Author: Mei Ling Tan

  • 350 gigabit networks have been launched worldwide

    350 gigabit networks have been launched worldwide

    There have now been at least 350 gigabit-speed network deployments globally across wireline and wireless technologies, according to Viavi Solutions.

    The network testing company’s new Gigabit Monitor database shows that there have to date been a further 164 deployments announced or under construction.

    But Asia is behind the curve in terms of deployments – while North America has the largest share with 61%, and Europe is second with 24%, APAC, MEA and South America together only make up the remaining 15%.

    Fiber is the most dominant gigabit technology, accounting for 85% of launched networks. Nearly all of the remainder, and 11% of the total, are based on HFC, while the final 3% are based on LTE-A.

    Meanwhile 37 operators have announced plans to deploy 5G once the technology becomes available, with five planning a pre-standard debut as early as next year.

    “The gigabit revolution is in full swing and faster speeds can’t come soon enough to feed an insatiable appetite for bandwidth,” Viavi CTO Sameh Yamany said.

    “There are more than 20 billion connected devices and that number is continually increasing. For the consumer, there are obvious benefits. For society as a whole, research also shows that widely available broadband can be a driver for growth and jobs. And with a 100-fold increase in speed, service providers will need to ensure that their ecosystems are ready for the massive network evolution required to deliver the customer experience they envision.”

  • Alibaba sales soar on international expansion

    Alibaba sales soar on international expansion

    Alibaba sales have soared in the first quarter of its new fiscal year, with overall revenue growth pushing even higher than last quarter’s stellar result.

    Streaming entertainment and cloud computing boosted the business, driving revenue up 59 per cent in the June quarter to 32.15 billion yuan (US$4.8 billion).

    In a contrast to the last reporting period, it is international that has shown the most growth, with revenues rising by 123 per cent. Although this figure is aided by the consolidation of the Lazada business, it is also the result of some good numbers from AliExpress.

    That said, China retail remains the largest part of the group, accounting for just over 73 per cent of revenues. Here performance was strong, with revenues rising by 49 per cent – partly thanks to a combination of the addition of 11 million more active buyers and higher average transaction values over the prior quarter. A sharp increase in marketing spend by those brands and merchants using Alibaba’s various sites also made a significant contribution to the hike in revenues.

    Alibaba’s role as a facilitator for Western brands wanting to sell into China continues to be the company’s main commercial advantage. Its ability to work closely with those merchants to improve performance will benefit the revenue streams of both parties, as well as creating a more attractive and compelling offer for consumers.

    Despite its success at home, Alibaba has struggled to gain traction in already established markets like the US. While this was once a stated ambition, and perhaps remains a long term goal, it is off the agenda for the short term. This is the correct strategy: chasing lower margin, profit eroding international gains for the sake of vanity makes little sense.

    That said, this does not mean that Alibaba’s international ambitions are entirely on hold – as the latest results show. Tactically, Alibaba has decided to focus on high growth markets where commerce is more embryonic. The acquisition of a controlling interest in Lazada, the Southeast Asian eCommerce group, is testament to this.

    While Lazada has grown into a sizeable business, it has a number of challenges including on the delivery, payment and fulfilment front, where it has struggled to optimise the offering. Alibaba, through its expertise and financial muscle, should be able to remedy this. It will also, over the medium term, strengthen the international brands available making the site more compelling and interesting for shoppers.

    The Lazada model represents the approach Alibaba is likely to take to international growth and expansion, and this will yield good long term results.

    With both international and domestic sales forging ahead, and with new areas like cloud computing making a better contribution, Alibaba is firmly on an upward trajectory.

  • Google India delivers for food fans

    Google India delivers for food fans

    Working with local partners, Google India has made online ordering and restaurant bookings easy.

    When people use their phones to search Google for nearby restaurants, the search results offer an option to “place an order”.

    By tapping the option, users can choose a delivery service and be taken to its website to complete their order. Users can also make a one-click reservation if they prefer to visit the restaurant.

    Google has partnered with startups Swiggy and Zomato for food delivery, and Bytplus and Dineout for reservations. The services can be used on Google Search and the Google app for both Android and iOS devices.

