Retail News CRM

Author: Mei Ling Tan

  • AirAsia bags two honours at World Travel Awards in Maldives

    AirAsia bags two honours at World Travel Awards in Maldives

    AirAsia has been named the World’s Leading Low-Cost Airline for the fourth year in a row and its maiden title as the World’s Leading Inflight Service at the 23rd World Travel Awards (WTA) Grand Final held in Male, Maldives. Asia’s largest low-cost carrier beat contenders from five continents to secure the award, including Ryanair, easyJet, Jetstar Airways, Southwest Airlines, JetBlue Airways, Norwegian, Kulula, Mango, fastjet, flydubai, Air Arabia, flynas and West Air.

    “What a thrill to win World’s Leading Low-Cost Airline for the fourth straight year. It’s a great honour to round out what has been a great year for AirAsia, not just financially but in terms of recognition from the industry,” Group Chief Executive Officer, Tan Sri Tony Fernandes said today. AirAsia also won the World’s Leading Inflight Service title for the first time ever, beating full-service carriers Etihad Airways, Japan Airlines, Singapore Airlines, Thai Airways, Qantas Airways, Lufthansa, American Airlines and Air Canada. The win builds on AirAsia’s success earlier this year when it secured Asia’s Leading Inflight Service award from WTA for the first time. “I’m also super proud of our first World’s Leading Inflight Service award.

    I’ve always said we have amazing crew and amazing inflight products, and we’ve proven it by beating not one, not two, not three, but eight full-service carriers for the prize,” he said in a statement. He said there are more to come for AirAsia as the airline is always working on more innovations, and not just for inflight. “Right now, we are exploring ways to make the airport experience better. One thing we’re looking at is fast-tracking guests who share their travel profile with immigration authorities. We expect to run the trial at selected airports in Asean in the not-too-distant future, so keep an eye out for it,” he said.

    The WTA serves to acknowledge, reward and celebrate excellence across all sectors of the travel and tourism industry, as chosen by thousands of travel professionals and high-end tourism consumers. Airlines are judged on customer satisfaction and service quality, overall business performance, product innovation, staff relations and development, corporate social responsibility and contribution to local community, commitment to sustainable policies and fulfillment of long-term corporate vision.

    AirAsia is Asia’s leading low-cost carrier, with an extensive network of more than 120 destinations in Asia, Australia and New Zealand, the Middle East and Africa. It is also the only airline to fly direct to all 10 Asean countries, including some 60 unique routes in the region. AirAsia was also named World’s Best Low-Cost Airline for the eighth year in a row at the 2016 Skytrax World Airline Awards in July.

  • EuroShop enters the Indian market

    EuroShop enters the Indian market

    EuroShop Düsseldorf, the leading international trade fair for all investment needs in the retail sector, is entering the Indian market-now touted to be one of the fastest growing retail markets in the world with a volume of 500 billion US dollars. Messe Duesseldorf GmbH, the parent that organises the fair which is globally well known as a trade fair organiser and as a provider of trade fair related services for exhibitors and visitors.

    Under the ‘Mall of Europe powered by EuroShop’ umbrella, the Düsseldorf-based trade fair had recently provided exhibitors the opportunity to participate in the In-store Asia fair in New Delhi in August this year, as a first step into India.

    Messe Düsseldorf has now sealed a close, long-term cooperation deal with In-store Asia organiser, Thought Shows & Events Pvt Ltd, under which they have formed a new company with equal participation between Messe Düsseldorf India Ltd. and In-store Asia called Excosa. The deal which involves retail design and in-store marketing domain related events will see In-Store Asia being organised annually in alternating locations between New Delhi and Mumbai from February 2018 onwards.

    For many years now, In-store Asia has been the largest retail fair for retail design and in-store marketing in the Indian sub-continent, and has been instrumental in bringing these domains’ Indian community onto one platform and enabling them in keeping pace with global trends, innovations and developments.

