Retail News CRM

Author: Mei Ling Tan

  • Walmart Invests $50M In JD.Com’s O2O Logistics Services App New Dada

    Walmart Invests $50M In JD.Com’s O2O Logistics Services App New Dada

    Walmart has made a US$50 million strategic investment in New Dada, formerly known as Dada and controlled by JD.com Inc., in another step deepening an existing partnership between the global retail giant and China’s second largest e-commerce firm.

    New Dada was created in April from a merger between JD.com’s O2O (online-to-offline) unit and Dada Nexus Ltd., a venture-backed Uber-like mobile app that focuses on providing last mile logistics services.

    “Our alliance with JD and cooperation with New Dada will enable seamless shopping to millions of customers across China,” says Walmart CEO, Doug McMillon.

    The O2O logistics services provider New Dada currently has more than 25 million registered users, and provides local on-demand delivery capabilities with 2.5 million crowd-sourced deliverers across more than 300 cities in China.

    New Dada currently offers customers two-hour delivery on groceries ordered from Walmart stores to customers within a 3-kilometer radius of more than 20 Walmart stores in China. The number of Walmart stores offering two-hour delivery is expected to double by the end of the year.

    Officially launched in 2014, Dada operates through Imdada.cn and last completed a US$300 million series D round of financing from DST Global, Sequoia Capital and others in January.

    It previously raised three rounds of venture funding from DST Global, Sequoia Capital, Greenwoods Investment Management and other undisclosed investors.

    In April, JD.com paid US$200 million in cash and injected JD Daojia assets into Dada in exchange for a 47.4% stake in the newly merged Dada.

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  • CapitaLand’s retail REIT records 6.7% fall in 3Q 2016 DPU

    CapitaLand’s retail REIT records 6.7% fall in 3Q 2016 DPU

    CapitaLand Mall Trust has posted a DPU of 2.78 Singapore cents for its 3Q 2016, a year-on-year fall of 6.7% compared to the 2.98 cents achieved in the corresponding period of 2015.

    Gross revenue for the period improved by 4.9% to SGD170 million (USD121 million) while its net property income of SGD119.5 million represents an increase of 5.5% over the SGD113.3 million recorded in 3Q 2015.

    This was mainly due to a contribution of SGD14.5 million from Bedok Mall which was acquired in October 2015, higher rental revenue achieved for IMM Building, Tampines Mall, and Bukit Panjang Plaza after asset enhancements, and higher occupancy at Clarke Quay.

    However distributable income for 3Q 2016 was SGD98.4 million, 4.7% lower than 3Q 2015.

    The distributable income for 3Q 2015 included the release of SGD8.0 million taxable income retained in 1Q 2015, and excluding this release, the distributable income for 3Q 2016 would have been 3.3% higher year-on-year, said the Singapore-listed retail REIT.

    “Despite uncertainties in the macroeconomic environment and challenging retail conditions in Singapore, CapitaLand Mall Trust’s portfolio occupancy rate as at 30 September 2016 remained high at 98.6%”, said Wilson Tan, CEO of the REIT’s manager.

    “For the first nine months of 2016, the REIT also registered year-on-year growth of 2.9% and 1.2% in shopper traffic and tenants’ sales per square foot respectively”, he added.

    The REIT’s aggregate leverage as at 30 September 2016 was at 35.4%, up slightly from 35.3% in the previous quarter, while portfolio weighted average lease expiry (WALE) was at 2.0 years by gross rental income.

    Units of CapitaLand Mall Mall Trust finished the trading day about 0.5% lower from its previous close on the Singapore Exchange to end at SGD2.11.

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  • Samsung Galaxy Note 7 Still Available for Purchase in Hong Kong Despite Recall

    Samsung Galaxy Note 7 Still Available for Purchase in Hong Kong Despite Recall

    For example, a good place to look for a Note 7 is Hong Kong, as a store there is selling the recalled model at a special price, even though it’s pretty clear that using this phone is no longer recommended.

