Retail News CRM

Author: Mei Ling Tan

  • Luxury-brand in China rising from grave

    Luxury-brand in China rising from grave

    Luxury-brand sales are reviving in mainland China, with Macau paying the price.

    As China’s currency depreciates, the narrowing price gap is keeping mainland luxury shoppers at home, further contributing to Macau’s retail slump, reports the Macau Business Daily.

    Some brands in China are expecting this year to return to the figures of their sales peak in 2012, says partner Bruno Lannes of Shanghai-based consulting firm Bain. He says luxury sales in the mainland have risen an estimated 4 per cent after three years of decline.

    According to the latest data from the Macau Statistics and Census Services (DSEC), retail sales of watches, clocks and jewellery have fallen 21.2 per cent year-on-year, with the overall volume of retail sales dropping 5.9 per cent in the third quarter.

    More than 45 per cent of retailers interviewed by DSEC expect their sales volume to decrease for the present quarter. Meanwhile, visitor numbers from the mainland edged up 0.4 per cent year-on-year in October, but have fallen by the same amount over the first 10 months of this year.

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  • Ralph Lauren Hong Kong closes flagship

    Ralph Lauren Hong Kong closes flagship

    Following other international fashion labels, Ralph Lauren Hong Kong has closed its flagship store.

    Four years ago, its then CEO Ralph Lauren said the company was transforming its presence in China, “a region we believe will become an important driver of growth for us over the long term”.

    He was announcing plans to open 60 stores in greater China by 2015. A year after the announcement, the label launched its first men’s flagship store in Asia, in the Landmark Prince’s in Hong Kong’s Central district, and in October 2014 opened a “mansion” store at the Lee Gardens complex, offering accessories, watches and jewellery as well as men’s and women’s fashions.

    Now its 20,000 sqft (1858 sqm) store in Causeway Bay has been closed overnight, with a representative of the brand saying the closure was “part of our strategic and financial plan”.

    “We are redeploying assets to focus on new concept stores and transition away from unprofitable formats and locations,” the spokeswoman says.

    Ralph Lauren will combine its men’s and women’s flagships in the newly renovated Prince’s Building location, she says.

    The move is part of a new strategy from Stefan Larsson, who replaced Lauren as CEO a year ago (Lauren is still executive chairman and chief creative officer). Larsson previously worked for Swedish fast-fashion retailer H&M for 15 years.

    The restructuring will cut more than 50 stores and 1000 jobs worldwide, saving the company between US$180 million and US$220 million a year, reports The South China Morning Post.

    Meanwhile, American fast-fashion label Forever 21 has announced it will close its multi-storey Causeway Bay flagship store. British label Paul Smith has already closed its Times Square store, and Italian luxury clothing and accessories label Tonino Lamborghini has also closed more than 10 stores and in-store counters.

    Abercrombie & Fitch is set to leave its prime location in the Pedder Building in Central, which will leave it without a stand-alone store in Hong Kong. This follows it closing about 50 stores in the US this year. But the US company plans to open a flagship store in Beijing.

  • Alipay reaches Australian stores

    Alipay reaches Australian stores

    Innovative Australian payments provider Quest Payment Systems is launching Alipay in Australian stores.

    Its collaboration with Alipay, the world’s largest mobile and online payment company, will make it easy for Chinese nationals to pay for purchases in-store using their mobile phones, and in their own currency.

    Quest has designed the software to integrate with POS systems to ensure a seamless experience for both retailers and customers.

    Tourism Australia says Chinese visitors spent a record AU$8.9 billion over the 12 months to March this year. On average, Chinese tourists spend about AU$8000 each visit to Australia.

    Quest has already enabled Alipay at select stores within The Chemist Warehouse and My Chemist pharmacy groups, with full rollout planned for early next year.

    Quest innovation manager Luke Fuller says Alipay customers in Australia simply need to scan a code displayed on a payment terminal screen in order to pay from their mobile phone. “It’s simple, intuitive and ensures the customer can see exactly what their purchase will cost in both Australian dollars and their local currency.”

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  • 44 BKK outlets moving ownership

    44 BKK outlets moving ownership

    Bangkok-based IT chain store Com7, under the Banana brand, has taken over 44 BKK outlets from Bangkok Telecom 999.

    The TB184 million (US$5.1 million) deal is a bid by Com7 to drive its expansion into the mid- and entry-level segments.

    “This is our first acquisition for the purpose of pursuing growth,” says Com7 chief executive Sura Khanittaweekul. The roll-out is expected to be completed in the first quarter of next year.

    Com7 will keep the BKK branding on its acquired stores, most of which are in high-density areas. At least 10 of the stores compete directly with Com7.

    BKK Telecom 999 still has 36 BKK branches.

