Retail News CRM

Author: Mei Ling Tan

  • Malaysia takes step toward digital economy goal

    Malaysia takes step toward digital economy goal

    The 2017 Malaysia Budget announced by Prime Minister Datuk Seri Najib Razak is an incremental step in realizing Malaysia’s vision of a fully connected digital economy, according to IDC.

    Although the specific financial breakdown of the budget initiatives is not yet available, IDC Malaysia said the direct and indirect impact on the Malaysian ICT sector is apparent.

    Data from IDC suggests that total IT spending that includes infrastructure, software and services will grow by 3.3% to be worth $21.16 billion in 2017.

    The research firm noted that it will be interesting to see if the recent budget initiatives will help Malaysia in achieving its vision of a digital economy given that key budget items are directly related to technology, such as improving the speed of fixed line broadband services, tax relief for purchase of select technology products and services, funding for specific MDEC programs focusing on specific initiatives, and launching a digital free zone.

    It likewise mentioned that the Malaysian government has placed a high emphasis on high-speed internet connectivity in previous budgets and continues to make it a priority in the 2017 edition, by mandating fixed line internet services to be increased to a baseline of 20Mbps.

    Currently, the average fixed line internet speed in Malaysia is at 6.8 Mbps, up 36% compared to the previous year. The proportion of internet users with access speeds greater than 10 Mbps and 4 Mbps has increased to 16% and 66% respectively.

    The government has also recognized the importance of further enabling SMEs in increasing macroeconomic indicators. SMEs’ contribution to the overall GDP for Malaysia was estimated to be 36.3% in 2015, whereas it tends to be about 50% and above in high-income nations.

    The $17.7 million allocated to promote SMEs development, as well as the funding for MDEC programs such as the e-commerce ecosystem and Digital Maker Movement, is a very positive step in this direction, IDC said.

    “The e-commerce ecosystem will continue to evolve in the future with the maturity of services, and the consumption patterns of the citizens. Two key areas worthy of future attention are figuring out how to retain more revenues from e-commerce sector within Malaysia, as well as encouraging global e-commerce platforms to increase investment in the country,” said Vijay Sundararaman, IDC Malaysia Country Manager.

    “There is a growing discussion on the creation of e-hubs that can accelerate SMEs output, as well as interconnectivity of these hubs globally to create a worldwide ‘Mega Trading Platform’.”

  • Save the Date for Volvo Group Capital Market Day 2017

    Save the Date for Volvo Group Capital Market Day 2017

    The Volvo Group invites financial analysts and institutional investors to the Volvo Group Capital Market Day, to be held in Eskilstuna, Sweden on May 23, 2017.

    The Capital Market Day on May 23 will start at 9:00 a.m. at Volvo CE Customer Center in Eskilstuna, Sweden, and finish with a dinner in the evening. The program will include presentations by the CEO and the Executive Management as well as the possibility to test drive products.

    A formal invitation with a complete agenda and registration information will follow in early spring 2017. Further information will also be made available on the Volvo Group website well in advance of the event.

    The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 100,000 people, has production facilities in 18 countries and sells its products in more than 190 markets. In 2015 the Volvo Group’s sales amounted to about SEK 313 billion (EUR 33,4 billion). The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden. Volvo shares are listed on Nasdaq Stockholm.

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  • Korean anti-corruption law impacts on retail sales

    Korean anti-corruption law impacts on retail sales

    The Korean anti-corruption law may be showing its desired extra effect of creating more time for family and home cooking if sales record at a leading retailer is any indication.

    October sales figures from E-mart released show an 11.5 per cent increase for the month to 1.14 trillion won (US$987.3 billion) compared to a year ago. Discount chain E-mart marked a 7.6 per cent jump while the retailer’s warehouse outlet Traders made a 43.7 percent leap. The online store E-mart Mall showed a 28.3 percent increase.

    The retailer had recorded a 6.1 per cent sales increase for the third quarter.