    “These features are just rolling out and we’ll be adding more partners and evolving the look and feel over time,” Google says in an official blog.

    Earlier, Google Maps stitched in Ola and Uber services on its platform in India, showing fares and riding options from the app-based taxi aggregators.

  • Chooks to Go plans Asian rollout

    Chooks to Go plans Asian rollout

    The parent of Philippine chicken retailer Chooks to Go plans “a massive expansion” of its store network, at home and across Asia.

    “Filipinos overseas will soon have access to their favourite food in the Philippines or wherever they are in the Asian region with the rollout of BAVI rotisserie stores overseas this year,” said Chooks to Go parent Bounty Agro Ventures Inc (BAVI) in a statement.

    “As an industry leader, it is BAVI’s role to continue to growing its chicken commodity business, along with the massive expansion of its various brands of retail stores for freshly cooked products.”

    BAVI currently operates a chain of 1000 Chooks to Go stores across the Philippines, selling fresh oven-roasted chickens and is expanding its portfolio of brands to attract more consumers. Maro, its newest, serves freshly cooked viands in CBDs and universities nationwide.

    The company’s Reyal brand, which launched last year selling ‘butterfly cut’ chicken with honey garlic sauce, chili oil and garlic bits, expects to have 100 stores trading by the end of this year.

    Uling Roasters now has 200 outlets.

    In total, BAVI now operates more than 1300 stores across its brands, and sells about 100,000 chickens a day.

    The company did not reveal how it would enter overseas markets, or which countries were at the top of the priority list.

  • Japanese restaurant operator AP heads to Hawaii

    Japanese restaurant operator AP heads to Hawaii

    Japanese restaurant operator AP Co is heading to Hawaii, planning to open its first outlets in January.

    AP owns more than 200 restaurants in Japan, Singapore and California and plans to take its  Tsukada Nojo and Sushi Maru brands to Waikiki, in the heart of Honolulu’s tourist area.

    The two eateries are an izakaya-style concept, serving small dishes and liquor, and a sushi restaurant, respectively.

    AP entered the restaurant business to create an outlet for produce from its farms and fisheries.

    “They are pursuing the same concept here by working with local farmers now in preparation for their opening next year,” a real estate source told Pacific Business News in an interview.

    The company is listed on the Tokyo stock exchange.

  • Starwood Hotels & Resorts To Debut Four Points Jakarta, Thamrin In The Capital Of Indonesia

    Starwood Hotels & Resorts To Debut Four Points Jakarta, Thamrin In The Capital Of Indonesia

    Starwood Hotels & Resorts Worldwide, along with PT Thamrin Ekspress Indonesia today jointly announced the opening of Four Points Jakarta, Thamrin. The opening marks the first Four Points property in Jakarta, and the sixth in Indonesia. The hotel is part of an approximate 159,000 square foot mixed used development that consists of offices located on the upper floors of the building and the hotel.

    “Built for the smart, independent business traveler, Four Points continues to offer our guests exactly what they need while on the road,” says Vincent Ong, Senior Director, Asia Pacific Brand Management, Four Points. “We are excited to open Four Points in Indonesia’s capital of Jakarta, one of the fastest growing cities in Southeast Asia and continuing the immense growth momentum of the brand in the region and generating a halo-opening effect.”

    Four Points Jakarta, Thamrin features 164 guest rooms with fast and free Wi-Fi throughout the hotel. Guestrooms are fitted with the Four Points brand’s signature bedding, 43” LED flat-screen TVs, and complimentary bottled water. The hotel features an all-day dining venue, which incorporates the brand’s signature Best BrewsTM program, allowing guests to sample a range of local craft and artisan beers. For meetings and events, Four Points Jakarta, Thamrin has three comfortable, stylish meeting spaces totaling 1,615 square feet that overlooks the lively Thamrin business district. The hotel also offers a 24 hour fitness center that is fully equipped with a range of high-endurance and low impact workout equipment.