    Sura says the acquisition will enable Com7 to expand more quickly as it will not need to build its own stores. It will be able to tap the mid- and entry-level markets with handsets priced below TB10,000 a unit.

    Com7 aims to expand its retail shops to 500 branches by the end of next year, up from 365. It launched Bananastore.com in August to extend its sale channels online.

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  • China drives Ikea growth

    China drives Ikea growth

    China has been cited as one of the major contributors to a year in which Ikea’s profits surged 19.6 per cent.

    Ikea growth was strongest in China, while the company’s largest markets were Germany, the US, France, Britain and Sweden.

    The Stockholm-headquartered furniture and homewares retailer reported a profit of 4.2 billion euros ($US4.5 billion). Total sales rose 7.1 per cent to 34.2 billion euros for the 2016 financial year ending in August, the company said.

    In the past year Ikea has opened 12 new stores and 19 pick-up and order points worldwide, and in the coming year planned to open its first stores in Serbia and in Hyderabad, India.

    “Growth and profitability give us freedom to choose our own way, the flexibility to move fast and the independence to think and invest long term,” Peter Agnefjall, Ikea Group CEO, said in a statement.

    The retailer registered 783 million visits to its 340 stores in 28 countries during the 12-month period but was also expanding its online offers. In addition, 49 stores are operated by other franchises.

    As part of its efforts to reduce its environmental footprint, the company said it was to invest 1 billion euros in sustainable materials. This included forestry and firms involved in recycling, renewable energy and developing biomaterials.

    It said 71 per cent of the energy it used in 2016 came from renewable energy sources such as solar and wind farms. Ikea plans to be energy independent by 2020.

  • MasterCard Myanmar issues travel card

    MasterCard Myanmar issues travel card

    MasterCard Myanmar and CB Bank have announced their first payment product, a prepaid travel card.

    The CB Bank Easi Travel Prepaid MasterCard is reloadable and is designed for Myanmar residents travelling outside of the country. It is the first such card product for Myanmar and is part of its evolving electronic payments ecosystem.

    CB Bank executive vice-chairman/CEO Kyaw Lynn says the bank continues to pioneer the electronic payments sector in Myanmar.

    Mastercard Southeast Asia president Matthew Driver says that part of the allure of a frontier market like Myanmar is in seeing the vital steps of financial inclusion play out. “By far, most people in Myanmar remain unbanked and don’t have access to financial services, but the payments infrastructure is rapidly developing with ATMs, POS terminals and now prepaid cards.”

    It is expected that more than 500 restaurants, retail outlets and hotels in Myanmar will be accepting payment cards by the end of the year.

    Overall consumer optimism is high in Myanmar (96 points on the latest MasterCard Index of Consumer Confidence). A MasterCard survey has shown that nearly two-thirds of people who have travelled abroad intend to do so again within the next 12 months.

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  • Shinsegae support for handcraft market

    Shinsegae support for handcraft market

    Shinsegae Duty Free has launched Han Soo, an open space where visitors can experience and buy Korean traditional handcrafted items, at Mesa Building mall in Seoul’s shopping district of Myeongdong.

    The 1016 sqm store displays products made by dozens of artisans, including 15 government-certified craftspeople.Works span from simple pottery to furniture, including traditional items integrated with modern elements.

    shinsegae-duty-free-han-soo-2

    Officials expect Han Soo to become an important venue for foreigners wanting to experience Korean traditions and goods. It will offer not only the craftworks, but also introduce the raw materials used to produce them. There will also be special exhibitions.

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  • Cross-border eCommerce ‘set to skyrocket’ in China

    Cross-border eCommerce ‘set to skyrocket’ in China

    Cross-border eCommerce (CBEC) is set to skyrocket in China according to a new report from international think tank Fung Global Retail & Technology.

    To capitalise on this, international retailers need to complement their existing expansion strategy with online sales platforms, says Fung Global MD Deborah Weinswig.

    Cross-border eCommerce is the most efficient platform to reach increasingly affluent and sophisticated Chinese shoppers seeking products from overseas, says the report, The International Retailers’ Guide to Cross-Border E-Commerce in China.

    With Chinese authorities relaxing the rules, online purchases of overseas products are expected to increase to US$285 billion in value in 2018, up from US$136 billion last year.

    As well as authenticity being less of a concern, eCommerce purchases attract less taxes so are cheaper for consumers, writes Weinswig. As a result, it is projected that a quarter of the population will shop on foreign sites or through third parties in 2020, up from 15 per cent this year.

    “We expect CBEC will drive the next leg of eCommerce growth as Chinese eCommerce companies and international retailers launch globalised versions of their portals. By selling through CBEC, international retailers can reach Chinese shoppers regardless of whether or not they have a physical presence in China.”