    Company officials said the Korean anti-corruption law that took effect on September 28 likely boosted the sales. The law sets limit to the price of gifts and paid meals that can be provided to public employees, school teachers and journalists. People who may serve one’s interests are also restricted by the price limit.

    Advocates of the law, still under controversy for restricting even gifts of good will and intent, had argued that the law will free individuals from business-related dinners and engagements, giving them personal evening time.

    “People leaving office on time and shopping for groceries, all due to the anti-corruption law, appear to have contributed largely to the double-digit growth in E-mart’s sales,” Lee Joon-ki of Mirae Asset Daewoo said.

    Food sales at E-mart rose 13.1 per cent in the month from a year ago, outdoing the average sales increase. In a breakdown, sales of fresh foods jumped 14.1 per cent while ready-made meals increased 14.5 per cent. Sales of processed foods were up 11.2 per cent.

    The number of customers coming in from 6pm had also increased, according to E-mart. The retailer had 3.5 per cent more shoppers since the day of the law’s enactment to November 8. The number of customers in the 6-9 pm period was up 5.3 percent.

    “We are focusing our marketing on foods section for our 23rd anniversary event since food sales are improving,” Choi Hoon-hak, marketing team chief at E-mart, said. “We intend to continue to introduce a variety of products that fit into the lifestyle changes of the customers.”

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  • Yogyakarta`s coffee business potential reaches Rp350.4 billion

    Yogyakarta`s coffee business potential reaches Rp350.4 billion

    Coffee shop ventures generate significant economic potentials in Jogjakarta, and it can reach Rp350.4 billion a year, generated from 800 coffee shops in the city.

    “The current economic realization that comes from 600 registered coffee shops in Jogjakarta reaches Rp262.8 billion per year,” the owner of Pitutur Coffee Shop Ponco Kusumo in Jogjakarta said on Monday.

    He explained in detail that a coffee shops economic realization comes from the volume of coffee sold each day, multiplied by the retail price of each cup.

    For example, every day there would be 80 cups of coffee sold in each shop, at a price of Rp15 thousand per cup.

    “That means that every coffee shop generates Rp1.2 million a day. When we multiply the total with the number of registered coffee shops across the town, the result comes out to be Rp262.8 billion, which is a substantial number,” he reiterated.

    The registered coffee shops are the ones that have signed up for the coffee business community, and there could be twice as many shops that are yet to be registered by the owners, he said.

    To reach a sales target of 80 cups per day, the shops need to operate from 10 am to 10 pm.

    “Our customer target includes students, general public and foreign visitors, who enjoy coffee,” he concluded.

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  • Indonesia, Singapore launch Kendal Industrial Park

    Indonesia, Singapore launch Kendal Industrial Park

    President Joko Widodo, along with Singapores Prime Minister Lee Hsien Long, launched the Kendal Industrial Park in Central Java Province as a new model of bilateral economic relationship.

    “Prime Minister Lee and I agreed that the investment cooperation in Kendal Industrial Park marks a new milsestone in our bilateral relationship, particularly in the investment sector,” Jokowi said in a joint press statement here on Monday.

    Both heads of state also discussed the potential for more such bilateral investments, as Jokowi believed there was a big opportunity to further develop this economic cooperation.

    The president also stated that Indonesia was committed to improve its competitiveness to become an investment destination country.

    “During discussions, I explained that we are continuously reforming the economic and legal sector to improve Indonesias economic competitiveness,” Jokowi added.

    Jokowi reminded that both Indonesia and Singapore are also enhancing cooperation in the tourism sector by developing new tourism destinations in Indonesia.

    Indonesia hopes that a range of Memorandums of Understanding (MoU) that have been signed would lead to more effective cooperation in the tourism sector.

    Jokowi noted that Singapore also supports Indonesia on several regional and international issues such as counter terrorism measures as well as in the South China Sea dispute.

    “Singapore is an important partner of Indonesia in many sectors. Indonesia and Singapore will also celebrate the 50th year of their diplomatic relationship,” Jokowi noted.

