Retail News CRM

Author: Mei Ling Tan

  • Challenger Technologies takes revenue hit

    Challenger Technologies takes revenue hit

    Challenger Technologies has experienced a significant slump in retail sales.

    While group revenue for the Singapore IT products and services provider remained flat at S$256 million (US$184 million) for the nine months to September 30, its third-quarter dropped 16 per cent to $74.4 million.

    This was mainly because of a decrease of $7.5 million in retail sales brought on by the weakened market, as well as a $5.6 million fall in corporate sales.

    CEO Loo Leong Thye says the company will continue to enhance its omnichannel offerings so it can reach offline and online customers faster.

    Net profit fell by about 16 per cent to $9.1 million for the nine months, and for the third quarter took a 49 per cent dive to $1.8 million. The company says this was caused by an impairment provision of about $1.2 million for investments in a last-mile delivery provider, which has since scaled down. Without this, net profit for the nine months and third quarter would have decreased by 6 and 17 per cent respectively.

    The rest of the decrease was because of lower gross profit from lower revenue, despite a marginal increase in gross profit margin.

    To date, the group has 44 stores in Singapore, comprising 25 Challenger superstores and 19 small-format stores.

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  • Apple savvy brought to Xiao Guan Tea store

    Apple savvy brought to Xiao Guan Tea store

    Apple Store designer Tim Kobe was designer for the Xiao Guan Tea label’s first store, which has opened in Jinan, China.

    At the store’s grand opening, Kobe joined lead designer Jinjiang Yu, innovative experience consultant Shuo Tang and consumer experience director/company partner Hong Li about “Creating a new Chinese tea experience using the same philosophy as Apple Inc”.

    Xiao Guan Tea store 1

    Believing a traditional Chinese tea store would be too outdated for today’s young urban consumers, they analysed how concepts in store design integrate with the Chinese tea culture, proposing fresh ideas for both the tea and design industries.

    Accordingly, the Xiao Guan Tea Store sets about changing the Chinese consumer’s impression of a tea brand right from its entrance. Full-height revolving glass doors display teaware and the company’s specially designed tea capsules.

    Xiao Guan Tea store 2

    On arrival, customers enter the Tea Vault with individual displays for each type of tea, and the Tea Bar where they can sit and sample teas. There are introductory videos, and different varieties of tea leaves can be viewed inside vacuum glass containers.

    Once a customer has made a choice, a tea host places their tea capsules into a gift box.

    Xiao Guan is not just a tea shop or product display centre – it has been designed as a place where people can linger, similar to Apple’s retail philosophy. It approach was to invite eight tea masters, each representing a different style of tea, to create products with uniform quality standards, defined origin of raw materials, and limited picking time and preparation methods to ensure the freshness and authenticity of each leaf.

    Xiao Guan Tea store 3

    Also, the company invited a Japanese master engineer to design an aluminium pod for individual tea brewing.

    All this preparation took two years, the result being not only a new brand but also a more convenient and simple way for people to enjoy tea.

    “With precise product positioning plus advanced marketing strategy, Xiao Guan Tea has created an innovative consumer experience which is very different from the traditional tea industry,” says marketing director Jiang Mei.

    “Chinese tea has always been portrayed with traditional images. We have broken the traditional approach to tea selling with a new brewing method and by creating a brand experience.”

    Photo: Wei Xuliang

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  • Leonardo ready to expand helicopter sales to Indonesia

    Leonardo ready to expand helicopter sales to Indonesia

    Italian aerospace, defense and security company Leonardo-Finmeccanica sees an opportunity to expand its presence in Indonesia with sales of its helicopter products, company officials said here on Thursday.

    Head of Region for Leonardo Helicopters Lorenzo Pariani said here at the Indo Defense Expo 2016, Thursday, that Indonesia has a dynamic market to fill the needs of civilian and military users of Leonardos products.

    “Indonesia is a big archipelago. You have specific needs that we could develop together,” Lorenzo said.

    At the end of 2015, Leonardo had delivered an AW139 helicopter to the Indonesian Search and Rescue Agency (Basarnas) for humanitarian and rescue missions.

