Retail News CRM

Author: Mei Ling Tan

  • Facebook, Microsoft team for mid-Atlantic cable

    Facebook, Microsoft team for mid-Atlantic cable

    On what do Facebook and Microsoft agree? Apparently, on the need for a new transatlantic cable between Spain and Virginia in the US. The MAREA cable system was announced yesterday, with the software and social networking giants working with Telefonica’s Telxius subsidiary to make it happen.

    MAREA will supposedly feature 8 fiber pairs and have an initial theoretical capacity of a whopping 160Tbps. It will stretch 6,600km and land in Bilbao in northern Spain and in Virginia Beach. That route takes a less popular southern route to Europe a bit north of the one taken by the aging Columbus system.

    The Virginia Beach landing can be better understood if one recalls that Telefonica’s BRUSA cable hooking up North and South America will also be landing there.

    Just last week we learned that Telefonica has already bought a 3.5 acre site there for a 20,000 square foot building for its cable landing station and data center there. In addition, fiber operators like SummitIG and Lumos Networks have been adding fiber infrastructure throughout southern and central Virginia that will surely help with the backhaul.

    Telxius will operate and manage the cable system itself. Telefonica launched Telxius as its infrastructure arm earlier this year, shifting ownership of towers, subsea cable systems, and other assets into it.

    They hope to monetize those assets in the wake of the blocking of the sale of O2 in the UK, and supposedly this week added several banks to prepare for a $4 billion to $5 billion IPO. That could happen as soon as July.

    This past year has seen the most submarine activity ever from the content guys, and they are increasingly taking the lead on new cable systems they feel are needed to meet their own bandwidth demand.

    Construction of the MAREA cable system is expected to begin in August and finish in October of 2017, although I’m sure they’ll have to time the actual cable laying operations around the Atlantic hurricane season.

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  • Myanmar taps Intelsat for satellite backhaul

    Myanmar taps Intelsat for satellite backhaul

    Myanmar’s Ministry of Transport and Communications has arranged to use two Intelsat satellites to improve wireless broadband connectivity for the nation and expand broadband access for businesses.

    The multi-year, multi-transponder agreement will allow the government to significantly enhance its own network and help mobile operators achieve their 2G and 3G deployment goals, the parties said in a statement.

    This will hasten the expansion of high-speed wireless broadband connectivity for businesses and communities nationwide.

    Under the agreement, the ministry will use C-band satellite services over the Intelsat 902 craft for VSAT network and cellular backhaul services, and move to the higher-power services on the recently-announced Intelsat 39 satellite by 2018.

    “Over the past few years, Myanmar has made significant strides in expanding access to faster and more reliable broadband connectivity throughout the country,” the ministry’s permanent secretary Khin Maung Thet said.

    “With the help of Intelsat’s Globalized Network, we will leverage their satellite solutions to extend 2G and 3G communications services beyond urban centers and ensure that all of our citizens have access to higher bandwidth, superior quality and more affordable mobile broadband connectivity.”

    Intelsat CEO Stephen Spengler added that the satellite services “will help enrich the lives of the communities [the government] serves by improving medical and educational access, providing a lifeline during times of crisis and enabling Myanmar to foster strong relationships within and outside of the country.”

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  • Huawei validates key 5G technologies

    Huawei validates key 5G technologies

    Huawei has announced it has completed the first stage of key 5G technology tests as part of a series of 5G field trials organized by the IMT-2020 5G Promotion Group.

    The vendor completed outdoor macro-cell tests in Chengdu, China consisting of a number of key 5G enabling technologies and an integrated 5G air interface.

    As part of the trial, Huawei evaluated three foundational technologies – filtered orthogonal frequency division multiplexing (F-OFDM), sparse code multiple access (SCMA) and polar code – the air interface technology.

    Results show that F-OFDM was able to improve system throughput by 10%, SCMA was able to increase uplink connections by 300% and downlink system throughput by up to 80%, and polar code provided coding gain of between 0.5dB and 2dB compared to the code used in LTE systems.