    A project being built in Central Java through bilateral cooperation will create about 4,000 jobs.

    Prime minister Lee underlined that many Singapore companies have been investing in Indonesia, not only in the free trade areas of Batam-Bintan-Karimun (BBK) in Riau Islands, but also in other areas in the country.

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  • 70 percent train tickets for Christmas season already sold

    70 percent train tickets for Christmas season already sold

    Seventy percent of the regular train tickets for travel during Christmas and New Year 2017 holidays have been already sold, Bambang Eko Martono, the Director of state railway operator PT Kereta Api Indonesia, said here on Monday.

    “We are targeting 258 million passengers this year,” Bambang Eko Martono stated.

    “PT KAI will offer new additional train tickets that could be ordered on Tuesday (Nov 15) at 12 noon,” he added.

    PT KAI has will make available 13,892 additional train seats during the Christmas and New Year 2017 holiday period.

    “We have made available 212,564 seats per day with 328 regular train trips and 28 additional train trips during Christmas and New Year holidays, about 11 percent more than last year,” he noted.

    The number of passengers travelling by train during the holiday season increased by six percent, from 4.3 million in 2015 to 4.5 million this year.

    PT KAI estimates that revenue during the holiday season could increase up to 10 percent, compared to last years figure for the same period.

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  • OpenHydro eyes 300 MW of tidal power projects in Indonesia

    OpenHydro eyes 300 MW of tidal power projects in Indonesia

    OpenHydro, the tidal turbines business of French naval defence group DCNS, will seek to deploy 300 MW of tidal energy capacity in Indonesia by 2023 under a new partnership with local sector player PT AIR.

    OpenHydro said this week it has entered into a memorandum of understanding (MoU) with PT AIR to create an alliance aimed at driving forward the development of a tidal energy industry in Indonesia. The two companies have been working together over the past 18 months and during that time have identified at least 10 locations suitable for commercial-scale projects.

    The pair expect to start with a tidal energy array of up to 10 MW, for which a site will be selected over the coming months. The pilot system is planned for deployment in 2019. It will use European equipment provided by DCNS and its unit, plus locally manufactured content.

    OpenHydro noted that local industrial facility options have been identified and will be assessed by the partners.

    “The nature of the equipment involved in tidal energy projects results in a high level of local manufacturing content,” commented Thierry Kalanquin, chairman of OpenHydro and vice president of energy at DCNS.

  • Indonesia, Singapore agree to develop tourism cooperation

    Indonesia, Singapore agree to develop tourism cooperation

    Indonesia and Singapore agreed to develop cooperation in the tourism sector through the signing of a memorandum of understanding (MoU) in Semarang, Central Java, on Monday.

    Indonesian President Joko Widodo (Jokowi) and Singapore Prime Minister Lee Hsien Loong witnessed the signing of the MoU by Indonesian Minister of Tourism Arief Yahya and Singapore Industry Minister S. Iswaran, representing the Singapore Tourism Board (STB).

    Jokowi, in his statement after the signing of the MoU, said the cooperation will strengthen ties in the tourism sector, including the development of new tourism destinations in Indonesia.

    “We hail the cooperation in the tourism sector that has just been signed,” Jokowi said.

    In the meantime, Minister Arief Yahya said the cooperation, which will be developed, covered three areas. “There are three areas of Indonesian-Singapore cooperation in the tourism sector, namely joint marketing, cruise ships and MICE (Meeting, Incentive, Convention, Exhibition).

    Works that could be done are the development of ports and destinations, the development of human resources, cooperation in the private sector, and exchange of information.

    Yahya said that both countries did no need a long time in the process of reaching the signing of the MoU.

    “This is the fastest signing of MoU that Singapore has ever made,” said Leong Yue Kheong, Assistant Chief Executive of Singapore Tourism Board.

    Since 2010, Singapore has shown its interest to cooperate in the development of cruise ship business, but Indonesia was still calculating the advantages and disadvantages of the cooperation with Singapore.