    Samsung: Stop using the Note 7!

    Samsung made it very clear in the official recall published October 13 that using a Note 7 is no longer safe, so it’s working with retailers to get all phones off the market and replace them with S7 Edge or offer full returns to customers.

    “Since the affected devices can overheat and pose a safety risk, we are asking consumers with a Galaxy Note7 to power it down and contact the carrier or retail outlet where they purchased their device,” Samsung explained.

    ‘So why would anyone still purchase a Note 7?’ you could ask. The answer is pretty simple: if they get a Note 7 at a special price (read heavily discounted), they can then return it to Samsung and receive a brand new S7 Edge, the price difference between the two, as well as $100 in bill credit.

    So it could all prove to be a pretty smart move for those looking to make some extra money, although we’re pretty sure that there’ll always be people saying that it is not worth the effort.

    In the meantime, keep in mind that using a Note 7 is not safe by any means, even though there are so many people out there who refuse to return it. The risk of overheating and the battery catching fire is pretty big, so it’s indeed a good idea to send it back to Samsung or the retailer and get an S7 Edge instead.

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  • Foschini to open three more outlets after Junction Mall entry

    Foschini to open three more outlets after Junction Mall entry

    South Africa’s clothing retailer Foschini Group has set its eyes on opening of three more outlets after marking its entry into the country with a branch at Nairobi’s Junction Mall.

    Foschini Group, which has 22 different retail brands under its label, has opened Sterns — a contemporary and classic Jewellery shop that targets individuals in the lower-middle, middle and upper income class — at the Junction Mall.

    The firm plans to open three additional stores — Foschini women’s wear shop, Markham targeting men and a second Sterns store — at the Village Market before the end of the year, with further plans to open 10 more next year.

    “Sterns store is our first entry into Kenya and the East African market. We’re bringing something fresh into a market that has for a long time been dominated by closed family businesses. We aim to cater to individuals in all categories,” said the Foschini Group Kenya area manager Isabelle Achila in an interview.

    The Fix and Exact fashion lines, Totalsports and Sportscene sports and street wear brands, AmericanSwiss — a jewellery line and @Home, a homeware and interior décor store, are other retail brands the group is looking to introduce in Kenya. Foschini’s entry is expected to create more than 100 jobs for locals.

    “We believe that Kenya is a strong emerging market with opportunities for growth. Our mission it to be the biggest retailer in Africa and we plan to introduce other brands that are doing well outside South Africa,” said Ms Achila.

    The group’s debut in the local market was scheduled to happen in 2015 but the delay in completion of the Two Rivers Mall where Foschini Group has booked 10 stores and the construction of the Village Market extension saw them push back entry dates. The firm had also embarked on an expansion drive in West Africa delaying its entry into the Kenyan market.

    “The reason why we have not rolled out as aggressively as we had anticipated and would want to is because the various places where we had booked space are yet to open and this has delayed our entry plans. We are specific when it comes to location and we were able to open our current branch at the Junction Mall because an opportunity we liked presented itself,” she said.

    Foschini Group deals in clothing, jewellery, accessories, sporting and outdoor equipment as well as homeware that target the middle and upper middle income markets.

    The group has a network of more than 2,100 stores in African countries that include Botswana, Nigeria, Ghana, Lesotho, Swaziland and South Africa. It also has an international presence with stores in Hong Kong, Mexico, Netherlands, Qatar and Switzerland, among others.

    South African brands are looking for markets outside the country to beat competition and grow sales from Africa’s growing middle class with disposable income.

    Edgars, another South African fashion chain retailer is also eyeing the local market, which is now billed as the second biggest retail market after South Africa.

    It is estimated that by 2020 Africa’s spending power will be Sh140 trillion ($1.4 trillion) up from Sh86 billion ($860 million) in 2008.

    Global players are now turning to emerging markets such as Africa for growth, attracted by rising disposable household incomes, fast economic growth and a young population, according a study by McKinsey & Co.

