Retail News CRM

Author: Mei Ling Tan

  • DHL Express takes delivery of first new A330 converted freighter

    DHL Express takes delivery of first new A330 converted freighter

    Express freight specialist DHL Express has become the first operator to accept an Airbus A330-300 Passenger-to-Freighter (P2F) converted aircraft from Elbe Flugzeugwerke (EFW), the joint venture between Singapore-based ST Aerospace and Airbus.

    DHL Express has ordered eight A330-300P2Fs, with options for a further 10.

    The handover at EFW’s conversion facilities in Dresden, Germany followed the completion of test flights in October and award of a Supplemental Type Certificate (STC) by the European Aviation Safety Agency (EASA) in November.

    “The first aircraft is scheduled to strengthen our Asia-Pacific air network, bringing added capacity and increased efficiency to a market where we are seeing dynamic express volume growth,” DHL Express SVP- global air fleet management Geoff Kehr said.

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  • Korean fashion brand to invade China market

    South Korean fashion retailer Shinwon Corp has launched a joint menswear brand with China’s Golden Eagle Retail Group in a move to advance into China.

    It is the first such move by a Korean fashion company.

    Shinwon says the new brand, Mark M, is available in department stores owned by Golden Eagle Retail Group including its Nanjing Xianlin, Nanjing Xinjiekou and Shanghai stores. The group has 30 department stores in major cities.

    Mark M is a casual brand targeting young men born between 1980 and 1989, known as “baling hou” or the “post 1980s” generation in China. Shinwon is responsible for the brand’s design and marketing, with Golden Eagle Retail Group handling distribution. The two companies are expected to seek an IPO in Hong Kong for the joint venture.

    Meanwhile, the two companies plan to expand their partnership to include other industries such as F&B to become a comprehensive lifestyle service provider in the long term.

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  • Can Japan’s Uniqlo make it big in India?

    Can Japan’s Uniqlo make it big in India?

    Japanese brand Uniqlo, Asia’s largest apparel retailer, is all set to enter India. The Fast Retailing Co-owned brand, popular for its casual clothing in solid colours and iconic lightweight jackets, has sought the approval of India’s department of industrial policy and promotion (DIPP) to undertake single-brand retail trading in the country.

    If its proposal is cleared, Uniqlo will join the ranks of fast-fashion brands such as Zara, Forever 21, and H&M to open stores in Asia’s third-largest economy, where fashion retail is a $70 billion business. And here, its range of winter-wear, polos in solid colours, linen shirts, and other minimalistic offerings could well lure legions of young, aspiring shoppers hunting for branded clothing.

    While Uniqlo’s positioning and fashion are visibly different from that of Spanish retailer Zara and Swedish label H&M, with more focus on basic clothing and a strong line-up of winter wear, the brand will have to work on its pricing, communication, and styles to suit Indian shoppers, said retail experts.

    That’s because, unlike in other Asian markets, the brand is quite niche in India. “Not too many Indians know it as (well as) they know a Zara or H&M, so expansion is going to be a big challenge,” Pankaj Renjhen, managing director-retail at real estate consultancy JLL India, said. “Since Uniqlo is a basics brand…its positioning will have to be in line with that, which means the sizes and pricing will need to be tailored to India.”

    But what is likely to work for Uniqlo is its plain linen shirts and trousers that may find takers among India’s young office-goers seeking business casuals. Also, the Japanese firm offers a mix for both men and women, unlike Zara and H&M that mostly target the later. “While Zara and H&M are high on the fashion quotient, Uniqlo will have an appeal with the more young, office-going crowd as it offers casual wear at affordable prices,” said Ankur Bisen, vice-president of retail and consumer products at Technopak. “It also has a wide range for both men and women.”

    Uniqlo’s interest in India comes at a time when the retailer, which first opened a shop in Hiroshima in 1984, has been expanding its presence outside Japan where it holds a 6.5% share of the apparel market. In its most recent earnings report, the Fast Retailing Co posted a record operating profit of $1.57 billion for the year ended August 2017, bolstered by a jump in Uniqlo’s international business.

    For India, it has spent years evaluating the country’s policies. India allows foreign retail companies to invest directly in single-brand retail trading but has local sourcing requirements. Top Uniqlo officials have on several occasions met Indian government representatives to discuss its India debut. “India is a market with great potential,” a company spokesperson told Bloomberg, adding, “At the moment, we are awaiting word from the government, and we will be able to discuss potential future steps at a later date.”