    Huawei said results of the test demonstrate that the new 5G air interface technology can improve spectral efficiency and meet the ITU-R’s diverse service requirements for the standard.

    The IMT-2020 5G Promotion Group was launched by the China Academy of Information and Communication Technology to encourage joint efforts to promote 5G field trials and evaluations among the global mobile industry.

    Earlier this year the group announced a three-phase 5G trial plan spanning from 2016 to 2018.

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  • Volkswagen considers setting up its own battery factory

    Volkswagen considers setting up its own battery factory

    Volkswagen is considering building a multi-billion-euro battery factory as part of a major expansion of its electric-car portfolio, company sources told the Handelsblatt, a leading German daily.

    The factory will allow Volkswagen to operate independently of Asian firms like Panasonic, LG and Samsung that have dominated the battery market to date, the newspaper added.

    The company’s executive board looks to be in favour of approving the plan, which is also supported in principle by the works council and the state of Lower Saxony, its major shareholder, before the firm’s annual meeting on June 22.
    The company hopes that focusing on battery technology and electric cars can help it make a fresh start and improve its negative image after the “Dieselgate” scandal, the paper said.

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  • New release: Mango Ramadan fashion range

    New release: Mango Ramadan fashion range

    Spanish fashion brand Mango has launched a range of Ramadan styles, including special festive garments.

    For more than 10 years the brand has been globalising its collections for different markets. Its special-collections department develops exclusive designs in line with the cultural and religious norms of different countries.

    The Mango Ramadan fashion offer includes casual garments such as jackets, kaftans, flowing jackets, oversized shirts, leggings and tunics made of fabrics such as poplin and imitation suede. There are also festive garments such as long dresses and double-layer body wraps (relaxed or fitted), plus midi-skirts made of fantasy fabrics. Satin finishes, lurex and laminated fabrics play a key role, as does lace.

    While the Spanish market is key for development, the brand has about 80 per cent of turnover in other countries. There are more than 2200 Mango stores in 109 countries.

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  • Stradivarius mid-air pop-up a world-first

    Stradivarius mid-air pop-up a world-first

    A Stradivarius mid-air pop-up store on a flight between Barcelona and Split is believed to be a world-first.

    Cabin crew on a flight from Barcelona to Split gave passengers mobile phones that came with an app, designed specifically for the event, for purchasing clothes from Stradivarius’ latest collection.

    Stradivarius says it believes the event marks the first digital pop-up store ever created on board a plane.

    The passengers included leading international fashion bloggers, invited by the brand, whose final destination was the island of Hvar (Croatia) as a part of The Summer Expedition 2016, where they enjoyed different looks of the brand and some leisure activities.

    All the passengers were given a corporate gift after landing and a letter of gratitude for attending this initiative.

    In 2015, Stradivarius organised a fashion parade on a plane in another first..

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  • Coex Mall Seoul management goes to tender

    Coex Mall Seoul management goes to tender

    Outside management will be introduced for Coex Mall Seoul, which has been struggling to attract shoppers since reopening a year ago after renovation.

    Korea International Trade Association (KITA) chairman Kim In-ho says an entity to manage the mall will be named by the end of the year.

    This is being entrusted to an outsider so it can be more effectively managed, says Kim.

    “We will select the management firm in a fair and transparent manner in accordance with the law.”

    A wholly owned KITA subsidiary has been managing the mall, which has been hit by a prolonged consumption slump and intensifying competition, including eCommerce.

    “We have to ask ourselves this question: can we compete with Lotte, Hyundai and Shinsegae? I seriously doubt it,” says Kim. “I believe Coex Mall will be more efficiently managed by professionals, and generate larger profits and create more jobs.

