Retail News CRM

Author: Mei Ling Tan

  • How Did China’s Retail Sales Look in September?

    How Did China’s Retail Sales Look in September?

    China’s retail sales

    On a year-over-year basis, China’s retail sales showed a strong recovery in September 2016, according to the National Bureau of Statistics of China. The country’s retail sales rose 10.7% in September 2016 compared to a 10.6% rise in August. This reading was above the market expectations of a 10.6% rise, and it was the highest since January 2016.

    How Did China’s Retail Sales Look in September?

    Sector-by-sector performance

    Building material sales rose 14.2%, furniture sales rose 8.7%, home appliance sales rose 8.6%, telecommunications sales rose 5.1%, personal care sales rose 12.5%, automobiles sales rose 13.1%, and cosmetics sales rose 7.7%.

    Economic impact

    The sales improvements in different sectors signify that consumer sentiment is improving. After the slowdown in economic activity in China, the economy is going through a transitional phase. From a manufacturing hub, it’s transitioning to a consumer-based economy. Consumerism will play a large role in the country’s future economic growth.

    Consumption patterns are changing in China’s economy. Chinese consumers are becoming more selective toward the products and services that they use. As China is one of the world’s most important economies, improvement in its growth drivers could aid the global economy.

    In the next part of this series, we’ll analyze China’s monthly new loans in September 2016.

  • Ericsson appoints new CEO

    Ericsson appoints new CEO

    Ericsson has appointed long-time board member Börje Ekholm president and CEO, effective from mid-January.

    Ekholm will replace interim CEO Jan Frykhammar on January 16, who is standing in following the resignation of Hans Vestberg in July.

    Ekholm joins Ericsson from Patricia Industries, a division of Sweden’s Investor – Ericsson’s largest shareholder -where he is CEO. Prior to this he was CEO of Investor AB between 2005 and 2015, and has held positions at companies including Novare Kapital and McKinsey and Co.

    “I am very excited about this opportunity. As the networks and applications become even more important in a 5G connected world, our customers, and the industry, look for continuous innovation,” he commented.

    “I look forward to joining the great team at Ericsson and work closely with existing and new customers around the world in shaping the future of our industry.”

    Ekholm is also a board member of Alibaba and several other companies. He is based in the US, and will stay there when he takes the role. He will retain his position on the Ericsson board.

    Ericsson recently announced plans to cut 3,000 jobs in Sweden as part of the vendor’s ongoing cost cutting program.

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  • SK Telecom Q3 profit falls 15.6%

    SK Telecom Q3 profit falls 15.6%

    SK Telecom has reported a 15.6% year-on-year decline in net profit for the third quarter to 322.1 billion won ($281 million), due to factors including the impact of Samsung’s Galaxy Note 7 recall.

    Operating revenue fell 0.4% to 4.24 trillion won due to a decrease in revenues at retail unit PS&M following the recall. ARPU also declined 2.1% year-on-year and 0.8% sequentially to 35,471 won.

    But revenue from SK Telecom and subsidiaries SK Broadband and SK Planet all increased quarter-on-quarter, and net income grew 10.7% over the same period due to equity-method income from semiconductor division SK Hynix.

    The operator added around 301,000 new subscribers during the quarter, taking its total to nearly 29.5 million. Of these, over 20.5 million are LTE subscribers, a penetration rate of 69.8% Monthly churn decreased by 0.1 percentage point to 1.4%.

    SK Telecom revealed that its mobile navigation T Map grew to reach 9.18 million monthly users by the end of September, around three months after its launch

    Looking ahead, the operator said it is focused on strengthening its core competitiveness as a mobile network operator, while using its nationwide LoRa and LTE-M IoT networks to deploy services that enhance customer convenience.

    “We expect that our strategy to fully open up major platforms including T Map and T Phone will lead to a successful outcome in the mid-to long-term,” SK Telecom CFO and head of strategy and planning Hwang Keun-joo said.

    “SK Telecom will accelerate its transformation into a next-generation platform company and keep developing customer-oriented products and services.”

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  • Lotte to launch Lotte.vn in Vietnam

    Lotte to launch Lotte.vn in Vietnam

    Korean retailer Lotte is entering the Vietnam eCommerce market with Lotte.vn after six months’ preparation.

    By launching its first online shopping website on October 28, the Korean retailer is expecting to acquire 20 per cent of the online market. And it sees Lotte.vn as completing the full spectrum of retail services: physical stores, TV shopping, mobile shopping and now online.

