Author: Mei Ling Tan

  • Lawmaker wants increase milk production, consumption

    Lawmaker wants increase milk production, consumption

    Legislator of Commission X of the House of Representatives (DPR), Dwita Ria Gunadi wants to increase milk production and consumption because the per capita milk consumption in the country is still lower than other Asian countries.

    “The per capita milk consumption in 2015, based on data from the Agriculture Ministry was only 12.1 liters per annum,” Dwita Ria Gunadi said in a written statement here on Thursday.

    The per capita consumption is still is still lower than the per capita consumption of India, which reached 48.62 liters per annum, Singapores 44.5 liters and Malaysias 36.2 liters.

    Indonesias per capita milk consumption is even lower than that of Thailand, which reached 33.7 liters per annum, the Philippines 17.8 liters and Vietnams 14.3 liters.

    Dwita reminded that the milk imports of Indonesia should meet domestic need, which has exceeded 80 percent.

    “This condition is a cause for concern because our land has potential for developing and breeding milch cows,” Dwita, who is a member of the Greater Indonesia Movement Party, (Gerinda) said.

    She has also started a discourse to boost production though among others, the allocation by local governments of funds to breeders for stimulating milk production.

    It was earlier noted that the fresh milk production of milch cows in the Malang District of East Java, increased from 117,235 tons in 2014 to 132,052 tons in 2015 and during the first semester of 2016 it was pegged at 66,593 tons.

    “In order to increase production and consumption of milk, we provide milch cow assistance to breeders. This year, 92 heads of milch cows were provided, and next year this assistance will continue, but the number will not be as big as this year,” Sudjono, the head of Malangs Animal Husbandry Service, said on November 4.

    He added that over the past five years the number of milch cows provided for breeders accounted for 826 heads.

    The farmers, who got the assistance, were those from milch cow production centers, such as Wajak, Pujon, Ngantang, Poncokusumo and the Jabung sub-districts.

    According to the Cooperatives, Small and Medium-Scale Enterprises (SME) Minister Puspayoga, milch cow farmers must increase and maintain the quality of their milk production. All milk produced domestically, including by members of cooperatives, should be absorbed by the milk-processing industry (IPS) in order to meet the domestic need and reduce imports.

    An executive from one of the countrys food and drinks company, PT Nestle Indonesia, argued that to increase productivity and improve the quality of milk, local milch cow farmers should adopt sustainable breeding practices.

    “The key to increasing production and improving quality is to adopt sustainable breeding practices and to optimize cowshed cleanliness,” R Wisman Djaja, PT Nestle Indonesias director for Sustainability agriculture Development and Procurement Affairs, had said in Malang, East Java last month.

    The government, according to Minister Puspayoga, is now trying to resolve the constraints being faced by milch cow farmers and milk processing industries.

  • Husein airport expected to serve international flights

    Husein airport expected to serve international flights

    Bandung, West Java – Indonesia’s state-owned airport services company, PT Angkasa Pura II, expects the Husein Sastranegara airport in Bandung, West Java, to start handling international flights from Bandung to cities in China or Bandung to Bangkok (Thailand) in 2017.

    “The airport expansion project will be completed by the end of 2016. The new terminal will handle international flights. Among the potential markets is Bangkok or Phuket,” Angkasa Pura II”s general manager Dorma Manalu said here on Wednesday.

    He added that the number of international direct flights from Bangkok and China to Indonesia has been increasing.

    “Currently, the international flights from China are mostly to Manado, North Sulawesi and Pontianak, West Kalimantan,” Dorma noted.

    According to him, nearly a 100 million Chinese tourists are visiting Indonesia every year, reflecting a good opportunity for Angkasa Pura II to start direct flights from Bandung to China or Thailand.

    So far, direct international flights from Husein Sastranegara airport are for Bandung-Singapore, Bandung-Kuala Lumpur and Bandung-Johor Baharu (Malaysia).

    “These are far fewer as of now, considering that the airport is now being expanded. Also, the airport is not too far from Bandung downtown,” Dorma explained.