    “KITA needs to make money from the mall to finance its work, promoting the country’s trade.”
    Meanwhile, KITA has started preparing to bid for a convention centre to be built in Jamsil Sports Complex, a few kilometers away from its Coex Convention Center.

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  • Central Group Vietnam halts buying spree

    Central Group Vietnam halts buying spree

    Thai retailer Central Group Vietnam is putting the brakes on its acquisition spree to focus on consolidating profit, according to media reports.

    Deputy group CEO Prin Chirathivat says Vietnam is shaping up as a second home for the Central Group, with the company having established three Robins Department Stores there, acquired a 49 per cent stake in electronics retailer Nguyen Kim, taken over fashion eCommerce site Zalora Vietnam from Germany’s Rocket Internet, and bought out Big C Vietnam for $1.1 billion.

    Prin has told The Nation that he realises it is time to reap profit from the businesses in Vietnam, with the depreciation of fixed assets putting pressure on profitability despite positive cash flow.

    But while Central has decided to pull back on buying, he says it does not want to miss any interesting inorganic growth opportunities.

    Its biggest equity investment has been taking over 30 Big C Vietnam supermarkets, for which it secured a bridging loan from Bangkok Bank, according to the Bangkok Post. Central will use Zalora to strengthen the channels of local partner Nguyen Kim as well as its Robins stores.

    The Thai group still considers Vietnam as an important market, buoyed by a growing economy and high purchasing power. But it still has plans for Indonesia, including opening five more department stores in Jakarta and Surabaya by 2017.

    Back in Thailand, Central Group no longer owns Big C SuperCentre, but has acquired the Zalora business there.

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  • Chinese vegan market booming

    Chinese vegan market booming

    The Chinese vegan market is expected to grow 17.2 per cent between 2015 and 2020 – the fastest growth rate in the world.

    Global market research company Euromonitor International’s new Ethical Labels database reports a growing movement toward sustainability, social responsibility and transparency on labels worldwide.

    According to the new research, halal and vegan labels are set to grow by a compound annual growth rate of more than 5 per cent annually during the period, translating into 708 million extra sales worth US$13 billion.

    Despite leading growth for the vegan sector, China lags behind the US and Japan when it comes to ethical labels.

    “Vegan product labelling is one of the key categories to watch in the future, as an increasing number of companies are expanding their consumer appeal by staying away from animal ingredients whenever possible,” says Euromonitor International head of health and wellness Ewa Hudson.

    “The rising demand and trend for vegetarian and vegan proteins indicates where the market is moving.”

    Meanwhile, the global market for ethically labelled packaged foods, soft drinks and hot drinks (excluding private label) accounted for $793.8 billion last year and is set to reach $872.7 billion by 2020.

    Worth $45.3 billion currently and set to reach $58.3 billion in 2020 are halal products, driven by ethnic and religious diversity.

    Other findings of the research: the US is the largest kosher market, 18 times the size of Israel; and the UK is the runaway leader in animal welfare labels with $ 30.1 billion last year.

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  • Hermes Korea buck luxury downturn

    Hermes Korea buck luxury downturn

    Hermes, the French high fashion brand, has proven to be an exception to the downturn in South Korea’s luxury market, industry officials said last Tuesday.

    Compared to other luxury brands that had one to three per cent sales increases over the past three or four years, Hermes Korea has shown growth of 20 to 30 per cent, according to global consulting firm Bain & Company. The company’s sales rose 25.7 per cent in 2012, 31.1 per cent in 2013, 32.7 per cent in 2014, and then 27.9 per cent in 2015.

    Department store officials say much of Hermes’ popularity comes from its handbags – in particular, its Birkin bag. Retail sources report 1000 people in South Korea are currently on the waiting list for one of the bags, but three to four years ago, unable to meet the impossibly high demand, the stores stopped taking reservations.

    “We are hard-pressed to be able to deliver on reservations made years ago,” an official at a Hermes store in Seoul said. “So we stopped taking reservations altogether.”