    Despite joining the market a little later than other eCommerce sites such as adayroi.com and tiki.vn, Lotte.vn has some advantages such as its products being available – and sourceable – from its local Lotte Department Stores.

    According to Lotte.vn GM Seo Tae Ho, all products from the department store will be sold online, with cosmetics and apparel expected to be the two most popular categories.

    Furthermore, Lotte is planning to encourage more purchasing by developing a shopping app for Android and iOS.

    Vietnam is still seen to be a leader in the Southeast Asian eCommerce market in the next five years along with Indonesia.

  • Sa Sa profit drop looms

    Sa Sa profit drop looms

    Sa Sa profit is expected to fall 35 to 45 per cent for the six months ended September 30.

    The Hong Kong-based cosmetics retailer has issued a profit warning, citing a drop in both sales and gross profit margin of its Hong Kong and Macau business, weaknesses in some overseas stores and decline in online profits.

    Meanwhile, the group has recorded a 2.3 per cent decrease in retail and wholesale turnover to HK$1910.9 million (US$246.3 million) for its second quarter.

    In other markets, including China, Malaysia, Singapore, Taiwan and Sasa.com), the group’s turnover fell 2.9 per cent. For Hong Kong and Macau, turnover was down 2.2 per cent to HK$1552 million, total sales easing by 2 per cent while same-store sales were 2.5 per cent down on a year-on-year basis.

    However, there was a 3.9 per cent rise in the number of transactions because of increased traffic growth. The number of transactions of Hong Kong and mainland customers rose by increased by 1.8 and 5.9 per cent respectively, while the average sales per transaction fell by 5.5 and 6.9 per cent respectively.

    Improved sales performances, says the group, were a result of its efforts to adjust product offerings to meet market demand. The resulting change in product mix intensified downward pressure on gross profit margin for the quarter.

    For the National Day Golden Week holiday from October 1 to 7, the group’s retail sales in Hong Kong and Macau had positive growth of 13.8 per cent, with same-store sales growing by 12.4 per cent.

    As at September 30, the group had a total 283 stores/counters, down from 288 at June 30. Hong Kong and Macau has 113 outlets (up one), China 53 (down two), Malaysia 68 (down one), Taiwan 26 (down five). Singapore was steady at 23 outlets.

  • Tokyu Hands opening third Singapore store

    Tokyu Hands opening third Singapore store

    Japanese department store Tokyu Hands plans to boost its overseas sales, which now contribute 1 per cent of overall sales.

    Overseas income for its latest year totalled about 800 million yen (US$7.69 million).

    A third store is opening next month in Singapore, where Tokyo Hands has had managed stores for two years, and next year the group plans to start trading in Malaysia.

    tokyu-hands-artist

    Tokyu Hands opened its first overseas branch in Taiwan in 2000 and now has 15 franchised stores on the island.

    Takenori Tsuji, who heads Tokyu Hands’ international business, says the Taiwan stores are mainly in Taipei with management entrusted to the franchisees, “but we consult on the selection of merchandise and store layout”.

    He says trends in Japan, such as aging consumers, have made it hard for the store to grow domestically.

    Tokyu Hands’ first directly managed store overseas opened in China in 2012, but closed it in January this year. Tsuji says this was a result of management difficulties.

    “It took more time and effort than expected to clear customs when we brought in products from Japan, making it hard for us to sell new products quickly.

    “Some sales people quit soon after being hired, and it was hard to train Japanese employees in the local area.”
    Six months after launching, the store had a temporary sharp drop in sales when relations between China and Japan worsened over the disputed Senkaku Islands. However, full-year sales were “reasonably good”.

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  • Penang outlet mall Design Village about to launch

    Penang outlet mall Design Village about to launch

    Penang will gain its first premium outlet mall, Design Village, next month.

    In Batu Kawan in mainland Penang, it will be the biggest outlet mall in Malaysia. It was developed by PE Land, which owns and runs The Spring shopping mall in Kuching.

    The outlet mall is on a mixed-use site that will include a hotel and high-end condominiums. The single-storey mall has a net leasable space of 400,000 sqft (37,161 sqm) for 150 stores.

    There are more than 80 brands already committed to the mall, which is aiming for up to 100, says Savills Malaysia MD Allan Soo. The company is the international leasing and retail development adviser for Design Village.

