deficit.

    Going forward, BNM said the current account surplus was expected to continue registering a healthy surplus, supported mainly by the goods account.

    “Net financing growth continued to support economic activity as it increased to 7.2% in January 2018 (December 2017: 6.9%),” said BNM.

    It said the growth of net outstanding issuances of corporate bonds continued to increase, with a double-digit growth rate of 16.6% (December 2017: 15.4%).

    The central bank said the growth of outstanding loans of the banking system also increased slightly to 4.2% (December 2017: 4.1%).

    The growth of outstanding business loans increased to 2.0% in January 2018 (December 2017: 1.8%), driven mainly by wholesale and retail trade, restaurants and hotels, real estate, construction, and primary agriculture sectors, said BNM.

    “Banking system capitalisation remained strong as financial institutions are well-positioned to withstand macroeconomic and financial shocks, with excess capital buffers of RM140 billion as at January 2018,” said the central bank.

    More than 75% of total capital, comprised high-quality loss-absorbing capital in the form of Common Equity Tier 1 Capital (i.e. equity, retained earnings and reserves), it said.

    BNM said financial markets attracted non-resident inflows amid positive sentiments as in January, the domestic financial markets were supported by positive sentiments, driven by Malaysia’s strong economic outlook and higher global oil prices.

    “As a result, the Malaysian Government Securities (MGS) and equity markets attracted non-resident inflows amounting to RM4.2 billion and RM3.4 billion respectively.

    “Following the inflows, the ringgit appreciated by 4.3% against the US dollar and the FTSE Bursa Malaysia KLCI increased by 4.0% in January, while in the bond market, three-year, five-year and 10-year MGS yields increased by five basis points each, following the increase in the overnight policy rate (OPR) by 25 basis points.

    “The impact of the OPR increase on MGS yields was mitigated by non-resident inflows into the MGS market,” said BNM.

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  • Alibaba teams up with Singapore university on AI

    Alibaba teams up with Singapore university on AI

    Chinese tech giant has set up a joint research facility at Singapore’s Nanyang Technological University to develop artificial intelligence-based technologies in retail, transportation and healthcare

    Chinese e-commerce and technology giant Alibaba has partnered Singapore’s Nanyang Technological University (NTU) in a joint research facility aimed at harnessing artificial intelligence (AI) to solve societal issues such as Singapore’s ageing population.

    The first of its kind outside China, the Alibaba-NTU Singapore Joint Research Institute will bring together NTU’s AI capabilities, including efforts to develop an artificial companion for the elderly, and Alibaba’s expertise in natural language processing, machine learning and cloud computing.

    The multimillion-dollar partnership between Alibaba and NTU is expected to involve 50 scientists and engineers from both parties over five years. Besides addressing the needs of ageing societies, they will also develop AI technologies in areas such as retail, urban transport and healthcare.

    For example, NTU’s expertise in healthcare research and Alibaba’s knowhow in AI to diagnose and prevent diseases will be pooled to achieve breakthroughs in health-related AI. Both parties will also conduct research to improve urban mobility and reduce Singapore’s carbon footprint.

    Alibaba said its contribution to the research facility will come from a $15bn fund earmarked for its Damo research and development (R&D) programme, which includes establishing research labs across the globe, including one in Singapore.

    The joint research institute is located on the NTU campus, but it is open to researchers and academics worldwide. Alibaba will also build a crowdsourcing platform to connect researchers and industry practitioners in an AI-focused R&D community.

    Jeff Zhang, Alibaba’s chief technology officer, said the AI technology developed by the institute will first be rolled out in NTU, followed by other parts of Singapore and Southeast Asia at a later date.

    “By launching our first joint research institute in Singapore, we hope to work with talent in Singapore and researchers worldwide to explore technology innovation that can address common issues faced by the society at large,” said Zhang.Alibaba’s efforts to develop AI capabilities in Singapore follows the recent launch of Chinese facial recognition specialist Yitu’s regional headquarters in Singapore that will mainly serve as a sales, marketing and operations outfit for now.

    Yitu said plans are also in the pipeline to establish R&D capabilities in the city-state by the end of 2018.

    In May 2017, Singapore’s National Research Foundation said it would invest up to S$150m (US$107m) over five years in a programme called AI.SG to drive adoption of AI to solve business problems.

    To nurture a local AI community, AI.SG will also work with startups and corporate laboratories through new facilities that will provide software tools, anonymised datasets and high-performance computing resources.

