Retail News CRM

Author: Mei Ling Tan

  • How To Stop Retail Loss and Improve Profits

    How To Stop Retail Loss and Improve Profits

    In the United States, business owners lose over 34 billion dollars a year because of shoplifting, fraud, paperwork issues and employees stealing from them. If you hope to make this less of an issue in your own store, there are a few tips that you can put to use that will help.

    Stop Employees From Stealing

    There are a number of ways that an employee might steal from you. Obviously, they may simply take money from the business. They could also tell a customer a certain price but put a smaller number into the system and then take the difference for themselves. Many owners have trouble with employees stealing from them; overall, this issue costs owners around 15 billion dollars per year. However, there are things you can do to reduce the likelihood of an employee stealing from you.

    Set up a plan for fraud avoidance. This makes it clear to everyone that works for you how you feel about people stealing from you. In the plan, you should outline the fact that you will conduct background checks before hiring someone and during employment. Also state that computer passwords will be changed on a regular basis and that there will be audits of the business. Finally, make it clear what will happen if someone steals from you.

    Anyone that applies for employment with you should undergo a background check. Talk to the people that they worked for before you. Make sure to check all references. Look to see if the individual has a criminal history and if those charges involved theft. Make sure the application is honestly filled out. After you take on an employee, make sure you supervise daily activities. Employees are much more likely to take advantage of you if they are not being appropriately supervised.

    Some owners conduct business away from the office. If this is the case, make sure you pop in regularly to see how things are going; do not announce your visits. Also, take a close look at the bookkeeping and inventory on a periodic basis.

    Shoplifters are also a problem and can cost owners up to 10 billion dollars each year. In order to prevent shoplifting, try these ideas.

    Make sure you say hello to everyone that comes in to your shop. This lets the individuals know that you have seen them and you are aware of them. In addition, your dressing rooms (if you have them) should be kept locked. If a customer wants to go in, they will have to ask someone that works at the store. This sends another strong message that you are paying attention to what is happening in your space.

    Make sure there is plenty of room between your displays and make sure the fixtures near the door are small enough that you can see people coming and going. In addition, make sure you put up mirrors around your store. This increases visibility and keeps shoplifters from feeling too comfortable in your space.

    Make sure to put up signs discouraging shoplifting; let people know what will happen if someone is caught. Make it clear that you take a no-nonsense approach to this crime and check out these strategies to improve retail loss.

    Stopping Other Forms Of Loss

    There are several other causes of loss. The vendor can make a mistake or engage in fraud; perform audits and watch what is going on. Overall, make sure you engage in periodic audits and train your employees well.

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  • Sa Sa profits dive

    Sa Sa profits dive

    Sa Sa profits took a hit of 37.3 per cent for the six months to September 30.

    The Hong Kong-listed beauty products retailer’s interim results show turnover easing by 4 per cent to HK$3.628 billion (US$467.7 million) for the period, with retail sales in Hong Kong/Macau decreasing by 3.6 per cent to HK$2.9032 billion.

    Profit fell from $153 million to $96 million with its gross profit margin dropping from 42.9 to 41.2 per cent.

    During the six months, the group rationalised its retail network from 291 to 283 – six fewer Sasa stores and two fewer single-brand stores/counters.

    While sales fell in Hong Kong/Macau, the number of transactions rose by 0.2 per cent for local customers and 4.4 per cent for Mainland Chinese tourists. The value of each transaction, however, fell by 6.3 and 6.6 per cent respectively.

    Retail sales in Hong Kong continued to be weak, mainly because of average transaction values being lower. The company says the underlying reasons were a change in consumer preferences, a strong Hong Kong dollar and a depreciating yuan. Also, the policy change limiting Shenzhen residents’ multiple-entry permits to one visit a week has had a “significant” impact.

    However, Sa Sa reports an uptick toward positive growth in July as the company adapted with faster product launches, shorter product cycles and cheaper trendy products.

    Korean swing

    As an indication of market change, Sa Sa’s Korean product mix grew from 16.7 per cent of total sales to 23.5 per cent, and the parallel-imported product mix increased from 29.1 to 31.7 per cent. Sales for house brands dropped from 41.5 to 38.5 per cent.

    Overall turnover for Mainland China decreased by 4.3 per cent to $135 million, while same-store sales fell 5.1 per cent. The loss for the period amounted to $13.7 million. Profitability was impacted by the relocation of warehouses.

    Turnover for Singapore at $101.3 million was a drop of 11.1 per cent. As well as weaker sales, management issues impacted performance. While turnover was high, this created difficulties in retaining the knowledge base. However, a restructuring process has drawn on the resources of the relatively strong Malaysian management team.