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  • Malaysian shares rise after 2017 budget sticks to consolidation path

    Malaysian shares rise after 2017 budget sticks to consolidation path

    Malaysian shares edged higher Friday, as investors cheered Prime Minister Najib Razak’s resolve to narrow the budget deficit next year.

    Najib, who pledged to hand out cash aids and push for infrastructure development to stoke growth in an uncertain global environment, expects the nation’s gross domestic product to expand 4% to 5% in 2017. He forecast fiscal deficit to narrow to 3% of GDP from the 3.1% target for this year.

    The nation’s benchmark FTSE Bursa Malaysia KLCI ended 0.2% higher at 1,669.98 points Friday. The index rose 0.7% for the week, tracking gains in most regional indexes.

    CIMB Group Holdings, British American Tobacco Malaysia and plantation stocks led gains on Friday, while YTL Corp, Genting and Genting Malaysia slipped.

    The ringgit declined 0.05% to 4.183, tracking broad gains in the dollar as the European Central Bank’s post-policy comments pushed the euro to seven-month lows.

    Data released Friday showed Malaysia’s retail inflation rate rose a lesser-than-expected 1.5% last month, unchanged from August’s reading. Economists had expected a 1.7% increase in September.

    “At this juncture, the balance of risks is still skewed towards growth disappointment, not to mention possible fiscal slippage, with inflation pressures of second-order concern,” said Weimen Ng, an economist at ANZ Research, in a note. “A key trigger that will bring Bank Negara Malaysia back to the rate cut table at the final meeting of the year on 23 November is a significant slowdown in private consumption.”

    At today’s budget, inflation was projected at be between 2% to 3%. Malaysia’s central bank stood pat on interest rates at its September review, after delivering a surprise rate cut in July.

    Regional sentiment was tepid on Friday, weighed down by broad strength in the dollar and sliding crude prices.

    Crude oil prices slipped over 2% on Thursday, reversing the previous day’s gains.

    The dollar index, measured against a basket, rose to its highest level since February on Friday as the euro remained under pressure after the ECB stood pat. Chatter about a possible plan to taper the central bank’s 80 billion euro a month bond-buying program rattled markets earlier this month.

    ECB President Mario Draghi’s comments that a long-awaited rise in inflation required “very substantial” monetary policy accommodation also weighed on the euro.

    In Southeast Asian markets Friday, Philippine’s PSE Composite and Singapore’s Straits Times slipped 0.8% and 0.4%. Indonesia’s Jakarta Stock Exchange Composite rose 0.1%, while Thailand’s SET index advanced 0.5%.

    In rest of Asia, South Korea’s KOSPI and Japan’s Nikkei 225 declined 0.4% and 0.3%. China’s Shanghai Composite advanced 0.2%. Hong Kong markets were closed due to a typhoon.

    On the KLCI, 15 of the 30 constituents ended lower Friday and four closed unchanged, while overall declining issues outnumbered advancing ones 392 to 327.

    Foreign investors sold 15.5 million ringgit ($3.7 million) in Malaysian shares on Thursday, according to Kenanga Research.

    British American Tobacco Malaysia advanced 2.7% to 49.8 ringgit, leading gains on the KLCI. The cigarette maker reports third-quarter earnings on Monday.

    CIMB rose 2.2% to 5.04 ringgit. The banking major is trading at its highest level this year, helped by expectations of lower credit costs in Malaysia and Indonesia, especially in the second half of next year, analysts said.

    Plantation majors Kuala Lumpur Kepong and IOI Corp rose 1.8% to 24.36 ringgit and 0.5% to 4.51 ringgit. On Friday, the government said palm oil production in Malaysia is expected to rise 5.6% in 2017. Palm oil futures were up 0.4% at 2,728 ringgit per tonne.

    Plantations-to-motoring conglomerate Sime Darby ended 0.3% higher at 7.98 ringgit.