    A Birkin bag is locally priced at 13 million won (US$10,975), with crocodile-skin models selling for as much as 70 million won.

  • Pizza Hut Asia to test Pepper the robot

    Pizza Hut Asia to test Pepper the robot

    Pizza Hut Asia and MasterCard have partnered to bring Pepper, SoftBank Robotic’s humanoid robot, to restaurants by the end of this year to enhance in-store customer service.

    Pizza Hut Asia will be piloting Pepper for order-taking and what MasterCard describes as “personalised engagement”. This marks the first commercial application for Pepper, according to MasterCard.

    Pepper, which was unveiled on Tuesday, will be powered by MasterPass, the global digital payment service from MasterCard that connects consumers with merchants, enabling them to make digital payments across channels and devices.

    MasterPass extends the robot’s ability to integrate customer service, access to information and sales into a seamless and consistent user experience.

    “Consumers have come to expect personalised service, customised offers and simple and seamless processes both in-store and online,” said Tobias Puehse, vice president, Innovation Management, Digital Payments and Labs, Asia/Pacific, MasterCard. “The app’s goal is to provide consumers with more memorable and personalised shopping experience beyond today’s self-serve machines and kiosks, by combining Pepper’s intelligence with a secure digital payment experience via MasterPass,” Puehse said.

    Pepper robot Pizza Hut

    A consumer will be able to initiate an engagement by simply greeting Pepper and pairing the consumer’s MasterPass account by either tapping the Pepper icon within the wallet or by scanning a QR code on the tablet that the robot holds. After pairing with MasterPass, Pepper will be able to assist cardholders by providing personalised recommendations and offers, additional information on products, and assistance in checking out and paying for items. Pepper will be able to initiate, approve and complete a transaction by connecting to MasterPass via a Wi-Fi connection and the entire transaction happens within the wallet.

    “We are excited to welcome Pepper to the Pizza Hut family,” said Vipul Chawla, managing director of Pizza Hut Restaurants Asia. “Core to our digital transformation journey is the ability to make it easier for customers to engage, connect and transact with Pizza Hut. With an order-and-payment-enabled Pepper, customers can now come to expect personalized ordering at our stores, reduce wait time for carryout, and have a fun, frictionless user experience,” Chawla said.

    The app was built by the MasterCard Labs team in Singapore, one of the company’s eight research and development centers across the globe. The Pepper application adds to ongoing MasterCard programs that bring payments to any consumer gadget, accessory or wearable – from fitness bands to refrigerators and now robots. The integration with Pepper, MasterCard stated, has the potential to open up opportunities in the world of retail such as personalised shopping and concierge services, in-aisle checkout and the ability to buy in store but get the goods delivered at home. The same capability would also be applicable to other consumer engagement locations such as hotels, banks, airports, and other customer service industries.

    The app is being showcased at the Pepper Partners Europe event hosted by SoftBank Robotics Europe (a SoftBank Robotics Holdings group company) in Paris until May 26.

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  • JTG Holdings buys Jones the Grocer global rights

    JTG Holdings buys Jones the Grocer global rights

    JTG Holdings, the master franchisee for Jones the Grocer in the Middle East and North Africa, has bought the global rights to the brand.

    In a separate transaction LVMH investment arm, L Capital Asia has taken a minority stake in JTG Holdings with the aim of backing the brand in its international expansion.

    Another subsidiary of L Capital Asia has taken master franchise rights for the brand in various markets in north Asia, Southeast Asia, Australia and New Zealand.

    While its base in the UAE will give JTG Holdings a global footprint, it aims to stay true to its Australian roots and is committed to supporting franchisees as true partners.

    Jones the Grocer is a cafe and retail outlet specialising in hand-selected specialty products, its flagships featuring a signature walk-in cheese room, charcuterie and deli. Established in 1996 with the launch of its flagship Australian store in Woollahra, Sydney, Jones the Grocer has now has 19 stores across Australia, New Zealand, Singapore, Thailand, Qatar, Bahrain and the UAE.

