Retail News CRM

Author: Mei Ling Tan

  • Kering sales soar – even in China

    Kering sales soar – even in China

    Luxury goods and apparel giant Kering has reported a 10.5 per cent global rise in revenues in the latest quarter, with luxury sales up 11.3 per cent and sports and lifestyle brands up 9.3 per cent.

    Most significantly, at a time its peers are battling falling sales in Hong Kong, Macau and some brands even in Mainland China, Kering seems to have experienced respectable results in those core markets.

    Paris-based Kering’s brands range from luxury labels Gucci, Bottega Veneta and Yves Saint Laurent through to lifestyle brand Puma. The company says sales in directly operated luxury stores enjoyed double-digit growth across all geographic regions excluding Japan, with strong growth of 24 per cent in Asia-Pacific, a very steady 17 per cent increase in North America and an “extremely good performance” in Western Europe, which expanded by 12 per cent.

    “In a complex environment, we stepped up the pace of revenue growth and continued to gain market share,” said Francois-Henri Pinault, chairman and CEO. “Thanks to the creativity of our brands and the outstanding customer experience they offer, we achieved double-digit increases across all geographic regions excluding Japan.

    “We have laid the foundations for steady, sustainable growth, and are highly confident about the full year.”

    Kering’s headline brand Gucci achieved a sales increase of 17 per cent, while Yves Saint Laurent sales soared 33.9 per cent, both gaining market share from rivals. Sales were up sharply across all product categories and regions, excluding Japan, where market conditions were lacklustre for the sector as a whole. Gucci sales in directly operated stores rose by 19 per cent. Sales from Gucci’s e-commerce website increased by more than 50 per cent during the quarter.

    Overall, Kering’s luxury activities generated €2.115 billion in revenue during the period, the 11.3 per cent same-store growth its fastest quarterly figure in three years.

    But at Bottega Veneta, third-quarter sales were again impacted by slower tourism, particularly in the mature markets of Western Europe and Japan. Revenue was down 10.9 per cent on a comparable basis.

    Here, Hong Kong’s luxury retail decline impacted on the brand, the company said, without divulging figures: “While sales in directly operated stores were lower in the quarter, they delivered a slight improvement compared to the second-quarter trend thanks to resilient sales to local customers in Europe and growth across all main markets in Asia Pacific, with the exception of Hong Kong.”

    Puma’s leap

    Puma’s 10.8 per cent same-store sales leap was the result of the brand building on innovative products and renewed appeal, Kering said. Shoes performed particularly well, posting 17 per cent growth, fuelled by the success of new models such as Ignite, Fierce and Fenty. Revenue from apparel was up a solid 10 per cent.

    “With the exception of Japan, Puma achieved double-digit growth across all geographic regions, enjoying strong performances in Europe and the Americas, and sustained expansion in Mainland China.”

    Kering has an ensemble of luxury fashion, leather goods, jewellery and watch brands: Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas Maier, Boucheron, Dodo, Girard-Perregaux, Pomellato, Qeelin and Ulysse Nardin.

    Kering also has the sports & lifestyle brands Puma, Volcom and Cobra. The group generated revenues of more than €11.5 billion in 2015 and had more than 38,000 employees at year end.

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  • Taiwan seeks more business opportunities with Indonesia

    Taiwan seeks more business opportunities with Indonesia

    Taiwan expects to boost its bilateral trade with Indonesia through the introduction of the so-called “New Southbound Policy” by its new government.

    The policy, adopted under the leadership of President Tsai Ing-wen, who was inaugurated in May, aims to strengthen Taiwan’s cooperation with nations in South and Southeast Asia, as well as Australia and New Zealand, in multiple sectors.

    During his maiden visit to Indonesia this week, Taiwan’s Deputy Minister of Economic Affairs Yang Wei-fuu brought along executives from Taiwanese state-owned enterprises representing various industries, including sugar, salt, aerospace, steel, oil and gas.

    “We’re looking for cooperation opportunities, to examine the needs in Indonesia and how we can help with our expertise and technology,” he said in Jakarta on the sidelines of an Indonesia-Taiwan business forum on Thursday evening.