    Four Points Jakarta, Thamrin is strategically located along Jl M.H. Thamrin at Menara Topas, a major road running through the Central Business District in Jakarta with high visibility for corporate clients. The hotel is located just under one half a mile north of the famous Selamat Datang roundabout near multinational corporate offices, embassies, megamalls, retail shops, restaurants and bars. For guests looking to immerse in the rich history and culture of Jakarta during their stay at the hotel, they can visit Pasar Baru, the oldest shopping center in the city that dates back to the Dutch colonial era, Sunda Kelapa, a 17th century port to see the world’s last wind-powered trading schooners, or take in captivating views from the observation deck at Monas, a National Monument located in the center of Freedom Square. All are located within 7.5 miles of the hotel.

    Starwood Hotels & Resorts is rapidly growing in Indonesia alongside the increasing number of domestic and international travelers. Currently there are 19 properties across Indonesia with 15 hotels under construction. In Jakarta alone, Starwood has five properties representing the Le Méridien, Tribute Portfolio, The Luxury Collection and Sheraton brands, with six more hotels opening by 2020, including the debut of the Westin brand in August, 2016 and the Aloft brand by 2018.

  • Airport offers Hello Kitty flight attendant

    Airport offers Hello Kitty flight attendant

    A Japanese airport is offering simulated around-the-world “jet” trips with a Hello Kitty flight attendant.

    Travel retail group Enleysha Co has opened the Hello Kitty’s Happy Flight amusement outlet along the connecting path on the third floor of the New Chitose Airport‘s terminal building in Hokkaido. It is the first Japanese attraction of its type, with the simulated trip taking visitors to meet Sanrio characters in international settings.

    Hello Kitty Happy Flight Japan airport 1

    The outlet includes a shop selling original products and Sanrio character merchandise, a Sanrio character cafe and a free space where children can play.

    Hello Kitty Happy Flight Japan airport 2

    Visitors enter a projection mapping theatre that presents Sanrio characters in Europe, the South Pole, America and Asia. There are also photo ops with the characters.

    On the third floor of the terminal, the attraction covers 1290 sqm along the Smile Road connecting path. There is an admission fee, and regular visitors can buy an annual passport.

  • LTE-A reaches mainstream adoption

    LTE-A reaches mainstream adoption

    LTE-Advanced deployments have reached the mainstream adoption phase, according to the latest GSA figures.

    LTE-Advanced now accounts for 147 of the 521 commercial LTE networks that have been launched worldwide, while LTE-Advanced Pro is used in a further 9, according to the GSA’s latest Evolution to LTE report.

    The TD-LTE standard has seen 78 commercial deployments in 46 countries, and 82 operators have now commercially launched VoLTE in 43 countries, the report shows. A total of 146 operators in 68 countries are investing in VoLTE deployments, studies or trials.

    Meanwhile LTE deployments are continuing at a rapid pace, with 74 mobile operators having launched the technology since the beginning of 2016. The newest markets for LTE mobile broadand include Bermuda, Gibraltar, Jamaica, Liberia, Myanmar, Samoa, and Sudan.

    The GSA has now raised its forecast to predict that there will be 560 LTE networks in commercial operation worldwide by the end of the year.

    The 1800-MHz band continues to be the most widely used in commercial LTE networks. It is in use by over 47% of LTE deployments in 110 countries.

    LTE’s device ecosystem is also continuing to expand, with the GSA calculating that there were 5,614 announced LTE user devices by late June.

  • Jamie’s Italian Opens First Restaurant in Thailand

    Jamie’s Italian Opens First Restaurant in Thailand

    Jamie’s Italian, a partnership between British celebrity chef Jamie Oliver and his mentor, Gennaro Contaldo, continues its expansion across southeast Asia with its first restaurant in Thailand, set to launch in Bangkok in the fourth quarter of this year.
    The family ­friendly Italian restaurant will open its doors at the newly­renovated Siam Discovery mall, situated in the heart of Bangkok’s shopping district and proudly brought to you by Hotel Properties Limited and Siam Piwat. Guests can expect Jamie’s Italian Siam Discovery to offer delicious, homely Italian cooking with a Jamie twist.