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  • Park Hyatt hotel to occupy top floors at Malaysia’s PNB 118, the world’s 3rd tallest building

    Park Hyatt hotel to occupy top floors at Malaysia’s PNB 118, the world’s 3rd tallest building

    Malaysia’s largest government-linked fund management firm, Permodalan Nasional Bhd (PNB), has signed Hyatt Hotels & Resorts as the hotel operator for its tower development, expected to be the third tallest in the world when completed.

    The luxury hotel operator’s Park Hyatt brand will occupy the top 17 floors of the tower, called PNB 118, PNB said on Tuesday. Aimed for completion in 2020, the 118-storey building will be the tallest in Southeast Asia.

    PNB 118 will have 1.65 million square feet of rentable office space, a retail mall and other entertainment amenities. The fund itself will take up around half of the office space, and is looking to have its portfolio companies take tenancy as well.

    “From our perspective, this is an investment into real estate, in a historic location,” group chairman Abdul Wahid Omar said at a press briefing.

    In November, PNB said it was looking to raise 2 billion ringgit ($512.03 million) via a green sukuk programme to finance the tower project. The fund’s real estate portfolio also include British and Australian assets.

    Malaysia’s capital has been experiencing an oversupply of office space in recent years. However, new office buildings continue to enter the market. Notably, the construction of a 106-storey building, Exchange 106, is underway in the Tun Razak Exchange and targeted for completion this year.

  • Esprit posts H1 net loss of 954 mn Hong Kong dollars on weak sales

    Esprit posts H1 net loss of 954 mn Hong Kong dollars on weak sales

    Esprit Holdings swung to a net loss in the first half, hit by weak sales at its brick-and-mortar retail stores and goodwill impairment due to a decline in its China business.

    The fashion group is in the midst of an ambitious multi-year revamp that has included store closures, price adjustments, and technology and distribution improvements.

    “Given the weaker-than-expected sales performance in 1H FY17/18, we remain cautious about the expectations for the second half of this financial year,” the company said in a filing to the Hong Kong stock exchange.

    The Europe-focused retailer on Wednesday reported a net loss of HK$954 million ($121.85 million) for the six months ended December, compared with a profit of HK$61 million in the year-ago period.

    Revenue slid to HK$8.04 billion from HK$8.32 billion.

    Esprit had in January flagged a net loss of up to HK$980 million for the July-December period.

    Bigger rival Sweden’s H&M, the world’s second-largest clothes retailer behind Zara owner Inditex , has seen sales growth stall in recent years as it has struggled to adapt to the shift online and fend off increased competition from other budget brands.

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  • Higher provisions push AmBank Group’s Q3 earnings down

    Higher provisions push AmBank Group’s Q3 earnings down

    AMMB Holdings Bhd’s net profit dropped 30.1 per cent in the third quarter ended December 2017 to RM218.97 million from RM313.16 million a year earlier partly due to rise in provisions toward bad loans.

    Revenue for the quarter under review grew 9.18 per cent to RM2.15 billion from RM1.97 billion in the previous year.

    For the nine-month period, net profit was down 11.1 per cent at RM878.72 million while revenue rose 3.6 per cent to RM6.36 billion.

    Group chief executive officer Datuk Sulaiman Mohd Tahir said its net interest income increased by RM149.0 million or 8.8 per cent in the nine-month period mainly from customer lending and interest on fixed income securities.

    The 5.4 per cent year-on-year growth in total income was underpinned by consistent growth momentum in net interest income.

    “Interest income from customer lending was boosted by several factors, primarily, robust growth recorded in residential mortgages as well as increased interest income from securities.

    “In addition, cost of funds was lower mainly as a result of the repayment of medium term debt and from diversifying our funding sources towards retail deposits,” he said in a statement.

    Moving forward, Sulaiman said the bank’s net interest income will continue to drive its top line growth with mortgage, small and medium enterprises, credit card loans maintaining their growth momentum.

    Non-interest income from investment banking and money market activities may still be lumpy but wealth management, corporate and commercial banking will continue to propel non-interest income growth,” he added.

    “We expect credit cost to continue to normalise for us with reduced recoveries relative to financial year 2017 as impairment allowances are expected to commensurate with our loans growth.

    “We will continue to manage our funding mix, grow current account savings account and diversify our portfolio for sustainable net interest margins. Our capital position is constantly being assessed and we continuously strive to improve its efficiency,” he said.

    Sulaiman added that a mutual separation scheme offered in January 2018 will allow them to further optimise the group’s organisational structure, which will in the long run, translate into greater savings and efficiency.

