Author: Mei Ling Tan

  • Asia drags down Li & Fung turnover

    Asia drags down Li & Fung turnover

    Li & Fung turnover and core operating profit have been hit by a tough retail environment last year, particularly in Asia.

    However, its resilient performance and cost control saw it improve total margin percentage, while logistics continued double-digit growth

    Li & Fung turnover in Asia dropped by 36.1 per cent year on year to US$1.3 billion. Excluding the impact of the strategic divestment of the Asia consumer and healthcare distribution business last year, turnover in Asia fell by 13.3 per cent to $700 million, impacted by the muted economic environment.

    Turnover in rest of world fell by 20.2 per cent to $1.1 billion, primarily because of soft consumer demand. Overall, turnover was down by 11 per cent to $16.8 billion, and excluding the Asia divestment the fall was 8.3 per cent.

    Like-for-like operating profit fell 17.7 per cent to $408 million, but Li & Fung says it is making “sustained efforts” to improve operating efficiency and productivity through technology and streamlining of the cost base.

    Total margin fell by 10.4 per cent to $1.9 billion, primarily because of the decline in total turnover. Excluding the Asia divestment, the decrease was 6 per cent.

  • Zoff to open flagship in Orchard Central

    Zoff to open flagship in Orchard Central

    Japanese eyewear chain Zoff is expanding into Southeast Asia with a flagship outlet at Orchard Central in Singapore.

    Zoff, known for consistently introducing two collections every month, has more than 200 stores in Japan and China. Its Singapore flagship store at Orchard Central will open on April 7 with a traditional lion-dance performance plus a performance by dance duo Scrach Marcs.

    Zoff president/CEO/COO Teruhiro Ueno will attend the opening and is expected to speak about the company’s expansion plans.

  • Harajuku’s Anywhere Door offers Coneshots

    Harajuku’s Anywhere Door offers Coneshots

    Japanese accessories retailer Dot Co has branched into cafes, launching Anywhere Door, taking the name from the fictional transportation device in the Doraemon cartoon series.

    But this is not a transportation portal – it is a concept built around the Coneshot, an ice-cream cone cup with chocolate frosting and containing coffee, tea or orange juice with extras and toppings.

    According to the website, fillings can also include ice cream and whisky.

    Cone Shot shop Tokyo 2

    If comes from the waffle shot – espresso coffee in a chocolate-coated waffle cone – pioneered by such Los Angeles coffee shops as Alfred Coffee & Kitchen and Zia Valentina a few years ago.

    In Tokyo’s Harajuku district, Anywhere Door takes a sweeter approach involving chocolate cream, marshmallows and mascarpone. A creamy tiramisu cone filling is also offered with matcha or roasted tea.

    As well as coffee variations, Coneshot options include matcha and fruit combinations.

  • Zalora Philippines partners with Inquirer.net

    Zalora Philippines partners with Inquirer.net

    Online fashion store Zalora Philippines has signed a partnership with media site Inquirer.net with the aim of making online shopping more convenient.

    Zalora Group sells fashion and lifestyle products online in Brunei, Hong Kong, Indonesia, Malaysia, Singapore and Taiwan as well as The Philippines. Its partnership with the news site is a response to the growing Filipino digital lifestyle.

    The contract signing was attended by Zalora Philippines co-founder/CEO Paulo Campos III and Inquirer.net president Paolo Prieto and COO Gary Libby.

    Campos says that with the average Filipino spending eight hours a day online, half on desktop and half on mobile, the Philippines is the leading country in terms of time spent on social media and on the internet overall.

    He says 70 per cent of the population is 35 years or younger, with the median age being 23, and with the average Filipino connected all the time “that’s something very revolutionary”.

    He says it is a “cataclysmic shift” in consumer behavior and in the market in a good way.

    However, he sees the challenge in online shopping as removing frustration and disappointment such as unexpected delays on deliveries.

    Campos says that in most cases, Metro Manila online shoppers will receive their purchases within a day, with the average delivery time being 1.3 days. In other key cities like Bacolod, Cebu, Davao, Iloilo, Pampanga, Tacloban and Zamboanga it will take an average of 2.5 days for an item to be delivered, and an average of 3.5 days to one week for further-flung cities and remote areas.

    Zalora will next month add international brands such as Abercrombie and Fitch, Burton Menswear, Dorothy Perkins, Hollister and Topshop/Topman to its site.

  • What Will Trump’s ‘America First’ Approach Do For the Global Retail Market?

    What Will Trump’s ‘America First’ Approach Do For the Global Retail Market?