    Experts from Taiwan, for example, can train sugar companies here to produce better and more sugar using its machines and methods, so Indonesia can import machines afterward, Yang said.

    The minister and his entourage will conclude their four-day visit on Saturday.

    Trade between Indonesia and Taiwan has seen a decline in recent years as a result of the global economic crisis as well as a lack of trade cooperation agreements.

    Indonesia’s exports to Taiwan consist mainly of natural gas, coal, copper and gold, timber and rubber and other raw materials. Imports consist largely of oil products, iron and steel products, textile raw materials, machinery parts, chemicals and other products.

    Indonesian Chamber of Commerce and Industry (Kadin) Taiwan Committee chairman SD Darmono said that to effectively boost trade between the two parties, Indonesia needed to have another logistics hub in the country’s eastern part, nearer to Taiwan.

    “All this time, they [Taiwan’s businesses] need to stop by in Singapore before entering Jakarta. That’s an extra 1,000 kilometers by sea,” he said.

    Darmono suggested Morotai Island in North Maluku province as a potential new hub, however, progress in building the island’s infrastructure has been slow. The island located near the Philippines also has potential for marine tourism. It has a population of only 60,000 although its size is three times that of Singapore.

    “Businesspeople in Taiwan and Indonesia signed commitments to invest in the island two years ago but progress has been too slow while we cannot also depend on the limited state budget to build it,” he said.

    He added that the hub could improve Indonesia’s trade with Taiwan, especially in value-added products, like food and clothing.

    Besides trade, Taiwan is also eyeing investing in Indonesia’s ambitious infrastructure boost, especially in solar and biomass-fueled power plants.

    “Both governments have been discussing [which power plant] projects we can invest in and how sustainable the project is once it’s done,” Deputy Minister Yang said.

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  • Government issues permit to import 123,800 feedlot cows

    Government issues permit to import 123,800 feedlot cows

    Indonesias Trade Ministry has issued a license to import 123,800 feedlot cows in the third semester of this year after feedlot businesses committed to import 20 percent heifers of the total cattle imports.

    “For the third semester of 2016, the import agreement letter (SPI) has been issued for 32 importer companies to import 123,800 heads of cows,” Director General of Internal Trade of the Trade Ministry, Oke Nurwan, told a press conference here on Friday.

    The director general said the permits should have been issued in September but the government issued these in October only after feedlot importers made a commitment to import 20 percent heifers when they import cows. The government has made it obligatory upon importers to also include heifers while importing feedlot cattle.

    According to Oke, a license for importing cows is given to importers for shipment until the end of December 2016.A limited cabinet meeting held previously had agreed to allow import of 150 thousand heads of cattle in the third semester.

    Indonesia needed to import one million heads of cows this year to meet the domestic need for beef. The Ministry of Agriculture and the Ministry of Trade, therefore, require importers to include heifers while importing feedlot cattle.

    “We hope that some 20 percent of the 700 thousand imported feedlot cattle are heifers,” Agriculture Minister Amran Sulaiman had pointed out in Yogyakarta on October 6.

    To expedite cattle production, the Ministry of Agriculture and the Ministry of Trade have made it obligatory for importers to include mother cows in their feedlot cattle imports.

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  • DBS to acquire ANZ’s Asian wealth assets

    DBS to acquire ANZ’s Asian wealth assets

    DBS Group said it plans to buy Australia and New Zealand Banking Group’s (ANZ) wealth and retail businesses in five Asian markets – part of a big private banking push for the Singapore lender and the first significant retreat from Asia for ANZ.

    The businesses in Singapore, Hong Kong, China, Taiwan and Indonesia, will be sold for around S$110 million, in a deal that underscores how smaller players are being squeezed out of private banking due to lack of scale.

    “Further investments do not make sense for us given our competitive position and the returns available to ANZ,” Chief Executive Shayne Elliott said in a statement.