    Basarnas was Leonardos first Indonesian costumer in the form of a government agency.

    “This is like an ice breaker because we want to sell more of our helicopters,” Lorenzo said.

    The Indonesian Air Force has also chosen Leonardos AW101 helicopter, which serves as a multi-purpose helicopter, with sufficient haulage and is projected to conduct missions as a heavy-lift helicopter to increase the mobility of troops and logistics.

    Several private operators in Indonesia have also been using Leonardos helicopter such as Susi Air with AW109 and AW119, and Travira Air, which opted for a larger AW139.

    “Were also ready to have cooperation in transfer of technology with Indonesia,” Lorenzo said.

    Leonardo has sold more than 1,000 units of helicopters globally, while this year, the company has received 15 confirmed orders for helicopters from the Indonesian costumers, he said.

    Meanwhile, Leonardos Vice President of Market and Business Development, as well as Head of Region Southeast Asia, Bruno Bertella said that Leonardo and the Indonesian Military have been partners for around 20 years.

    Leonardo has provided the Indonesian armed forces with a sophisticated defense system, such as an electronic defense systems, torpedos, warship cannons in various calibres.

    “We hope to be able to provide a heavy weight torpedo for the Indonesian submarine which was recently built in South Korea,” Bruno said.

    The Indo Defense Expo and Forum 2016 is currently being held in Jakarta from Nov 2 to 5, in which a total of 844 companies, including 573 foreign companies and 271 domestic ones, are participating.

    Indonesias Defense Minister Ryamizard Ryacudu said the exhibition is expected to benefit not only the defense field but also the countrys economy and research and technology development.

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  • Shoppers in Hyderabad welcome fourth SPAR Hypermarket

    Shoppers in Hyderabad welcome fourth SPAR Hypermarket

    Building on the SPAR Brand awareness amongst shoppers in Hyderabad, the newest hypermarket situated in Paradise Mall, Nacharam has been enthusiastically welcomed by customers. This is the 18th SPAR Hypermarket to open in the country, spread over seven states and nine cities, and the fourth in Hyderabad.

    The newly built hypermarket is a total of 6,000sqm and comprises one of the retail offerings in the Mall which is also managed by Max Hypermarkets, holder of the SPAR licence in India. In the retail selling area of 5,400sqm, customers can enjoy a diverse range of fresh foods from the fish, bakery, delicatessen and Food-to-Go service departments or browse the extensive non-food offer. The wide choice and high standard of products available throughout the hypermarket has seen customers react positively with particular attention on the Home & Living department.

    Many of the local customers are traditional families comprising a full target group of babies through to grandparents, requiring a broad range of products. In the build up to the opening on 18 October, SPAR India spread the word through extensive advertising. Customers took advantage of the opening specials with over 1,000 transactions taking place between 4:30 and 10:00 pm on the first day of trading. 

    Further advertising about the selection of fresh fish, meat and produce has begun together with greater awareness of the full hypermarket offer. Customers have commented favourably on the open layout, wide aisles and the merchandise available.

     SPAR India continues to focus on the range instore, building up their own brand products, which currently account for approximately 10% of retail turnover. SPAR India’s Managing Director, Rajeev Krishnan, stated at the opening ceremony that the group intends to expand its footprint by 30% in the next 12-18 months.

     SPAR India already offers an online shopping platform available for customers in Bengaluru. The platform offers same day delivery, payment by credit card, cash or food coupons and orders above Rs1,000 are free of charge. The online platform may be extended to other cities in the future. Furthermore, SPAR India continues to invest in the profitability and efficiency of its hypermarkets through the incorporation of new technologies such as the queue-buster solution to enhance the customer experience.

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  • Global Advertising Spend Growth to Slow Next Year

    Global Advertising Spend Growth to Slow Next Year

    The latest Consensus Ad Forecast from Warc, the marketing intelligence service, indicates that global advertising spend will rise by 4.5% during 2016 as a whole, before the growth rate slows to 4.2% in 2017.