    Genting Malaysia slipped 1.7% to 4.71 ringgit Friday. The leisure and hospitality major declined 1.7% for the week, trimming last week’s 2.8% rally.

    Choppy trading in resort-to-rail conglomerate YTL Corporation continued Friday, with the stock closing 1.1% lower at 1.75 ringgit. The stock has alternated between losses and gains this week, ending the week 1% lower.

    Gaming conglomerate Genting slipped for the second day, falling 1% to 7.87 ringgit.

  • Cisco sees doubling in digital banking clients

    Cisco sees doubling in digital banking clients

    James Cronk, global director, Financial Services Industry, at US-based Cisco, said the banking and financial-services sectors were now “transferring their legacy environment into digital transformation to support digital payment”.

    Around 4.5 per cent of Thai banking customers currently use digital payment, a proportion that will rise significantly in the next few years, driven by the development of information-technology infrastructure and security, he said.
    Cisco’s comprehensive economic analysis estimates that digital innovation in retail banking will drive US$405 billion (Bt14.4 trillion) in value globally from 2015 to 2017.

    Last year, financial services as a whole captured just 29 per cent or $117 billion of that opportunity. Moreover, more than 90 per cent of the potential value is driven by key digital-use cases, including sales and services transformation, next-generation workers, video-based advice, mobile payment and connected ads, Cronk said.

    Cisco has six platforms and solutions to support digital transformation in financial services – customer experience, workforce experience, agile IT-fast IT, analytics and insights, cyber security and liability, and risk compliance and management – the global director said.

    Having a road map to digital value in retail banking means banks will be positioned “to enable IT agility and operational effectiveness, create differentiation in their business strategies from those of competitors, and define disruptive new digital-enabled business processes”, he explained.

    Vatsun Thirapatarapong, managing director of Cisco in Thailand and Indochina, said the ratio of digital-banking users in Thailand would increase to 10 per cent of all banking users in the next three years, due to the popularity of using e-payment among generation-Z individuals, the usage of mobile first/cloud first, as well as start-ups developing fintech (financial technology) solutions to support digital payment.
    Moreover, IDC has reported that consumers expect banks to deliver highly personalised hi-tech services coupled with the convenience of anytime, anywhere.

    This group of consumers is growing and accounted for about 4.5 per cent of banking customers in the Asia-Pacific last year, according to the global IT market-intelligence firm, which expects the segment to grow to about 15 per cent by 2020.
    Meanwhile, the Bank of Thailand has reported that there are currently around 12.9 million users of mobile banking in the Kingdom. The value of Thailand’s online retail market is expected to reach $10 billion-$15 billion by 2020, up from less than $2 billion last year, the central bank said.

    The mobile penetration rate reached almost 87 per cent of the population, with smart-phone penetration at 50 per cent, while 50 per cent of all online transactions are done via mobile devices, it added. E-payments are expected to surge from Bt68.2 billion last year to Bt143 billion in 2020.

    Moreover, Thailand is entering in the first stage of the government’s national e-payment policy and, when the e-payment system is fully operational next year, the estimated cost savings for banks and businesses will be around Bt75 billion per year, the Bank of Thailand said. The Thai Bankers’ Association’s Payment System Office has agreed on a new fee structure, which will lower the cost of digital banking.

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  • Real Singapore retail sales ease up in September

    Real Singapore retail sales ease up in September

    Real Singapore retail sales recovered marginally month-on-month in September after a series of declines.

    Real retail sales, are the figures excluding motor vehicles. They rose 0.7 per cent against August but fell 1.9 per cent on September 2015. Sales including motor vehicles, sales fell 0.7 per cent month-on-month and rose 2 per cent.

    Total retail sales value in September 2016 was estimated at $3.5 billion, higher than the $3.4 billion in September 2015.

    Retail sales index September

    Month-on-month, retail sales of motor vehicles, watches & jewellery, medical goods & toiletries, optical goods & books, department stores and supermarkets decreased between 0.1 per cent and 6.3 per cent in September 2016 over August.