    Design Village Malaysia 1

    The mall’s retail mix will be 20 per cent large-format stores, 15 per cent F&B, 7 per cent sports outlets and 5 per cent children’s stores, with 25 per cent new tenants and 28 per cent others.

    It will include the biggest Adidas outlet in Malaysia, plus the first outlet stores for Aldo and Bata. Other retailers include Banana Republic, Guess, Padini Concept Store, Sacoor Brothers, Samsonite and Starbucks.

    The mall will provide daily shuttle services to and from hotels and the airport.

    Design Village GM Aileen Tay says the mall is also working with tour companies to bring in tourists who will be offered rebates through tax-free shopping network Global Blue.

    PE Land is the retail and property development arm of Borneo-based conglomerate Pan Sarawak Holdings.

  • Why Apple China is struggling

    Why Apple China is struggling

    Apple’s sales decline is slowing – but there are several reasons why it is doing so badly in China…

    While the iPhone 7 has not been out long enough to have had a full impact on this quarter’s numbers, it has helped Apple to moderate the pace of revenue decline.

    Even so, global revenues are still down by 9 per cent over last year indicating that Apple is a long way off the steep growth trajectory it once enjoyed. With more investment going into stores, and with those store selling fewer products than they once did, it is not surprising that net income is on the slide. Indeed, Apple will be particularly disappointed with its rare full-year profit decline.

    China is an interesting, and worrying, example of some of these points. Across this quarter Apple saw revenues fall by 30 per cent in Greater China. In part this is down to the fact the market is more mature and ownership of iPhones is higher than it once was. But it is not the whole story: domestic brands like Huawei and Vivo have gained share thanks to the fact that they have, in design and technical terms, caught up with Apple and are now seen more favorably by consumers. In essence, in China and elsewhere, while Apple’s products are still seen favorably, the distance between Apple and its competitors is nowhere near as great as it once was.

    “No longer firing on all cylinders”

    Globally, the change in Apple’s fortunes is partly down to the fact that it is no longer firing on all cylinders. Previously, Apple was able to rely on strong sales of phones, tablets and computers to drive up revenue and profit across all geographies. This is no longer the case. Tablet sales are in decline. Growth from computers, which are long overdue a refresh, is weak. And consumers in some markets are saturated with product which makes growth much more difficult to attain. The latter is exacerbated by the fact that new releases, such as the iPhone 7, have been iterative rather than innovative.

    Unfortunately, Apple’s attempts to add new strings to its fiddle have not counteracted some of the strings that are now playing out of tune. In particular the Apple Watch, while a triumph of engineering, has simply not become a mass market product in the way that the iPhone, iPad, or iPod did. The one bright spot comes from service revenue, which includes streams of sales from Apple Pay, Apple Music and other services, and is up 24 per cent year-on-year. Over the longer term, this is a very lucrative part of Apple’s business and growth story, but it is not yet at the point where it is offsetting revenue declines in other areas.

    Despite this relatively gloomy view, it is important to note that Apple is being judged by its own incredibly high standards. Even with the dips in growth it remains a phenomenally successful business that is far from running out of steam.

    Complexity over simplicity

    That said, there is a complexity creeping into the firm that runs counter to Apple’s underlying philosophy of simplicity. The recent launch of the iPhone 7 in the US is a case in point: the buying process has been dreadful. The cumbersome system of placing orders via the website, where users have had to enter carrier information, has frustrated many customers. Meanwhile the vast array of different models, color options and payment and upgrade methods has contributed to a shortage of the right stock in the right place and has inevitably slowed sales.

    For a brand like Apple these things matter. As the company has always maintained, the experience of purchasing is almost as important as the product itself. While there is no doubt Apple continues to be committed to this mantra – especially with the store upgrades it is now rolling out – it needs to look more carefully at issues of stock availability and to make the purchase process simpler and easier.

    Looking ahead, Apple’s prospects give cause for optimism. In the next fiscal year the company will come up against softer comparatives which will flatter performance. However, the unveiling, later this week, of new computers will help to ease up Mac sales. And as the iPhone 7 becomes more widely available, Apple will receive a nice growth spurt over the holiday quarter.

    Longer term, the company will be helped by the natural replacement cycle of older iPhones as these break, are damaged, or become less attractive to their users. Furthermore, Apple will, at some point, come up with a new phone – or maybe another device – that represents a significant leap forward and puts it on a better growth footing.

    As such, this current period is a hiatus rather than representing a material change in Apple’s long term prospects.