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  • Vietnam’s PM demands answer on rubber firm sprung for stretching financial legality

    Vietnam’s PM demands answer on rubber firm sprung for stretching financial legality

    Prime Minister Nguyen Xuan Phuc has called for a report on potential fraudulent activity at the state-owned Vietnam Rubber Group (VRG) after government inspectors discovered misuse of state capital and assets at the group three years ago.

    The Ministry of Public Security has been instructed to submit the report by December 31.

    VRG, in which the Vietnamese government currently owns a 95 percent stake, has allegedly committed fraud worth up to VND8.4 trillion ($370 million).

    Between 2006 and 2011, the group spent over VND2.42 trillion, or 13 percent of its charter capital, on non-core businesses, such as cement, hotels, steel, hydropower projects and the stock market.

    Most of the investment came from the state budget, but the group reported that it did not generate any profits.

    Some VRG leaders have also been accused of contributing capital to establish and run a seafood import-export firm in the southern province of Dong Thap.

    VRG also raised its charter capital in 2010 and 2011, without government approval, by VND1.84 trillion.

    And although the inspection, completed back in 2014, was aimed at handling individuals and groups that committed fraud, VRG has yet to be held accountable.

    Thanh Nien (Young People) newspaper reported last month that where the money had gone, and how the group would make up for the massive sum, remained a questions that the public still has no answer to.

    In September, VRG rolled out a privatization plan, in which it declared a charter capital of VND40.7 trillion and 244,000 hectares (593,052) of lands in 18 cities and provinces across the country.

    The rubber giant, which has 103 subsidiaries, expects to earn VND13 trillion from selling one billion shares in its initial public offering.

    It also has a target of earning more than VND3 trillion in net profit this year, up 9 percent from last year.

    “There is a sense of urgency in Vietnam to privatize state-owned enterprises (SOEs) and use the money raised from public offerings to alleviate the government’s fiscal burden,” HSBC said in a report in August.

    Late last year, PM Phuc signed off on a decision which pushes for further divestment of state capital in existing SOEs by eliminating or reducing the minimum level of ownership that the government holds in certain industries.

    The decision provided a clearer roadmap for equitization by saying that the state will equitize 137 SOEs and sell its entire stakes in 103 firms. Equitization is the term Vietnam uses to describe the process of issuing shares to partially privatize state-owned businesses in which the government will still hold the majority stake.

    The Ministry of Finance said in June that the country’s public debt, which includes central government debt, government-backed loans and local government debt, may reach the ceiling set by the legislative National Assembly of 65 percent of gross domestic product from 2017-2018.

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  • AirAsia resumes Bali and Lombok flights

    AirAsia resumes Bali and Lombok flights

    AirAsia has resumed flights to and from Bali and Lombok, with flying conditions around the Gusti Ngurah Rai International Airport and Lombok International Airport expected to remain clear.

    AirAsia, in a statement today, said it would continue to monitor the situation closely and keep guests informed of any development.

    The Malaysian-based low-cost airline also advised passengers to check the status of their flight on Twitter (@AirAsia) or airasia.com before heading to the airport.

    It said those flying to Bali or Lombok from now until Dec 31, who no longer wished to travel, would be entitled to choose one of the service recovery options.

    “For flights from Nov 25 until Dec 10, guests can pick to move flight and change to a new travel date on the same route within 30 calendar days from the original flight date without additional cost and subject to seat availability.”

    “They can also retain the value of fare in their AirAsia BIG Loyalty account for future travel with the airline or obtain full refund in the amount equivalent to their booking, via the e-form available on support.airasia.com,” it said.

    Meanwhile, for flights from Dec 11 until Dec 31, passengers can choose either to change flights to a new travel date on the same route up to Jan 31, 2018 without additional cost and subject to seat availability or reroute to another destination within the AirAsia network with fare difference applicable, subject to seat availability.

    “Or guests can retain the value of fare in AirAsia BIG Loyalty account for future travel with AirAsia,” it added.

    The airport reopened on Wednesday last week, two days after volcanic ash spewing from Mount Agung spread across the island and forced it to close. Malaysia Airlines (MAS) and Malindo Air resumed their flights to the island last week, following the reopening of the airport.

    Most airlines, however, only resumed their flights to the popular holiday destination this week.

    More than 120,000 tourists were stranded in Bali, including 1,000 Malaysian tourists during the closure of the airport.

  • Outstanding start for Nanchang Capital Outlets

    Outstanding start for Nanchang Capital Outlets

    In its first three days, Nanchang Capital Outlets generated sales of more than RMB21.8 million (US$3.2 million) with customer traffic exceeding 1.8 million.

    It is the second outlet project this year for Beijing Capital Grand, the commercial property arm of Beijing Capital Land, and its sixth outlet project in China. It is also the company’s first foray into central China. Nanchang is one of the 10 youngest cities in China.