    Earlier, the management representatives of the Commercial Aircraft Corporation of China (COMAC) visited Kertajati international airport in Majalengka, West Java.

    The President Director of the airport, Virda Dimas, explained that the Chinese corporation management was interested in Indonesia’s aviation industry and wants to confirm its plans to open international flights from the country to Kertajati since there is a fairly large Chinese market.

  • Retail space vacancy expands 8.4% in Q3

    Retail space vacancy expands 8.4% in Q3

    It is the highest vacancy level since 1Q11.

    Island-wide, overall vacancy for retail spaces rose 8.4% in 3Q16, recent figures from Urban Redevelopment Authority showed. According to CIMB, this has been the highest level since 1Q11.

    The brokerage firm noted that well-positioned malls integrated with major transport nodes will continue to withstand this waning demand for retail spaces.

    CIMB noted that this was manifested by the portfolios of CapitalLand Mall Trust, Fraser Centrepoint Trust, Mapletree Commercial Trust and SPH REIT.

    “We expect retail landlords to focus on F&B and retail-tainment/lifestyle offerings to combat the drop in consumers’ purchasing power,” the firm argued.

  • Jollibee Japan opening confirmed

    Jollibee Japan opening confirmed

    Following a signing ceremony in Japan last month, founder Tony Tan Caktiong of Filipino fast-food franchise Jollibee says the group may open stores in Japan in 2018.

    Attending the Jollibee Japan ceremony were the leaders of Jollibee Foods and egg producer Ise Foods, as well as President Rodrigo Roa Duterte.

    Caktiong says he plans to open the franchise to cater to Filipinos either living or visiting Japan, as well as introduce the meals to the Japanese community. He has partnered with Ise Foods in Japan to ensure the food meets local expectations.

    Included in the Jollibee Japan partnership is the setting up of poultry farms in Manila, with the eggs to be used for the hamburger and breakfast meals Jollibee will be serving.

  • Internet Retailing Expo Indonesia Gears Up to Connect Indonesia’s Stakeholders

    Internet Retailing Expo Indonesia Gears Up to Connect Indonesia’s Stakeholders

    The Internet Retailing Expo (IRX) Indonesia, is gearing up to return with a loud bang. The 2ndedition of IRX Indonesia, to be held from 18 to 19 January next year at the Pullman Jakarta Central Park, will once again become the meeting place for marketplaces, multi-channel retailers and online retailers to meet their key suppliers and learn through peer knowledge sharing and best practice implementation case studies.

    IRX Indonesia was launched due to the huge potential of the internet retailing market, as it has started to grow significantly within Indonesia in the recent years.

    In 2017, IRX Indonesia is expected to attract 2000 visitors to an even more diverse exhibition with plenty of value-packed on-floor sessions and 75 leading solution providers in the areas of digital infrastructure and innovation, digital payments, last mile fulfilment and many others. More than 80 multichannel and ecommerce retailers will be sharing knowledge and experience during the six conferences sessions, workshops and clinics at IRX Indonesia 2017. All these under the themes of Connected Store of the Future, Payments & Security, Insight & Experience, Digital Sales & Marketing, Digital Merchandising, Multichannel Operations & Fulfilment.

    “IRX is the leading multichannel event in the retail calendar and takes place every March at the NEC Birmingham, United Kingdom. The UK is the most sophisticated internet retailing market globally. With over 200 exhibitors and 5000 visitors to the show, IRX welcomes retailers and technology providers from across the multichannel landscape,” said Richard Ireland, Managing Director, Asia, Clarion Events Pte Ltd. “Following its great success in 2016, IRX will be running its second show in Jakarta, Indonesia in January 2017 and plans to bring some of the expertise gained from the UK to Indonesia. Our event plans to help retailers looking to establish, along their journey to grow their online retail strategies.”