    Living up to the restaurant chain’s philosophy of serving amazing, affordable food in a casual setting, the latest Jamie’s Italian restaurant will embody a relaxed, buzzy vibe for a comfortable dining experience.

    10 Interior at Jamie's Italian restaurant

    The space will boast a tasteful mix of rustic, reclaimed timber refectory tables, industrial­chic zinc tables and vintage upholstered lounge chairs, with monochromatic and hand­painted floral tile flooring adding graphic impact to the restaurant interior. To add warmth, the dining area will be illuminated with brass spotlights, vintage enamel shades and a textured glass chandelier.

    Guests will be able to watch their antipasti planks being made before their eyes at the antipasti counter in the main dining room, or hang out for a pre and post meal tipple at the bar.

    Jamie’s Italian is all about fun, accessible dining. Menu highlights at Jamie’s Italian Siam Discovery will include the famous antipasti planks, perfect for sharing. Placed on large wooden boards supported by tins of tomatoes, the impressive platter allows guests to pick

    from a wide selection of fresh, cured and pickled antipasti, including Italian­style cured meats, buffalo mozzarella and aged pecorino cheese, chilli jam, pickled green chillies, Gaeta olives, caper berries and a crunchy salad of shaved root vegetables with chilli, lemon and mint.

    All pastas will be freshly made on­site daily. The old­school classic, Tagliatelle Bolognese, features handmade pasta, tossed in a rich ragu of beef, pork, herbs, Chianti and Parmesan and finished with crunchy, herby breadcrumbs. Our famous prawn linguine is a must try ­ juicy, garlicky prawns in a tasty fish broth with fennel, tomato and chili, topped with lemony rocket. Pizza dough will all be made by hand, and proved for hours before being hand­stretched to create an irresistibly crisp base. The simple but classic Margherita, dressed with a rich San Marzano tomato sauce, creamy bocconcini, shavings of British Cheddar and whole basil leaves, is the perfect choice for pizza purists, while the Funghi Misti is an earthy delight topped with porcini mushroom sauce, roasted herby mushrooms, mozzarella, chervil and tarragon.

    For meaty mains, guests will be able to opt for a Chicken Al Mattone, a traditional Tuscan dish that is made by grilling a marinated chicken under a brick. The weight of the brick ensures that the chicken is pushed further against the grates of the grill, producing a smoky, juicy and intensely­flavoured grilled chicken with an addictively crisp skin.

    As with all Jamie’s Italian outlets, the Siam Discovery restaurant will remain committed to sourcing only the best free­range, sustainable and ethically produced ingredients. The restaurant will also work closely with Thai farmers to showcase local, sustainable produce at its Bangkok branch.

    Jamie said: “I’m hugely excited to be taking Jamie’s Italian to Thailand. Bangkok is such a vibrant, buzzing city with a really fantastic food scene, I’ve no doubt that it will be a brilliant addition to
    the Jamie’s Italian family. We’ll be sourcing lots of beautiful, top­quality local produce, and cooking up some incredibly tasty food, and all at a reasonable price. I can’t wait for it to open”.

  • Telkom Provide Internet Support to SMEs

    Telkom Provide Internet Support to SMEs

    PT Telekomunikasi Indonesia or Telkom will provide high-speed Internet access, from 10-100 megabytes per second (mbps) to support micro, small, and medium enterprises (SMEs). Telkom will also provide training programs and preparation for the Smart Business application as forum for SMEs to work together and promote their businesses.

    The program is part of Telkom’s partnership with the Cooperatives and Small-Medium Enterprises Ministry for the ‘Digital SME Village’ program. The partnership is aimed at increasing SMEs’ digital penetration level by optimizing the role of Integrated Business Training Centre (PLUT).

    “It is also to improve the marketing quality and access of cooperatives and SMEs’ products,” the ministry’s deputy for restructuring Yuana Setyawati said last Friday, August 12, 2016.

    To help SMEs raise their product sales, Telkom has prepared an online transaction facility with in collaboration with blanja.com and Jarvis Store, using the online payment services provided by Pay Fin.