     

    -Neil Saunders

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  • ‘Astonishing growth’ for Chinese FMCG market

    ‘Astonishing growth’ for Chinese FMCG market

    The Chinese FMCG market online has shown “astonishing growth” according to a report by global consulting firm OC&C Strategy Consultants.

    In 2010, the market was worth just US$1.4 billion – today it has exceeded $25.3 billion according to data from Euromonitor. It has far surpassed any other country in the world and is about twice as big as the US.

    But while large, FMCG still has a relatively lower online penetration than other categories in China, providing ample opportunities going forward especially given favourable tailwinds, believes OC&C.

    The report Bits & Bytes: FMCG’s shift to eCommerce in China aims to help FMCG brands understand eCommerce trends in China and thus to derive the best strategy for their target segments in the market.

    “The post-80s and 90s generation in China, who grew up with the internet, are coming of age and entering the workforce, forming families and increasing their need for FMCG. It is unquestionable that they will become an important customer segment and driving overall growth of FMCG eCommerce,” comments the report.

    “Moreover, growth is not only coming from the younger generations. In fact, more people aged between 30 and 50 intend to devote more of their FMCG spending to online channels next six months (Figure 1), suggesting the universality of growth of FMCG eCommerce.

    Figure 1

    “Price and convenience related factors are consistently placed as the top reasons for buying FMCG online in China. Growing middle class want to save money on everyday consumables so they can use these savings towards a better lifestyle including for dining out or buying international fashion brands,” said Jack Chuang, Hong Kong-based partner, Greater China, OC&C Strategy Consultants.

    He says consumers’ need for convenience is fuelling the demand to buy FMCG online anywhere, anytime.

    “All these are favourably fulfilled in China given the rapid development in infrastructure and logistics across the country, with leaps and bounds in both intra-country movement of goods as well as last-mile delivery to consumers. These make online shopping of FMCG easy, inexpensive and fast,” said Chuang.

    When respondents were asked to rate various eCommerce platforms based on their experience, Alibaba’s platforms were neither the most highly rated, nor are they frequently ranked among the top five across selected FMCG categories.

    Figure 2

    However, interestingly, when the survey asked about brand awareness and actual purchases, Tmall and Taobao, under Alibaba, received highest brand awareness and shopper penetration across the major FMCG categories explaining Alibaba’s dominating market share.

    Figure 3

    A third of survey respondents ranked ‘familiarity’ as being the key reason on why they rely so much on a particular online platform. Beyond benefiting from being an early entrant, Alibaba is also able to provide competitive prices, a convenient one-stop shopping destination, as well as a ubiquitous payment system.

    Figure 4

    “Online platforms in China are always fighting for customer traffic and market share, yet consumers often perceive buying on Alibaba a bargain, thanks to its promotions,” added Chuang. “Selling online in China is rewarding yet not easy. Brands can benefit and achieve their online objective through partnering with strategically-aligned platforms and by customising their offerings to cater to various needs of different market segments. In addition, brands need to figure out the level of control and capability which an online store demands, so as to determine whether to establish in-house operations or to rely solely on platforms. Choosing the right model and strategy can definitely make it much more effective.”

    Though Alibaba’s dominance remains undeniable, the online FMCG market is relatively more fragmented than retail in general. Alibaba commands a 52 per cent share in FMCG as compared to 70 per cent of the overall online retail market.

    “Just as you would not depend entirely on one particular store format (e.g. hypermarkets or mom-and-pop stores) as you formulate your offline channel strategy, the same applies to online whereby brands should leverage each platform’s unique strengths, be it its large traffic flow, strong authenticity and quality, more personalised customer service, etc.,” commented, Chuang.

    “At the same time, companies should treat eCommerce not only as a sales channel but also as a platform to build their brand. For example, premium players can build brand awareness to a wide audience by opening a flagship store, while other companies who lacks physical presence in China, can use cross-border platforms to ‘test the water’ prior to their full market entrance. They should also integrate offline and online channels to create a win-win proposition, either through leveraging existing offline infrastructures, such as distributor networks, to facilitate online sales; they may also consider using e-commerce to facilitate offline strategies,” concluded Chuang.

    The study canvassed 4600 respondents from 16 cities across China, looking into 13 selected sub-categories across infant milk formula, packaged food and soft drinks, alcoholic beverages, and beauty and personal care, from August to September 2016.