    Sales of recreational goods and computer & telecommunications equipment grew by 12.4 per cent and 11.1 per cent respectively. Sales of petrol service stations, furniture & household equipment, mini-marts & convenience stores, food & beverages and wearing apparel & footwear also increased between 1 per cent and 9.7 per cent.

    Compared to September 2015, sales of recreational goods, mini-marts & convenience stores, medical goods & toiletries, petrol service stations and furniture & household equipment increased between 0.1 per cent and 6.7 per cent. Sales of computer & telecommunications equipment, food & beverages, watches & jewellery, department stores, supermarkets, optical goods & books and wearing apparel & footwear declined between 2.9 per cent and 9.6 per cent.

    Food & Beverage results

    Sales of food & beverage services (seasonally adjusted) increased 3.6 per cent in September 2016 over the previous month and 3.5 per cent compared with September 2015.

    The total sales value of food & beverage services in September 2016 was estimated at $687 million, higher than the $664 million in September 2015.

    FB index September

    Turnover of restaurants and other eating places (such as cafes) increased 6.6 per cent and 6.2 per cent respectively in September over August. Sales by food caterers and fast food outlets decreased 6.6 per cent and 2.2 per cent.

    Year-on-year, sales by other eating places, fast food outlets and restaurants increased between 0.9 per cent and 7.9 per cent. Food caterers’ sales fell 1.4 per cent.

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  • First Tous les Jours Mongolia store opens

    First Tous les Jours Mongolia store opens

    Korean bakery Tous les Jours has opened its first stores in Mongolia as it broadens its Asian footprint.

    Two Tous les Jours Mongolia shops have opened in Ulaanbaatar in what the company sees as another step in its plan to become a global bakery brand.

    Tous Les Jours Mongolia 2

    Besides Mongolia, the brand’s parent CJ Foodville has 270 Tous les Jours stores in seven countries: Cambodia, China, Indonesia, Malaysia, the Philippines, the US and Vietnam.

    It is the first international bakery to open in Mongolia, where K-pop has amassed a considerable following, raising the profile and acceptance of Korean brands in general – especially music, food and fashion.

    Tous Les Jours Mongolia 3

    A local master franchise has been appointed to lead the brand’s roll-out

    The Korea Times reports that the company’s first Mongolian store in downtown Ulaanbaatar opened on October 31, drawing more than 2000 customers and generating over US$8600 in sales.

    A CJ Foodville spokesman said Tous les Jours opened its second shop at the Shangri-La Mall this week, attracting twice the number of customers it expected.

    tous-les-jours-mongolia

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  • Downsizing and decluttering will ‘remake retail’

    Downsizing and decluttering will ‘remake retail’

    There’s a new consumer mantra: “when in doubt, toss it out”.

    With pressure on housing internationally, shoppers are buying fewer higher-quality items to save space – and that’s is expected to have long-term ramifications for retailers, says a new report.

    Decluttering: Anatomy of a Consumer Trend and How Retailers Can Win, from international think tank Fung Global Retail & Technology says while for some people downsizing and organising belongings is a matter of choice, for others the process is a necessity as rising housing prices force people to live in smaller homes, says the report.

    Others are focussing on sustainability and the ethical standards of manufacturers, writes Fung Global Retail & Technology MD Deborah Weinswig. Retailers, especially those in fast fashion that have relied on consumers buying a larger number of lower-priced items, will have to adapt to changing consumer needs and values.

    “Consumers’ future priorities will be ethics, a concept of ‘disownership’ and sustainability,” Weinswig writes. “Retailers … should align their product and service offerings more closely within the values of their target customers.”

    While the idea of having with fewer possessions has been around for centuries, the term “declutter” was born in the 1970s and the concept has continued to gain popularity, she writes. Decluttering resonates particularly strongly with urban dwellers, who struggle to fit belongings into small apartments.