    In case you hadn’t noticed, U.S. President Donald Trump has elected for an ‘American First’ approach that will favour national brands, citizens and spending priorities. Now while there is nothing necessarily wrong with this, the tone adopted by the President has been divisive in the extreme while causing racial tensions to rise nationwide.

    Trump’s insular outlook is also bad news for globalisation, with the environment already suffering amid the President’s attempts to slash climate change. Make no mistake; the global economy may be about to follow suit, however, particularly interconnected entities such as the retail sector.

    How Will Trump Impact on Retail and Lucrative Markets Such as Singapore?

    When Trump outlined his philosophy and planned spending during a recent address to the nation, he did not specifically touch on retail as an independent entity. He has already maligned global retail partners during his brief tenure as President, however, with the Mexican sector struggling as a result of the President’s controversial objective to build a border wall and hike import taxes. In fact, firms such as Cath Kidston are already thought to have shelved plans to expand into Mexico, restricting both American companies and the global sector as a whole.

    The negative impact of Trump’s presidency on the retail market is unlikely to end here, however, with Singapore also facing potential issues. Historically, Singapore exported goods in excess of $100 million per annum to the U.S., with retail favourites such as chocolate, cocoa and snack products dominant. This number had been expected to rise incrementally under the terms of the Trans-Pacific Partnership (TPP), until President Trump withdrew the U.S. from the ongoing agreement as part of his desire to increase the number of American jobs available to citizens.

    The full affects of this move and its impact on Singapore’s trade relationship with the U.S. have yet to be seen, of course, but the nation’s export market is likely to shrink and have a negative impact on GDP for 2017. This news has dampened the enthusiasm that surrounded positive domestic figures in the region, with total retail sales in Singapore rising by 2.0% at the beginning of January and supermarket transactions increasing by as much as 13.0% during the same period.

    The Last Word: Worrying Times for the Global Retail Sector

    In some respects, Trumps approach may yet create a more competitive retail sector that benefits the customers. The President’s desire to create competitive U.S. exports have already caused the value of the USD to waiver in recent times, which in turn will drive market competition while aiding ailing currencies such as the GBP and the Euro.

    Overall, however, Trump’s insular focus will destabilise the global economy and have a negative impact on worldwide trade volumes, and this is never likely to be good news for retailers. For countries like Singapore, there is little to do but focus on optimising the trade agreements that are in place with their global partners, while also leveraging domestic retail growth across all sectors.

  • Mobile malware infections continue to rise

    Mobile malware infections continue to rise

    Nokia’s latest Threat Intelligence Report indicates that there was a steady increase in mobile device infections throughout 2016.

    Malware struck an estimated 1.35% of all mobile devices in October – the highest level seen since reporting started in 2012.

    The overall infection rate meanwhile increased 63% sequentially in the second half of 2016.

    Smartphones were the top malware targets by far, accounting for 85% of all mobile device infections in the second half of 2016. The report also revealed a surge of nearly 400% in smartphone malware attacks in 2016.

    While Android-based smartphones and tablets continued to be the primary targets (81%), reflecting the prevalence of the operating system worldwide, iOS-based devices also suffered attacks in the second half of the year (4%), primarily by Spyphone surveillance software that tracks users’ calls, text messages, social media applications, web searches, GPS locations and other activities.

    The Threat Intelligence Report also exposed major vulnerabilities in the rapidly expanding universe of IoT devices, underscoring the need for the industry to re-evaluate its IoT deployment strategies to ensure these devices are securely configured, managed and monitored.

    In late 2016, the Mirai botnet assembled an army of compromised IoT devices to launch three of the largest DDoS attacks in history, including an assault that took down many high-profile web services. These attacks underscored the urgent requirement for more robust security capabilities to protect IoT devices from future attacks and exploitation.

    ”The security of IoT devices has become a major concern,” commented Kevin McNamee, head of the Nokia Threat Intelligence Lab. “The Mirai botnet attacks last year demonstrated how thousands of unsecured IoT devices could easily be hijacked to launch crippling DDoS attacks. As the number and types of IoT devices continue to proliferate, the risks will only increase.”

    The report also indicates that Windows/PC systems accounted for 15% of malware infections in the second half of 2016, down from 22% in the first half of the year.

    The monthly infection rate in residential fixed broadband networks averaged 10.7% in the second half of 2016, down from 12% in the first half, and down from 11% in late 2015.

    While moderate threat level adware activity decreased in the second half of 2016, high-level threats (e.g., bots, rootkits, keyloggers and banking Trojans) remained steady at approximately 6%.