  • Korea’s job market going through major changes

    Korea’s labor market is undergoing a major change, dogged by a lack of quality and secure jobs. Coupled with rising living costs and longer life spans, these problems prompt more Koreans across a broader range of age groups in particular the elder to enter the workforce.

    The jobs however are not necessarily the traditional lifetime careers Koreans prefer, which are also hard to come by since the labor market shifted to irregular, part-time or contract jobs that entail discrimination in job stability, pay and welfare.

    But with the minimum wage having increased to 7,530 won an hour beginning this year, part-time jobs have never been more popular.

    Retail workers in Seoul reveal this trend. For nearly two years, Choi Seung-bo, 66, has been working at the cash register of a 7-Eleven convenience store in Gangnam, southern Seoul, eight hours a day.

    “My children have left the nest, so what’s there for me and my husband to do but stare at each other?” Choi said.

    “Also, I feel more energetic and look forward to coming to work.”

    Choi may well be among the beneficiaries that Democratic Party of Korea Chairperson Choo Mi-ae mentioned in January as the ruling party’s New Year plans were disclosed.

    Choo had said the higher minimum wage would benefit the young, women and seniors. Choo had said it was the “last hope” to prompt the youth to seek employment, enable people — usually women — to afford their children’s private education fees and living expenses, and help seniors avoid poverty.

    Choi’s reasons for working seem a mixture of social and personal, but she stressed how lucky she is to be in the labor market at her age. Asked if the work at the convenience store is physically rigorous, she said she does not find it so.

    In fact, Choi said even her children notice the uptick in her energy and thus reluctantly accepted her return to the workforce.

    She does not yet worry about automated cashiers replacing her but is aware of younger workers who may compete for her job.

    “I think I am lucky in that my employer prefers older folks, who stay (with the company) for a long time. He said young workers tend to stay only for several months and then leave. I plan to stay healthy and work until 70 and beyond,” she said.

    “There is a growing shift among workers toward part-time work, such as working part-time or on an hourly basis for a few months through one or more years,” said Ahn So-jeong, a senior manager at JobKorea.

    “Age, previous job experience and current economic status vary, but we are seeing those from their teens through their older years working to secure a continuous income flow,” Ahn said.

    Invariably, the shift of Korea’s labor market toward irregular work in particular after the 1998 Asian financial crisis — those working part-time or on contracts instead of the traditional lifetime employment —is attributable to the market’s greater acceptance of workers from a wider range of age groups.

    While Choi works at the convenience store to earn extra cash for occasional meals or small gifts for her children and grandchildren, she said she is aware of the higher life expectancy and the relatively high rate of elderly poverty in Korea.

    An OECD report last year showed 42.7 percent of Koreans aged 66 to 75 live in relative poverty, and 60.2 percent of those aged 76 and older do. Both figures are about four times higher than the OECD average.

    The retail sector was traditionally dominated by young workers, like 20-something Park In-seo, who has been working at a GS25 convenience store near Myeong-dong for a year.

    “I work eight hours a day, and as the minimum wage has gone up, it is manageable to maintain a decent quality of living with only this job,” Park said.

    “The higher minimum wage definitely makes a difference.”

    He said he does not work other jobs, and during his time off, he rests and studies.

    “I don’t necessarily think working part-time jobs is that bad anymore. My parents support me, saying it’s good that I bring in income rather than remain unemployed at home,” Park said.

    A trend in increasing workforce participation across a broader range of age groups may well continue, even though the job market prospects continue to look bleak.

    Over the last weekend of February, Statistics Korea said the household led by people in their 40s in Korea earned on average a little over 3.4 million won ($3,150) from October to December, down by 3.1 percent from the same period of the previous year.

    Considered one of the most economically active for a long time, the high unemployment among the youth against Korea’s sluggish economic growth has brought about the drop.

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  • Visa expands global partner network in contactless payments push

    Visa expands global partner network in contactless payments push

    Visa Inc said this week that 14 technology partners have joined its Visa Ready for Transit programme, as part of a move to promote contactless payments on public transport around the world.

    Companies from ten different countries are included on the list, joining Vix and Worldline, the initial members of the scheme when it launched in November 2017.

    As part of the programme, Visa is looking to work with companies that have hardware and software “to support a more seamless commute for people around the world”. It is part of a wider Visa Ready initiative, which allows developers to ensure their biometrics, transit or internet-of-things solutions meets Visa’s security standards and specifications.