    Visitors to the event can expect industry tracks featuring a distinguished speaker panel of local and international industry who’s who, including, among others, Roy N. Mandey, Chairman, APRINDO; Ravi Kumar, COO, PT. MAP; Catherine Sutjahyo, CEO, Alfacart.com; Adrian Suherman, CEO, Lippo Digital Group; Aruni Therese Abeyesundere, Chief Marketing Officer, Pizza Hut;; Simon Torring, Regional Head of Merchandising (Digital), Sephora Digital SEA, Ankit Porwal, Business Director, L’Oreal Paris Indonesia; Ashley Amanna, Head of ECommerce, L’Oreal Indonesia; Pankaj Khushani, Head of Media Technology Solutions – SEA, India & Korea, Google; Rizkie Maulana Putra, Head of ECommerce Development, Samsung Electronics Indonesia; Tabah Yudhananto, Marketing Technologist, Digital Marketing, CRM Senior Manager, Blibli.com; and Cam Walker, CEO Indonesia, iflix.

    The conference will feature 6 streams alongside e-Commerce clinics and workshops on the exhibition floor. Special highlights for the event include SME Forum: “Building capabilities in a digital age”; CMO Forum: “The way marketers engage customers”; CEO Panel Discussion: “Omni Channel retailing: Digital Transformation, Customer First”; E-Commerce University; E-Commerce Clinics; Start-up & Innovation Zone: “Enabling Business value with Digital Transformation”; Indonesia – China Cross-Border Ecommerce Pavilion; and 3D VR Shopping Experience.

    IRX Indonesia will feature 50+ exhibitors including 8Commerce, Asian Delker Logistics, ATEX, Cashlez, Detrack, E2Pay, Egentic, ICUBE, Innovecto, Midtrans, MooCommerce, PaketID, Priceza, PT Kam and Kam, PT Kioson Komersial Indonesia, and SAP, and sponsors including BCA, Accenture, Telkom Indonesia, PT Pos Logistics Indonesia, Akamai, Anchanto, Go-Jek, Magento, Manhattan Associates, At Internet, aCommerce, Alto, FedEx, Gift Card Indonesia, Intramega Global, netCORE, Sprooki, and JNE.

  • Retail loss for APAC retailers to peak this holiday season

    Retail loss for APAC retailers to peak this holiday season

    Retailers in the Asia-Pacific region will experience both their highest sales and shrink distributions during the holiday season, according to the 2016 Retail Holiday Season Global Forecast.

    The report boldly predicts that 32 percent of the losses of the region’s retailers will  be due to internal and external theft, with apparel, children’s toys, holiday foods, electronics and cosmetics emerging the favorites among thieves.

    Theft from internal sources (primarily via employee theft and other sales reducing activities) and external factors (primarily via shoplifting/organized retail crime), which is referred to as shrink by retailers, are also forecast to reach 28 percent of annual retail sales.

    The study, underwritten by an independent grant from Checkpoint SystemsInc., was carried out by Ernie Deyle, a retail loss prevention analyst, and provides an analytical view of business risks that major retailers face during this holiday season.

    The 13 markets covered in the report include North America, Europe and Asia, and include the US, Belgium, France, Germany, Italy, Netherlands, Portugal, Spain, UK, Australia, mainland China, Hong Kong and Japan.

    “Building holiday inventories earlier and specifically for high-risk items may lead to increased sales reduction pressures, such as markdowns and shrink throughout the fourth-quarter,” said Mark Gentle, Vice President — Merchandise Availability Solutions Asia Pacific, Checkpoint Systems.

    According to the study, Australia is expected to record the highest shrink loss for this holiday season among all the Asia-Pacific markets surveyed at 35 percent, followed by Japan (31 percent), mainland China (30 percent) and Hong Kong (30 percent). The rate is more than 30 percent higher than the first two quarters of the year.

    In the Asia-Pacific region, the cost of retail loss to shoppers in 2016, as absorbed or passed on from retailers, is expected to be $32 per person on average, of which one-third will be incurred during the holiday season. These increases in losses place an enormous burden on retailers and, ultimately, on honest consumers who pay for it in higher prices.

    “For most retailers, wholesalers and distributors, inventory — including the space to store it — is the largest single cost of doing business. While reducing inventory means lower costs, insufficient inventory leads to out of stock situations, lost sales and unhappy customers. Therefore balancing these two factors is critical to profitability and growth, particularly in omnichannel environments,” said Gentle.