    Malaysia’s turnover was down 19.1 per cent to $163.4 million, though same-store sales rose 11.2 per cent. Retail sales growth exceeded other markets thanks to the group’s strong retail network and effective marketing campaigns.

    Turnover in Taiwan fell by 23.1 per cent to $98.3 million, with same-store sales tumbling 19.5 per cent because of weak consumer sentiment and ongoing restructuring of the management team.

    Logistics problem

    In eCommerce, Sasa.com turnover reached $193 million, a dip of 0.1 per cent. Sales were affected by the appointment of a new logistics provider in April with the aim of increasing scalability. However, changeover difficulties resulted in a decision to return to the original service provider.

    “Significant numbers of orders had to be cancelled, and further costs were incurred by moving inventory back and forth as well as the running of two warehouses in parallel during the period,” says the company.

    Building on the growth of mobile internet use, the company launched a mobile app and started a collaboration with eCommerce platform Kaola in addition to its partnership with JD.com, Suning.com and T-Mall.

    On the mainland, the dynamics of the cosmetics market are changing with internet retailing growing at a rapid pace, says the company. Because of these challenges, it is continuing to strengthen management and recruit staff.

    “We are also seconding experienced staff from Hong Kong to improve the attractiveness of our product offerings and strengthen inventory management.”

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  • Consumer brand loyalty at record low

    Consumer brand loyalty at record low

    Global loyalty-marketing agency ICLP has found that consumer brand loyalty to retailers has dropped to a record low in Hong Kong.

    A mere 1 per cent are “devoted” to their preferred retail brands, an ICLP survey shows.

    The company surveyed 750 consumers in Hong Kong to rate their relationship experiences with friends, loved ones and brands using seven core criteria: recognition, rewards, reciprocity, reliability, respect, trust and communication.

    ICLP partnered with a global authority on relationship dynamics, Professor Ron Rogge of the University of Rochester in the US, to create a model based on Sternberg’s Triangular Theory of Love which focusses on three key components of a relationship: intimacy (willingness to share information with a retailer), passion (brand enthusiasm) and commitment (loyalty). When incorporated into a retail context, these components become tools for brands to foster devoted relationships with consumers.

    Relationships range from empty (the least desirable) through liking, casual, romantic and companionate to devoted (the most desirable). All customers in the devoted group would recommend a brand, demonstrating the value of a devoted consumer base for word-of-mouth business.

    Significant variation

    Levels of advocacy vary significantly in the other five relationship groups. Only 6 per cent of customers in a “liking” relationship would recommend a retailer to others, with 26 per cent in an “empty” relationship, 21 per cent in a “casual” relationship and 50 per cent in a “companionate” relationship.

    “Romantic” relationships, which Sternberg says are characterised by high levels of passion and intimacy, have a 74 per cent inclination to recommend brands.

    But as only 1 per cent of customers are at devoted level, retailers need to develop a deeper relationship with customers, says the study.

    It says loyalty programs are a major factor in driving spending, with 75 per cent of consumers surveyed saying they would shop more often with brands that have a loyalty program.

    Loyalty programs are more significant than traditional points-based reward programs, says the survey, which offers advice for retailers to help them inspire more “devoted” customer relationships…

    Foster brand advocacy: All “devoted” customers would recommend a retailer to others.

    Create stronger rewards programs: Consumers in “empty”, “liking” and “casual” relationships may have lower expectations about reward programs, but 75 per cent of survey respondents say they would buy more if they were better rewarded.

    Take time to understand customer needs: If retailers use their data to better understand individual shoppers’ needs, 69 per cent of those surveyed say they would buy more.

    Build respect and trust among consumers: If treated with more respect, 63 per cent of respondents say they would buy more, while 55 per cent would also buy more if they had better trust of brands.

    Improve communication with customers: With better communication from brands, 60 per cent of respondents say they would buy more.

    “Buy with hearts”

    “ICLP’s study is ground-breaking in understanding the key components of brand loyalty,” says Professor Rogge. “Interestingly, most of the respondents approached their relationships with favourite brands in a similar way to their personal relationships.

    It seems that developing a strong and devoted relationship with a brand might not be so different from developing a strong and caring bond with another person.

    “This suggests that people might buy with their ‘hearts’.

    “This is exciting work, as it allows us to better understand and track the various types of brand loyalty and, at the same time, provide retailers with critical insights into targeting the needs and desires of consumers to promote greater loyalty.”

    ICLP GM Mary English says brands are finding it hard to connect with their customers in a meaningful way. “The unprecedented level of choice available today has become a distraction for the consumer. Our research shows that consumers want the same from a brand as they do from their friends and loved ones- they want to build an emotional connection.”

    English says that retailers seeking to build and maintain “devoted” customer relationships should begin to truly understand the emotional factors that drive consumer loyalty.