    The new technology company partners announced by Visa this week are, as follows:

    AS Ridango: a transit solutions and services provider from Estonia.

    BBPOS International: a mobile point-of-sale technology distributor from Hong Kong.

    Conduent Business Solutions: a business process services provider from France, offering capabilities in transaction processing, automation and analytics.

    Digicon: a Brazilian company specialising in the provision of turnstiles, traffic controllers, parking meters, electronic time clocks and automatic ticketing systems for urban transportation.

    FIME: a France-based organisation that works with transit operators to deliver interoperability of fare collection systems.

    Mennica Polska: a Polish ticketing operator and automatic fare collection solutions integrator.

    Paycraft: an Indian contactless, open-loop products provider with capabilities of processing online and offline transactions.

    Perto: a Brazilian technology products and services developer for banks and retailers.

    Planeta Informática: another Brazilian company which provides solution for secure online and offline payment systems and devices.

    Quadrac: a Japanese provider of ultra-high-speed payment servers and proximity communication devices.

    Schiedt&Bachmann: an intelligent ticketing and information systems provider from Germany.

    Spire Payments: a Luxembourg-based point-of-sale hardware and software provider.

    Smartran: a smart business solutions provider in the UK, which utlises contactless EMV and NFC mobile applications.

    T-Systems: a UK-based information and communication technology systems operator for multinationals and public-sector institutions.

    Jason Blackhurst, senior vice president for innovation & strategic partnerships at Visa, commented: “We’re seeing renewed interest from transit-related companies around the world to learn how new innovations in payments can improve their customer experiences.

    “Since launching Visa Ready for Transit, we’ve welcomed 16 world-class technology partners to the programme, ranging from small tech companies to multinational organisations. Each of these partners are empowered to help extend the benefits of Visa’s digital payment technology to transit companies around the globe.”

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  • Alibaba, JD.Com Could Clash in US

    Alibaba, JD.Com Could Clash in US

    Two Chinese behemoths in online retailing that have battled at home may now take their rivalry to the U.S.—and challenge Amazon. Alibaba Group Holding has reportedly held talks with grocer Kroger (KR) to form a U.S. partnership to better compete with Amazon.com (AMZN).

    Alibaba’s competitor, JD.Com (JD), is also looking to plant a flag here. Richard Liu, JD’s chief executive, has said he plans to expand his e-commerce platform to the U.S. later this year, with a distribution presence starting in Los Angeles. He could partner with Walmart (WMT), a major JD shareholder and retail partner in China.

    To call Alibaba and JD the Amazons of China is an understatement. China mostly skipped the big-box store era that dominated U.S. retail before e-commerce took off, which means few powerful players stand in the way of Alibaba and JD. The two battle each other—sometimes bitterly.

    Late last year, after about 100 domestic clothing brands left JD ahead of the Nov. 11, 2017, Singles Day shopping rush, the company blamed “coercive tactics from our competition, which if proven true would be illegal.” Alibaba denied any wrongdoing.

    JD management recently told analysts that a few of the companies had come back, and that others said they didn’t receive enough traffic from Alibaba during Singles Day to make up for lost JD business. JD posts fourth-quarter results on Friday.

    Last fall, Barron’s said investors should prefer JD shares. Since then, JD has gained 23%, versus 6% for Alibaba and 8% for the Standard & Poor’s 500 index.

    The two companies differ in significant ways. Alibaba is larger and more prosperous. JD’s profits are held down by its spending to build its own end-to-end logistics network. That’s an important competitive advantage; JD does better in high-trust items like baby products and scores higher on customer-satisfaction surveys.

    One concern for JD is that it will stretch too far, too fast. It is expanding in Southeast Asia. It is building a distribution network in France, and says it wants to make a European push as soon as next year. JD recently opened a brick-and-mortar store in Beijing selling high-end food. For financing, the company last year created a subsidiary called JD Logistics, in which it’s sold an 18.6% stake.

    Profits are slim today. Looking out to 2020, estimates for JD earnings range from $1 to $2.30 a share. That’s adjusted for “extraordinary items,” which, for a company in such fast motion, can become all too ordinary.

    Assume the high end of earnings forecasts, factor in remaining growth, and consider low interest rates, then squint and perhaps have a belt of whiskey, and the $47 share price might look reasonable, maybe even cheap. It’s becoming difficult to tell.

    But one thing we liked about JD is that its stock gain lagged behind Alibaba’s last year for no good reason.

    It has since caught up. Time to sell.