    With the exception of newspapers and magazines, all major media channels are expected to record adspend growth this year and next. However, the two largest, TV (+1.1%) and internet (+13.0%) are forecast to see their growth rate ease during 2017. The same is true for mobile, though it is still set to be the fastest-growing ad channel over the period.

    Warc’s Consensus Ad Forecast is based on a weighted average of adspend predictions at current prices from ad agencies, media monitoring companies, analysts, Warc’s own team and other industry bodies.

    Current sources include Carat, eMarketer, GroupM, Magna Global, Nikkei Advertising Research Institute (NARI), Pitch-Madison, Pivotal Research Group and ZenithOptimedia.

    All 13 markets covered in the report are forecast to see the amount invested in advertising rise both this year and next, though for eight of these the growth rate will be softer in 2017.

    India is expected to see the strongest annual rise in adspend this year, up 13.3%, with a similar rate of growth anticipated next year. The world’s largest ad market, the US, is expected to post adspend growth of 5.1% this year – buoyed by the presidential election campaigns and the Rio Olympics. US adspend growth is then forecast to cool next year – rising by 2.8% – as the impact of these events is lost.

    Adspend growth by country

                           2016 vs 2015     2017 vs 2016

                          y-o-y % change   y-o-y % change

    India                      13.3             13.4

    China                       7.8              7.1

    Russia                      5.8              6.1

    Spain                       5.8              5.2

    UK                          5.6              4.3

    US                          5.1              2.8

    Australia                   3.8              3.8

    Brazil                      3.3              2.1

    Italy                       2.8              1.6

    Germany                     2.1              1.8

    Canada                      2.0              2.4

    Japan                       1.7              1.7

    France                      1.3              0.8

    Global                      4.5              4.2

    Source: Warc’s Consensus Ad Forecast, November 2016 (www.warc.com)

    Despite the uncertainty surrounding the “Brexit” process by which the UK will leave the European Union in 2017, the nation’s ad market is forecast to record adspend growth of 5.6% this year and 4.3% next; both above the global respective rates.

    All four BRIC markets, India (+13.4%), China (+7.1%), Russia (+6.1%) and Brazil (+2.1%), are expected to post rises in ad expenditure this year and next. France is forecast to record muted growth of +0.8% in 2017, the softest rate of the 13 markets studied.

    All media, barring newspapers and magazines, are predicted to record year-on-year growth in 2017, with mobile expected to see the greatest adspend rise, up 34.2%. Total internet (including mobile) growth is expected to be 13.0% next year, while TV, the world’s largest ad channel by spend, is forecast to post growth of 1.1%.

    Global adspend growth by medium

                           2016 vs 2015     2017 vs 2016

                          y-o-y % change   y-o-y % change

    Mobile                     47.1             34.2

    Internet                   14.6             13.0

    Out of home                 3.4              3.2

    Cinema                      3.1              5.1

    TV                          2.8              1.1

    Radio                       0.4              0.3

    Magazines                  -5.9             -4.5

    Newspapers                 -8.0             -6.1

    Source: Warc’s Consensus Ad Forecast, November 2016 (www.warc.com)

    James McDonald, Senior Research Analyst at Warc, said: “The latest consensus results present a positive outlook for advertising investment at both a global and local level. All 13 markets studied are expected to record adspend growth in the short term, and this despite their contrasting socio-economic environments.”

    “We have identified a common trend among more mature markets whereby increasing investment in internet – particularly mobile – ad formats is driving headline growth. Applying consensus trends to Warc’s adspend data shows that mobile will grow to be the world’s third-largest ad channel by the end of 2016.”

  • 2017 APAC Effie Awards Call for Entries Announced

    2017 APAC Effie Awards Call for Entries Announced

    The Asia Pacific Effie Awards has announced the Call for Entries for the 2017 season. Recognized by agencies and marketers to be the most prestigious effectiveness awards in the region, APAC Effie, now in its fourth edition, continues to honour marketing communication campaigns that have achieved outstanding measurable results.

    The 2017 competition offers 42 categories, spotting several changes to stay relevant to the evolving marketing landscape in Asia Pacific. 3 new Specialty Categories are introduced – Branded Content, Programmatic, and Seasonal Marketing.