    Mr Elliott also told an analysts call the bank would look to exit its retail and wealth assets in the Philippines, Vietnam, Cambodia and Laos separately.

    He added that for the bank to have remained competitive it would have had to invest further in developing its branch network and digital capacity.

    The deal will help DBS build up its leading position in the region, said Ms Tan Su Shan, DBS’ head of consumer banking and wealth management, noting that the Singapore lender had recently entered the top five bank rankings for the Asia-Pacific region.

    DBS and local rival Oversea-Chinese Banking Corp have been aggressively bidding for the Western private banking assets for sale in Asia.

    DBS, Singapore’s biggest lender, is also weighing a bid for ABN AMRO’s Asian private bank, sources have told Reuters.

    ANZ TO FOCUS ON INSTITUTIONAL BANKING IN ASIA

    The ANZ transaction is expected to be completed progressively from the second quarter of 2017, with full completion in all markets expected by early 2018.

    Most of its staff currently employed in the affected units will join DBS, ANZ said, adding that it will focus on its institutional banking business in Asia instead.

    ANZ, Australia’s third-largest bank by market value, also said it would take a loss of A$265 million on the sale, including write-downs, and added the sale was expected to increase its Tier 1 capital ratio by 15 to 20 basis points. The losses are set to be booked in the first half of the current financial year.

    They will come of top of A$360 million in one-off charges that will be booked in the year just ended. Those earnings are due to be released in full on Thursday.

    In 2009, ANZ acquired the Royal Bank of Scotland’s retail, wealth and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong as well as institutional businesses in Taiwan, the Philippines and Vietnam for US$550 million.

    The move was part of a “super-regional strategy” led by former ANZ Chief Executive Mike Smith, who left the bank last year.

    DBS Q3 PROFIT STABLE, BAD DEBT CHARGES UP

    The news comes as DBS posted a slight increase in third-quarter net profit, in line with expectations, although bad debt provisions rose sharply due to its exposure to the troubled oil and gas sector.

    Singapore banks are grappling with growing risks to earnings as credit woes deepen for the offshore services sector, which has been hit hard by an almost two-year rout in oil prices that lasted until early this year.

    DBS said net profit came in at S$1.071 billion in the third quarter that ended in September, versus a profit of S$1.066 billion a year earlier. That compares with an average forecast of S$1 billion from five analysts polled by Reuters.

    Bad debt charges rose to S$436 million in the third quarter from S$178 million a year ago.

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  • New Zealand to extend rural broadband initiative

    New Zealand to extend rural broadband initiative

    The New Zealand government has allocated a further NZ$150 million ($107.1 million) towards improving broadband connectivity in rural areas.

    The government has announced the next phase of the rural broadband initiative (RBI), a project to boost broadband coverage and speeds in the 25% of the population not due to be covered by the concurrent Ultrafast Broadband (UFB) project.

    Under the second phase of the RBI program, improved broadband will be delivered to communities unable to access broadband speeds of at least 20Mbps. The first phase of the program improved speeds for around 293,000 rural users.

    In addition, the government’s mobile black spot fund (MBSF) will improve the availability of mobile services in areas lacking coverage, including state highways and tourist areas.

    There are more than 200 blackspots listed in the government’s request for proposals, but not all locations will received coverage.

    “My aim is to provide high-speed broadband to the greatest number of under-served rural New Zealanders within the funding available, and give regional communities access to high-speed broadband. We also want to improve the reach of mobile services to support safety on State Highways and enhance the visitor experience for tourists,” communications minister Amy Adams said.

    “We’ve set an ambitious goal of ensuring that by 2025, 99% of New Zealanders will have access to broadband peak speeds of at least 50Mbps, and everyone will have at least 10Mbps. We’re interested in seeing how proposals for delivering coverage under the RBI2 and MBSF programmes show an upgrade path in line with this vision.”

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  • Chinese automaker BYD forecasts up to 84 percent profit rise for 2016

    Chinese automaker BYD forecasts up to 84 percent profit rise for 2016

    Chinese automaker BYD Co Ltd, backed by Warren Buffett’s Berkshire Hathaway, on Sunday said 2016 full-year profit was likely to rise as much as 84.17 percent, as rapid growth of the green car market eases.