    China is already the largest eCommerce market in the world, with the use of CBEC via such marketplaces as JD Worldwide and Tmall Global being attributed to the continuing rise of the upper middle class with its growing use of the internet and belief that international brands are of higher quality.

    Regulations formalised

    Most shoppers seek items related to wellbeing such as cosmetics and organic foods, expensive or hard to find domestically, says the report. Many foreign eCommerce companies have launched Chinese websites, and since late 2014 authorities have been formalising regulations including tax reforms and expediting customs clearances.

    Japanese companies in particular are targeting Chinese CBEC shoppers, using mobile apps such as Rakuten and China’s Wandou.

    Choosing the right platform is crucial, writes Weinswig. Options include…

    • Online marketplaces such as Alibaba’s Tmall Global, a third-party eCommerce platform that lets brands open a storefront. International distributors using this platform include Macy’s, Metro, Shiseido and Uniqlo.
    • Online direct sales such as Amazon.cn, Jumei Global Store, Kaola.com (for smaller brands) and Vipshop. Distributors buy from the retailers to resell to consumers.
    • Hybrid eCommerce platforms such as JD Worldwide that combine elements of an online marketplace and online direct sales. JD Worldwide partners include eBay, Lotte, Rakuten and Unilever.
    • Overseas shopping platforms.

    “To succeed in the Chinese market, international retailers are advised to have a strategic plan for CBEC that complements their China strategy,” writes Weinswig. “International retailers will need to decide which cross-border channels to sell on, driven by considerations of each platform’s targeted clientele and product category, costs, track record and suite of value-added services.”

    Fung Global Retail & Technology is based in Hong Kong, London and New York.

  • Gucci Roppongi designed by Gucci

    Gucci Roppongi designed by Gucci

    Just opened, Gucci Roppongi in Tokyo is the first-ever Japanese flagship store designed by Alessandro Michele, the Italian fashion brand’s creative director.

    gucci-new-flagship-store-tokyo-at-roppongi-hills-3

    Covering 228 sqm, the store is in Westwalk Roppongi, Minato-ku.

    gucci-new-flagship-store-tokyo-at-roppongi-hills-2

    It features both women’s and men’s collections including ready-to-wear, footwear, handbags, luggage, accessories and jewellery.

    There are also special items such as exotic clutches and rare Gucci handbags exclusive to the boutique.

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  • Myanmar retail will get investment boost

    Myanmar retail will get investment boost

    Myanmar retail will get a boost from the lifting of US sanctions, opening the way for foreign investment.

    The official end of the restrictions was formalised on October 7 and confirmed by the US Treasury, unblocking sanctioned properties, removing various banking restrictions and reporting requirements for investment. Exporters and manufacturers are expected to be the main beneficiaries, but the retail sector is also expected to see Western brands seeking local partners.

    With the easing of restrictions, local partners will find it easier to find international firms looking to enter the country, but due diligence will be needed as per industry analysts.

    Several brands have already entered the market in recent years including KFC, Pizza Hut and Gloria Jean’s Coffees. Japanese retail company Aeon was the first foreign retail chain to gain access to the market this year. It partnered with Creation (Myanmar) Group to open stores in Yangon and Mandalay.

    In addition, demand for retail space, which is in shortage, is expected to go up following Aeon’s lead. While the trend of shifting from local stores to large retail centers will take time, the pattern is already changing in major urban centers. The wider range of products, particularly foreign brands is expected to further quicken the process.

     

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  • Pizza Hut China debuts robot waiters

    Pizza Hut China debuts robot waiters

    Pizza Hut China has jumped on the robot restaurant bandwagon with its latest Shanghai outlet featuring two robot waiters.

    On the basement floor of the new Shanghai Tower, which as yet only has its observatory open, it is Pizza Hut’s first concept store, PH+.

    Guests are greeted by the two 80cm robots (both named Casper) at the door. The guest’s table number appears on their screen and one of them will lead the diner to their seat.

     

    Diners can place their orders via a display screen. Signature dishes include steaks and soft-shell crab pizza, and there are also special cocktails.

    In May, KFC introduced a high-tech outlet at Shanghai’s National Exhibition and Convention Center, where robots take the orders.