    In addition, the Positive Change Effie Awards, a multinational programme run in collaboration with the World Economic Forum, is now offered as part of the APAC Effie program under Environmental – Brands and Environmental – Non-Profit. In alignment with global practices, we have rebranded Goodworks – Brands as Social- Brands, and Goodworks – Non Profit as Social – Non-Profit under the Positive Change categories this year. Full list of categories and category definitions are available in the Entry Kit.

    “As one of the most coveted accolade in this region, the APAC Effie has become the “must-enter” award in the region’s competition calendar. This is where we can demonstrate our capabilities to deliver innovation, creative solutions and results for brands,” said Anthony Wong, the 2017 Awards Chairman. He added, “I am excited to see the cases and look forward to be inspired by outstanding work that represents the best of the region – and the world.”

    The 2017 Awards is now accepting entries through to December 2016 for all marketing communication efforts that have ran in Asia Pacific during the qualifying period. Winners will be announced at the Awards Gala in Singapore in April 2017.

    Visit www.apaceffie.com for more information on the competition.

  • Iconic Global Brand, Calvin Klein, Debuts on ZALORA

    Iconic Global Brand, Calvin Klein, Debuts on ZALORA

    ZALORA, Asia’s online fashion destination, today announced a partnership with iconic global lifestyle brand Calvin Klein to launch Calvin Klein Jeans, Calvin Klein Underwear and Calvin Klein Performance at ZALORA.com across the Asia region. This partnership significantly expands the distribution of Calvin Klein presence in five key markets including Singapore, Hong Kong, Taiwan, Malaysia and Philippines. Fashion-conscious customers from these countries can now buy their favourite Calvin Klein products on-the-go and at the comfort of their home at ZALORA website and Calvin Klein owned online store.

    ZALORA will launch the Fall 2016 season with Calvin Klein Jeans – the original designer jeans that exemplifies sexy, provocative and youthfulness; Calvin Klein Underwear – the first designer underwear that is modern, body conscious and sensuous; and Calvin Klein Performance – a contemporary and stylish athleisure wear. Offering over 300 assortment of product from womenswear, menswear, underwear, bags and small leather goods, ZALORA.com is a comprehensive one-stop online shopping destination for Calvin Klein fans.

    “We are thrilled to be launching Calvin Klein across all of our markets in Asia,” said Parker Gundersen, Chief Executive Officer of ZALORA Group. “Calvin Klein enjoys tremendous appeal across Asia and this launch will be an exciting enhancement to our brand portfolio. With strong partners like Calvin Klein, we remain well ahead of the competition in terms of product assortment and ability to serve the millions of consumers throughout Asia seeking trusted and convenient access to fashion online.”

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  • The Port of Hamburg has launched a Chinese-language version of its website

    The Port of Hamburg has launched a Chinese-language version of its website

    “China is by a wide margin the Port of Hamburg’s most important trading partner,” said Axel Mattern, joint CEO of Port of Hamburg Marketing. “We aim to do justice to this by now offering our internet presence, not just in German and English as the language of shipping, but also in Chinese. On our travels in China we have found that language still frequently forms a barrier to communication. We aim to reduce this and to facilitate immediate access to comprehensive data on the Port of Hamburg for our Chinese partners and customers through our Chinese internet presence. The new language version of the Port of Hamburg website is a logical extension of our already very comprehensive range of information.

    The website provides information such as liner services, agencies and handling facilities, as well as an integrated database on intermodal services, according to the port.

  • VW makes ‘substantial progress’ toward 3.0 liter diesel agreement

    VW makes ‘substantial progress’ toward 3.0 liter diesel agreement

    U.S. District Judge Charles Breyer said on Thursday that Volkswagen AG has made substantial progress in talks with the U.S. Justice Department and other government agencies toward resolving the fate of about 80,000 polluting diesel 3.0 liter vehicles.

    At a San Francisco court hearing, Breyer set a Dec. 1 deadline for a report on the status of the talks and said he is “very optimistic” an agreement will be reached. VW previously agreed to spend up to $16.5 billion, including as much as $10.3 billion to buy back up to 475,000 polluting 2.0 diesel vehicles.