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  • HSBC names new retail head

    HSBC names new retail head

    HSBC Holdings has named Charlie Nunn as chief executive of its retail banking and wealth management business to replace John Flint, who will take over as the British lender’s overall chief executive.

    Nunn joined the bank in 2011 and is already acting head of HSBC’s retail banking and wealth management business.

    In Hong Kong, Kerry Properties (0683) announced that Wong Siu Kong, 66, will relinquish his position as chief executive and will remain chairman and an executive director.

    Wong has been the chairman of the board since 2013 and chief executive since 2015.

    Ho Shut Kan, 69, who has been an executive director of the company since 1998, will be re-designated chief executive and will become a member of the remuneration committee and the nomination committee of the company. He is also a director of Kerry Holdings Limited, the controlling shareholder of the company, and a director of China World Trade Center Co.

    TV operator i-Cable Communications (1097) announced that Irene Leung Shuk-yee has been named chief operating officer with effect from tomorrow.

    The 48-year-old is an experienced senior manager in the telecommunications industry, having developed her expertise in fixed and mobile telecom services, i-Cable said in a filing to the Hong Kong stock exchange.

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  • Property still drives SM’s healthy financials in 2017

    Property still drives SM’s healthy financials in 2017

    SM Investments Corporation (SMIC), the conglomerate of Henry Sy Sr, saw its net income increase by 6% to P32.9 billion in 2017, with its property business continuing to contribute most to its earnings.

    SM told the local bourse on Wednesday, February 28, that its consolidated revenues rose by 9% to P396.1 billion in 2017, from P363.4 billion in 2016.

    “Our core businesses continued to deliver strong results in 2017 with recurring net income growth of 9%, driven by overall growth in the economy and our nationwide expansion plans,” SM president Frederic DyBuncio said in a statement.

    The listed conglomerate reported that property accounted for 40% of its total earnings, banks 38%, and retail 22%.

    “Our property and specialty retail businesses delivered particularly strong results,” DyBuncio said.

    Main driver: property

    SM Prime Holdings Incorporated, the conglomerate’s property holding firm, saw its recurring net income grow by 16% in 2017 to P27.6 billion, driven by the increase in rental revenue from malls as well as the strong sales take-up of housing units.

    Consolidated revenues of SM Prime surged by 14% to P90.9 billion in 2017, compared to the level recorded in 2016.

    Revenues of its mall business – which includes rentals, cinema and event ticket sales, and other revenues – increased by 9% to P53.2 billion in 2017, thanks to the rising contribution of rentals from new and expanded malls that were launched in 2016 and 2017.

    SM Prime has 67 shopping malls in the Philippines and 7 in China, as of end-2017.

    The residential group led by SM Development Corporation (SMDC) saw an 18% surge in its consolidated revenues, which ended at P30 billion in 2017.

    “The growth was largely due to higher construction accomplishments of projects launched between 2013 and 2016, namely Shore Residences and Shore 2 Residences in Pasay City, Air Residences in Makati, and Fame Residences in Mandaluyong City as well as continued increase in sales take-up of ready-for-occupancy units,” SM said.

    Meanwhile, BDO Unibank Incorporated posted a net income of P28.1 billion in 2017, from P26.1 billion in 2016.

    Its net interest income grew by 25% to P81.8 billion last year, driven by the 18% growth in gross customer loans to P1.8 trillion.

    China Banking Corporation, meanwhile, saw a 15% net income growth to P7.4 billion in 2017, on the back of sustained growth in core and fee-based businesses.

    China Bank’s net interest income was up 17% to P20 billion in 2017, while gross loans grew 17% to P454 billion on strong demand across all segments.

    Operations under SM Retail Incorporated, which consist of non-food and food stores, saw total revenues grow 7% to P297.4 billion in 2017. Its net income stood at P10.4 billion in 2017.

    “The underlying performance of our retail operations remained good, led by strong growth in our higher margin specialty retailing and with the addition of the successful Miniso variety store chain during the year,” DyBuncio said.

    In 2017, SM’s total assets grew by P100 billion to P960.1 billion.

    SM participated in the rights offerings of BDO and China Bank and invested in the country’s largest integrated supply chain operator, 2GO Group Incorporated, as well as dormitory developer Philippine Urban Living Solutions.

    SM maintains a healthy balance sheet with a conservative gearing ratio of 43% net debt to 57% equity.

    “During 2017, SM made substantial investments in its banks and in new business opportunities, which we expect to contribute to higher earnings growth in future years,” DyBuncio said.