    Covering 130,000sqm, Nanchang Capital Outlets combines key elements of Chinese lifestyle and culture. It has more than 300 shops, including international, fast-fashion and sportswear brands, children’s entertainment, theme restaurants, reading corners and 2000 parking spaces.

    Still to come are a trampoline park, Jump360, a 5000sqm Imax cinema and an 8000sqm supermarket.

    The project’s 150-plus fashion and lifestyle boutiques include Adidas, Aigner, Chic Outlets Multi Brands Boutique, New Balance, Nike, Rodrigo, Skechers and Stella Luna. The food line-up includes KFC, Taste of Caimi and Yuemandajiang Classic Sichuan Hot Pot.

    About 12 more Capital Outlets projects are on the drawing boards.

  • Lotte Duty Free to partner with Klook

    Lotte Duty Free to partner with Klook

    Travel booking platform Klook has signed a memorandum of understanding with Korea’s Lotte Duty Free Shop to attract more travelers to South Korea by offering shopping deals.

    Shopping ranks as the top activity for 67.2 per cent of tourists in Korea, according to the Korea Tourism Organisation. This is followed by such activities as dining, cultural and historical tours, and sightseeing.

    Under the partnership, Klook will introduce Lotte DFS shopping discounts for its users. The discounts can be taken up in any Lotte DFS store in Korea. Also, Lotte DFS customers will be offered discounts of up to 70 per cent on Klook travel experiences in more than 120 destinations.

    The dual marketing campaigns are being rolled out this month.

    With its headquarters in Hong Kong, Klook became established in Korea early this year. Its services include e-tickets to Lotte World, entry to the Nanta Show culinary performance, Korea Rail Pass, restaurant deals and exclusive snow activities in Pyeongchang, where the Winter Olympics 2018 will be held.

    Klook’s network of more than 3000 direct partners includes such attractions as Bangkok’s Blue Elephant Cooking School, Disneyland, Hong Kong’s Ngong Ping 360 and Universal Studios.

    Founded in 2014, Klook has a team of more than 400 across 13 offices. Its services are available in seven languages, and it supports more than 30 currencies.

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  • GM venture to recall nearly a million vehicles in China

    GM venture to recall nearly a million vehicles in China

    One of General Motors’s China ventures will recall nearly a million vehicles due to fuel tank problems, the country’s quality watchdog said on Friday, the latest in a spate of major auto recalls in China over the last few months.

    SAIC-GM-Wuling Automobile Co Ltd is a three-way tie-up between SAIC Motor, General Motors and Guangxi Automobile Group, formerly known as Wuling Motors.

    The recall of the 938,686 vehicles involves two models of the venture’s popular Baojun cars, a high-volume, entry-level brand for the Chinese market, which sold more than 2 million vehicles last year.

    GM did not immediately respond to a request for comment.

    This year has seen a number of major car recalls in China, the world’s biggest auto market.

    China’s quality watchdog said in September GM and its China ventures would recall over 2.5 million vehicles over airbag issues. That followed a similar 4.86 million vehicle recall by Volkswagen AG and its Chinese joint ventures.

    GM produces vehicles in China through a joint venture with SAIC, the country’s largest automaker, as well as the three-way venture that is now working on an electric battery car called the Baojun E100 to help meet strict new-energy vehicle quotas.

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  • Vietnamese equities lead Asia-Pacific price gains in November

    Vietnamese equities lead Asia-Pacific price gains in November

    Vietnamese shares reached decade-highs and topped Asia-Pacific with the highest price gains in November, bolstered by rising foreign interest during the month.

    Foreigners were net buyers of about $500 million of shares in the country’s stock market in November, the highest monthly purchases in at least seven years.


    Vietnam will also kick off the sale of a majority stake in Sabeco, the country’s biggest brewer, in December.Singapore-listed Jardine Cycle & Carriage Ltd’s purchases of about $900 million in Vinamilk’s shares was seen as a positive for Vietnamese markets, with government aiming to trim its stakes in more state-owned firms.

    The Vietnam index rose more than 13 percent in November.

    Hong Kong and Japanese shares rose more than 3 percent each in November.

    Sri Lankan stocks led the losers with a fall of 3.11 percent, followed by China and Taiwan shares with declines of more than 2 percent.

    South Korean, Malaysian, Thai, Philippine and Indian equities fell between 1 to 2 percent.

  • VW brand forecasts record sales of over 6 million models

    VW brand forecasts record sales of over 6 million models

    The Volkswagen car brand expects deliveries to hit a record this year and raised its midterm profitability forecast on Thursday, citing cost cuts and expanding ranges of higher-margin models.