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  • Hard half-year for Luk Fook Holdings

    Hard half-year for Luk Fook Holdings

    Revenue plunged by 21.5 per cent for jeweller Luk Fook Holdings (International) to reach HK$5.5 billion (US$709 million) for the six months to September 30.

    Its interim results also show a drop of 31.5 per cent in overall same-store sales for the period.

    However, its overall gross margin improved by 5.3 points to 28 per cent as a result of a relatively high gold price and higher gemset jewellery sales mix. Because of this, the gross profit decreased by only 3 per cent to HK$1.5 billion.

    Mainland China accounted for 54.6 per cent of total profits, an increase of 12.8 points.
    With a lacklustre market, retail revenue in Hong Kong plunged by 33.4 per cent to $2.642 billion, while the wholesale business shot up by 51.1 per cent to $361.6 million because of an increase in scrap gold sales as well as wholesale rough diamonds.

    Luk Fook says a relatively high gold price saw gold sales fall more than expected.

    During the six months, the group added 27 Lukfook shops worldwide, including 24 in China (nine of them licensed shops), a self-run shop in both Macau’s casino district and New York,and  a licensed shop in Seoul. This brought its total to 1455 Lukfook shops (up from 1412 at the same time last year), spanning Australia, Canada, China, Hong Kong, Korea, Macau, Singapore and the US, as well as nine 3D-Gold shops (up from four) on the mainland.

    The group says it has been striving to diversify its product mix, and since 2010 has been trying to expand its mid- to high-end watch business. At the end of September is was the authorised dealer of 34 watch brands including Audemars Piguet, Bulova, Burberry, Bulgari, Emporio Armani, Eterna, Frederique Constant, Longines, Omega, Oris, Rado, Tag Heuer, and Victorinox Swiss Army.

    For the six months, the watch business contributed revenue of HK$104.49 million down from HK$119.39 million for the same period last year, representing 1.9 per cent of the group’s total revenue, a 12.5 per cent decrease.

    Looking ahead, the group aims to continue to develop its eCommerce business and to further strengthen cooperation with eCommerce platforms in China. At the end of September, the group had 15 online sales platforms in China, including JD.com, Suning.com, Tmall.com and VIP.com.

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  • Manolo Blahnik Malaysia debuts in KL

    Manolo Blahnik Malaysia debuts in KL

    Women’s shoe retailer Manolo Blahnik Malaysia has launched its first store, in Pavilion KL.

    The 95 sqm store is part of an Asia expansion plan that includes the refurbishment of its Singapore store at Takashimaya, as well as the launch of a flagship store in Tokyo next year. The brand is partnering with retailer Bluebell Group on the projects.

    Founder Manolo Blahnik, who opened his first shop in Chelsea in London in 1973, was born in the Canary Islands to a Spanish mother and Czech father. He studied languages and art in Geneva before moving to Paris in 1965, where he became a set designer.

    On a visit to New York in 1970, he showed his theatre designs to Diana Vreeland, then editor-in-chief of American Vogue, who encouraged him to concentrate on his shoe designs.

    Blahnik learnt the art of making shoes by visiting factories, and by 1971 was in London making shoes.

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  • Veeko, Wanko and Colourmix parent finds Singapore tougher than HK

    Veeko, Wanko and Colourmix parent finds Singapore tougher than HK

    Hong Kong-headquartered fashion retailer Veeko – the Wanko and Colourmix parent – has found Singapore more challenging than its home market.

    For the six months to September 30, Veeko International Holdings recorded a turnover of

    HK$1.029 billion, down 3.5 per cent year-on-year.

    Its cosmetics business, the Colourmix and Morimor stores, sales were stable, down by just 0.1 per cent at $828 million, accounting for 80.5 per cent of the company’s business, compared with 77.6 per cent last year.

    That highlights the core of the company’s problem – its fashion stores, trading under the Veeko and Wanko brands – which recorded a 16.1 per cent decline in sales to $200.7 million.

    Sales in Singapore, where it closed one store and now has eight, plunged 23 per cent year-on-year.

    Yet in Hong Kong and Macau, where the overall decline in retail sales during the half year was nudging double digits, sales declined by a more modest 7.6 per cent and the gross profit margin rose marginally from 71.8 per cent to 72 per cent. It added three stores during the period, taking the network to 83.

    In Mainland China, fashion sales declined 14.3 per cent and it closed three stores, leaving a net 38.

    Colourmix holds its own

    Beauty is the powerhouse of the Veeko business. The company has 87 Colourmix stores – five more than at the same time last year – of which 82 are in Hong Kong, four in Macau and one in the mainland.  In August 2015, the group launched another cosmetics store brand Morimor, with seven now trading in Hong Kong. This brand is positioned as offering “high-quality trendy skin care and cosmetics products by integrating global premier skincare and beauty concepts, with diversified products covering skin care, fragrance, make-up, hairdressing, body care and cosmeceuticals and health food”.