    “In-store Asia now joins the family of EuroShop, that has been the undisputed leader in this domain for the last five decades”, says Vasant Jante, founder and managing director of In-store Asia. He further explains,”This was the best option to broaden the horizon for the growing In-store clientele to enable new global opportunities in trade, partnerships, new technologies and reaching new markets in this domain. The timing is also perfect considering the healthy growth rate of the Indian retail market which has made it a top location for international investments from global brands and retailers. ”

    An official statement says that ‘for the trade fair organisers from Düsseldorf, the cooperation with the Indian trade fair is the ideal way to tap into India’s national retail scene. It is estimated that retail area in India’s top 7 metropolises will grow to 4.3 million square metres in the next 5 years.’

    Hans Werner Reinhard, managing director, Messe Düsseldorf, recalls,”We met Vasant Jante during a EuroShop presentation in India in 2013. Then in 2015 we experienced In-store Asia live for the first time, and we were really impressed with the fair. More than 5,000 decision-makers from the industry, retail, architecture and banking sectors visit the event, and its offerings range from retail design, lighting, digital signage to POP displays and visual merchandising, as well as retail technology. Excosa will enable us to gain a foothold in a highly exciting, aspiring retail market.”

    Incidentally, Messe Düsseldorf has had its own subsidiary, Messe Düsseldorf India Ltd., with headquarters in New Delhi and a branch office in Mumbai for some years now, and has gathered extensive experience in organising international trade fairs in the country.

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  • South Korea’s Cashless Push Will See Coins Removed From Circulation By 2020

    South Korea’s Cashless Push Will See Coins Removed From Circulation By 2020

    South Korea is the next country looking to go cashless. That in itself may not surprise most people, but the way the government is going about things will raise a lot of questions. It appears the current plan is to force people to hand over all of their physical currency to the central bank. This will not happen overnight, but physical coins are expected to be out of circulation by 2020.

    South Korea Will Use An Aggressive Cashless Strategy

    Various countries around the world are looking at different ways to go cashless in the coming years. Using physical cash can be a burden for both consumers and retailers, while only adding more security risks as well.0. But in most cases, the real reason for going cashless is to make people even more dependent on banks for all of their daily expenses.

    The central bank of South Korea is no different in that regard, as the institution unveiled its plan to enforce a cashless society over the next decade. First of all, they will eliminate all coins from circulation, which they intend to achieve by 2020. Quite an optimistic view, but then again, South Korea is a very different culture compared to most other countries in the world.

    One thing to keep in mind is how the removal of coins from circulation will affect retail prices for goods and services. It is doubtful prices will be rounded down anytime soon, and more expensive goods and services are a far more likely scenario. Whether or not the South Korean population will like that change, remains to be seen.

    To facilitate these changes, the Central Bank of Korea wants consumers to deposit loose changes onto the national T-Money cards. These electronic travel passes can be used for all forms of transportation, including taxi rides. Additionally, several thousand convenience stores in the country accept T-Money as a payment option.

    It has to be said; South Korea may be one of the regions where going cashless will not be a significant change. In fact, there are more credit cards in circulation than citizens. Furthermore, only one in five payments made nationwide occurs through paper money and coins. Phasing out coins should not be a big challenge, but the goal of 2020 may be a bit too optimistic.

    But it appears there is another reason to get rid of physical coins. Credit Finance Institute’s Lee Hyo-Chan told CNBC how it costs more than 10 won to create a 10 won coin. All of the costs associated with the mass minting of coins adds up to over US$40m per year. Additionally, collecting, managing, and circulation of coins incurs, even more, costs.

    Getting rid of cash is a cost-cutting effort, which is understandable. At the same time, banks should not be given even more power of the financial ecosystem than they have right now, as they already have a firm grip on people’s money. Centralization of financial power is never the answer, and going cashless will not necessarily be beneficial to the average consumer from a financial perspective.

  • Banana acquires 44 Bangkok outlets

    Banana acquires 44 Bangkok outlets

    A Bangkok IT store in a shopping mall in Bangkok. The stores will complete their transfer to Banana in the first quarter of 2017.

    Com7, the Bangkok-based IT chain store under the Banana brand, has taken over 44 BKK shops from Bangkok Telecom 999 for 184 million baht in a drive to accelerate its expansion into the mid- and entry-level segments.