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  • Hokkaido Baked Cheese Tart heads to Australia

    Hokkaido Baked Cheese Tart heads to Australia

    Food enterprise ST Group has launched Japanese-style Hokkaido Baked Cheese Tart outlets in Australia.

    Using a traditional recipe involving three cheeses from Japan’s dairy heartland of Hokkaido, the tarts have already been introduced in Brunei, Indonesia, Malaysia, Shanghai and Singapore. Six outlets are planned for Australia, three in Melbourne to be followed by three in Sydney next year.

    The first Hokkaido Baked Cheese Tart stores launched in Malaysia this year, selling up to 20,000 units a day.

    Designed by Eat Architects, Hokkaido Baked Cheese Tart kiosks are compact with a luxury aesthetic, featuring marble benchtop displays and low-slung designer lighting. The tarts are displayed like precious gems.

    ST Group MD Tatt Ghee Saw says Australia’s multicultural society is continually evolving, along with its palate and cuisine preferences. “At ST Group we are passionate about sharing the foods we love in Southeast Asia. ”

    Tatt Ghee Saw

    He established the group in 2011, recognising the need for comforting cultural eateries, much like the hawker’s markets and corner laksa stores of his native Kuala Lumpur.

    His first venture was PappaRich in Melbourne, which attracted long queues. It is now a major franchise enterprise with 26 stores throughout Australia and New Zealand. The group’s other brands are NeNe Chicken, Gong Cha (New Zealand only) and iDarts Australia.

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  • Sales edge up for L’Occitane International

    Sales edge up for L’Occitane International

    Group net sales grew by 1.3 per cent for cosmetics and wellbeing products retailer L’Occitane International for the six months ended September 30

    This figure was at constant exchange rates, being 0.9 per cent at reported rates – both an improvement from the first quarter. The company says this was mainly because of the contribution of stores opened last year and this year, marketplaces, wholesale and distribution.

    L’Occitane’s emerging brands also showed encouraging growth.

    Japan’s growth rate of 15.9 per cent was a result of the strengthening yen, while local currency growth in China accelerated slightly to 5.4 per cent despite severe weather creating a challenging retail environment.

    Overall growth was hindered by sluggish retail sales in some markets, including Hong Kong.

    The group’s net sales at reported rates were €551.7 million (US$600.7 million), up 0.9 per cent over the same period last year. At constant exchange rates, sales growth was 1.3 per cent. Both are an improvement from the first quarter.

    For the six months, sell-out sales accounted for 72.6 per cent of net sales, amounting to €400.5 million, growth of 0.6 per cent. This was mainly contributed by non-comparable stores and other sales, including new and renovated stores, marketplaces, and cafe and spa businesses.

    Altogether these posted 13.7 per cent growth at constant exchange rates.

    Compared to the same period last year, the group’s eCommerce channels grew by 6.8 per cent to reach 10.1 per cent of total retail sales. Same-store sales fell 2.5 per cent through uncertainties brought by the weak global economy, threats of terrorist attacks in France and other European countries, economic uncertainties in the UK, the depressed retail market in Hong Kong as well as severe weather in some markets.

    Sell-in sales of €151.1 million accounted for 27.4 per cent of the group’s total sales, an increase of 3.2 per cent over the same period last year. This was primarily driven by the dynamic growth in wholesale and distribution channels of emerging brands, in particular Au Bresil, Erborian and Melvita.

    China was among the countries with highest sales growth in local currencies – 5.4 per cent, despite severe weather in the second quarter. This was mainly because of new stores, marketplaces and B2B.

    With the stronger yen, sales growth in Japan was 15.9 per cent.

    During the six months, the group maintained its selective global retail expansion by adding 32 stores, compared with 57 in the same period last year.

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  • Can This British Retailer Conquer China?

    Can This British Retailer Conquer China?

    New Look, a fast-fashion retailer bearing a striking similarity to Forever 21, is aiming to boldly go where many chains have gone before but few have succeeded.

    The British retailer’s chief executive officer, Anders Kristiansen, has made no secret of his intentions in China, announcing plans in June to open 50 more stores there by March, which would bring its total number of locations in the Asian nation to 150. That’s 10 times the number of stores it had in China in 2015. But a Reuters report last Thursday revealed that New Look’s owner, South African billionaire Christo Wiese, has a more ambitious expansion in mind—500 stores within three years.