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  • Beijing maintained steady economic growth in 2017

    Beijing maintained steady economic growth in 2017

    The Beijing Municipal Bureau of Statistics and the Survey Office of the National Bureau of Statistics in Beijing released the “2017 Statistical Communique on the Economy and Social Development of Beijing” on Feb. 27. According to the report, Beijing last year kept at a steady momentum of economic development and maintained social harmony and stability. The report lists new achievements made by the capital city in economic development, social progress, urban construction and improvements in people’s livelihood over the past year.

    The city’s annual GDP totaled 2.8 trillion yuan (US$443.6 billion); the per capita GDP of its registered residents reached 129,000 yuan. It added 422,000 more jobs across the urban regions, and registered urban unemployment rate stayed at 1.5 percent. The consumer price index rose modestly, by 2 percent year on year.

    Upgrading economic structure 

    At the end of 2017, Beijing formulated guidelines on accelerating scientific and technological innovation to build a series of industries with high-grade, precision and advanced economic structures. The guidelines emphasized on constructing a national center for scientific discovery and technology innovation with worldwide influence and brought forward accelerating the development of 10 high-grade, precision and advanced industries. One of these emerging industries of strategic importance is driverless vehicles, for which Beijing boasts resources, competitive advantages and development potentials. Earlier this February, the city began field testing driverless cars, developed by companies including Baidu, BAIC BJEV and FOTON, in Haidian district.

    Beijing’s industrial structure continuously improved to be more high-grade, precise and advanced, with the development mode changing from accumulation of resources to phasing-out of non-capital functions. According to the new report, the value added of the high-tech industry accounted for 22.8 percent of the city’s GDP, a 0.1 percentage point increase over the previous year; the value added of the strategic emerging industry contributed to 16.2 percent of the city’s GDP, with a rise of 0.2 percentage points over the previous year. The service sector accounted for over 80 percent of the city’s economy, to which finance, information services, and science and technology services contributed over 50 percent.

    Meanwhile, the city continued to upgrade the makeup of its consumer spending. Spending on services accounted for 51.3 percent of total consumer spending, and contributed to 70 percent of the growth in total spending. Infrastructure investment saw rapid growth, which continued to prioritize on public transportation and people’s living standard. Investment in commercial services and information services as key sectors increased by 120 percent and 42.8 percent respectively. Foreign investment in information services, commercial services, and science and technology services accounted for 54.2 percent, 9.4 percent, and 8.3 percent respectively.

    Improving development quality

    In 2017, Beijing saw more blue skies than previous years as its air quality continued to improve. The annual average concentration of fine particles (PM2.5) reached 58 micrograms per cubic meter, a drop of 20.5 percent over the previous year. Annual average concentration of nitrogen dioxide and sulfur dioxide in Beijing reached 46 micrograms per cubic meter and 8 micrograms per cubic meter respectively, down by 4.2 percent and 20 percent over the previous year.

    Better efficiency and more effectiveness from businesses had also led to improvement in residents’ sense of gain. In 2017, the per capita disposable income of Beijing residents was 57,230 yuan, up by 8.9 percent year on year, or 6.9 percent after adjustment to inflation, outperforming economic growth by 0.2 percentage points. Social security also improved, with minimum wage standard for employees and minimum standard for unemployment insurance benefits up by 110 yuan and 80 yuan respectively over the previous year. Basic pension and welfare payment standard for urban and rural residents increased twice in 2017.

    In addition, Beijing maintained effort in accelerating the construction of a livable city with convenient life, bountiful services and beautiful environment. Its subway routes extended 35 kilometers in 2017, reaching a total of 609 kilometers at the end of the year. About 5 percent more households began using natural gas for heating, bringing the total to 9.45 million households. Moreover, the city increased its 100,000-square meter central heating locations to cover 630 million square meters.

    The city built 34 more kindergartens in 2017, bringing the total to 1,604. It added 349 health institutions, totaling 10,986. The book collection of its public libraries grew by 2.9 percent, and it opened one more museum to the public free of charge. The treatment rate of municipal sewage reached 92 percent, up by 2 percentage points, and the per capita green park area reached 16.2 square meters, up by 0.1 percent.

    Seeking innovation

    The value added of the new economy in 2017 accounted for 32.4 percent of Beijing’s GDP with an increase of 0.2 percentage points over the previous year. The added value of the high-tech industry and the strategic emerging industry among industries above a designated scale were both up by double digits, each contributing to over 50 percent of the city’s industrial growth.