    “The use of advanced data analytic tools, inventory management strategies, along with technologies such as RFID will provide retailers with enhanced visibility to track merchandise as it moves through the supply chain to distribution centers, retail backrooms, and store shelves, helping retailers reduce losses due to shrink and other causes, ultimately increasing the financial contribution of each item.”

  • Marks & Spencer plans to close all stores in Chinese mainland after profits plunged

    Marks & Spencer plans to close all stores in Chinese mainland after profits plunged

    UK retailer Marks & Spencer announced on Wednesday that it will pull out of the Chinese mainland market and close all the 10 stores amid shrinking profits, according to a statement the company sent to the Global Times on Wednesday.

    “Our review has shown that our stores in Chinese mainland continue to make losses and as result we can no longer trade with a store presence in the Chinese market,” Adam Colton, managing director of Greater China at Marks & Spencer, said in the statement.

    The company didn’t disclose sales revenues in the Chinese mainland market.

    An employee at an Marks & Spencer store in Beijing told the Global Times on Wednesday that he feels sorry about the closures because business in Beijing was quite good and there were a lot of loyal customers. He did not know when his last day of work would be. The 1,500-square Beijing flagship store at the Place shopping mall was opened in December 2015.

    Intensified competition and relatively high prices were the main reasons behind Marks & Spencer’s retreat from Chinese mainland, experts noted.

    “In Chinese mainland, the traditional UK brand did not have much appeal for Chinese consumers. For example, the prices in its food shops were a bit more expensive than even imported food stores,” Wang Xinmiao, a Beijing-based retail industry analyst, told the Global Times on Wednesday.

    In addition, the company did not have much time to cultivate brand awareness and a loyal customer base because the Chinese apparel market had already been saturated with “fast fashion” international brands, such as Zara, H&M, GAP, and Uniqlo, which marched into the Chinese mainland market much earlier than Marks & Spencer, Wang said.

    In contrast, the UK retailer has built a profitable wholly-owned business in Hong Kong in large part because it entered the market as early as 1988, the statement noted. Marks & Spencer is planning to expand its business in Hong Kong by opening more food stores in the near future.

    A customer said he came on purpose to the Beijing shop here after he has known the closure news. He has lived in UK for years and he trusts M&S, and he will shop in Hong Kong after the end of business here.

    The UK retailer has been losing ground in other international markets. In addition to its closures on the Chinese mainland, the company outlined plans to shutter 53 stores in 10 international markets, including seven in France, while pulling out of Belgium, Estonia, Hungary and Lithuania.

    In the first half of 2016, the company’s pre-tax profit plummeted 88 percent to 25.1 million pounds ($ 31.39million), down from 216 million pounds in the same period a year ago, as reported by BBC on Wednesday.

  • Korean wealthy individuals to jointly buy a Homeplus store

    Korean wealthy individuals to jointly buy a Homeplus store

    A group of affluent individuals would come up with 90 billion won ($75.5 million) to jointly own a Homeplus Co. superstore outlet in the suburban city of Pyeongchon, Gyeonggi Province, evidence that retail investors are joining their institutional counterparts in search for alternative investment options amid prolonged low-interest rate environment.

    According to investment industry on Tuesday, Vestas Investment Management Co. was named as a preferred bidder to buy Homeplus’s Pyeongchon branch from Alpha Asset Management Co. The purchase price is expected to reach about 90 billion won.

    homeplus

    Vestas, a Seoul-based investment manager that specializes in real estate investment, will be creating a private equity fund in hands with wealthy retail investors for the takeover deal, raising 30 billion won through the individual investors and borrowing the remainder from financial institutions.

    The investment manager tapped demand from retail investors through preferred client service centers of banks and brokerage houses in affluent neighborhoods in Seoul last week. There are many clients who are seeking medium-risk and medium-return private equity investment products amid low-interest rate environment and they are willing to invest up to billions of wons, said a preferred client service center officer who asked to be unnamed.