    New Look currently has more than 850 stores around the world, two-thirds of which are in the U.K. Despite a challenging first quarter that saw revenues fall 4.2% to 354.2 million pounds ($431.9 million), Kristiansen insisted the retailer would stay the course in China, where there had been a “strong local reaction to our affordable, fast-fashion offer.”

    According to Reuters, Wiese plans to conquer the Chinese market using a local-for-local manufacturing model, meaning most of the clothing it will sell in China will be made there to ensure locally relevant products are delivered to stores quickly. It’s a sourcing strategy that Zara owner Inditex has down to a tee and many other companies, including Under Armour, are trying to replicate around the world.

    “South Korea and Japan drive a lot of the trends that the Chinese customer seeks, so our ability to be able to identify those trends, source them locally and get them into our stores quickly is key,” Sven Gaede, managing director of New Look’s international business, told Reuters, adding that 85 percent of what the retailer already sells in China is made there.

    Local sourcing aside, some experts are skeptical about the retailer’s bullish growth plans. Franklin Yao, managing partner at strategy consultants Smith Street, described them as “virtually impossible,” noting that New Look is unlikely to find 500 empty retail stores, given the fact that H&M and Uniqlo also want to open hundreds more locations in China in the coming years.

    That being said, Chinese consumers are notoriously fickle and several big-name brands have failed to gain a foothold there, including Gap, Marks & Spencer and Walmart. In an effort to test the waters before committing to a brick-and-mortar presence, most international retailers first launch on the likes of JD.com or Alibaba’s Tmall and Taobao.

    But New Look appears to be covering all its bases in China: After opening its first locations in Shanghai and Beijing in February 2014, it launched an online store on Tmall seven months later and debuted on JD.com earlier this year.

  • Manhattan Trumps Hong Kong as World’s Most Expensive Retail Market`

    Manhattan Trumps Hong Kong as World’s Most Expensive Retail Market`

    CBRE’s semiannual Global Prime Retail Rents Report found that prime retail rents grew 3.7 percent globally in the second quarter of 2016 from a year earlier, buoyed by consumer confidence in the U.S. and limited supply in Europe’s top retail markets. Regionally, prime rents grew the most in Europe, the Middle East and Africa (up 6.2 percent), followed by the Americas (up 3.9 percent) and Asia (2.1 percent). The report covers more than 90 markets across the globe.

    Prime rents are the highest achievable rents for a retail storefront in a market’s best location with the best quality and specifications of space.

    The perennial top markets for global retail showed substantial divergence in the past year. Prime retail rents on New York’s Fifth Avenue between 56th and 58th streets increased by 14.3 percent in the past year to $4,000 per square foot per year as of this year’s second quarter. Meanwhile, prime rents on Hong Kong’s Russell Street declined by 33 percent to $1,856 per square foot per year amid a slowdown in tourist arrivals from the Chinese mainland and more prudent spending by locals.

    “The cooling off of China’s economy has manifest itself in sharply lower rents in Hong Kong, which has allowed a new crop of retailers to enter the coveted city,” said Anthony Buono, Chairman of CBRE’s Global Retail Executive Committee. “At the same time, prime retail rents in New York can remain stable, but in the near term we will see more landlord concessions to accomplish rate stability. London, however has such scant supply of available prime space that its strong rent growth is likely to continue.”

    In Manhattan, many international and domestic retailers alike are willing to make substantial investments to establish a presence for their brand on the world stage of Fifth Avenue’s priciest blocks. Others are content to gravitate to nearby submarkets that are less expensive but still highly coveted as retail showcases, such as Times Square, Downtown Manhattan and Brooklyn.

    “New York’s high streets have gone through a dramatic evolution in recent years, with rates rising strongly amid a rather ebullient market running from 2013 to late 2015,” said Andrew S. Goldberg, a Vice Chairman of Retail Services in CBRE’s New York City office. “Over the past year, the market has cooled a bit, with increasing availability and more concessions, but it remains resilient. Manhattan, and Fifth Avenue, in particular, is a global showcase where the world’s top brands want to be.”

    Top-10-Global-High-Streets-By-Prime-Retail-Rent-Level.png

    In terms of growth or prime retail rents in the past year, Europe is the story. Half of the 10 fastest growing prime retail rents in the past year came in European markets, led by London with a 53.8 percent increase. The few spaces that come available on London’s high streets are pursued by numerous aspiring lessees, resulting in steep rents.