    The online retail volume of wholesale and retail enterprises above the designated scale accounted for 20.5 percent of the total retail sales of consumer goods, up by 1.9 percentage points over the previous year. The business income of the financial information services and non-financial institutions payment services in the internet financial services sector increased by 35.1 percent and 62.7 percent respectively.

    “Beijing has yielded fruitful results in scientific and technological innovation, laying a foundation for the establishment of a science and technology innovation center with international influence,” said an official from the Beijing Municipal Bureau of Statistics. The R&D expenditure in the city amounted for 5.7 percent of its GDP, staying atop the country.

    According to the report, the enthusiasm for innovation and entrepreneurship was strong owing to Beijing’s favorable policies. The number of various innovative and entrepreneurial service institutions such as shared workspaces, incubators, accelerators and university science parks reached 400 in the city in 2017, with a total area of 6 million square meters, offering services to over 30,000 enterprises and teams.

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  • Haulage – Self-Driving Vehicles in the Logistic Industry

    Haulage – Self-Driving Vehicles in the Logistic Industry

    At Argentus, we try to stay on top of technological developments from workplace automation to 3D printing. We pay close attention to the technologies that could potentially affect your Supply Chain and its related disciplines.

    The supply chain is intimately connected to increased globalization and technological progress, regarding transportation and hard goods technology and software. This is a fast-evolving field.

    It is exciting for a professional working in this field. A person can expect their skills and knowledge to evolve and grow over the years as changes occur in the Supply Chain technology field. There is a huge potential for professional growth.

    The self-driving car is one of the emerging technologies that have gotten a lot of hype in recent years. Google announced, in 2011, that this technology, due to the growing sophistication of GPS, camera, and computer navigation technologies, was within its grasp. The self-driving car is a technological advance people have been envisioning for most of the 20th century.

    Apple jumped into the game quickly, setting a 2019 target date for shipping its first self-driving car. With this technology being closer than ever, many analysts began looking at the implications a driverless car would have on automotive liability, and safety. People wondered how a self-driving car would affect various industries.

    There are also concerns about the job prospects for a massive number of truck drivers. There are 3.5 million truck drivers in the U.S. alone. Many people are wondering, what impact driverless cars and trucks will have in the field of logistics in general?

    Some speculate that self-driving vehicles will reduce the demand for truck drivers. However, they see an increased need for service providers (3PLs) and logistics planners. Would there be an increase in opportunities for advantages in Supply Chain strategic and efficiency?

    To get a handle on this trend and how it could impact the Logistics field, DHL, the express logistics leader commissioned a report on the topic.

    According to the report from Intelligent Car Leasing, automated driving offers a few key benefits:

    Safety will improve due to a reduction in driver error.

    Having fewer vehicles on the road will lower the environmental impact of these vehicles and reduce fuel consumption.

    Driver rest time would be eliminated so trucks could travel 24/7 and traffic flow would be increased which would offer higher efficiency.

    The report states that autonomous driving could reduce the cost of freight by up to 40% per kilometer.

    This technology’s impact on logistics alone could be staggering. DHL reports that there is a strong case to suggest that self-driving vehicles will be adopted by the logistics industry faster than other industries.

    This technology will probably initially be used in private and secure environments like open-air sites and warehouses. The Logistics field will adopt this technology sooner than other because, according to the report, liability issues are less of a consideration for vehicles carrying freight rather than people.

    Based on the report’s findings, the core areas of Logistics that will be impacted by this technology are:

    Warehouse Operations, including autonomous loading technologies, auto pallet movers, and assisted order picking.

    Line Haul Transportation, including convoys with one live driver in the front and assisted highways trucking. The driver would have oversight of the autonomous vehicles following their vehicle.

    Last-mile delivery, which is the least predictable part of the journey. According to the report, this is the most visionary application of autonomous vehicles. Advances in self-driving vehicles can improve and transform last-mile delivery using parcel station loading, self-driving parcel and shared car technologies.

    Most likely, the near-future outcome of these advances will be some type of hybrid. Control of the vehicle will remain in the hands of a driver, but automation technologies will help with the driving process. This would allow the logistic industry to experience the gains noted above. This said according to Fircroft, autonomous trucks have been impressive.

    Some vehicle manufacturers have already embraced this hybrid approach. Vehicles already have come from these technologies, including adaptive cruise control, which requires some human attention. A number of logistics service providers have already begun to deploy transportation systems that are partially automated.