     

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  • Stella Artois opens pop-up Toasting Lounge

    Stella Artois opens pop-up Toasting Lounge

    A pop-up Stella Artois Toasting Lounge has been opened by the Belgian brewer in Pacific Place, Hong Kong.

    chalice-installation_from-the-top

    Until the end of the month, beer lovers and Christmas shoppers can sample a Stella Artois brew and buy the brand’s special Christmas set, exclusive to the lounge. The Christmas set features a limited-edition Stella Artois holiday chalice, which can be engraved on-site with the recipient’s name or a short Christmas greeting. There is also a limited-edition 750ml holiday bottle, which can also be engraved.

    stella-artois-toasting-lounge-in-pacific-place-1

    Both the chalice and bottle incorporate a star in their design, which pays homage to the brand’s origins. The Stella Artois brew was originally created by The Artois Brewery as a Christmas gift for the people of Leuven in Belgium, with “stella” being added to its title as it is Latin for “star”.

    chalice-installation_inside

    stella-artois-bar

    Fun and social social activities are also being offered at the lounge, plus a “happy hour” every day. There will also be surprise happy hours, signalled by the ringing of a bell.

    stella-artois-toasting-lounge-chalice-installation

    Free half-pints are offered for certain social-media activity by guests, plus there are competitions with the limited-edition Christmas Set as a prize.

    There is a special chalice installation where visitors can take selfies including a 360deg. “Moment with the Stars” photo to share on Facebook.

    Open from 11.30am daily until 8.30pm but with specific hours for bar service, the lounge is on Level 1 at Pacific Place.

    stella-artois-toasting-lounge-in-pacific-place-2

  • Changed deal as McDonald’s Corp sells

    Changed deal as McDonald’s Corp sells

    While finalising a buyer for its China and Hong Kong stores, McDonald’s Corp has decided to keep a “significant” minority stake.

    The US fast-food chain has picked a consortium led by private-equity firm Carlyle Group and Chinese conglomerate Citic Group to buy the stores.

    Its decision to retain the minority stake lowered the price tag from the $3 billion reportedly sought. An insider says McDonald’s decided to keep a slice of the business as it wants exposure to future growth in the world’s second-largest economy.

    Meantime, the company will also keep its stores in South Korea, which it previously also wanted to sell, Reuters reports.

    Early this year McDonald’s said it was reorganising its business in the region, seeking strategic partners in China, Hong Kong and South Korea as it switches to a less capital-intensive franchise model.

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  • Asahi Shuzo sake collaborating with chef

    Asahi Shuzo sake collaborating with chef

    Japanese sake maker Asahi Shuzo plans to open a shop in Paris next year in collaboration with French chef Joel Robuchon.

    It will have a bar featuring Dassai sake, with Robuchon overseeing a restaurant that will pair the rice wine with French cuisine.

    It is rare for a domestic sake brewery to open a shop overseas.
    Visiting Tokyo, Robuchon said that Dassai – made in Iwakuni, Yamaguchi prefecture – goes well with his dishes.

    “We want to attract people who do not have any particular interest in Japan,” says Asahi Shuzo president Kazuhiro Sakurai about the restaurant venture. ‘We hope to expand the scope of Japanese food and blend it with local culture.”

    Asahi Shuzo and Robuchon will jointly manage the Paris restaurant. The sake maker originally planned to open an outlet in the French capital two years ago.

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  • Crown brings back Snyder’s of Hanover pretzels to Korea

    Crown brings back Snyder’s of Hanover pretzels to Korea

    America’s all-time favorite pretzel brand Snyder’s of Hanover will re-enter South Korean snack market via local snack maker Crown Confectionery Co., with the salty and buttery biscuit gaining popularity as a tidbit among beer and wine lovers in Korea.

    A pretzel is a type of snack made from sourdough most commonly shaped into a twisted knot and has a salty taste. It remains as an all-time favorite snack in the U.S. and Europe.

    Crown Confectionery on Tuesday said it inked an agreement with Snyder`s-Lance Inc., U.S-based snack maker that owns Snyder’s of Hanover brand along with many other snack labels, to form a strategic partnership. Under the agreement, the Korean snack maker will have exclusive rights on pretzel supplies to sell and distribute the Snyder’s of Hanover pretzels in Korea. The Korean snack maker also plans to gradually increase the volume of cross-selling products with Snyder`s-Lance.

    Snyder`s-Lance first entered Korean snack market with its pretzels in 2007 through a bakery company as its reseller but it was forced to exit the market last year after failing to penetrate into Korea’s bigger retail shops. The America’s number one pretzel brand suffered a disgrace in its first attempt due to the marketing strategy of positioning itself as an assortment of bakery products when it actually is a type of snack, industry experts said.

    The American snack maker posted $1.66 billion in net revenue for the full year 2015 and accounts for a 35 percent of pretzel market in the U.S.

    The demand for pretzels is rising sharply, especially among beer lovers, said an unnamed Crown Confectionery official. The estimated size of pretzel market in Korea is around 40 billion won a year, according to local snack makers.

    The pretzel assortments will hit the shelves in near future through Crown Confectionery’s sales network throughout the country, the official added.

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