    “This is our first acquisition for the purpose of pursuing growth,” said Sura Khanittaweekul, chief executive of Com7.

    The move is a reflection of how medium-sized IT retail chain stores in Thailand are trying to survive the hyper-competitive handset sales market.

    Small retail chains are being forced to close their shops because they cannot compete directly with cash-rich large stores.

    The process of transferring BKK’s shops will begin on Dec 1 and is expected to be completed in the first quarter of 2017, Mr Sura said.

    Com7 will operate the acquired 44 stores under the BKK brand, most of which are located in high-density areas. At least 10 BKK shops (out of the 44 acquired stores) compete directly with Com7.

    BKK Telecom 999 sold 44 branches out of its 80 shops.

    Mr Sura said the acquisition will enable Com7’s expansion strategy to grow faster, as the company need not build its own stores, which takes time and planning.

    The average size of a BKK shop is 30-70 square metres, while the average size of a Banana shop is 100 sq m.

    He said the acquisition of the BKK shops will enable Com7 to penetrated untapped mid- and entry-level markets, with handsets priced below 10,000 baht each.

    “Returns on the acquisition can be expected over the next 3-4 years,” Mr Sura said.

    Most Com7 branches are situated in prime locations in department stores serving premium customers with high purchasing power.

    Thailand’s smartphone market is quite mature. There is still an extensive demand in the mid-level handset segment in the replacement market.

    Com7 aims to expand its retail shops to 500 branches by 2017, up from 365.

    In August, Com7 launched bananastore.com to extend its sale channels online to capitalise on new-generation customers who lead the digital lifestyle trend.

    “We aim to have 1 billion baht in total sales revenue in 2017,” Mr Sura said.

    Com7 expects revenue to grow 10% to 17 billion baht this year. Of the total, 35% will come from sales of mobile phones, 30% from computers, 10% from tablets and the rest from accessories.

  • Mercedes Benz Japan sells noodles

    Mercedes Benz Japan sells noodles

    German luxury car dealer Mercedes Benz Japan has opened a restaurant in its Tokyo showroom.

    But diners can forget caviar – bowls of noodles are the order of the day with a choice of two varieties of ramen, largely considered cheap, fortifying comfort food in Japan.

    All lit up for Christmas, the restaurant is in the showroom of Mercedes Connection Tokyo in the swanky Roppongi neighbourhood.

    mercedes-benz-japan-sells-noodles

    In its usual offhand style, Rocketnews sent its intrepid reporters to test drive the restaurant…

    “While our paychecks put us in less expensive transportation than what is parked in the showroom, we could afford to try both varieties of Mercedes-Benz ramen, which are identically priced at 1200 yen (US$10.60).

    mercedes-benz-japan-sells-noodles-1

    “We started with the Umi (‘ocean’). True to its name, it has a seafood-based broth, made in the Frenchfumet de poisson style, and the nautical theme continues with a pair of scallops being the star toppings. The thin noodles tasted great with the broth, which had notes of grilled fish in its flavour profile.

    “With grilled fish and rice being such a common meal in Japan, we couldn’t resist putting our grilled rice ball, which comes with the Umi ramen, into our leftover broth, providing an excellent finish to the first act.

    mercedes-benz-japan-sells-noodles-3

    “Moving on, the Riku (‘land’) was the polar opposite to the Umi. Even the colour schemes of the bowls are reversed. The noodles are much thicker, and the broth is made from duck ham. It is flavourful and delicious, with no hint of gaminess.

     

    mercedes-benz-japan-sells-noodles-4

    “Instead of a grilled rice ball, the Riku is accompanied by baguette slices, along with foie gras butter and blackcurrant compote as a dip. If you’re looking for one more way to indulge, you can mix the condiments with the ramen broth, then use their combined form to flavour the bread.

    “Both types of Mercedes-Benz ramen left us fully satisfied.”

    The showroom restaurant is serving ramen until December 25.