  • Malaysians keen on investing in commercial properties in Australia

    Malaysians keen on investing in commercial properties in Australia

    Malaysian investors in Australia will most likely focus on commercial properties with the implementation of new tax rates targetting foreign buyers of residential real estate, according to Knight Frank Australia.

    The property consultancy, which recently organised a roadshow to gauge investors’ sentiment, noted that the Australian property market remained a key attraction for Malaysian investors despite the recent changes to the country’s property tax law.

    “Despite the recent stamp duty changes imposed on foreigners purchasing residential property, interest from Malaysian private and institutional investors is remarkably strong,” Knight Frank head of commercial sales Paul Henley said in a statement.

    “We expect many commercial, hotel and retail assets transactions from Malaysian investors over the next year.

    “These assets are not impacted by the tax changes, and some residential specialists will still show interest at the right pricing metrics to build scale,” he added, referring to SP Setia Bhd’s recent purchase of an office tower at 288 Exhibition Street, Melbourne, for A$101mil ( S$104.3mil) as an example of the growing interest of Malaysian investors in Australia’s commercial property sector.

    In an effort to limit the amount of foreign money coming into its real-estate market to keep home prices from rising further, the Australian government had implemented new tax laws targetting foreign investors.

    These changes included a stamp duty surcharge of up to 7 per cent of residential real estate, and an extra 10 per cent withholding tax for a property with a market value of more than A$2mil.

    According to Henley, the Australian property market remained attractive to Malaysian investors due to its strong underlying economic fundamentals, including a record-low interest-rate environment.

    Malaysian investments in Australian real estate had averaged at A$750mil over the past six years, although deal flow had not been as prevalent over the past year.

    “With interest rates having dropped to their lowest ever, and a stable political scene with the Federal election result, combined with an ever-growing population, Australia is well-positioned for offshore investors,” he said.

    Separately, Sarkunan Subramaniam, Knight Frank’s managing director for Malaysia, said there was a close connection between Malaysia and Australia because the latter is one of the preferred education and tourism destinations for many Malaysians.

    “Many Malaysians travel there for education… 77 per cent of Malaysia’s ultra-high net worth individuals are expected to send their children abroad for university over the next year,” he said.

    In addition, Sarkunan said there was a growing number of Malaysians visiting Australia, with the rate having risen by more than 40 per cent over the past three years.

    Meanwhile, Knight Frank head of research and consulting Matt Whitby said UK’s referendum to leave the European Union, or Brexit, would likely accentuate global capital flows into Australia.

    “I expect Australia to benefit from Brexit and other global uncertainty, as it remains a safe-haven for investors.

    “With volumes slowing over the past quarter, mainly on the back of limited supply of assets, I expect Brexit will accentuate the capital flows into Australia and volumes will pick up in the second half of 2016,” Whitby said.

    “Australia’s economy is the envy of the developed world, growing at 3.1 per cent as at the March 2016 quarter. Sydney and Melbourne are driving performance, while our population is strong, with a growth average of 1.5 per cent across the country,” he added.

     

  • Report: Chinese Shoppers Make 40 Percent of Luxury Purchases Abroad

    Report: Chinese Shoppers Make 40 Percent of Luxury Purchases Abroad

    Chinese travelers are spending billions of dollars abroad, but where exactly are they making their luxury goods purchases? A recent report titled “Who Buys Where: Decrypting Cross-Border Luxury Demand Flows” by digital direct marketing services provider ContactLab and Exane BNP Paribas Research maps out spending patterns by tourists from all over the globe based on three years of data. ContactLab’s research ranks Chinese travelers second in terms of the proportion of spenders who buy luxury goods abroad, finding that 40 percent of Chinese consumers’ luxury spending occurred overseas in the first part of this year.

    chart

    While Chinese consumers spend most of their budget on luxury items abroad, this year, overseas spending dropped 5 percent, but rose 5 percent domestically. ContactLab attributes this to price corrections by major luxury brands on the mainland. For example, last year, Chanel lowered its mainland China prices to encourage Chinese shoppers to purchase there, and deter daigou sellers from benefiting from purchasing cheaper goods abroad.