    The Shenzhen-based manufacturer, which has invested heavily in making electric and hybrid petrol-electric vehicles, forecast a 77.09 percent to 84.17 percent increase in net profit for the year, at 5.0 billion yuan ($737.90 million) to 5.2 billion yuan.

    For the first nine months of 2016, BYD reported 3.66 billion yuan in profit, an 86.82 percent increase year-on-year. That compared with the automaker’s forecast in August of 83 percent to 91 percent for the period.

    BYD reported triple-digit profit growth for the previous four quarters. But its earnings expansion in the first nine months of 2016 slipped below 100 percent as the overall market for green-energy vehicles moderates after government support helped it quadruple last year.

    Overall sales of electric and plug-in hybrids in China totaled 289,000 vehicles in January-September, according to China’s automakers association, far from its target of 700,000 vehicles for 2016. An association official said Friday that sales were now likely to miss that target.

    Analysts said China may struggle to meet that target following the revelation that dozens of companies had been cheating the subsidy system.

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  • Hitachi shows off finger vein authentication

    Hitachi shows off finger vein authentication

    Hitachi has developed a finger vein authentication system that does not require specialized hardware, using an ordinary smartphone camera with software processing to validate the identity of a user.

    This is the first time that such a solution has been demonstrated, Hitachi said, and the implication is that it can be used to easily the identity of returning customers for online shopping.

    The finger vein authentication system was among a host of other innovations demonstrated on the exhibition show floor of the company’s Social Innovation Forum 2016 held this week in Tokyo, Japan.

    The company aims to introduce its new finger vein authentication system for online shopping and financial transactions within a few years.

    At the moment, the system entails the use of an authentication app that takes a photo to read the vein patterns and compares it with pre-registered data. Several fingers are authenticated for greater security and higher accuracy, and by leveraging on the color recognition technology to detect the finger veins quicker, the process takes around one second.

    This makes it faster than the traditional user-ID and password systems, which forces users to remember a password. Moreover, the use of vein patterns is also considered as more secure as they are more difficult to forge or spoof compared to other biometric methods such as fingerprint, facial recognition or voiceprint.

    This is because finger veins hardly change, and are also unlikely to be counterfeit, according to company officials. This makes them perfect for integration into even lower-end smartphones without dedicated fingerprint scanners.

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  • India to have nearly 1b mobile subs by 2020

    India to have nearly 1b mobile subs by 2020

    India has become the second-largest mobile market in the world, and is on track to reach nearly 1 billion unique subscribers by 2020, according to the GSMA.

    A new report from GSMA Intelligence indicates that by the end of June 2016, 616 million unique users had subscribed to mobile services in India, making the country the second-largest mobile market globally.

    India is also expected to see a significant increase in mobile subscriptions, broadband and connectivity with almost a billion unique mobile subscribers expected by 2020. This marks a period of rapid development of the country’s mobile economy, according to the study.

    The country overtook the US in 2016 to become the world’s second-largest smartphone market with an installed base of 275 million devices.

    According to the report, improving affordability, falling device prices and operator investments in network coverage and quality will help deliver an additional 330 million unique subscribers in India by 2020, lifting the country’s penetration rate to 68% per cent of the population, an increase from 47% in 2015.

    India is also seeing an technology shift to mobile broadband services. The number of 3G/4G mobile broadband connections is forecast to reach more than 670 million by 2020, 48% of the total connection base.

    There will also be an accelerating move to 4G over this period. The number of 4G connections is forecast to grow rapidly, growing from just 3 million at the end of 2015 to 280 million by 2020. In addition, the industry is set to invest heavily, with operator capex growing to $34 billion for the period 2016 to 2020.

    “With this report, all signs point to a period of tremendous growth for India’s mobile economy, which will strongly support and enable the government’s ‘Digital India’ initiative aimed at providing broadband connectivity to all,” GSMA director general Mats Granryd said.