  • Starbucks CEO Schultz steps aside

    Starbucks CEO Schultz steps aside

    Starbucks CEO Howard Schultz has stepped aside from the CEO role to take up a new role driving innovation, design and development of the Starbucks Roastery and Reserve retail store formats internationally.

    He will also oversee the company’s social impact initiatives and continue to serve as chairman.

    President and COO Kevin Johnson will expand his responsibilities, assuming the role and responsibilities of president and CEO, effective April 3.

    In his current role, since March 2015, Johnson has led the company’s global operating businesses across all geographies as well as the core support functions of Starbucks supply chain, marketing, human resources, technology, and mobile and digital platforms. Johnson has been a Starbucks board member since 2009, and will continue to serve as a member of the Board.

    “Over the past two decades, I have grown to know Starbucks first as a customer, then as a director on the board, and for the past two years as a member of the management team. Through that journey, I fell in love with Starbucks and I share Howard’s commitment to our mission and values and his optimism for the future,” said Johnson.

    Johnson’s career spans 33 years in the technology industry which included a 16-year career at Microsoft and a five-year tour as CEO of Juniper Networks. At Microsoft, he led worldwide sales and marketing and became the president of the platforms division. In 2008, he was appointed to the National Security Telecommunication Advisory Committee where he served presidents George W. Bush and Barack Obama.

    Announcing the changes overnight, Schultz said the company was continuing to deliver quarter after quarter of record, industry-leading revenue, comp sales and profit growth, and that the newest classes of Starbucks stores continue to deliver record-breaking revenues around the world.

    “The truth is, in all my years at Starbucks I have never been more energised or exhilarated about the opportunities that lie ahead.”

    Schultz said the Roastery concept added a previously unattained level premiumisation into the coffee category.

    “Its success is unparalleled, last year achieving a comp sales increase of 24 per cent and delivering a ticket that is four times the ticket of a typical Starbucks store. The Roastery has become a learning laboratory for breakthrough innovation and experiential design and a beacon for the next wave of Starbucks global growth and evolution.”

    Starbucks will open at least 20 Roasteries around the world, six by the end of 2019 alone.

    “At the same time, elements of the Roastery are forming the basis of the 1000 or more Starbucks Reserve stores we will be opening around the world in the years ahead.”

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  • McDonald’s China deal done

    McDonald’s China deal done

    A private-equity led consortium has been chosen to buy 20-year franchise rights for McDonald’s China and Hong Kong, Reuters is reporting.

    The successful bidder is a consortium led by private-equity firm Carlyle Group and Chinese conglomerate Citic Group, who will pay up to US$3 billion, according to an unidentified source who spoke with Reuters.

    A contract will likely be signed before Christmas.

    As reported in September, consortiums led by private equity firms Carlyle Group and TPG Capital were shortlisted as the bidding process narrowed the field. TPG had teamed with Beijing Capital Agribusiness Group, McDonald’s current China partner.

    Another private equity group, Bain Capital, had already dropped out.

    McDonald’s had previously said it was looking for long-term partners rather than private equity firms, which typically cash out after a few years.

    The deal covers some 2400 restaurants in China and Hong Kong. The 20 year franchise rights come with a 10-year renewal option.

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  • Hong Kong retail sales finally stabilising

    Hong Kong retail sales finally stabilising

    Hong Kong retail sales fell by the lowest rate in October in more than a year.

    Provisional figures released by the Census and Statistics Department (C&SD) show a decline of 2.9 per cent year-on-year, following a 4 per cent revised decline in September, (the original estimate was 4.1 per cent).

    “The year-on-year rate of decline in retail sales narrowed further in October, mirroring the similar performance of visitor arrivals in that month,” said a government spokesman commenting on the figures.

    “The stable job market and increasing household incomes also rendered support to local consumer sentiment.”

    The value of total retail sales in October was provisionally estimated at HK$36.1 billion. For the first 10 months of 2016 retail sales decreased by 8.9 per cent compared with the same period in 2015.

    Perhaps most significant was the clear bottoming-out of sales of jewellery, watches and clocks and valuable gifts after more than 18 months of heavy decline – the single biggest contributing category to the monthly retail sales data. Those sales edged down by a mere 0.1 per cent year-on-year in October.