    Veeko chairman Johnny Cheng Chung Man says the South Korean series of cosmetics and beauty products are very popular among young customers.

    “In addition, the professional beauty consultants offer customised personal services and consultations on skin care so that customers can enjoy the relaxed and pleasant experience of beauty services.”

    The gross profit margin of the cosmetics business for the period was 32.4 per cent, down 3.3 percentage points year-on-year. The cosmetics business for the period recorded a segment profit of HK$1.319 million, representing a significant decrease of 97.7 per cent.

    “As a result of the rapid growth in the cosmetics business experienced in the past consecutive years, a considerably high base has been accumulated. With the continuously weak retail market and overall consumption environment in Hong Kong as well as a drop in the number of visitors to Hong Kong during the period under review, it was necessary for the group to offer several promotional discounts and organise marketing activities to stimulate sales, which led to a reduction in gross profit margin and a significant decrease in segment profit as compared with the same period last year,” said Man.

    Looking forward

    Man says looking forward, the group expects the challenges faced by the retail business to continue.

    “The retail environment in Hong Kong is anticipated to remain severe while a cautious consumption sentiment prevails. The group will continue to enrich its product portfolio of cosmetics products, increase trendy beauty products with exclusive distributorship, conduct staff training on providing quality professional services, and strengthen its internal consolidation.”

    Man said the fashion retail business will continue to focus primarily on the Hong Kong and Macau market. “To cope with the stagnant retail environment as well as to meet constantly changing needs in the market, the group will continue to optimise product designs and improve customers’ shopping experience. As for the overseas markets, the group will continue its cautious control on its overseas stores portfolio. Underperforming stores will be closed down further to focus its business on profitable stores.”

    In Hong Kong, given the slowdown in the retail market and a decline in rental charges for stores located in prime districts, the enhanced bargaining power of the retailers will therefore help reduce the rental pressure for stores with expiring lease terms, he said.

    “As the group will close down certain stores with low profitability and open new stores in prime locations, additional rental saving will be expected in the near future.”

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  • Mitsui Outlet Park expansion starts

    Mitsui Outlet Park expansion starts

    Ground has been broken for the second phase of the Mitsui Outlet Park KLIA Sepang, claimed to be the largest factory-outlet shopping mall in Southeast Asia.

    On a 27,500 sqm site next to the current outlet near Kuala Lumpur International Airport, the double-storey extension will feature 60 shops and 500 parking lots to complement the existing 2100 bays, and is expected to open in January 2018. The present 24,000 sqm development has 130 shops.

    mitsui-sepang

    It will introduce more premiums brands in fashion, cosmetics, sportswear and accessories, with a diversification into entertainment and amusements.

    Tourism and Culture Ministry secretary-general Tan Sri Dr Ong Hong Peng officiated at the ground-breaking ceremony, which was attended by Mitsui Fudosan managing officer Osamu Obayashi.

    To complement phase one’s Paradise Village architectural concept, which features a Sunshine Square, Pier Walk, Beach Walk and Tropical Plaza concept, phase two introduces a new ambient experience with Sky Walk and River Walk themes. Sky Walk will have simulated clouds on its ceilings while River Walk will resemble a creek.

    Mitsui Outlet Park KLIA Sepang is a JV between Japanese real estate developer Mitsui Fudosan and Malaysia Airports Holdings. The outlet is managed by the JV company, MFMA Development. Free buses connect the development with the two airport terminals.

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  • Chow Tai Fook remains calm in the storm

    Chow Tai Fook remains calm in the storm

    A 23.5 per cent drop in revenue to HK$21.526 billion (US$2.775 billion) was recorded by Chow Tai Fook Jewellery Group for its latest six months.

    Its interim results for the period to September 30 show same-store sales in Hong Kong/Macau dropped by 25.7 per cent and in China by 20.9 per cent.

    Gross profit was down by 13.1 per cent to HK$6828 million from HK$7857 million in the first quarter.

    In its executive summary, the group says that in response to the rapid market changes and volatile macroeconomic environment across Greater China during the first half, it focussed on enhancing store productivity and efficiency.

    The group also capitalised on its vertically integrated business model and proprietary technology to introduce the Chow Tai Fook T Mark diamond brand in the first half, which it describes as “an important milestone in our heritage” that “revolutionised the current diamond-industry practice”.

    Despite revenue declining with the market slowdown in the first half, the group’s adjusted gross profit margin improved, mainly because of an enhanced product mix and an uplift in gross profit margin for gem-set jewellery and gold products.

    As at the end of September the group’s retail network comprised 2326 points of sales, and increase of seven. During the first half, 26 points of sale were opened in shopping malls while 19 were closed in department stores on the mainland.