    How much Chinese spend abroad may provide some insight into exactly who these consumers are. The value of purchases Chinese travelers make in “European Heritage” countries, the United States, and Japan is significantly lower than it is in China—by 20 to 30 percent. ContactLab says this suggests big spenders in these countries are “aspirational first-time buyers.”

    However, despite individual purchases being lower overall, Chinese luxury spending in Europe “appeared to be rising” in the first four months of 2016 compared to the same period two years before, according to the report. This was the case even factoring in the Paris terrorist attacks in late 2015. The increase takes place “possibly because our data includes also a portion of daigou spend (eg Chinese students in Europe whose visas don’t allow tax free refunds, and which are therefore not captured by Global Blue statistics),” said ContactLab senior advisor Marco Pozzi. “If this is what we see in the wake of the November terrorist attacks, then 2H16 could reasonably expected to be even more positive.” It’s still worth noting that since the release of the report last month, there have been further attacks in Europe and numerous luxury brands have reported that they are feeling the repercussions of waning Chinese tourists in light of security concerns.

    In Asia, Chinese tourist luxury spending has also gone up in the last few years in Japan and Korea. In Japan’s case, Chinese travelers make up the majority of the luxury purchases, even though inbound tourists only make up about 5 to 15 percent of sales in the country overall.

    The report also confirms known trends in Hong Kong and Macau’s luxury retail industry. This year, Chinese consumers have done almost the same amount of luxury shopping in Japan, Taiwan, Singapore, and Korea combined as they have done in Hong Kong and Macau. Chinese tourists went from spending 70 percent of their luxury goods budget in Hong Kong in the first four months of 2014 to spending 35 percent in the same period this year. Hong Kong’s luxury retail industry has been struggling with the absence of Chinese tourists and developers are being forced to find alternatives to high-end stores to attract shoppers. This month was the first in over a year where Hong Kong finally experienced a rebound in tourists from the mainland.

  • Mainland China retail sales growth slows in July

    Mainland China retail sales growth slows in July

    Mainland China’s retail sales growth slowed sharply in July, statistics showed Friday, missing expectations in a disappointing sign for the world’s second-largest economy as the mainland China authorities look to consumer demand to push growth.

    Retail sales rose 10.2 percent in the month, the National Bureau of Statistics (NBS) said, a marked slowdown from June’s 10.6 percent increase and below the median forecast of 10.5 percent in a Bloomberg News poll of economists.

    Beijing is looking to retool the economy from a reliance on investment spending and exports to one driven more by consumer demand, but the transition is proving bumpy and gross domestic product growth is slowing.

    China is a key driver of the world economy but grew at its slowest rate in a quarter of a century last year, and has decelerated further since then.

    Industrial output in the Asian giant rose 6.0 percent in July over the year before, the NBS said, while fixed asset investment (FAI), a gauge of infrastructure spending, rose 8.1 percent in the first seven months of the year.

    Those figures also missed expectations of 6.2 percent and 8.9 percent respectively.

    Analysts were disappointed. Zhao Yang of Nomura called the figures an “across-the-board slowdown” that showed more weakness than expected. The investment figures were consistent with a deep contraction in imports that “points to sluggish domestic investment demand.”

    Looking ahead, factory output will face further downward pressures due to efforts to cut overcapacity, analysts with ANZ Research said in a note.

    Industrial production “may further dampen” this quarter, they added, as a result of flooding around the Yangtze River and suspended factory production in Zhejiang province, one of China’s most developed areas, due to a forthcoming G-20 summit in Hangzhou.

    Unswervingly Advance

    The NBS said in a statement China’s economy was “basically steady” in July but said that “serious disasters” from flooding and high temperatures in some parts of the country caused some indicators to slow.

    “However, overall economic development kept performing in a proper range with steady pace, as a result of stable employment and prices, deepened supply-side structural reform and accumulated new impetus,” it said.

    China should “unswervingly advance” supply-side structural reform and expand aggregate demand, it added.