    Volkswagen submitted proposed fixes for larger Porsche, Audi and Volkswagen diesel vehicles earlier this year and has been in intensive discussions with U.S. and California regulators. People briefed on the talks say VW may agree to buy back at least 21,000 older Volkswagen Touareg and Audi Q7 diesel vehicles and might only offer to repair the 60,000 newest ones if regulators agree, but no final agreements have been reached.

    If VW were required to repurchase all of the larger, more expensive 3.0-liter vehicles, its costs could increase by billions. They include the diesel Porsche Cayenne, Audi A6 Quattro, A7 Quattro, Audi A8 and Audi Q5.

    Among the undecided issues is how much Volkswagen may be willing to compensate owners of the 3.0 liter vehicles.

    VW agreed to offer owners of the 2.0 liter vehicles between $5,100 and $10,000 in compensation, in addition to the estimated value of the vehicle.

    The 2.0 liter diesel vehicles have software that allowed them to evade emissions rules in testing and emit up to 40 times legally allowable emissions in onroad driving. The 3.0 liter vehicles have an undeclared auxiliary emissions system that allowed the vehicles to emit up to nine times allowable limits.

    VW has been barred from selling diesel vehicles in the United States since 2015 and has said it has not decided whether it will resume U.S. diesel sales.

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  • VMware, AWS to launch joint hybrid cloud service

    VMware, AWS to launch joint hybrid cloud service

    VMware and AWS have teamed up to provide an integrated hybrid offering that promises to give customers the full software-defined data center (SDDC) experience.

    VMware Cloud on AWS will enable customers to run applications across VMware vSphere-based private, public, and hybrid cloud environments.

    To be available in mid-2017, the service will be delivered, sold, and supported by VMware as an on-demand, elastically scalable service. VMware Cloud on AWS will allow VMware customers to use their existing VMware software and tools to leverage AWS’s global footprint and breadth of services, including storage, databases, analytics and more.

    VMware Cloud on AWS is powered by VMware Cloud Foundation, a unified SDDC platform that integrates VMware vSphere, VMware Virtual SAN and NSX virtualization technologies, and will provide access to the full range of AWS services.

    This new service will run on next-generation, elastic, bare metal AWS infrastructure.

    Pat Gelsinger, CEO of VMware, said the new service will make it easier for customers to preserve their investment in existing applications and processes while taking advantage of the global footprint, advanced capabilities, and scale of the AWS public cloud.

    “Our customers continue to ask us to make it easier for them to run their existing datacenter investments alongside AWS,” said Andy Jassy, CEO of AWS.

    “Most enterprises are already virtualized using VMware, and now with VMware Cloud on AWS, for the first time, it will be easy for customers to operate a consistent and seamless hybrid IT environment using their existing VMware tools on AWS, and without having to purchase custom hardware, rewrite their applications, or modify their operating model.”

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  • Christian Louboutin perfume oils launched

    Christian Louboutin perfume oils launched

    A trio of Christian Louboutin perfume oils has been unveiled, adding a new dimension to the iconic shoe designer’s fashion cachet.

    And as one would expect, the launch is backed by an edgy multimedia campaign of videos featuring admiring men and print media bordering on the erotic.

    But the new scents do not come cheap. A 30ml bottle will set you US$320.

    Christian Louboutin scents bottlesChristian Louboutin’s perfume oils are described as “a new and highly luxurious way” to experience Louboutin’s three signature women’s fragrances: Bikini Questa Sera, Tornade Blonde and Trouble in Heaven.

    “The alchemy of precious oil touching the skin produces a scent that is utterly personal to the woman wearing it. The perfume oil is an exceptional elixir containing the highest concentration of fragrance oil and no added water or alcohol, providing a more intimate experience than a conventional form of fragrance,” the designer explains.

    The oil features the same unique olfactive construction as the fragrance, which is what Louboutin calls the “ping.”

    “The first burst of scent, like the striking of a piano key, is followed by a beautiful resonance of scent as the note echoes its sound. There is one present moment,” he says, “and then there is the trace, le sillage, I think of it as its memory.”