    Also in the mainland the group promoted its premium diamond brand Hearts On Fire, opening two points of sale and 30 shop-in-shop/counter-in-shop outlets for a total of seven POS and 148 shop-in-shop/counter-in-shop.

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  • Cybercrime rising Asia as cashless payments rise

    Cybercrime rising Asia as cashless payments rise

    Cashless payments are growing rapidly in Asia-Pacific and so is cybercrime, costing the region an estimated $US 81 billion.

    With new combinations of malware customised for local markets, phishing and social engineering attacks as well increasing e-commerce and ATM fraud, businesses are increasingly at risk for payment data theft, according to the PCI Security Standards Council.

    Singapore’s cards and payments market is one of the most competitive and attractive in the Asia-Pacific region. Already, 69 per cent of consumer spending in Singapore is made through electronic payments.

    It’s against this backdrop that global payment and cybersecurity experts met at the PCI Asia-Pacific Community Meeting in Singapore to collaborate on helping businesses prevent, detect and respond to cyberattacks that can lead to payment data breaches and fraud.

    “We simply must work together to advance payment security,” PCI Security Standards Council (PCI SSC) international director Jeremy King told attendees.

    “New technologies are driving adoption of cashless, mobile and digital commerce in Singapore and the Asia-Pacific region, and it’s critical that we ensure consumers remain confident in the security of their financial information with every payment transaction. As payments evolve, businesses must prioritise data protection with robust security standards and practices.”

    The PCI SSC has reinforced its mission to foster secure transactions globally and emphasised that as new cyber threats emerge, and advances in technology change the way payments are conducted, PCI Standards will evolve to protect the next generation of payments. Regional and industry experts speaking at the event included representatives from the PCI Security Standards Council, Interpol, Verizon, Diners Club Singapore, Foregenix, Beijing Information Technology and Pen Test Partners.

    Presentations and discussions addressed a mix of regional and global topics ranging from new threats via the Internet of Things; cybersecurity trends in Asia-Pacific; Point-to-Point Encryption for protecting payment data throughout the entire processing environment; preventing skimming at ATMs and the future of mobile and digital commerce.

    PCI SSC GM Stephen Orfei said the Asia-Pacific region has made tremendous advances in payment security in the past decade.

    “More and more companies in the region are making cybersecurity a top priority.  With the rapid growth in mobile payments, now, more than ever, we must join forces to devalue payment data and make it useless to criminals.  It is very encouraging to see industry and public-private partnerships in Asia-Pacific working together to address the ever expanding cyber threats from around the world.”

    The PCI Security Standards Council is a global forum that is responsible for the development, management, education, and awareness of the PCI Data Security Standard (PCI DSS) and other standards that increase payment data security.

    Key focus areas at the PCI Asia Pacific Community Meeting included:

    • Devaluing data with point-to-point encryption: More and more solution providers in Asia-Pacific are encouraged to adopt the PCI Point-to-Point Encryption (P2PE) Standard to provide solutions that devalue data and simplify security and PCI DSS compliance efforts for businesses.
    • Simplifying security for small merchants: The PCI SSC Small Merchant Task Force urged banks, technology providers and security assessors with small business customers to adopt and disseminate newly published PCI Payment Protection Resources for Small Merchants.
    • Improving security of online and mobile payments with stronger authentication: PCI SSC chief technology officer Troy Leach discussed the newly released device standards (PTS POI v5 and HSM v3) that support online and mobile payment security. PCI SSC is collaborating with EMVCo to support 3-D Secure 2.0 (3DS 2.0), which provides a way for consumers to directly authenticate their card with the card issuer when shopping online.
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  • Meet China’s online super-consumers

    Meet China’s online super-consumers

    Like many college students in China, Song Yang buys most of the things she needs for daily life by shopping on the internet. But while her peers have to satisfy the urge to splurge with the occasional new smartphone or pair of branded sneakers, Song doesn’t worry much about living on a student’s budget.

    A finance major at Beijing’s prestigious Peking University who says she made a “pot of gold” in the stock market after being staked by her parents, Song, 21, spends upwards of $15,000 a year shopping on Alibaba Group’s Taobao e-commerce website. Her purchases range from high-end imported cosmetics, fashion apparel and consumer electronics, to Japanese snacks and organic produce, to furnishings for her family’s new apartment, to parts and gadgets for her father’s car.

    “As long as I have free time, I am on Taobao,” says Song, adding that her binge-shopping habit has resulted in up to 30 packages delivered to her home in a single day. “Whenever I have a new idea, I will search on Taobao,” she said.