    It was in the era of Jokowi did Indonesia decide to give priority to cooperation in the tourism sector with Singapore.

    Earlier, Jokowi and Lee Hsien Loong held a bilateral meeting at Perdamaian Guesthouse, Semarang, Central Java.

    Jokowi, who was accompanied by First Lady Iriana Joko Widodo, arrived at the guesthouse at 9.30 am after flying directly from Jakarta. He arrived ahead of the Lees arrival.

    Lee and his wife Ho Ching arrived at the guesthouse at around 9:50 am. He was accompanied by Central Java Ganjar Pranowo to walk into the guesthouse.

    After the welcoming ceremony, Jokowi and Lee directly held a bilateral meeting at the guesthouse.

    As planned, the meeting includes a number of activities, including Indonesia-Singapore “Leaders Retreat Tete-a-Tete,” a bilateral meeting, as well as signing of the MoU on the results of cooperation between the government of Indonesia and Singapore.

    After luncheon, Jokowi and Lee and his entourage are also scheduled to attend the official opening of Kendal Park Industrial Estate By the Bay, which is located in Kendal District, Central Java Province.

    The president and Lee are scheduled to make an observation tour in this area before returning to Semarang.

    The president and the First Lady are scheduled to return to Jakarta at night by the Indonesian Presidential Aircraft-1.

    Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan, Minister/State Secretary Pratikno, Tourism Minister Arief Yahya, and the Head of Capital Investment Coordinating Board (BKPM) Thomas Lembong accompanied the president during the flight to Semarang.

  • 2 Reasons Why Indonesia’s Economy Could Grow Much Faster Than Singapore’s

    2 Reasons Why Indonesia’s Economy Could Grow Much Faster Than Singapore’s

    The World Bank had recently released its October 2016 edition of the Indonesia Economic Quarterly (IEQ), titled, Pressures Easing. In the report, which goes through the state of Indonesia’s economy, the World Bank shared a few pillars that are supporting the growth of the country’s economy.

    The World Bank’s latest projections are for Indonesia’s economy to expand at 5.1% in 2016. This compares favourably to Singapore’s expected economic growth rate of 1% to 2% this year.

    Here are some of the pillars the World Bank shared in its report:

    1. Higher tax revenue from tax amnesty

    Indonesia’s government had rolled out a tax amnesty program in June this year that is scheduled to run till next March. The tax amnesty program has been highly successful so far and has already gathered IDR 93.4 trillion (around US$7 billion) in revenue for the Indonesian government in the first phase alone.

    The revenue was higher than estimated. The World Bank thinks that the additional revenue is “expected to raise capital spending and hence have a positive impact on Indonesia’s growth.”

    2. Effective social policies and plans for tourism growth

    The better fiscal position of the Indonesia government is not the only pillar supporting growth for Indonesia.

    The World Bank thinks it is possible that the Indonesian government’s policies that stabilised rice prices and expanded social assistance programs over the past few years have helped reduced Indonesia’s poverty rate by 0.4 percentage points in the first-quarter of 2016.

    Indonesia is also looking to boost the appeal of its tourism sector by attracting US$10 billion in private investments for tourism by 2019. Data from the World Travel and Tourism council show that every US$1 million spent on tourism in Indonesia helps support 200 jobs and US$1.7 million in GDP (gross domestic product).

    There are a number of stocks in Singapore’s market with heavy exposure to Indonesia’s economy and one of them is Lippo Malls Indonesia Retail Trust, a real estate investment trust that owns retail malls and spaces in Indonesia. Since the start of the year, Lippo Malls Indonesia Retail Trust’s unit price has climbed by 22%.

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  • Indonesia-Singapore partnership to open 4,000 jobs in Central Java

    Indonesia-Singapore partnership to open 4,000 jobs in Central Java

    Singapore Prime Minister Lee Hsien Loong and President Joko Widodo (Jokowi) have issued a joint statement, that a cooperation project being built in Central Java is estimated to create 4,000 jobs.