    Apparently, Louboutin has always loved the idea of the ritual of beauty, which is why he wanted the perfume oil to be applied with a glass dabber contained within the bottle, so that a woman can ‘stroke’ on the fragrance “in a highly feminine and elegant gesture”.

    “Each woman can delight in her own very personal ritual, choosing where to apply the oils: decollete, wrists, collarbone, along her legs, her inner arm, and the nape of her neck.”

    The oil is intended to be massaged into the body inviting the pleasure of sensation. It leaves the skin lustrous, enveloping the wearer in a second-skin of perfume. It can be worn alone or layered with the fragrances to heighten the sensory experience, to explore and create new dimensions and nuances of scent, the designer says.

    The perfume oil bottle is an objet d’art that is both visually hypnotic and tactile. A collaboration between Christian and Heatherwick Studio, it undulates with harmonious and dynamic energy. A unique and luxurious metallic finish gives the bottles an iridescent, radiant effect and differentiates the oils within the Christian Louboutin fragrance range.

  • SoftBank to establish tech investment fund

    SoftBank to establish tech investment fund

    SoftBank Group has announced plans to establish the SoftBank Vision Fund to make investments in the technology sector globally.

    The fund will be managed in the United Kingdom by a subsidiary of SoftBank and will deploy capital from SoftBank and investment partners. The fund will aim to be one of the world’s largest of its kind.

    SoftBank expects to invest at least $25 billion over the next five years. The company has concluded a non-binding memorandum of understanding (MoU) with the Public Investment Fund of the Kingdom of Saudi Arabia (PIF).

    Under the MoU, PIF will consider investing in the fund and becoming the lead investment partner, with the potential investment size of up to $45 billion over the next five years.

    In addition, a few large global investors are in active dialogue to join SoftBank and PIF to participate in this investment fund. The overall potential size of the fund can go up to $100 billion.

    SoftBank will use its operational expertise and network of portfolio companies in order to add value to the fund’s investments.

    Deputy Crown Prince Mohammed Bin Salman, chairman of PIF, said the PIF is focused on achieving attractive long-term financial returns from its investments at home and abroad, as well as supporting the Kingdom’s Vision 2030 strategy to develop a diversified economy.

    “With the establishment of the SoftBank Vision Fund, we will be able to step up investments in technology companies globally,” said Masayoshi Son, chairman and CEO of SoftBank Group.

    “Over the next decade, the SoftBank Vision Fund will be the biggest investor in the technology sector,” said Son. “We will further accelerate the Information Revolution by contributing to its development.”

    SoftBank Group’s head of strategic finance Rajeev Misra is leading the Fund. SoftBank has engaged former Deutsche banker Nizar Al-Bassam and ex-Goldman partner Dalinc Ariburnu for the project. PIF also had its own team of experts engaged.

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  • Singapore’s MyRepublic launches in Australia

    Singapore’s MyRepublic launches in Australia

    Singapore-based ISP MyRepublic will launch in the Australian market later this month over the national broadband network (NBN), as part of the company’s ongoing regional expansion.

    MyRepublic will launch an unlimited data service at the fastest NBN speeds available in that area at the single price of A$59.99 ($46.10) per month.

    Unlimited data plans are still relatively rare in the Australian market due to a lack of competitive fixed-line infrastructure, even as the NBN wholesale network is progressively deployed.

    MyRepublic Australia managing director Nicolas Demos said the company plans to differentiate by offering the best speeds possible with unlimited allocations.

    “It is time to educate Australians on the value of quicker speeds without the restrictions of data caps,” he said.

    “Australia has the 48th fastest average internet connection speed in the world. Over 80% of Australian customers on the NBN are currently running on speeds similar to ADSL technology. We will deliver customers the best speed they can get – at their location – with our unlimited plan offer with local support at a fair price.”

    MyRepublic was founded in 2011 and was the first company is Singapore to offer 1Gbps broadand services for under S$50 ($36) per month. The company has been pursuing regional expansion, and has so far also launched services in New Zealand and Indonesia. At home, the company is vying to become Singapore’s fourth mobile operator.