    The elite client banking and brokerage service centers are planning to offer the real estate private equity fund from mid-November until the end of this year. The fund limits the number of retail investors to 49, requiring each individual to invest roughly 600 million won in average. Vestas Investment Management expects its real estate private equity fund to become popular among well-to-do retail investors as it carries lower risk compared to securities and delivers higher profits than bonds. This would be one of very few cases in Korea that a small group of rich individuals taking over a large-sized hypermarket by creating a real estate fund, market experts said.

    The Homeplus Pyeongchon branch is in Pyeongchon, a new town located on the southern outskirt of Seoul. The superstore with a total area of 28,582 square meters is four floors high above ground and two floors below. Sitting near a large-sized residential district with easy access to public transportations, the hypermarket outlet has steadily generated profits since it opened in 2008. The retail outlet is attached to a 12-year lease contract with household name Homeplus and it expects to deliver profits with annual return rate of between 5 and 6 percent.

  • Alibaba Singles’ Day to extend beyond mainland China

    Alibaba Singles’ Day to extend beyond mainland China

    Alibaba’s Singles’ Day – now dubbed 11.11.Global Shopping Festival – is set to expand into international territories for the first time this year.

    The online retail giant founded by Jack Ma plans to use the celebrations around the event and its catalogue of data to target shoppers in Hong Kong and Taiwan.

    Next year, Alibaba plans to target Southeast Asia too.

    The sales-shopping frenzy, which is poised to lure millions of Chinese buyers and has been extended to 24 days, commences on Friday morning.

    American singer Katy Perry and boy band One Direction have been lined up to perform at the countdown gala in Shenzhen, near Hong Kong, on Thursday.

    The biggest Singles’ Day yet

    Chinese websites are preparing to smash Singles’ Day records

    Singles’ Day began seven years ago and involved only 27 merchants, but since then the event has ballooned.

    Last year Singles’ Day raked in $14.3bn in sales, more than the combined online sales over the five-day period covering Thanksgiving, Black Friday and Cyber Monday in the US – $11.1bn.

    Chinese websites are preparing to smash singles day records

    According to global delivery firm Fastline International, Singles’ Day sales will soar by 50% this year – rocketing to $21.45bn and eclipsing Black Friday.

    “Such is the growth in China’s home shopping market,” said Fastline head of consumer research David Jinks.

    “Long gone are the days when Singles’ Day was only celebrated by single male students at Nanjing University. Today it is the biggest sales day on the planet.”

    While the event was not originally invented by Alibaba, the retailer has made it a fixture of the retail calendar.

    Based on an anti-Valentine’s concept, Singles’ Day launches on November 11 (11.11) because of its four single digits. It was historically a shopping day for singles, but is popular now with bachelors and couples alike.

    Singles’ Day and other similar events such as 8.8 have driven the growth of Alibaba, which reported a 55% sales increase in its third-quarter results last month.

  • Food Retail Market Analysis, Size, Share, Development and Demand Forecast to 2020

    Geographically, Asia Pacific dominated the global food retail market in 2014; it is then followed by Europe. Growth of food retail market in Asia Pacific …

  • AEON Provides Privileges for Northern Customer at the 11th Money Expo Chiangmai 2016

    AEON Provides Privileges for Northern Customer at the 11th Money Expo Chiangmai 2016

    AEON Thana Sinsap (Thailand) Public Company Limited will be offering information on its different financial services and special promotions at the 11th Money Expo Chiangmai 2016. Services include Personal Loan, Your Cash, Cash Withdrawal, AEON Credit Cards and Member Cards application service.

    AEON customers who make financial transactions at the expo will also be in with a chance to win a 1-Baht gold necklace, John Lang Ford Bag or AEON Umbrella. Furthermore, AEON customers who has the financial transaction that meet AEON’s conditions will receive Caggioni Luggage or Big C Gift Voucher valued at 2,000 Baht maximum. Additionally, AEON is giving a special interest 0% installment on gold.

    The 11th Money Expo Chiangmai 2016 will be held from Nov 18 – 20, 2016 at Chiangmai Hall, Central Plaza Chiangmai Airport. 