    Song is the kind of China super-consumer that retailers dream of connecting with—and Alibaba Group is happy to oblige. In 2014, Alibaba recognized that out of the millions of consumers that shop in the company’s China retail marketplaces, a small percentage had adopted online shopping as a significant part of their daily lives. The company created a membership program called APASS (Alibaba Passport) to cater to their needs by assigning them personal account managers and organizing special events like wine tastings and automobile test drives.

    Alibaba top shoppers

    APASS shoppers are mostly young, internet-savvy and increasingly affluent members of China’s rising middle class. To qualify for the program, consumers must spend a minimum of nearly $15,000 a year online. That’s just the minimum. In fact, the average annual spend among current APASS members is about $45,000. In contrast, American’s millennials—defined as aged 18 to 34 with higher consumption than other demographic groups—spend about $2,000 a year online, according to a recent study conducted by BI Intelligence. During Alibaba’s recent 11.11 Global Shopping Festival, a 24-hour online sale, APASS members spent nearly eight times as much as the average consumer shopping on Alibaba’s platforms.

    Alibaba identifies candidates based on an algorithm that takes into account not only how much e-shoppers spend, but how often they shop online, the range of products purchased, credit record, and engagement in online communities.  If you think this screening limits membership to a very exclusive few, think again: There are about 100,000 APASS members.

    Fostering relationships with top customers is a time-honored marketing tactic. To Alibaba, APASS members are vanguards of an emerging consumer lifestyle in China. “They are opinion leaders who drive the consumption trend among China’s middle class,” said Zheng Dongyang, senior manager of the APASS program. To stay on their radar and cultivate loyalty, Alibaba recently upgraded APASS to foster online communities and to offer members exclusive daily deals from more than 100 top brands including Maserati, Burberry, Fissler and Estee Lauder.

    An APASS member who has recently enjoyed the perks of belonging is Hong Degang, a self-described “consumer electronics geek” who runs a wedding photography studio in the city of Wuhan. Hong, 27, was selected as one of 10 APASS members for a nine-day, all-expenses-paid trip to Italy. The mini-holiday included visits to the venues of eight top Italian brands including wine producer Mezzacorona and luxury carmaker Maserati.

    Alibaba livestreamed parts of these visits on the company’s Tmall app and video site Youku over a nine-day period. A trip to a Mezzacorona vineyard generated 400,000 views, 200,000 likes and 120,000 comments, but it wasn’t just social sharing that was inspired. According to Tmall, total sales of the online shops of the eight featured brands jumped more than fivefold over the livestreaming period compared with sales during the nine days preceding the event.

    Despite his recent exposure to Italian brands, Hong says he’ll likely remain enamored mainly with electronics gear. He says that he owns up to 20 computers and tablets at any given time, and stays immersed in his passion by reading electronics blogs on Mobile Taobao’s news channel every day while spending more than $3,000 a pop to acquire the latest cameras from Sony and Canon. He trades his used cameras and computers in Alibaba’s flea market app, Xianyu.

    “I celebrate 11.11 every day,” Hong jokes, referring to Alibaba’s giant annual online sale.

    Not every APASS member shops purely for the joy of it. Wu Xiaofang, a 41-year-old interior designer who lives in Lishui, a small city located in southern Zhejiang Province, says she is a big online spender and APASS member because she sources products for clients on Taobao.

    Wu designs exclusively for themed country inns and guesthouses that are popular in her mountainous province, so before she shops she determines whether customers want rooms done up in Chinese ancient style, American country style, French classic style or other themes. Everything is purchased online: toilets, shower kits, bathroom faucets, customized beds and wardrobes, curtains, lamps and other furnishings.

    “Taobao can always fill my specific demands,” Wu says. “I can buy second-hand antique French or German furniture on Taobao, and classic, floral-pattern tiles from ancient Chinese buildings. You won’t be able to find this unique stuff elsewhere.”

    She says she has so far finished five “Taobao inns” at a total cost of about $270,000 on all the furnishing—but admits that APASS perks encourage her to shop not just for business but for herself and her family.

    “I think everyone goes through the same journey,” she said. “When you first start online shopping, you are just curious. Later on, you kind of get addicted to it.”

  • Tmall flagship store for Cosmax

    Tmall flagship store for Cosmax

    South Korean cosmetics developer/manufacturer Cosmax Inc is to run an online flagship store on China’s Tmall.com.

    It has signed an agreement with online retail giant Alibaba Group Holding to establish the eCommerce platform to distribute Korean beauty products across China.

    cosmax-tmall

    Under the contract, Cosmax will be Korea’s first multi-shop dealer for various cosmetics brands on Tmall.com, China’s largest third-party platform for brands and retailers.

    The launch of the Cosmax platform is expected to help expedite the China Food and Drug Administration (CFDA) hygiene approval process for Korean cosmetics companies.