    “To fully realize India’s tremendous market potential, review and reform in key areas, including modernizing regulation and long-term planning for spectrum allocation, would accelerate mobile broadband access and adoption across the country,” he adds.

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  • Big C Vietnam closes Cdiscount

    Big C Vietnam closes Cdiscount

    Big C Vietnam says it will close its eCommerce site Cdiscount by the end of December.

    The closure appears to be part of a policy change from Thailand’s Central Group after it bought the supermarket chain in April in a US$1.14 billion deal. The company will soon change the chain’s name and it has other eCommerce brands and established sites it could expand into Vietnam.

    Post-December, after sales service will be transferred to original retailers who used the portal.

    The e-tailer specialises in cell phones, household goods, beauty products and groceries and has been operating since the beginning of 2014. Originally it aimed to become the leading online retailer in Vietnam. However, after two years, Cdiscount has had little impact on the market.

    Vietnam is considered one of the two Southeast Asian nations with the most potential for eCommerce along with Indonesia. Korean retail giant Lotte recently announced plans to launch its first online shopping website Lotte.vn in Vietnam this month.

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  • McDonald’s Korea sale collapses

    McDonald’s Korea sale collapses

    And in the simultaneous divestment process for the 20-year McDonald’s China franchise rights, TPG Capital has reportedly withdrawn leaving two rival private equity firms in the race – Bain Capital and Carlyle Group – competing with two Chinese companies previously reported to be in the negotiations: retailer Wumart Stores and Sanpower Group.

    With Maeil Dairies Industry Co dropping out of the running for McDonald’s Korea, that sale process seems at best stalled.

    McDonald’s, which directly manages about 400 stores in South Korea, has been looking for local partners to run the Korean outlets as franchise stores that pay annual commissions instead. The deal initially drew interests from several investors, including CJ and NHN Entertainment, but they have nixed their plans.

    Maeil Dairies had formed a consortium with Carlyle Group, but pulled out after failing to agree on terms of contract, industry sources familiar with the matter told the Yonhap news agency.

    “We can’t verify the specific details as McDonald’s headquarters office is in charge of the bidding process, but the sales process is still under way,” an official at McDonald’s Korea said, without elaborating on the deal.

    Meanwhile, in China, TPG’s withdrawal was confirmed overnight by unidentified sources close to the matter and reported by several news networks.

    Carlyle Group has partnered with Citic Group and Bain with GreenTree Hospitality, a hotel group.

    McDonald’s is seeking as much as $3 billion for the China rights, which come with a 10-year expansion option.

    There are about 2400 McDonald’s restaurants in China and Hong Kong and the US company wants its master franchisee to expand that network rapidly to compete with rival Yum! China’s expansion plans.

    The ongoing presence of private equity bidders in the process is surprising, because McDonald’s has made it clear it is seeking a long-term partner rather than private equity firms, which typically cash out after a few years.

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  • No more rice imports this year

    No more rice imports this year

    President Joko Widodo (Jokowi) has assured that Indonesia will not import rice at the end of this year because the countrys rice stock is adequate until May 2017.

    Rice production has increased dramatically from some 1,030,000 tons during September to October 2015, to 1,990,000 tons in October 2016.

    The increase was merely thanks to prime paddy seed utilization and adequate rainfall.

    The government will focus on increasing the rice stocks before deciding to export rice later, he said, after witnessing a grand harvesting of Super Jajaran Legowo-type paddy in Trayu village, Banyudono sub-district, Boyolali.

    Boyolali is also a pilot project for Inpari 32 paddy variety.

    “Later, if it is successful, we will expand it and multiply it in order to significantly increase the national rice production,” the president said.

    At noon, President Jokowi and First Lady Iriana were scheduled to observe the 36th anniversary of World Food Day to be held at the Boyolali square.

    Boyolali is known as a region which has successfully implemented the food production diversification program. The district produces among other things Tongkol 2 Prolific hybrid maize and Jajar Legowo-type paddy.