    Electrical goods did most of the damage – down 21.7 per cent,while books and stationery were down 4.3 per cent and optical goods down 2.1 per cent. Medicines and cosmetics sales fell 1.8 per cent.

    On the positive side, the value of sales of commodities in supermarkets increased by 3.5 per cent and food, liquor and tobacco sales rose by 1 per cent. Footwear and accessories sales rose by 4.9 per cent and furniture and fixtures by 2.8 per cent.

    After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales in October 2016 decreased by 2.7 per cent. The revised estimate of the volume of total retail sales in September 2016 decreased by 3.8 per cent. For the first 10 months of 2016, total retail sales decreased by 7.8 per cent in volume.

    The government spokesman said that looking ahead, the near-term outlook for retail sales will still hinge on the performance of inbound tourism “as well as the extent to which local consumer sentiment will be affected by the various external uncertainties”.

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  • New Zealand’s Spark warned off marketing Gigabit plans

    New Zealand’s Spark warned off marketing Gigabit plans

    New Zealand operator Spark has been cautioned against advertising its high-speed fiber services as “gigabit” plans by competition regulator the Commerce Commission.

    The ISP launched its fastest fiber service yesterday, labeling it “Ultra Fast Fibre MAX” instead of the planned Gigabit name.

    The Commerce Commission held that advertising the service as a Gigabit speed would mislead consumers into expecting speeds of 1,000Mbps, whereas the Spark service will deliver speeds of between 700Mbps and 900Mbps.

    As well as Spark, the Commission also plans to get into contact with other ISPs making similar claims, noting that it has received enough consumer complaints to deem the action necessary.

    The Commission hasn’t made a formal ruling, but said Spark had recognized the concerns the regulator had raised and decided to take action accordingly.

    But the Telecommunications Users Association has criticized the decision as being “pedantic”, noting that other markets advertise similar-speed plans as Gigabit services, and that technical constraints will mean services always fall below their full potential speeds.

  • Nokia closes handset brand licensing deal

    Nokia closes handset brand licensing deal

    Nokia has announced it has completed the transactions that will allow HMD Global to become the new brand licensee for Nokia feature phones, smartphones and tablets.

    HMD Global has secured an exclusive global brand license for a 10-year term. HMD was created by a group of former Nokia employees to revive the Nokia handset brand, and entered the exclusive licensing agreement with Nokia in May.

    The necessary transactions involved HMD, Hon Hai subsidiary FIH Mobile and Microsoft, following the latter’s ill-fated purchase of Nokia’s device business for $7.4 billion in 2013.

    HMD will continue to provide Nokia branded feature phones for emerging markets, and will also produce new Nokia smartphones and tablets for its device portfolio.

    Nokia will receive royalty payments on each sales covering both brand and intellectual property rights.

    “We’ve been overwhelmed by the enthusiasm shown around the world for the return of the Nokia brand to smartphones,” Nokia Technologies interim president Brad Rodrigues said.

    “The HMD Global team has the ambition, talent and resources to bring a new generation of Nokia branded phones to market, and we wish them every success. I’m sure our millions of Nokia fans will be excited to see their new products.”

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  • Amazon’s flagship India unit beats Flipkart’s in revenue

    Amazon’s flagship India unit beats Flipkart’s in revenue

    Amazon’s flagship unit in India Amazon Seller Services has more than doubled its revenues in the year ended March, leading rival Flipkart’s similar firm in terms of revenues.

    Amazon Seller Services’ turnover for the last fiscal rose 116% to Rs 2,217 crore while Flipkart Internet’s sales increased 153% to Rs 1,952 crore during the same period.

    Both units earn revenues through commissions, advertisements and shipping fees that they charge to sellers.

    While the Amazon unit outpacing Flipkart Internet is a significant development, both companies operate through a complex structure which makes total revenues of their units hard to conclusively interpret.