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  • Vietnam retail rents rise as flurry of global brands arrive

    Vietnam retail rents rise as flurry of global brands arrive

    Prime Vietnam retail rents are rising as a flurry of international retail brands move into Ho Chi Minh City.

    The third quarter of 2016 saw major changes of supply market in HCMC, according to a research report by Colliers International.

    In recent months, more than 100,000 sqm of retail space has been added in the city with the opening of the revamped Saigon Center anchored by Japanese department store Takashimaya and a new Aeon Mall opening in Binh Tan.

    But average retail rental rates have slightly increased to US$126/sqm/month in the CBD and US$36/sqm/month in the suburbs.

    Saigon Centre has been completed and occupied by 400 local and foreign brands, including concessions in Takashimaya. Aeon’s Binh Tan mall is the company’s second in Ho Chi Minh City, home to a large supermarket, restaurants, fashion shops, cinemas and a variety of retail stores.

    Geert Jan ten Hoonte, retail advisor of Kusto Management Vietnam, said these two malls will bring an extra level into the market. “It will force other operators to rethink their offer to the consumers. It would be a good development if shopping centre developers start to think in location, functionality and market positioning for the malls they are planning,” he said.

    Foreign brands

    Vietnam’s retail industry’s latest quarter started with the departure of well-known F&B brand NYDC. The exit of the Singaporean dessert and coffee chain partly confirmed the struggle of international F&B brands face competing with domestic players.

    Q3 also saw the debuts of many international fashion brands. The first, and largest, was Spanish fast-fashion brand Zara, which has taken up 2400 sqm of Vincom Dong Khoi with its first flagship store in Vietnam. The opening day brought Zara more than VND5 billion sales, reportedly the highest first-day sales of any new Zara store opening worldwide.

    Saigon Center and Takashimaya has enticed many international brands to HCMC such as Dsquared2, Fred Perry, and Ted Baker.

    Other significant retailers to launch in the city during the quarter included faux Japanese, Chinese-headquartered retail chain Miniso, Naughty Cat and Innisfree.

    With its fast-growing young population and emerging middle class, Vietnam’s retail market is expected to mature into a more convenient, modern retail environment in coming years. Vietnam’s admission to the WTO and the upcoming TPP trade agreement will draw a significant amount of FDI from international retailers in the future.

    Online shopping

    Meanwhile, online shopping is growing rapidly, with the Vietnam eCommerce and Information Technology Agency (VECITA) forecasting some 30 per cent of the population will be buying goods online by 2020, spending US$10 billion a year.

    In 2015, online sales were $4.07 billion, and growing at 37 per cent on the previous year.

    Despite being comparatively small by Asian standards, Vietnam’s eCommerce market is growing exponentially with more than 54 per cent of the population now connected online.

    The government plans to boost eCommerce with a goal of 50 per cent of local enterprises setting up online stores and 80 per cent doing business through eCommerce platforms.

    -Yen Hai Nguyen

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  • Minister wants increase in exports of motorcycles

    Minister wants increase in exports of motorcycles

    The countrys motorcycle industry has recorded a leapfrogging increase in production over the past several years, but the industry is still a minor player in export, Industry Minister Airlangga Hartarto has said.

    “The countrys production of motorcycles has increased 800 percent in the past three years but exports averaged only 300,000 units year,” the minister said here on Thursday.

    Motorcycle sales in Indonesia averaged 6 million units a year that means exports are only 5 percent of the domestic sales, he said.

    Airlangga said currently the country had 90 million units of motorcycle on the street or more than one third of the population of around 250 million.

    The number shows that motorcycles have become the main alternative of public transport in the country, he said.

    Growing demand for transport service has contributed to the expansion of motor vehicle industry including motorcycle industry in the country, he said.

    In the past five years , motorcycle industry in Indonesia has grown significantly with production averaging more than 7 million units per year.

    The industry ministry said it is optimistic the rising trend would continue in the coming several years.

    Airlangga said with the increase, the countrys position as the third largest producer of motorcycle in the world after China and India would not change.

    He said motorcycle industrialists need to expand research and development to keep pace with the market requirement domestically and internationally.

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