    While the emissions scandal of September 2015 has cost Volkswagen (VW) billions of euros in fines and penalties, it doesn’t seem to have had a lasting effect on the carmaker’s popularity with motorists.

    The world’s largest automaker said it expects to significantly exceed last year’s record 5.99 million VW brand auto sales in 2017, counting on strong momentum in China, Europe and the United States.

    The operating profit margin at the VW brand may climb to between 4 and 5 percent by 2020, the carmaker said, still lagging rivals such as PSA Group and Toyota  but higher than the 4 percent or more VW has previously been indicating.

    The increase brings the VW group’s largest division by sales into line with a more upbeat outlook for overall VW group profit announced earlier in November.

    “We have completed the first five kilometers of a marathon,” VW brand chief executive Herbert Diess said. “We are all aware of the challenges that lie ahead of us.”

    The maker of VW’s top-selling Golf hatchback expects to significantly improve underlying earnings this year from the 1.9 billion euros in 2016, which would mark the brand’s first profit gain year-on-year since 2011, Diess said at a news conference.

    Profit will be driven by a growing number of more lucrative sport-utility vehicles (SUVs), whose share of overall brand sales may triple to about 40 percent by 2020 from currently 14 percent, the CEO said, citing the redesigned Touareg and an all-new T-Cross due to hit dealerships in 2018.

    “With SUVs, we are earnings the money we need to fund the shift towards electric mobility,” Diess said, referring to the brand’s accelerating push into zero-emission vehicles.

    The VW brand, which has been undergoing heavy restructuring for about a year, said it has kept fixed costs broadly stable this year despite growing spending on model launches.

    The carmaker said it will achieve 3,800 job cuts in Germany by the end of 2017, a year after it agreed with unions to slash 23,000 positions via natural attrition by 2020.

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  • China Jo-Jo expansion plan in Hangzhou

    China Jo-Jo expansion plan in Hangzhou

    China Jo-Jo Drugstores has added seven more retail outlets in Hangzhou.

    Chairman/CEO Liu Lei says the stores offer convenient access to best-in-class pharmacy products and services.

    All stores are full-service pharmacies staffed with licensed pharmacists. They offer prescription and OTC medicines, traditional Chinese medicines, dietary supplements, medical devices, health and beauty products and general merchandise.

    A rewards program offers members exclusive discounts and enhanced customer experience.

    The seven new stores are in the Binjiang (two), Jianggan, Lin’an (two),  Shangcheng and Yuhang districts. The company opened two stores in Lin’an just three months ago.

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  • FamilyMart Japan to sell its Interests

    FamilyMart Japan to sell its Interests

    Japanese convenience store company FamilyMart Uny Holdings may sell its Hong Kong retail interests.

    Working with a financial adviser, the company is seeking about US$100 million for its three stores, insiders say.

    In Hong Kong, FamilyMart Uny runs department stores under the Apita, Piago and Uny brand names. They sell stationery, clothing and food ranging from local produce to imported chocolate, wine and wagyu beef.

    Government statistics show that sales in Hong Kong’s supermarket industry fell 0.1 per cent in the first 10 months of this year, compared with overall retail industry sales rising 1.2 per cent.

    A spokesman told the company had no plans to sell the stores at the moment.

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  • Subaru Expands Production at Assembly Plant

    Subaru Expands Production at Assembly Plant

    Subaru of Indiana Automotive unveiled its new Subaru Ascent, which will be manufactured at the automaker’s assembly plant in Lafayette, Indiana. To support the increased production, the company plans to create up to 200 new jobs by 2018.

    As an incentive, Indiana Economic Development Corporation offered Subaru of Indiana Automotive Inc up to $500,000 in training grants based on the company’s job creation plans. These incentives are performance based, meaning until Hoosiers are trained, the company is not eligible to claim incentives. The city of Lafayette and Tippecanoe County support this project.

    “The Subaru Ascent is a great addition to our production mix,” said Tom Easterday, Senior Executive Vice President of SIA. “This great new family vehicle allows us to create hundreds of new jobs at SIA, and also at our suppliers in Indiana and across the country.”

    The company, which is a subsidiary of Subaru Corporation and is the company’s only assembly plant outside Japan, will invest more than $140 million to purchase new machinery and equipment to add production of the Subaru Ascent in 2018 to meet the growing demand for mid-level vehicles in North America. The all-new Subaru Ascent is a three–row crossover vehicle that has the capacity to hold seven or eight passengers.

    SIA currently employs more than 5,600 associates at its location in Indiana and will produce approximately 400,000 vehicles in 2018, including the Subaru Legacy, Impreza, Outback and Ascent. Since the start of the company’s production 30 years ago, the facility has produced more than five million vehicles.