    Flipkart India, which runs the wholesale arm of the Singapore-registered etailer, posted 34% increase in revenues for FY16 with sales of Rs 12,818 crore, compared with Rs 9,351.7 crore a year ago.

    Amazon India’s wholesale unit has not filed its numbers for the financial year yet.

    Experts feel Flipkart’s retail sales could be at least 15-20% higher than its wholesale revenues after including margins. Flipkart didn’t disclose profit or loss figures. It made a loss of Rs 837 crore in 2014-15.

    Doubling of revenues of both the ecommerce giants indicates the rapid pace of growth in the ecommerce market aided by billions of dollars in overseas funding even as brick and mortar peers struggle.

    Flipkart India’s turnover is now nearly double the country’s organised wholesale market that has players such as Wal-Mart and Metro Cash & Carry. Experts, though, feel the numbers are minuscule compared to other markets.

    “Given the potential of the market, the numbers are still not huge and the pace of growth has come down. Even within the overall organised retail market, their contribution is just a fraction despite spending aggressively to gain market share,” said Harminder Sahni, founder of retail consultancy firm Wazir Advisors.

    “Flipkart will have a tough time going forward in terms of funding as well as competing with Amazon,” he said.

    The financial performance numbers are also reflective of the change of pace in investments by both the etailers. Amazon India has ramped up investment since 2015 as it looks to increase its market share, even as Flipkart has been focused on cutting its cash burn rate.

    Flipkart Marketplace, a Singapore-based subsidiary and investment holding company which owns 99.74% stake in Flipkart Internet, received equity infusion of Rs 1,629 crore in fiscal 2016, significantly down from Rs 5,456 crore in the preceding year.

    In comparison, Amazon Seller Services received capital infusion of Rs 7,463 crore in fiscal 2016, up from Rs 1,888 crore in the previous year.

    The rivalry will only intensify — Amazon has committed $5 billion to the Indian market, and is outspending Flipkart by 3-4 times by investing aggressively in areas like video and grocery delivery. An Amazon India spokesperson said it is now the largest as well as fastest growing online marketplace.

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  • Government employees on official business to get Cebu Pacific discounts

    Government employees on official business to get Cebu Pacific discounts

    Government employees will get discounted fares from budget carrier Cebu Pacific starting January next year, following the signing of a Government Fare Agreement (GFA) on Monday.

    All government employees on official travel will be given discounts, with the processing fees waived.

    Government agencies across the Philippines will be able to tap into the discounted fares via the Philippine Government Electronic Procurement Service (PhilGEPS) of the Department of Budget and Management.

    “This is a huge step into our goal of getting the highest value for the hard earned money of our Filipino taxpayers. The DBM estimates savings for more than P1 billion in aggregate discounts and waived fees under the GFA,” Budget Secretary Benjamin M. Diokno said during the GFA signing in Pasay City.

    Cebu Pacific President and CEO Lance Gokongwei noted the agreement can foster financial and economic growth.

    “We are looking forward to flying more government employees as this will also cultivate financial and economic growth of the different regions and provinces in the Philippines,” he said.

    The airline offers flights to 36 domestic and 30 international destinations across Asia, Australia, the Middle East, and USA.

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  • Huawei, LG U+ achieve 31Gbps peak in 5G tests

    Huawei, LG U+ achieve 31Gbps peak in 5G tests

    Huawei and South Korea’s LG U+ have completed a series of joint 5G tests based on three commercial scenarios – enhanced mobile broadband, ultra-reliable low latency communications (uRLLC) and massive machine-type communications (mMTC).

    The various tests achieved a cell peak rate of 31Gbps on high-frequency bandwidth and Massive MIMO, as well as latency under 0.5ms and mMTC single-cell massive connections.

    During the test procedures the two companies also verified key 5G New Radio technologies, including simultaneous use of short transmission time intervals and filtered orthogonal frequency-division multiplexing (f-OFDM), as well as sparse-code multiple access (SCMA).

    Huawei and LG U+ signed an agreement in July 2015 to jointly develop 5G technologies. The companies had already opened a joint R&D lab in Seoul dedicated to research into LTE-A and 5G.