    Home Affairs Minister Tjahjo Kumolo and Head of the Presidential Staff Teten Masduki joined the presidential entourage.

    FAO celebrates World Food Day each year on October 16 to commemorate the founding of the Organization in 1945.

    Events are organized in over 150 countries across the world, making it one of the most celebrated days of the United Nations (UN) calendar.

    These events promote worldwide awareness and action for those who suffer from hunger and for the need to ensure food security and nutritious diets for all.

    FAOs global message for World Food Day 2016 is “Climate is changing. Food and agriculture must too.”

    It resonates with the crucial time in which the day will be observed, just before the next UN Climate Change Conference, COP 22, from November 7 to 18, 2016 in Marrakech, Morocco.

  • Liao Fan hawker stall may go global

    Liao Fan hawker stall may go global

    Singapore’s Michelin-starred soya-sauce chicken rice-and-noodle stall Liao Fan may be going international.

    Shooting to fame in July after being awarded a star by the Singapore Michelin Guide, the hawker stall says it is collaborating with brand manager Hersing Culinary on global expansion plans.

    Hersing owns the Asia Pacific franchising rights to Hong Kong’s Michelin-starred dim sum eatery Tim Ho Wan.
    But even as his business expands, Liao Fan owner Chan Hon Meng says his outlet at Chinatown Food Complex will stay. The 51-year-old’s business was one of two hawker stalls awarded a one-star rating by Michelin, the other being Hill Street Tai Hwa Pork Noodle in Crawford Lane.

    Queues formed at Chan’s stall before it had even opened the day after its star was awarded, and he says he had since received offers from five companies to buy his recipe.

    Chan says he wants to remain a partner even after selling the recipe, and has laid out three criteria for potential partners – an offer of at least $2 million as a “guaranteed co-operation fee” for the recipe and cooking expertise; the partner has the resources to expand the brand “all over the world”; and the company needs to ensure the taste of his soya-sauce chicken is replicated and standardised in all the outlets.

    He says his ambition is to become the “No. 2 chicken eatery chain” after KFC. A key reason for his intention to expand overseas is the increase in the number of tourists visiting his stall since the award. He estimates they form about 90 per cent of his customers.

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  • Iran, Indonesia talk banking ties

    Iran, Indonesia talk banking ties

    An Iranian banking and financial delegation has paid a visit to Indonesian capital city of Jakarta to discuss facilitating banking ties between the two countries.

    During the visit, the sides called for removing the obstacles hindering the expansion of banking ties between the two countries, IRNA news agency reported Oct. 29.

    The Iranian delegation, headed by Ahmad Azizi, a high advisor to Governor of the Central Bank of Iran Valiollah Seif, pointed to the existing capacities for cooperation between the two countries and urged for broadening the ties, particularly in banking and financial spheres.

    The sides further laid great stress on the need for establishing direct banking relations between the banks of the two countries aimed at deepening trade ties.

    The delegations also agreed to keep in touch as long as banking ties are restored between Iran and Indonesia.

    Although the nuclear related sanctions on Iran were lifted following the implementation of the Joint Comprehensive Plan of Action on January 16, Iran still has difficulty establishing banking ties with leading banks as they are worried about running afoul of US regulations.

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  • Selfridges shines, Debenhams flounders

    Selfridges shines, Debenhams flounders

    Two iconic British department store brands released their annual trading figures overnight – and the contrast was blinding.

    Debenhams underwhelmed with like-for-like figures showing a decline in sales of 1.1 per cent, ts growth driven purely by the addition of five new stores and online advances.

    Yet Selfridges’ “winning formula” delivered another year of robust sales growth, in the words of Verdict Retail lead analyst Honor Strachan.

    “Its ability to bring on board the right mix of brands, tailor each of its stores to the local audience and create an ever-changing in-store shopping experience has ensured Selfridges remains relevant and an exciting destination among an increasingly demanding shopper base,” said Strachan.

    His colleague Kate Ormrod, a senior analyst, was less complimentary about Debenhams, describing the company’s UK gross transactional value of £2.352 billion as “underwhelming”.