     

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  • IRVINS Salted Egg opens store in Hong Kong

    IRVINS Salted Egg opens store in Hong Kong

    Local brand IRVINS Salted Egg, which is popular with both Singaporeans and Hong Kong tourists, have taken their famous potato chip and fish skin snacks to Hong Kong.

    The company opened its first pop-up store in Harbour City in Tsim Sha Tsui on Tuesday (Feb 27), it said in a Facebook post.

    The store aims to “meet the expected huge demand in Hong Kong”, the head of the Hong Kong branch Jeslin Low added in a statement released by the Hong Kong government.

    “As many of our customers are also based in Hong Kong, expanding to the city is in line with our vision to deliver our salted egg snacks and delightful customer experience.

    “That motivated us to build our own team in Hong Kong and deliver the same retail experience as in Singapore,” said Ms Low.

    The brand also hopes to use Hong Kong to launch their snacks within the region.

    “Hong Kong has a robust economy with a high number of international and mainland Chinese visitors,” Hong Kong’s associate director-general of investment promotion Dr Jimmy Chiang was cited as saying in the press release, as he offered reasons to support why Hong Kong is an ideal choice for IRVINS.

    According to the brand’s Facebook page, the Hong Kong team will be built from the “ground up”.

    “Hong Kong is a very business-friendly city and we find the incorporation and opening process here very smooth. These really support our vision and passion to serve our customers here,” added Ms Low.

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  • Toys ‘R’ Us planning to close more stores

    Toys ‘R’ Us planning to close more stores

    Toys “R” Us, the beleaguered chain under pressure from Amazon and bigger toy sellers, may close dozens more stores as it struggles to find a path out of bankruptcy and return to financial viability.

    The toy retailer has not recovered from a dismal holiday selling season, making the company’s difficult situation even worse. Now, it is under pressure to demonstrate to its lenders that it has a realistic strategy for flourishing in the ultracompetitive toy industry.

    One plan under discussion includes shutting down close to 200 stores, and possibly more, according to people briefed on the matter, who were not authorized to speak publicly.

    While the planning is fluid and far from completion, the possible store closings, reflect the serious challenges that Toys “R” Us faces.

    “If you look at the numbers, it doesn’t look good,” said Richard Gottlieb, an analyst and the publisher of Global Toy News. “And it appears that some dramatic action is going to have to take place.’’

    Toys “R” Us has already been taking steps to stabilize its business. Last month, the company said it was shutting down 182 stores, affecting 4,500 workers.

    It is not clear whether any additional closings would occur in the United States, or overseas. The company operates about 800 stores in the United States.

    Even as other retailers experienced strong holiday sales, Toys “R” Us cited undisclosed “operational missteps” in explaining its poor performance.

    Analysts say that a primarily bricks-and-mortar toy retailer can succeed, but that its stores have to be smaller, unlike the hulking Toys “R” Us facilities that dot suburban strip malls.

    “A toy store needs to be fun and engaging and interactive,” said Mr. Silver. “Toys “R” Us has been talking about better customer service and experiences, but they never really transpired.”

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  • Charlotte Olympia US to stop business

    Charlotte Olympia US to stop business

    Charlotte Olympia US has collapsed, with all of its store closed.

    The US retail arm of the UK-headquartered luxury fashion and shoe retailer is believed to have debts amounting to US$19.2 million, and assets of just $3.2 million. It had four stores: in New York, Las Vegas, Beverly Hills and Orange County. A fifth store in Bel Harbour, Florida, was closed last year.

    In its bankruptcy filing, the company cited “unprecedented disruption in the retail market”.

    The stores were operated by Pinktoe Tarantula and its affiliates Desert Blonde Tarantula and Red Pump Tarantula.

    “The brick-and-mortar retail environment has been experiencing, and continues to experience, unprecedented disruption due to a confluence of factors, including the proliferation of online retailers, changing consumer tastes and demographics, and increased competition,” the companies said in the filing. “Despite selling the iconic Charlotte Olympia brand and taking steps to reduce their expenditures, the debtors’ operations are not profitable due to the widespread disruption in the retail industry.”

    Charlotte Olympia’s US wholesale business is unaffected by the bankruptcy of the retail operations.

    The fashion label was founded in 2007 by Charlotte Olympia Dellal and also has stores in the UK, Dubai, Thailand and Russia. Its clothes and shoes are stocked by upmarket department atores around the world, including MyTheresa, Saks and Bloomingdale’s, and online on Net-a-Porter.

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