    Cosmax, which entered China in 2003, has cosmetics factories in Guangzhou and Shanghai. It earned more than 200 billion won (US$181.1 million) in China alone last year.

  • Retail gets personal

    Retail gets personal

    In this year of the 400th anniversary of the passing of William Shakespeare, we’ll borrow some inspiration from the great bard and say: The store is dead – long live the store.

    For, despite the stellar rise of online shopping, it accounts for just 7.3 per cent of total global retail spending.

    The store’s “renaissance,” if it were needed, reflects the fact that shopping remains popular. It also comes on the back of investment from retailers keen to make the most of the store as a differentiator – the place where shoppers touch the brand. A big feature of this spending has been the drive to make the store central to an omnichannel shopping experience where shoppers can conveniently mix how they try, buy, and return items through online, in-store, and mobile channels.

    To achieve this versatility, retailers have deployed RFID and barcode labels to track and trace items across the supply chain, into the store, and back from the customer (via returns). By using such labels, which can be automatically recorded by RFID systems or handheld computers and scanners, retailers can capture what we call Enterprise Asset Intelligence (EAI). As we move forward, EAI will play a key role as retailers look to make the in-store experience ever more enjoyable and rewarding.

    Continuous improvement

    Smart labels and sensors can be attached to any object – associates, stock, vehicles, equipment, totes and pallets, and many more. The stream of data collected from the labels is connected over wireless and cell networks to your back office, providing visibility into every area of your operations. This opens boundless opportunities to manage processes more efficiently, improve the customer experience, and free your associates from time-consuming to spend more time in the shop floor. A couple of interesting examples include:

    • Being more responsive to customers: we spoke to one UK retailer recently who told us they have 100,000 people working to restock their stores at night. Indeed, the cost of their associates is 66 per cent of their store overheads. The interesting thing is this retailer, and others we speak with, is not looking to cut these costs: it’s looking to allocate them more wisely – to free staff to spend less time on operations and more with customers. This can be achieved by using smart labels to provide a continuous view over inventory and supporting teams with better technology – including voice-guided workflows through mobile and wearable devices – to help them manage replenishment more efficiently and spend more time providing attentive and personal experiences to shoppers.
    • Being more rewarding: Using your wireless network, you can connect with the sensors that most of us carry with us all the time – in our smartphones. If the customer agrees, every time they come into store their phone can register on to your system to allow you to offer a more personalized service. For example, you can send a welcome message and offer a wide range of promotions from money-off based on their preferences, to loyalty bonuses, to gifts for their birthday, and much more. You can also build in “help” features so associates’ mobile devices can alert them, and help them easily find shoppers who’ve asked for assistance.

    What really excites us about retail right now is that we’re getting back to those halcyon days: the days when your local shop keeper would know who you are, know what you want, and engage with you in compelling ways – ways that you’d value and that encouraged your loyalty. We can use technology to achieve similar things – to not only free staff to spend more time with customers but increasingly to offer customers more intriguing, engaging, and rewarding ways to shop.

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  • Vipshop adds customers, but margin narrow

    Vipshop adds customers, but margin narrow

    Chinese online discount business Vipshop reports rising revenues but narrower margins during the third quarter.

    The New York-listed eCommerce player says its total net revenue increased by 38.4 per cent to RMB12 billion (US$1.8 billion), primarily attributable to a 43 per cent year-on-year increase in the number of active customers to 20.8 million and a 34 per cent year-on-year increase in total orders to 60.1 million.

    Gross profit increased by 36 per cent to RMB2.93 billion (US$439.7 million) from RMB2.16 billion in the prior year period.

    Income from operations increased by 21.3 per cent to RMB528.8 million (US$79.3 million) from RMB436.1 million in the prior year period, but the company’s operating margin fell from 5 per cent last year to 4.4 per cent.

    Vipshop’s net income attributable to shareholders increased by 8.3 per cent to RMB342.9 million (US$51.4 million).

    “We are pleased to have delivered solid financial results and healthy customer growth despite a seasonally soft quarter for retail,” said Eric Shen, chairman and CEO.

    “As a leading online discount retailer for brands in China, we are committed to advancing the end-to-end shopping experience on our platform by providing our customers with diverse products and more personalised merchandising. The superior user experience across our platform led to improved user stickiness, as demonstrated by the strong 49 per cent year-on-year increase in repeat customers to 16.7 million. Despite macro weakness, our robust customer growth and retention is a testament to the resilience of our business model. We are confident that our strong foundation will continue to drive our overall secular business growth and enable us to maintain our market leadership regardless of macro environment changes,” said Shen.

    For the fourth quarter of 2016, the company expects its total net revenue to be between RMB18 billion and RMB18.5 billion, representing a year-on-year growth rate of 30 per cent to 33 per cent.