    “Today we witness Subaru’s continued commitment to Indiana as the company unveils the all-new Subaru Ascent and announces its plans to create more jobs for Hoosiers,” Governor Eric J. Holcomb said. “For 30 years, Subaru has spurred economic growth and I’m confident they will witness continued success as we work to take Indiana to the next level by growing our economy and developing the skills of our workforce.”

    “We are pleased that the IEDC recognizes the value that SIA brings to our community,” said Lafayette Mayor Tony Roswarski. “As one of the area’s largest employers, SIA has established itself as a company who offers jobs that can translate to lifetime careers, with tangible and lasting benefits directly impacting quality of life.”

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  • Toyota’s November China vehicle sales dip 1.3 pct

    Toyota’s November China vehicle sales dip 1.3 pct

    Toyota Motor’s sales in China fell 1.3 percent in November from a year earlier to 109,600 vehicles, following a 13.5 percent gain in October, the company said on Tuesday.

    The Japanese automaker’s sales during the first 11 months of the year totaled 1.18 million vehicles, up 7.5 percent from the same period a year ago.

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  • AmInvest Research neutral on transportation sector, AirAsia top pick

    AmInvest Research neutral on transportation sector, AirAsia top pick

    AmInvestment Research is Neutral on the transportation sector in 2018, as it sees upside for AirAsia

    It said on Wednesday while it likes transport firms which operate (or have a growing presence) in the tourism and e-commerce space, it is cautious on seaport operators.

    Transport firms operating in the tourism space, that is AirAsia and Malaysia Airports, will benefit from the sustained recovery in tourist arrivals in 2018 (after reporting the first dip since 2003 in 2015 following the air disasters of MH370 and MH17 in 2014).

    The government projects Malaysia’s tourist arrivals should hit 28 million in 2018 (up 3.3% from 27.1 million in 2017).

    AmInvest Research expected the number should continue to grow, leading up to Visit Malaysia Year in 2020, when Malaysia is also slated to host a series of high-profile international events including the Commonwealth Heads of Government Meeting (CHOGM), the APEC Summit and World Congress of Information Technology (WCIT).

    The rapidly expanding e-commerce sector, particularly, online shopping, has created huge opportunities for parcel delivery service providers such as Pos Malaysia.

    “Malaysia’s presence in the regional and global e-commerce market is on the cusp of an unprecedented quantum leap forward, driven by the Alibaba-backed Digital Free Trade Zone (DFTZ) project in the KLIA Aeropolis,” it said.

    The DFTZ will serve as a regional e-fulfilment centre as well as a regional e-commerce logistics hub.

    “Apart from Malaysia Airports (the landowner and developer of the KL Aeropolis), we believe local logistics players (including warehouse operators) are poised to garner a slice of action in the physical zone of the DFTZ.

    “On the other hand, we do not expect seaport operators (particularly, a transshipment port like Westports) in 2018 to completely shrug off the negative impact from the recent reorganisation of the global shipping alliance, and the resulting diversion of transshipment cargo volumes to Singapore,” it said.

    However, AmInvest Research said on a brighter note, it expects gateway cargo volumes to continue to grow in 2018, thanks to Malaysia’s robust exports and imports.

    Bintulu Port will be weighed down by start-up costs at its newly completed Samalaju Industrial Port in 2018.

    AmInvest Research said it may upgrade its Neutral stance on the transport sector to overweight.

    However, this would hinge on whether tariffs (such as airport taxes, postage rates and port tariffs) are adjusted upwards; volume performance (such as passenger traffic, cargo throughput and letter mail/parcel volumes) beats expectations; yields surprise in the upside on reduced competition; and fuel cost (jet fuel for airlines and diesel for seaport operators) comes in lower on weaker crude oil prices.

    On the other hand, it might downgrade its neutral stance on the transport sector to Underweight if: volume performance (such as passenger traffic, cargo throughput and letter mail/parcel volumes) misses expectations; yields surprise in the downside on heightened competition; and fuel cost (jet fuel for airlines and diesel for seaport operators) comes in higher on stronger crude oil prices.

    “Our top pick for the sector is AirAsia. AirAsia is a good proxy to the growing low-cost air travel market in the region, underpinned by rising per capita incomes and a young demographic.

    “Its strong market presence (in terms of the number of routes, and frequencies for each route) enables it to compete effectively against its rivals (both low-cost and full-service).

    “It has struck a chord with investors with its plans to monetise some of its auxiliary businesses and assets including its leasing arm and ground handling unit, which could translate to special dividend payouts to shareholders,” it said.