  • China October vehicle sales rise 20% at 2.2 million

    China October vehicle sales rise 20% at 2.2 million

    Passenger vehicle sales in China to retail customers rose 20 percent in October from a year earlier, the China Passenger Car Association (CPCA) said on Tuesday.

    Auto retail sales totalled 2.2 million vehicles in October, CPCA said in a statement on its website. For January-October, passenger car sales rose 15.2 percent versus the same period in 2015, it said.

    The China Association of Automobile Manufacturers, whose statistics are generally viewed as the benchmark for the industry, is due to report wholesale data for October on Thursday.

    The CPCA predicted 13 percent growth in passenger car sales for 2016, state media reported earlier on Tuesday.

  • Vietnam & South Korean businesses signed 10 contracts

    Vietnam & South Korean businesses signed 10 contracts

    The five-day fair themed “Viet Nam-South Korea Cooperation for Mutual Development” was held in the southern province of Ba Ria-Vung Tau.

    Truong Van Thoi, director of the provincial Trade Promotion Centre, said the event attracted some 40,000 visitors who spent over VNĐ6.5 billion.

    Wooden furniture businesses earned the highest revenue totalling VNĐ1.7 billion, followed by firms in textile, garments and the retail sector.

    Meanwhile, South Korean companies posted total revenue of some VNĐ1.1 billion.

    The fair facilitated local enterprises and businesses of both sides to foster their trade promotion activities, share market information and exchange experiences, helping them find suitable partners.

    The event featured 348 booths showcasing products of 194 firms, including 84 from Ba Ria-Vung Tau and 35 from outh Korea.

    Participants brought to the fair various items, including wooden products, handicrafts, interior décor and garments, as well as seafood, plant varieties, cosmetics and other consumer goods.

  • SIA delays launch of Jakarta-Sydney route after Indonesia withdraws approval

    SIA delays launch of Jakarta-Sydney route after Indonesia withdraws approval

    Flag carrier Singapore Airlines (SIA) said on Wednesday (Nov 9) it has delayed plans to launch a new route linking Singapore, Jakarta and Sydney, after Indonesia withdrew its approval due to runway maintenance work.

    The airline had earlier announced that it planned to launch the thrice-weekly Singapore-Jakarta-Sydney route on Nov 23. SIA said Indonesia’s civil aviation authorities had issued written approval, and the airline had secured the necessary airport slots.

    However, Indonesian authorities have informed the airline that they are now unable to approve the flights due to runway maintenance work at Jakarta’s Soekarno-Hatta International Airport, SIA said. The runway work also affects other airlines, it added.

    In response to media queries, the Civil Aviation Authority of Singapore (CAAS) said it was aware of the delay in the launch of the new route.

    “SIA’s new service will enhance air connectivity between Singapore, Jakarta and Sydney, which will facilitate people and trade flows between these cities,” CAAS said.

    “We hope the Indonesian civil aviation authorities can give approval for this new service as soon as possible so that it can be launched.”

    SIA said it will contact customers with bookings on the route and transfer them to other flights. “The airline apologises for the inconvenience caused to our customers,” it said.

  • Indonesia eyes electricity exports to neighboring countries

    Indonesia eyes electricity exports to neighboring countries

    Indonesia plans to sell electricity to Malaysia, Thailand and Singapore as the government is targeting greater profitability from several coal mine-mouth power plants that are anticipated to soon be completed in Sumatra.

    National Development Planning Board (Bappenas) head Bambang Brodjonegoro said the plan was feasible as the power plants would have excess capacity.

    “We can sell the electricity abroad via underwater cables,” the former finance minister said during the ASEAN G2B Infrastructure Investment Forum in Jakarta on Tuesday.

    Bambang said electricity demands were huge in peninsular Malaysia and southern Thailand, where Indonesia could meet those demands at competitive prices.

    “As long as Sumatra’s electricity needs are fulfilled, we can export the excess capacity,” he added.

    President Joko “Jokowi” Widodo’s administration is targeting to complete its ongoing 35,000 megawatt (MW) electricity procurement program by 2019. Of the target, 7,800 MW will be supplied from mine-mouth power plants.