    Now millennials, the largest generation in history, are more consciously frugal in terms of living arrangements, product consumption and travel expenses. The growth of the “sharing economy” has also resulted in the popularity of platforms such as eBay, Etsy and Craigslist, further eroding the purchase of new products.

    Long-term results

    Weinswig believes this will have long-term results for more traditional retailers and brands, especially in clothing. Fast fashion had helped apparel consumption skyrocket over previous decades. The average woman owned 120 items of clothing last year, up from 36 items in 1930, according to Cladwell, a company that helps users create their own capsule wardrobe. However, this trend may be reversing. A growing focus on ethical consumption has created consumer concern about hiring practices – sometimes involving children – in fast-fashion manufacturing.

    Some retailers are responding to the evolving preferences of shoppers. Patagonia’s Common Threads initiative provides a framework for responsible consumption based on five precepts: reduce, repair, reuse, recycle and reimagine. Japanese retailer Muji offers waste-reducing packaging, minimalist housewares and eco-friendly products.

    Other brands espousing minimalism include Scandinavia’s Bang & Olufsen and Cos, Calvin Klein in the US, and Japan’s Uniqlo.

    “Decluttering is a long-term trend that is here to stay,” Weinswig writes. “Retailers can capitalise on this opportunity by responding to the evolving preferences of their customers, and seeking ways to influence consumer behaviour.”

    Based in New York, Fung Global Retail & Technology has a research team across New York, London and Hong Kong that follows retail and tech trends. Weinswig is a former Wall Street and retail tech analyst and startup adviser.

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  • Offshore investor shows interest in FJ Benjamin

    Offshore investor shows interest in FJ Benjamin

    An international group is seeking to invest in Singapore brand-management company FJ Benjamin, which has such brands as Bell & Ross, Givenchy, Guess and Tom Ford in its portfolio.

    FJ Benjamin says it has entered into a non-binding term sheet, a document that sets out the terms and conditions under which an investment will be made, with an offshore third party.

    This term sheet would be “in relation to a potential transaction which may enhance or unlock shareholder value”, the company said in a release to the Singapore Exchange.

    With mall vacancies in Singapore for the three months to June 30 rising to 7.8 per cent from 7.3 per cent the previous quarter, FJ Benjamin saw its net loss for the fiscal year ended the same date balloon by 35 per cent to about S$23.5 million (US$16.6 million) while revenue fell by 14 per cent to S$253.6 million – its third consecutive year of losses.

    Managing more than 20 brands, FJ Benjamin has 226 stores in eight cities. One of its international labels, Raoul, closed its last store in Singapore, in Paragon mall, in February.

  • Asia Pacific leads for mobile cross-border shopping

    Asia Pacific leads for mobile cross-border shopping

    Asia Pacific leads the world in mobile cross-border shopping, according to the third PayPal Annual Global Report, released in conjunction with global market research company Ipsos.

    With its investigation of the online domestic and cross-border shopping habits of more than 28,000 consumers in 32 countries, the report reveals international opportunities for merchants.

    Of the Asia Pacific shoppers interviewed, 68 per cent said they had made a cross-border purchase by smartphone in the past 12 months.

    There has been a marked shift to mobile purchasing in China, with an average of 35 per cent of cross-border purchases being made on a smartphone this year compared to 27 per cent last year.

    Fewer than 15 per cent of shoppers in both western and eastern European as well as North America, however, used a smartphone for cross-border purchases.

    Meanwhile, their online spending will increase in the next 12 months according to 64 per cent of internet users in China, 39 per cent in Russia and 26 per cent in the UK. This is primarily driven by convenience (76 per cent), changes in disposable income (30 per cent), faster shipping (35 per cent) and cheaper shipping (27 per cent).

    “Selling internationally is a substantial opportunity for merchants around the globe to grow their business,” says PayPal director of global initiatives Melissa O’Malley. “We’ve seen our cross-border volume grow 38 per cent in the past two years, from $14 billion in the third quarter of 2014 to $19 billion in the same quarter this year.