  • DFS and Changi celebrate the sixth Singapore MOWS event

    DFS and Changi celebrate the sixth Singapore MOWS event

    DFS Group and the Changi Airport Group celebrated the sixth annual Masters of Wines and Spirits event (MOWS) in Singapore last Saturday (25 March) with a collection of more than 60 Cognac expressions, plus wines and whiskies from more than 50 houses.

    This culminated in ’a spectacular gala event’ on Singapore’s famous Tras Street, with the specially selected collection now set to be exhibited in store and available for sale at DFS, Singapore Changi Airport’s Wines and Spirits Duplexes at Terminal 2 and 3.

    DFS management toast to the sixth annual Masters of Wines and Spirits
    DFS management makes a toast to the sixth annual Masters of Wines and Spirits event.

    DFS said that this year’s event also featured hands-on master classes and educational tastings for select VIP guests.

    MULTIPLE ACTIVITIES AND EXPERIENCES

    At the Dalmore house, Master Blender Richard Patterson also hosted a bespoke tasting to showcase The Dalmore’s ‘rich heritage and artistry’. At the same time, Frederic Dezauzier, CAMUS’ Global Brand Ambassador introduced guests to the smallest and rarest cru in the Cognac region, Borderies.

    This took the form of ‘a unique tasting experience’, featuring a selection of CAMUS Borderies Single-Cru Cognacs, including a Borderies Vintage and an exclusive Borderies blend that has never been released. Château Margaux’s Regional Ambassador Thibault Pontallier also conducted a vertical tasting across decades of the brand’s history.

    Thibault Pontallier, Asia Brand Ambassador Château Margaux, walked VIP guests through a vertical tasting across decades of Château Margaux's storied history
    Thibault Pontallier, Asia Brand Ambassador at Château Margaux (centre left, red tie), took various VIP guests through a vertical tasting across decades of Château Margaux’s long history.

    Guests were also able to meet various whisky brand ambassadors at DFS’ very own The Whiskey House – an exclusive and interactive whisky retail concept available to travellers at DFS, Singapore Changi Airport.

    This was moderated by DFS Group’s Director of Spirits, Frederik Vanden Bulcke and it included interactive discussion and tasting guidance with Brendan McCarron of Glenmorangie, Brian Kinsman of Glenfiddich, David Stewart of The Balvenie and Mike Miyamoto of Hibiki – all sharing their thoughts on heritage and innovation in the whisky industry.

    Commenting, Brooke Supernaw, DFS Group’s Senior Vice President Wines, Spirits, Tobacco, Food and Gifts said: “Returning to our traditional gala format, this year’s Masters of Wines and Spirits created an intimate and curated experience, tailored for our customers.

    Each piece in the collection was selected with our customers in mind, bringing together a spectacular array of the world’s finest and rarest wines and spirits right in the heart of historic Singapore.”

    CHANGI AIRPORT GROUP IS A KEY PARTNER

    As reported, the Masters of Wines and Spirits curated collection will be available for travellers and shoppers at DFS, Singapore Changi Airport’s Wines and Spirits Duplexes at Terminals 2 and 3 – following last Saturday’s gala event.

    DFS concluded that the 2017 collection included 27 Cognacs and whiskies and more than 25 vintage wines and Champagne offerings – many exclusive to DFS. As featured earlier this month, the retailer said that the highlights of the collection included the following: Bruichladdich Special Release; CAMUS 65 Year Old; Château Mouton Rothschild 18 Vintages Vertical; Château Lafite Rothschild 1982 Vintage Imperiale; Château Margaux Pyramid Set of 1990 Vintage; Dom Pérignon Malle P2; Glenmorangie Pride 1974; Hibiki Arita-yaki 2016, Kutani-yaki 2016; Martell Grand Champagne 1920; Masi Amarone Vertical Set with Watch; Penfolds Bin 707 Boeing 6L; Louis XIII Le Mathusalem; The Dalmore Richard Paterson 50 Year Old; and The Macallan Fine & Rare Treasury Collection.

  • Manager in China motivates staff by making them tear up their money

    Manager in China motivates staff by making them tear up their money

    A manager at a retail store in eastern China motivates her underperforming sales staff by forcing them to tear up their own 100-yuan bills.

    A video showing five young salespeople tearing up the notes at the command of their boss at a Gome electrical appliance store in Jinan, Shandong province drew condemnation over the weekend.

    The incident took place on the evening of March 22. The five employees were forced to tear up the cash because they did not meet their daily sales quotas of 100 deals.

    The local police department gave the manager a warning and fined her 1,000 yuan (US$688). The manager said that she had meant to teach her employees not to waste company resources.