    NBS spokesman Sheng Laiyun said it was “reasonable” for FAI growth to fall long-term as the economy shifts away from traditional heavy industries toward the service sector, which does not require as intensive investment.

    “The trend is good,” Sheng told a news conference. “Even though economic growth dropped slightly, the economy is stable and making steady progress, and the steady trend toward improvement has not changed.”

    Sheng acknowledged, however, that China faces “downward pressure” from weak global demand as Beijing carries out a marathon effort to nurture consumer-driven growth and reduce reliance on trade and investment.

  • Businesses latch on to Pokemon craze

    Businesses latch on to Pokemon craze

    IT has only been a week since the official release of Pokémon Go in Singapore, but amid the smokescreen of marketing puns and Poké-themed promotions, businesses across different sectors are already reporting an increase in business activity.

    Businesses are riding on the popularity of the augmented-reality game by dropping digital “lures” near their premises to attract Pokémon – and consequently, game fans (along with their smartphones and their wallets) to their locations, in search of digital critters to “catch”.

    It seems to be working, going by the experience of Ion Orchard, City Square Mall and Resorts World Sentosa (RWS), which have had more traffic of late; Wildlife Reserves Singapore, which runs Jurong Bird Park, River Safari, and the Singapore Zoo, joins the fray this weekend by scattering lures in the three parks.

    The key reason behind the success of Pokémon Go’s integration into businesses’ marketing models comes from the game’s augmented-reality aspect, through which the game’s software interacts with the elements of the real world; this is unlike most other games, in which the gaming activity is confined to the native gaming software.

    Businesses have been quick to bring customers into their stores in the real world by clever placement of “lure modules” – digital devices earned in the game app or bought through the game shop – near their establishments.

    Clement Goh, managing director of Equinix South Asia, said: “The game in itself has definitely blurred the lines between the virtual and physical world. Brick-and-mortar shops can leverage the game by using it as a marketing tool . . . to attract footfall.”

    Desmond Sim, head of CBRE Research for Singapore and South-east Asia, said using lures is a low-cost avenue for businesses to reach out to a targeted group of potential customers.

    “There are very low barriers to entry for this game. It does not cost players anything to start playing the game; for businesses, it doesn’t cost much to buy the lures to use at Pokéstops near their shops.

    It is basically cheap advertising for businesses.”

    Ion Orchard and City Square Mall, owned by CapitaLand Ltd and City Development Ltd respectively, have placed lures and launched promotions to attract Pokémon Go players to their premises.

    Ion Orchard’s marketing campaign, called Go@Ion Orchard, has been effective, said Chris Chong, chief executive of Orchard Turn Developments. “Based on the number of Go@Ion Orchard redemptions, we have witnessed healthy spending by shoppers who visited our mall to catch Pokémon.”

    CapitaLand launched an Instagram campaign called #PokemonSTAR, which combines the gaming phenomenon with its rewards programme, Capitastar. The campaign rewards players with points, which can be used to redeem CapitaLand vouchers.

    Teresa Teow, CapitaLand Mall Asia head of retail management in Singapore, said that even though it has been only a week since the game’s release, business activity has noticeably increased in its malls.

    “During #PokemonSTAR, the average daily signups for Capitastar increased 43 per cent compared to July. We have also seen a 33 per cent increase in followers for CapitaLand’s Instagram account, with about 2,000 posts garnered on #PokemonSTAR.”

    City Square Mall said it had a “healthy turn-out” of visitors to the mall when it released its lures on National Day.

    Aside from also planting lures, Resorts World Sentosa (RWS) offered a 10 per cent discount for admission to its S.E.A. Aquarium and Universal Studios Singapore for every five Pokémon caught within an hour on its premises.

    An RWS spokesman said Pokémon Go has generated “significant footfall”. “The lures we are releasing across the resort every day this week, including Universal Studios Singapore and SEA. Aquarium, brought about increased visitorship into the attractions.

    “Pokémon Go enthusiasts also took advantage of the promotions running until this Sunday, with many prolonging their stay on the resort and patronising our retail outlets and restaurants.”