    Prime Minister Lee and President Jokowi issued the joint statement at Wisma Perdamaian here on Monday.

    The visiting prime minister said there were many Singapore companies investing in Indonesia not only in the free trade areas of Batam-Bintan-Karimun (BBK) in Riau Islands, but also in other areas in the country.

    “Including in the Kendal Industrial Park to be officially commissioned today,” he said.

    According to Lee, the project in Kendal is an important cooperation project with big scale that could create 4,000 new jobs in Semarang especially in Kendal.

    He said the cooperation project constitutes a step of win win outcome between the two countries.

    “We also discussed development of cooperation in other sectors including tourism and we agree to increase tourist traffics mutually beneficial to the two countries,” he said.

    The two countries are designing joint destinations enabling tourists to visit to Singapore and Indonesia in a one trip.

    Lee hopes that the signing of the cooperation agreement on the tourism sector between Indonesia and Singapore, would lead to opening the route of tourist boats to boost development of cruise industry.

    “We encourage capacity building of Indonesia in hospitality and tourism sector,” he said.

    Both sides also discussed investment cooperation between the two countries, such as in the energy sector like energy that could be contributed to Indonesias 35,000 megawatt power generating program.

    Lee suggested to Jokowi, who agreed, the forming of Indonesia-Singapore Business Council to give added value to the partnership of the two countries.

  • H&M Vietnam launching in 2017

    H&M Vietnam launching in 2017

    International fashion brand H&M Vietnam (Hennes & Mauritz) has signed for its first store openings next year.

    No further details have been released by the Swedish fast-fashion company, which will also move into Colombia, Iceland, Kazakhstan and Georgia next year.

    Founded in 1947, H&M’s business credo is to offer fashion and quality at the best price in a sustainable manner.

    Other brands in the H&M Hennes & Mauritz group include & Other Stories, Cheap Monday, COS, Monki and Weekday, as well as H&M Home. The H&M Group has more than 4200 stores in 64 markets, including franchise markets.

    It’s debut in Vietnam was widely expected after rival brand Zara launched in Ho Chi Minh City in September, achieving the highest first day sales of any store globally.

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  • The Hour Glass profits drops 14 per cent

    The Hour Glass profits drops 14 per cent

    Citing challenging business conditions and weakening consumer confidence, luxury-watch retailer The Hour Glass reports that its net profit for the second quarter ended September 30 fell 14 per cent year-on-year to S$8.32 million (US$5.88 million).

    Revenue declined 7 per cent to S$163.11 million for the period.

    For the six months to September 30, The Hour Glass profit slumped 18 per cent to $16.51 million and revenue was down 7 per cent at $311.3 million.

    The group says the death of the King of Thailand will have an impact on the performance of the group’s Thai associates as the country enters a prolonged period of mourning.

    While the retailer believes market conditions will continue to be challenging, it expects to remain profitable for the rest of the financial year.

  • Lotte Shopping profit soars 203 per cent

    Lotte Shopping profit soars 203 per cent

    While revenue for its third quarter rose 2 per cent year-on-year, South Korea’s Lotte Shopping Companysaw its net profit soar 203.9 per cent to KRW78.2 billion (US$68 million).

    The retail giant says these are preliminary figures yet to be independently audited.

    Third-quarter revenue rose 2 per cent to KRW7.9 trillion. Domestic department stores maintained solid same-store sales growth (SSSG) of 2.2 per cent, while hypermarket SSSG faded 2.4 per cent in the face of a sluggish industry and the impact of renewal construction.

    Internationally the company had strong sales growth, apart from weakness for its China hypermarkets because of competition. Department store SSSG rose 9.2 per cent while hypermarkets declined 5.1 per cent.

    Lotte’s third-quarter operating profit dipped 10.1 per cent to KRW176 billion, both for department stores and hypermarkets domestically.

    On the international market there was an improvement in operating loss thanks to enhanced efficiency in all stores, plus there was an increased profit contribution from its cinema and electronics businesses.