    In the video, the manager shouts at the employees and insists that they tear up the cash if they want to keep their jobs, although it also shows staff members warning her that destroying money is illegal.

    The police department said that any deliberate destruction of yuan would result in a police warning and a fine of up to 10,000 yuan.

    The video caused widespread outrage among mainland social media users.

  • Samsung store catches fire a day before Galaxy S8 announcement

    Samsung store catches fire a day before Galaxy S8 announcement

    A Samsung outlet in Singapore caught fire this morning, causing neighbouring shops in the mall to close temporarily for safety and cleaning, reports Channel News Asia.

    It’s not the first time Samsung has had trouble with fires. The company had to kill the Note 7 line following two recalls after reports of the phones exploding into flames last year. Its washing machines were also defective, and could have exploded, forcing the company to also recall the products citing “injury risks.” The two incidents have led to backlash from Samsung customers.

    “We were alerted to a fire at the Samsung Experience Store at AMK Hub in the early hours of Tuesday morning before store opening hours,” the South Korean phone manufacturer confirmed in a statement.

    “The fire was extinguished by water sprinklers in the store and no one was injured during the incident. We are currently assessing the property damage and working closely with the authorities to determine the cause of the fire.”

    The store will remain temporarily closed while investigations are ongoing, says Samsung.

    Samsung will announce the Galaxy S8 tomorrow — hopefully the new phones won’t go up in flames too.

  • Yangon food court a first for Myanmar

    Yangon food court a first for Myanmar

    Myanmar has its first Japanese-style food court, thanks to a joint venture between City Mart Holdings and Japanese trading company Sojitz Corp.

    Tokyo Dining City, home to six restaurants, opened on Wednesday inside a new commercial building in Yangon’s CBD. The Yangon food court can seat 200 diners and primarily targets office workers.

    Tokyo Dining City Myanmar

    “Japanese food has gained great popularity in Myanmar and there are many Japanese restaurants here,” Zar Ni Kyaw, operations manager of Tokyo Dining City, said in an interview with local media.

    “What makes us different from the others is that we aim to present genuine Japanese dining and Japan’s culture of hospitality to our customers in Myanmar.”

    The two companies say they plan to open more such food courts elsewhere in Myanmar in the future.

  • Lily builds new life for youth in Thailand

    Lily builds new life for youth in Thailand

    Helping young people who are living in disadvantaged communities has always been a passion for Lily Simpson and her late husband John.

    The former Ipswich residents spent many years working with people who have disabilities and assisted them to achieve independent life skills.

    After numerous trips to Thailand, the pair realised there were many children who needed help, which prompted them to form their own charity.

    “We had been travelling to Thailand volunteering with disadvantaged children in various orphanages for many years,” Mrs Simpson said. “During these visits we noticed that there were many youth and young adults in the most disadvantaged and at risk categories who were not receiving training and assistance in the life skills necessary to survive and thrive.

    “God placed it on our hearts to reach out to these people and ask them to work together with us to improve their future.”

    The pair moved to Thailand in 2012 and in that time co-founded the Chii wi mai, which means “new life” in Thai.

    “It is the aim of the service to provide an individualised approach in assisting youth and young adults to access the vocational and learning opportunities of their choice to achieve their dreams and goals,” Mrs Simpson said.

    “In 2013 Chii wi mai received registration and we officially commenced our ministry.”

    One of the young people who has benefited from Lily and John’s generosity is a young Thai boy named Sanya.

    “Sanya has studied hard and overcome many challenges in his life to achieve his goal,” she said.

    “He was born HIV positive, both of his parents passed away, he is blind in one eye from a virus he got when he was three years old and lived in an orphanage until he was 16.

    “He has a grandmother whom he loves dearly, and she makes a living selling flowers at the market in another town.”

    With their help, Sanya recently graduated with a Diploma in Retail Management and plans to study for the next two years.

    Mrs Simpson got up at 4am and caught a plane to Khon Kaen so she could be present at his graduation ceremony.

    “Sanya had a dream and he is well on his way to achieving it and I am so glad Chii wit mai is part of his life,” she said.

    “John was so proud of Sanya, but last July he passed away unexpectedly. He was missed by all of us.”

    Mrs Simpson also had help in providing a better future for Sanya, thanks to the Kiwanis Club of Brisbane.

    “Without their financial support for the last eight years, Sanya may not have been able to continue with his education,” she said.

    “Sanya and I are very grateful and Sanya has written a letter to thank Kiwanis for all they have done for him.”

  • Octogenarian new ambassador for Reebok China

    Octogenarian new ambassador for Reebok China

    Octogenarian Wang Deshun, a silver-haired actor known as “China’s hottest grandpa”, is Reebok China’s newest brand ambassador.