    Wildlife Reserves Singapore will release more than 500 lures at the nearly 70 Pokéstops in the BirdPark, River Safari and the zoo, and offering prizes such as free annual membership and plush toys to visitors who catch eight unique Pokémon in the parks.

    One of the more creative marketing strategies out there was launched by dating app LunchClick, which has run a Pokémon-themed dating event at which singles form teams to try outdoing each other in catching the Pokémon with the highest number of combat points.

    LunchClick chief executive Violet Lim said the response to the event was “overwhelming” – its 50 available spaces were gone in three days; it has since opened more spaces to meet the demand.

    Local telcos Singtel, StarHub, and M1 have also placed lures at many Pokéstops to encourage gameplay, although they say they have not noticed a spike in data-usage among their customers; this is because Pokémon Go’s gameplay is not data-intensive.

    So instead of offering data at discounted prices, the telcos have instead opted for more conventional marketing techniques such as putting lures out to help players catch Pokémon.

    In spite of this, industry watchers cited by OCBC Investment Research Pte Ltd expect data usage to go up by 500MB per month, up from the normal monthly average of 3.3GB.

    Separately, these industry watchers also expect the current Pokémon Go trend to boost F&B sales and retail footfall, since many Pokéstops are around shopping malls and landmarks.

    There were, however, mixed reviews about the game’s overall effect on businesses in the long run.

    CBRE Research’s Mr Sim was optimistic: “The main effect is that the presence and visibility of these shops would increase. While not all Pokémon Go players would buy from these shops, more people will now know about the shop’s existence – this can only help businesses in the long run.”

    Srinivas Reddy, SMU’s professor of marketing, took a more neutral stance: “Because of the geocoding, some businesses are benefiting from the game – in terms of attracting people to their location. It is still unclear if they are able to convert them into purchasers.”

    Arvind Sethumadhavan, chief innovation officer for the Asia-Pacific for Dentsu Aegis Network, said Pokémon Go will have only a marginal impact on business due to the marketing campaigns being unsustainable – because they hinge on the continued popularity of the game.

    He, like Mr Sim, thinks the craze will fade away, like fads.

    Mr Sim said: “The litmus test of seeing whether this will last is in looking at how the game reinvents itself. After two to four weeks, when Pokémon Go players have ‘caught ’em all’, what incentive is there left for them to keep playing?”

  • Twinings enters Myanmar

    Twinings enters Myanmar

    Stephen Twining, a member of the 10th generation of the family that has churned out the premium tea for 310 years, was at the official launch in Myanmar on August 5. He said Myanmar offered a opportunity for high growth, with a large tea-drinking population.

    “Tea is well-loved in Myanmar, so it makes absolute sense for Twinings to be here. I am delighted to experience Myanmar’s unique culture and our shared passion for tea,” he said.

    “Twinings never accepts anything less than perfect. Today, Twinings tea is enjoyed by millions in 116 countries worldwide, including Myanmar.”

    Five labels will be available in the market – Earl Grey, English breakfast, jasmine green tea, pure camomile and pure peppermint.

    Market research was conducted before the official launch and the company decided to award the distribution rights to AB Food |& Beverages and Premium Distribution. The products are now available in supermarkets and gourmet stores in major cities and destinations including Yangon, Mandalay, Nay Pyi Taw, Bagan, Taunggyi, Inle, Ngapali and Mawlamyaing – major destinations for both local and foreign tourists.

    Twining believes that the demand for high-quality tea will rise as the country opens up.

    “We certainly see good prospects here in Myanmar. We will be targeting top hotels. I know Myanmar received nearly 5 million tourists last year. That is also expected to grow a great deal in the coming years. And we will also be looking to partner with supermarkets,” he said.

    Twining said the company would focus on maintaining quality rather than thinking about competition. He believes in taking early-bird advantages.

    “I think we are the first premium fine-quality tea company here. And we will continue to actively promote ourselves. We are working with our retail partners to reach everywhere” in Myanmar, he said.

    Twinings will open a tea parlour in Myanmar in the years to come, as it did in Bangkok.