    Other European markets among the top 10 for prime rent growth are Rome (28.9 percent increase); Milan, Italy (20 percent); Sofia, Bulgaria (12.5 percent); and Warsaw, Poland (11.1 percent). Asia Pacific landed two markets in the top 10: Auckland, New Zealand (23.7 percent) and Sydney, Australia (14 percent). The Middle East had one: Dubai (12.5 percent). And the Americas had two: New York (14.3 percent) and Seattle (11.1 percent).

    Other notable U.S. markets reflected as gainers in the report include Chicago (9.4 percent increase); Washington, D.C. (8.7 percent); Denver (7.7 percent); and San Francisco (3.8 percent). The only major U.S. market to register a decline in its prime retail rent was Miami, which posted a 7.1 percent loss on tempered tourism from Latin America due to challenged economies there.

  • Samsung to roll out Blue Coral Galaxy S7 edge 4G+ in Singapore, US

    Samsung to roll out Blue Coral Galaxy S7 edge 4G+ in Singapore, US

    We’re taking a break from the Note 7 fiasco. Samsung seems to be refocusing its energies in other products and services because really, the damage has been done already. We know the company is already doing a lot of security and extra measures like considering maybe tapping LG for the next flagship’s battery, offering cash discounts, and launching only one flagship annually.

    This time, Samsung has just announced that it’s releasing a Blue Coral version of the Galaxy S7 edge 4G+. The phone will be available soon in a new color variant, giving people another alternative to the problematic Note 7. You see, the S7 edge has always been another option within the premium flagship category even before the Note 7 was launched. The smartphone was introduced in four color options namely Pink Gold, Silver Titanium, Gold Platinum, and Black Onyx and now, it’s getting the stunning Blue Coral.

    The Blue Coral Samsung Galaxy S7 edge 4G+ will roll out starting November 5 with 32GB onboard storage. Don’t be surprised but the listed retail price is a staggering $1,098.

    Samsung announced this color option together with the 2016 version of the Galaxy Tab A 10.1 with S Pen 4G. The two should be available from most retailers and mobile carriers in Singapore initially and then in the United States very soon.

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  • Can’t do without your mobile device? You’re not alone

    Can’t do without your mobile device? You’re not alone

     

    Market research agency Nielsen on Monday says that some 54% of Singaporeans cannot imagine life without their mobile devices and 48% feel anxious without them.

    In addition, Nielsen found that 73% of Singaporeans enjoyed the freedom of being connected anywhere, anytime, while 66% strongly or somewhat agreed that their mobile device had bettered their lives.

    The findings were from a poll of more than 30,000 online respondents in 63 countries, in Nielsen’s latest Mobile Shopping, Banking and Payment Survey. This included 493 respondents from Singapore.

    Nielsen says the proliferation of technology and need for connectivity in their lives has revolutionised the world of retail, and changed the way consumers shop and buy online, as well as perform banking transactions.

    “Mobile devices… are shaping and defining the consumer’s approach to retail and banking, empowering them to demand a more custom tailored experience according to their taste and preferences,” says Joan Koh, managing director, Nielsen Singapore and Malaysia.

    “The need for connectivity and value of convenience has never been greater among Singaporeans,” she adds.

    Some 62% of Singaporeans have used their mobile devices to look up product information when shopping and 54% have used their mobile devices to compare prices.

    Close to half, or 49% of consumers, have used their mobile device to research on a product or service within the last six months.

    In addition, some 32% have used their mobile devices to purchase a product or service, and 31% have booked movie tickets, flight tickets or hotel stays through them.

    “The adoption of mobile devices has disrupted the path to purchase of traditional retail channels,” says Koh. “Businesses need to continue to leverage on digital and social media platforms to supplement traditional formats such as television and print media to drive consumer engagement.”

    Growth in access to cashless payments is estimated to lead to US$10 trillion in additional consumer spending over the next decade, according to estimates from The Demand Institute, which is jointly operated by Nielsen and The Conference Board.

    Nielsen says consumers are also adopting digital tools to monitor their spending and manage their finances.

    “We are seeing an uptrend in the adoption of mobile-banking activities,” says Anil Antony, executive director of consumer insights at Nielsen Singapore. “This is further girded by the fact that retail banks are increasingly going digital with their processes and driving automation.”

    Some 41% of Singaporeans say they had checked a bank account balance or a recent transaction in the past six months, while 37% have paid a bill using their mobile device.

    In addition, 36% of respondents have transferred money between bank accounts, and 26% have transferred money using their mobile device directly to another person.

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