    Wang, who was born in Shenyang in 1936, stars in the sports brand’s latest Chinese video campaign “Be More Human” alongside actress Yuan Shanshan and actor Wu Lei.

    The senior citizen first caught attention in 2015 when he strutted bare-chested down the runway for a local designer in Beijing Fashion Week.

    “Only seriously getting into fitness at the age of 70, Wang’s example has helped reshape China’s views on aging and shown you’re never too old to pursue your goals,” says Reebok, which aims to become “China’s best fitness brand”.

    It is expanding its new lifestyle retail concept FitHubs, which integrate retail, fitness and other activities for customers. There are locations already in Hangzhou, Qingdao and Wuhan, with 50 scheduled to open this year. Reebok, owned by Adidas, plans to have 500 FitHubs by 2020.

    Its focus is on three key categories: running, training and classics. This year it is especially promoting its running line.

    “With running in particular experiencing an unprecedented surge in popularity in China in recent years, the category is a key focus for this year,” says the company.

  • Diesel Myanmar opens monobrand store

    Diesel Myanmar opens monobrand store

    Diesel Myanmar has opened its first monobrand store, at Yangon International Airport.

    With a new design concept, the 100 sqm outlet was conceived in collaboration with Japanese architectural firm Wonderwall, headed by interior designer Masamichi Katayama.

    In collaboration with Diesel artistic director Nicola Formichetti, the Tokyo team came up with the concept of an apartment space, like a “symbolic new house” for the brand.

    The Italian lifestyle brand says the design aims to create a distinctive atmosphere in which the customer can feel at home.

    The store’s opening coincides with launch of Diesel’s latest spring/summer collection.

    Meanwhile, Diesel plans further travel-retail openings in Singapore and Guam.

  • CapitaLand Vietnam opens The Oxygen Mall

    CapitaLand Vietnam opens The Oxygen Mall

    CapitaLand Vietnam has opened a shopping centre, The Oxygen Mall in Ho Chi Minh City’s District 2.

    Located at the base of the high-end residential development The Vista, The Oxygen includes three stories with over 8000 sqm retail space and is primarily targeted to residents.

    The mall tenants are mainly F&B operators, with a wide variety of cuisine on offer: “East meets West” fusion food as well as eateries such as Starbucks, Tous les Jours, Gaxeo, Shalom, Kogi Zip Korean BBQ and Genshai supermarket.

    The centre also includes an artistic co-working space called Toong on third floor, which spans more than 1000 sqm. Toong offers a conducive working environment to startups and small and medium enterprises for more than 300 members.

    “By harnessing the knowledge, expertise and experience accumulated from CapitaLand Group, The Oxygen will enhance the vibrancy of the shopping scene and experience in District 2 and surrounding areas,” says Chen Lian Pang, CEO of CapitaLand Vietnam.

    Besides the space for Vista residents, The Oxygen will also serve other activities such as garage sales, Sunday markets, birthday parties, charity events, and other festivals.

    CapitaLand said this week it plans to significantly increase its S$2.1 billion multi-asset class presence in Vietnam, including a possible Raffles City in Ho Chi Minh City.

  • PLDT, Globe launch cut-price call packages

    PLDT, Globe launch cut-price call packages

    Philippines operators PLDT and Globe Telecom have both cut mobile voice rates to as low as 1 peso ($0.02) per minute, in response to slumping voice usage and a regulator-encouraged cut in mobile termination rates last year.

    Globe and PLDT’s wireless division Smart have both introduced add-on packages for mobile subscribers offering a set allocation of calls for low rates.

    Globe has introduced an add-on pack for its higher-tier postpaid customers that costs 299 pesos for 300 minutes of calls to any network.

    Prepaid customers will be able to take advantage of a GoCall50 add-on pack providing 50 minutes of calls to any network valid for three days, while subscribers to Globe’s TM service can pay 5 pesos for 5 minutes of calls to any network for a day.

    Smart has meanwhile introduced a Call 50 promo providing 50 minutes of calls to any network valid for three days.

    Late last year, Globe and PLDT both agreed to cut voice interconnection rates by 16.7% to 4 pesos per minute for mobile calls and by 38% to 4 pesos per minute for mobile calls, in response to encouragement from regulator NTC. As part of the agreement to cut the mobile termination rate, the operators also committed to reduce rates for customers over time.

    Both operators have also been facing the common industry issue of subscribers continuing to substitute traditional voice calls with OTT messaging and VoIP usage, which has been contributing to a decline in voice revenue.