    “Debenhams is slightly in limbo at present while new CEO Sergio Bucher familiarises himself with the company and forms his strategy to revitalise the business. Focus on clothing and homewares is much needed in FY2016/17, as well as ensuring the instore experience is consistent across its UK store portfolio.”

    Ormrod said Debenhams’ online business remains a key asset, and now represents 14.7 per cent of group sales – aided by its focus on mobile, its click & collect service, and investment in IT and systems, which bode well for the Christmas peak.

    “Refocusing the business away from clothing has been successful with solid growth achieved in beauty, gifting and accessories. While trading in the overall clothing market has been volatile, Debenhams must review and refresh its ranges to maintain its appeal and relevance in the market – or face further market share erosion. Selected Designers at Debenhams sub-brands such as Star by Julien Macdonald and J by Jasper Conran feel dated, along with core ranges such as Red Herring and Mantaray. Though Debenhams appears hesitant to rectify its problems in clothing, there is opportunity to target mature shoppers and better compete with the likes of JD Williams,” she said.

    “Debenhams’ strength lies in beauty and the addition of cult brands such as Kat Von D ensure the retailer garners destination appeal both instore and online. Driving cross-sector spending is essential to turn younger beauty shoppers into core Debenhams customers. Plans to introduce lighting to 30 stores, a clear attempt to muscle in on area BHS excelled in, and introduce furniture hubs in eight branches are positive steps, though Debenhams’ overall homewares offer pales in comparison to rival John Lewis in terms of breadth and destination appeal.

    Selfridges deflects the pressure

    Strachan paid tribute to Selfridges’ ability to prosper while facing “immense pressure from sector specialists and online pureplays”. Gross transactional value rising 5 per cent to £1.4 billion.

    A £300 million commitment to refurbishing its Oxford St, London, flagship dented its operating profit, which slipped marginally to £152 million, trimming margins to drop one percentage point to 10.9 per cent.

    “The modernisation of its flagship London store, taking over two years and due to be completed in spring 2018, is central to Selfridges’ strategy in creating destination departments, such as its 2016 openings of the Body Studio and Designer Studio, off the back of its success of its Denim Studio (2013) and Shoe Galleries (2010),” said Strachan.

    “The accessories department is currently being overhauled with the first phase due to open in time for peak Christmas trading, and will undoubtedly benefit from the influx of tourists taking advantage of the weak pound.”

    He said with Selfridges’ proposition heavily skewed to the luxury end of the market, he expects Selfridges to have a very strong second half in 2016/17, resulting in full year growth exceeding its 2015/16 financial year and an increase in its UK department store market share.

    “Selfridges continues to raise the bar by surprising its shoppers – with brand launches including Missguided for example – which is key as we approach a period of more considered spending among domestic consumers.”

  • Huawei to launch NB-IoT solution in early 2017

    Huawei to launch NB-IoT solution in early 2017

    Huawei has revealed plans to commercialize its end-to-end narrowband IoT solution early next year, to help operators expand their IoT services into new markets.

    The vendor plans to release the world’s first 3GPP standards-based NB-IoT commercial system-on-a-chip, Boudica, that can be deployed with the Huawei LightOS operating system.

    Huawei has meanwhile unveiled SoftRadio, a software suite to help developers access NB-IoT open labs via the internet.

    The solution will also involve eNodeB base stations, an IoT packet core supporting flexible deployment of Core in a Box and NFV, as well as a cloud-based IoT connection management platform with big data capabilities.

    The converged NB-IoT offering will be tested in a large commercial trial this quarter before being released to the market in early 2017.

    “NB-IoT has unique advantages in supporting IoT applications. Huawei will help carriers accelerate the commercial adoption of NB-IoT and the maturing of the industry chain,” Huawei VP of marketing and solutions Jiang Wangcheng said.

    “The IoT project and the success achieved so far fully demonstrate this commitment of ours.”

    Huawei’s launch plans were announced at the Huawei eco-CONNECT Europe 2016 conference held in Paris last week.

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