    There was an increase in labour costs because of a one-off special incentive paid to all Lotte employees.

  • Milk tea chain plans Asian expansion

    Milk tea chain plans Asian expansion

    After early success in the Philippines, Khun Thai Tea is now eyeing three more Asian markets.

    The milk tea concept was co-founded by Bronze Media LLP Singapore owners Jeremy Lee and Elis Chai.

    Lee says the company is about to open its third store in Metro Manila, at MegaMall, with plans for a new kiosk every month moving forward. It is looking for partners in other Southeast Asian markets.

    “We are going to take Khun Thai Tea to Jakarta in Indonesia, Kuala Lumpur in Malaysia, and Taipei in Taiwan,” he says. “Plans to start outlets in these cities are already underway.”

    Local Filipino partner Nancy Padilla says the chain’s drinks are based on an original recipe for a refreshing black iced-tea (‘cha-yen’ in Thai) that dates back to 1955. First created by a Thai native fondly known as Auntie Marlee, the strongly brewed Ceylon tea has since been modernised with a switch from Ceylon to a Thai-grown assam tea known as ‘Bai Miang’. Infusion with spices maintains the headiness of the original recipe and bring out its complex flavours.

    The traditional sugar, condensed milk and evaporated milk-heavy Cha-Yen recipe has also been updated to better suit the tastes of modern health-conscious consumers.

    In addition to the original recipe, says Padilla, Khun Thai Tea outlets also offer variations of the concoction inspired by drink recipes from around Asia, such as a mix of coffee and tea (‘Yuan Yang’), which was first brewed in Hong Kong.

    Drawing inspiration from Taiwanese bubble milk tea recipes, Khun Thai Tea also comes with small chewy tapioca balls (‘boba’, or bubbles) added, to infuse new textures and experiences to the drink.

    The newest menu item, Ice Bandung, is inspired by the original popular Malaysian beverage recipe which combines the alluring taste of rose syrup with the velvety smoothness of milk.

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  • Skechers in Korea joint venture

    Skechers in Korea joint venture

    Skechers in Korea will now be managed by a joint venture with the parent company.

    Previously imported and distributed by a third-party company, Skechers head office in the US has confirmed it has partnered with Luen Thai Enterprises in a new business called Skechers Korea Co.

    “This will enable Skechers to use its proven sales and marketing strategies to further expand the brand in one of our key international markets,” the company said in a statement released in the US.

    “With a dedicated team from our previous distributor, LS Networks, and the knowledge and acumen of our Skechers China team, we believe we can profitably grow our business in South Korea and truly penetrate the region with a strong presentation from our vast collection of men’s, women’s and kids’ footwear.”

    Skechers footwear has been available in South Korea for more than 15 years.

    “ In that time, we have developed a great footprint with a network of more than 55 Skechers stores and built the brand through strong marketing campaigns, including using the talents of exceptionally popular endorsees like K-Pop stars Sistar and EXO in Skechers marketing campaigns,” said David Weinberg, COO and CFO of Skechers.”

    LS Networks distributed Skechers in South Korea from 2009 to 2016.

    “We’ve been very pleased with the consumer response to the Skechers product in South Korea,” added Sung Hun “Scott” Lee, previous senior GM of Skechers’ Korean distribution partner and now president of Skechers Korea Co. “Through my time with LS Networks, I’ve seen firsthand how Skechers has grown in Korea, most recently through the Skechers D’Lites craze that started here in 2015 and spread through Asia and then around the globe.

    “Now as part of the Skechers global team and with key members of my previous team transitioning with me, we’ll have the direct resources, support and insight to really take the business to the next level.”

    Willie Tan, CEO of Skechers Asia joint ventures, said forming a JV with Skechers that combines its global expertise with the local partner’s unique insight in this market “we’ll be able to more efficiently build the brand and more effectively directly target merchandising to the unique tastes of consumers across South Korea”.

    “We expect this will strengthen our business not only in South Korea but further synergise the business across Asia.”