  • BMW cafe says Hello to Korea

    BMW cafe says Hello to Korea

    A BMW cafe in Korea has opened inside a Lotte department store in Incheon.

    Lotte Department Store’s Premium Outlet allows visitors to enjoy the BMW motorcycles and related accessories such as clothing and helmets. The cafe open today, May 27.

    Free consultations about motorbikes and other products are also offered to customers.

    BMW Cafe Korea 1

     

    “We tried to make a store that targets men who are interested in motorcycles,” said a Lotte spokesman.

    “We’ll try to expand our shopping spaces that cater to male customers.”

    The number of Korean motorcycle fans has increased in recent years, doubling the number of imported high-capacity motorbikes from 10,300 in 2012 to 20,800 in 2015.

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  • Burberry prices ‘too expensive’ in China

    Burberry prices ‘too expensive’ in China

    Burberry prices are too high in China and Hong Kong and the brand must make cuts if it wants to arrest falling sales in the region says a retail analyst.

    Last week the UK-headquartered luxury fashion label reported its second consecutive drop in earnings, this time by some 10 per cent. Sales in Hong Kong have fallen more than 20 per cent for three consecutive quarters.

    Jack Chuang, a partner with Hong Kong-headquartered OC&C Strategy Consultants, says while the company is planning to cut overheads by £100 million over the next two years, the solution is a lot simpler.

    “Saving cost might help with Burberry’s short-term financial performance, but we don’t think it will help solve the fundamental problems it has in Asian market.

    “Among all the luxury brands, Burberry is almost the one with most significant price gap between Asian and European markets. Prices in Mainland China are almost 40 per cent higher than in UK, while in Hong Kong, it is 20 per cent higher.”

    Chuang says while a lot of luxury brands have started to think about price equalisation – citing Chanel, Cartier and Dior as examples from last year and, more recently, Valentino – Burberry raised its prices in China again in May by 5 to 10 per cent.

    “If it continues this type of strategy, more and more domestic demand will shift to the overseas market through travelling or cross-border eCommerce and no matter how they save cost (whether limited to Hong Kong or globally), they are going to have problems in Asia.”

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  • Richemont Asia stores set for cull

    Richemont Asia stores set for cull

    Feeling the pinch from a tough trading environment, luxury goods retailer Richemont has announced restructuring measures, including the closure of stores.

    Richemont Asia sales have declined despite a 26 per cent increase in sales in Mainland China.

    Global sales fell 18 per cent in April, and the company reported a 23 per cent drop in full-year profit.

    Richemont says it is cutting costs in its watch sector and plans to consolidate its global retail presence, particularly in Mainland China, while investing further in jewellery.

    Richemont owns brands including Baume & Mercier, Cartier, Chloe, Dunhill, IWC Schaffhausen, Jaeger-LeCoultre, Lancel, Montblanc, Piaget, Roger Dubuis, Shanghai Tang, Vacheron Constantin and Van Cleef & Arpels.

    “In the near term, we are doubtful that any meaningful improvement in the trading environment is to be expected,” said chairman Johann Rupert, revealing plans for Richemont store closures across its brands.

    Richemont’s operating profit in the year ended March was $2.06 billion, down from $2.67 billion because of the cost of restructuring measures initiated to counter the Asia Pacific downturn. Full-year revenue edged up 6 per cent to $11.08 billion, helped by favourable exchange rates.

    “Our concerns over geopolitical risks and the impact on the behaviour of our clients proved justified,” said the company.

    “Trading conditions in Hong Kong and Macau remained difficult. Only mainland China showed good growth.”

    Richemont’s final quarter was hit by slower tourist spending in Europe after terrorist attacks, while its Hong Kong business continued to bear the brunt of a strong currency which, combined with a slowdown in Chinese growth, deterred mainland tourists.

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