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  • HKT to build fiber super highway for Hong Kong DCs

    HKT to build fiber super highway for Hong Kong DCs

    PCCW’s HKT has revealed plans to build what it is calling a “fiber super highway” connecting the Tseung Kwan O Industrial Estate (TKOIE) with the Chai Wan area.

    The Ultra Express Link will be a 3km high-capacity, low-latency subsea cable system spanning the Junk Bay. The cable system has a target ready for service date in 2017

    HKT group managing director Alex Arena said the system will provide additional diversity in connectivity for the multiple data centers in TKOIE, and serve to position the estate as Asia’s data center hub.

    “The building of Ultra Express Link demonstrates once again not only our leading position in solid fiber infrastructure in Hong Kong, but also our dedication to build Hong Kong into a regional data center hub,” he said.

    “The new cable, together with the existing extensive fiber infrastructure provided by HKT, will allow us to meet the rising demand for high speed and high capacity connectivity from data center operators.”

    Arena said HKT is the only operator to provide full fiber coverage in all data centers in Hong Kong with diversity paths in all data centers in TKOIE.

    HKT is a quadruple-play operator in Hong Kong serving both consumer and enterprise customers.

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  • StarHub launches shopping channel

    StarHub launches shopping channel

    Singapore telco StarHub has launched a 24-hour Chinese language shopping channel called Go Shop in a deal with Malaysian pay-TV giant Astro.

    Singapore, 24 November 2016 – This festive season, StarHub TV customers can look forward to an exciting round-the-clock shopping destination right at their fingertips. Starting tomorrow, StarHub TV, in partnership with Astro Malaysia, will be launching Go Shop (StarHub TV Channel 110), a 24-hour, Mandarin shopping channel. Go Shop will also be made available on StarHub Go, StarHub’s video streaming service, by early next year.

    Customers in Singapore can now immerse themselves in a shopping experience that is differentiated, hassle-free and convenient, anytime anywhere. Through Go Shop’s fun and informative TV demonstrations, customers can understand the benefits of each product in-depth as well as the value of the offer. The well-researched product demonstrations are specially tailored to cater to the preferences and lifestyles of Singapore’s consumers.

    Targeted at StarHub’s audiences as well as connected online and mobile shoppers in Singapore, Go Shop offerspremium and trusted international brands such as Finn Esker, HappyCall, Kloken and Shogun across various product categories from Living, Beauty, Fashion, Kitchenware and Home Appliances. New product categories such as Digital Electronics, Health and Wellness, Sports and Leisure will be introduced progressively.

    Go Shop is a joint venture between Astro Retail Ventures, a wholly owned subsidiary of Astro Malaysia, and GS Home Shopping, the global leader in TV home shopping. GS Home Shopping has international presence in nine countries such as South Korea, Malaysia, China and Russia. To celebrate its launch in Singapore, Go Shop will be introducing some of its global best-selling items on StarHub TV. These include Age 20s, an award-winning Moisture Compact Foundation from Korea, Hurom Slow Juicer which comes with a low speed rotation to preserve nutrients, and the Roichen Cookware set, made with a safe and natural stone coating.

    To entice consumers, Go Shop will introduce special offers on TV through innovative bundling that cannot be found anywhere else. It aims to offer unbeatable value by combining the main product with other product lines to complement the core offering. For instance, a set of Laneige sleeping masks can be bundled with other items from the same skincare line for a complete, value-for-money deal. Consumers can also look forward to special festive offers from time to time.

    Commenting on the launch, Ms Lee Soo Hui, Head of Content & TV, StarHub, said: “Shopping is a favourite pastime of Singaporeans, whether it is online or at the mall. Go Shop’s extensive catalogue, accompanied with detailed product demonstrations, will enable our viewers to make informed decisions before making that purchase from the comfort of their living rooms. With the upcoming festive season, the timely launch of Go Shop on StarHub TV will enable customers to get a head start on their Christmas shopping!”

    According to Go Shop’s Chief Executive Officer, Grace Lee, “Go Shop is excited to expand our wings to serve customers in Singapore, after seeing our service grow rapidly in Malaysia. We offer a differentiated shopping experience that gives our customers choice, convenience and peace of mind through our entertaining and informative product demonstrations, reputation for providing trusted international brands and products as well as great value from innovative product bundling and free delivery in a matter of days.”

    To make a purchase on Go Shop, customers can order online via www.goshop.com.sg. Payment can be made via selected credit or debit cards. The products will then be delivered to the customer within two to three days with no additional shipping fee. In addition, customers can shop with peace of mind, knowing that sales support does not end at the point of purchase. A group of specially-trained agents called Personal Go Shoppers, will be offering their assistance online or through Go Shop’s hotline around the clock. To start shopping, tune in to Go Shop on StarHub TV channel Ch 110 at 9am tomorrow.

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