    Merchant benefits

    “PayPal’s mobile payment volume is also up 56 per cent over last year, so we see the direct benefits merchants can reap by optimising their mobile shopping offerings.”

    For the first time in the survey’s three years, China is the most popular online cross-border shopping destination – 21 per cent of online shoppers interviewed claimed to have shopped from Chinese websites in the past 12 months, followed by the US (17 per cent) and the UK (13 per cent).

    What is attractive about cross-border shopping? Of the global consumers in the survey, 76 per cent cited better prices, while 65 per cent said they could buy items not available in their own country.

    Factors that would make online shoppers more likely to buy from a website in another country include free shipping (46 per cent of respondents) and secure payment system (44 per cent).

    In 24 of the 32 countries surveyed, PayPal is most used for payments. Key factors for choosing particular payment methods include security (53 per cent of respondents), convenience (44 per cent) and acceptance by retailers (41 per cent).

    Of the shoppers using PayPal, 44 per cent say it is their preference as they do not need to share financial details with the seller.

    On behalf of PayPal, Ipsos interviewed a representative quota sample of about 800 to 2000 (28,012 in total) adults who use an internet-enabled device in each of 32 countries, including China, India, Japan, Singapore and Thailand. Interviews were conducted online between late August and early October.

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  • SM Prime Holdings eyes China expansion

    SM Prime Holdings eyes China expansion

    Philippines property developer SM Prime Holdings is looking to acquire shopping malls in China as well as buying more land for expansion.

    But it is interested only in the Fujian province, says SM Prime executive committee head Hans Sy.
    “We are still continuing to really look,” he says.

    With “phenomenal development” in the past 10 years, the value of land has risen in China, and Sy says the group is assessing different areas that could offer value for money.

    While there are malls up for sale, SM Prime is being careful about possible acquisitions. “I’m being choosy,” says Sy. “I only want within Fujian province.”

    Fujian is the home province of his father, Henry Sy, the richest man in the Philippines, who built his retail empire from a small shoe store in Manila.

    “We have the advantage right now [in Fujian] because of our success,” Sy says.

    SM’s malls in China include Chengdu (166,665 sqm), Chongqing (149,429 sqm), Jinjiang (167,830 sqm), Suzhou (72,552 sqm), Xiamen (238,125 sqm) and Zibo (150,600 sqm) for a total gross floor area of 945,200 sqm. The company’s mall in Tianjin, which partially opened this year, has a gross floor area of 540,000 sqm.

    In all, SM is targeting to further expand its mall network in the Philippines and China to 10.6 million square meters of gross floor area by 2018, according to documents presented in a briefing by SM Investments. This would be an extra 28 per cent from the 8.3 million gross floor area the company hit last year.

    Of the target, 85 per cent would be accounted for by malls in the Philippines while 15 per cent would be in China.

  • Mall signed for Bukit Bintang City Centre

    Mall signed for Bukit Bintang City Centre

    Kuala Lumpur is to have a new  mall at Bukit Bintang City Centre (BBCC), on the site of the former Pudu Prison.

    Bukit Bintang City Centre Development has entered into a JV with Japan’s Mitsui Fudosan Asia for the development of the Mitsui Shopping Park Lalaport mall. Covering 130,100 sqm, it will have a net lettable area of 80,000 sqm and house about 300 stores.

    Construction is expected to start next year with the opening to be in 2021.

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  • Changi Airport Group strengthens pharmaceutical supply chain in Singapore

    Changi Airport Group strengthens pharmaceutical supply chain in Singapore

    Changi Airport is the first airport in Asia to join Pharma.Aero as a strategic member, together with partner Singapore Airlines Cargo who comes on board as a full member. Both parties envisage that this effort will raise pharmaceutical handling capabilities at Changi Airport.   An organization comprising stakeholders of air cargo supply chain from around the world, Pharma.Aero is dedicated to achieving excellence in end-to-end air transportation for pharma cargo.