    “LG U+ is dedicated to creating new better life for our customers through maximized value and improved experience,” LG U+ VP Kang Jung Ho said.

    “We hope to provide the availability of 5G services for Korean users by 2018, and Huawei’s innovation insights and accumulated expertise will help us in achieving this goal.”

    Huawei VP for wireless networks Gan Bin added that the companies plan to strengthen their 5G collaboration in the future.

  • AirAsia now flies to Taipei and Singapore from Cebu

    AirAsia now flies to Taipei and Singapore from Cebu

    Cebu skies are painted red with the twin launch of AirAsia flights to Taipei and Singapore from Mactan-Cebu International Airport (MCIA). AirAsia Flight Z2 7124 to Taipei departed at 6:10 a.m. while flight Z2 7236 to Singapore left Cebu at 4:55 p.m. Both flights last Nov. 25 were given a water salute upon departure.

    Philippines AirAsia’s director for flight operations Captain Monreal Gomer said at the send-off ceremonies held at the airport: “AirAsia’s twin launches today herald brighter, bigger and better opportunities for travel, business and tourism. It also means more job opportunities, more income for families, more food on the table and more economic activities.”

    “As a Filipino low cost carrier and member of the AirAsia Group which is the leading and largest low cost carrier in Asia, we feel strongly about supporting the growth and development of cities outside Metro Manila by connecting Cebu to international destinations like Singapore, Taipei, Korea, Malaysia and onto AirAsia’s over 120 destinations across Asean, Asia, India, Australia, New Zealand, the Middle East and Africa via fly-thru service,” Gomer said.

    AirAsia’s Cebu-Singapore flights operate four times weekly while Cebu-Taipei is scheduled three times weekly. Aside from these new routes, the world’s best low-cost airline is also servicing direct flights to Incheon/Seoul in Korea and Kuala Lumpur.

    All guests on board AirAsia’s maiden flights to Taipei and Singapore received an early Christmas gift wrapped in iconic red paper from AirAsia flight crew as soon as they boarded their flights. Sinulog dancers also welcomed arriving and departing guests with send-off ceremonies led by executives from MCIA, the Department of Tourism, Singapore Tourism Board and AirAsia.

  • Singapore banks lose up to 40 per cent of new product sales to competitors

    Singapore banks lose up to 40 per cent of new product sales to competitors

    The latest survey by management consulting firm Bain & Company found that Singapore retail banks lose up to 40 per cent of new product sales to competitors that are better at digital marketing, sales and service.

    In its seventh annual report on consumer banking behaviours, the consultancy said such “hidden defection” of consumers – purchasing a new banking product from a competing bank or financial technology firm – could get worse.

    “There are a lot of customers who frankly consider themselves prisoners in their own banks. They don’t switch their primary bank because it’s too much hassle to do so. But they’re going to go elsewhere for any new needs,” said Ms Chew Seow-Chien, partner and head of Bain’s Financial Services practice in Southeast Asia.

    The survey polled more than 137,000 consumers in 21 countries, including Singapore.

    The Singaporean customers polled indicated that they would buy new banking products from a competitor rather than their primary bank up to 40 percent of the time.

    About 30 per cent of them said they would switch their primary bank if it were easy to do so, the research showed.

    Bain noted that fintechs and technology companies are siphoning off customers seeking high-value products and services, such as credit cards, loans, insurance and investments.

    In its research, the consultancy found that deposits made up about 50 per cent of purchases from primary banks in Singapore over the last 12 months, versus just 22 per cent at competing banks.

    Meanwhile, insurance were the most purchased product at competing banks – 31 per cent of purchases – followed closely by credit cards.

    As younger, more plugged-in generations learn how to bank, their purchases of banking products through digital channels, especially online, will rise – making it important for banks to improve their digital offerings, simplify products lines and streamline user experiences.

    “By now, the digital disruption in banking should come as no surprise, and most banks clearly understand the importance of digital migration,” said Ms Chew.

    “The bigger challenge lies in how to organise the transition and instill the necessary changes, both at the frontline and in the back office, to improve how consumers do their banking.”

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