    Pharmaceutical cargo is among the fastest growing segments at Changi Airport, growing 19 percent year-on-year for the first nine months of 2016, and registering a five-year compounded annual growth rate (CAGR) of 13 percent from 2010 to 2015.

    The South West Pacific and North East Asia regions account for 45 percent of total share of pharmaceutical cargo at Changi Airport. In terms of volume, Australia, China and India are Changi’s top three pharmaceutical markets on a year-to-date (January to September 2016) basis. The top markets showing strongest growth for the period are China (+51 percent), Vietnam (+35 percent) and Hong Kong (+32 percent).

    Pharmaceutical products that pass through Changi Airport include vaccines, tablets and pills. These products are highly sensitive to fluctuations in temperature. Pharmaceutical cargo is the sixth most valued segment in terms of total air cargo handled, and account for under 10 percent of total value of cargo handled.

    Changi Airport is well-equipped with specialized facilities to be the preferred gateway of pharma cargo in Asia, with the two ground handlers (Coolport by SATS and Coolchain by Dnata) having the ability to handle more than 300,000 tonnes of temperature sensitive cargo annually. Our excellent connectivity (6,800 flights to 330 cities served by over 100 airlines) and strong mix of freighter and bellyhold capacity provides ample options for pharma shippers to access the global economy.

    Changi Airport is the first airport in Asia to embark on a community approach for the IATA CEIV Pharma certification, thereby raising the local community’s handling standards and capability for temperature-sensitive pharma cargo. The pioneer group of companies in the Changi CEIV Community consists of Singapore Airlines Cargo, dnata Singapore, Global Airfreight International Expeditors Singapore, CEVA Logistics Singapore, and Schenker Singapore.

    SATS Coolport, a major cargo player at Changi Airport, was the first facility in the world to attain the IATA CEIV Pharma certification in 2014.

    Global spending on pharma cold chain logistics is projected to grow at eight-nine percent per year, totaling US$16.7 billion by 2020 according to Pharmaceutical Commerce. Asia is expected to account for the largest regional share growth with more than $1.2 billion of cold-chain growth through 2019.

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  • DHL eCommerce will invest €70 million to expand its air hubs in Delhi and Mumbai

    DHL eCommerce will invest €70 million to expand its air hubs in Delhi and Mumbai

    DHL eCommerce will invest €70 million (US$75.1 million) to expand its air hubs in Delhi and Mumbai, supporting the growing e-commerce industry in India.

    According to DHL, the 5,761m2 Delhi hub and 4,274m2 Mumbai hub will be equipped with automation to handle a daily volume of more than 500 tonnes. The upgrade will allow Blue Dart Express, a subsidiary of DHL, to process more shipments faster and deliver them to Indian consumers by air.

    “The e-commerce industry is an extremely exciting one that offers tremendous opportunities for businesses and consumers alike,” said Juergen Gerdes, CEO of post, e-commerce and parcel at Deutsche Post DHL Group [third from right in photo]. “The global B2C cross border e-commerce market will multiply in size to US$1 trillion in 2020. The growth is driven by increasing consumption from expanding middle classes, greater mobile and internet penetration and improving logistics and infrastructure as consumers increasingly shop online and expect shorter delivery times. With our added focus on innovation such as the StreetScooter and In-Car Delivery, we are gearing up to ensure we stay ahead of the game and be able to anticipate and meet the needs of the overall industry, e-tailers and end customers.”

    Charles Brewer, CEO of DHL eCommerce, said that the completion of the upgrades will mark another milestone in the expansion of the DHL eCommerce logistics network.

    “India is a really important market for us and is one of the fastest-growing, with B2C e-commerce expected to grow from €9.6 billion (US$10.3 billion) in 2016 to between €30-40 billion (US$32.2-42.9 billion) in 2020,” said Brewer. “This investment in India, as well as recent investments in the Americas and elsewhere in Asia Pacific this year, showcases our commitment to the e-commerce industry by delivering high quality, reliable logistics solutions to meet the rising demands of e-commerce consumers.”

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