Retail News CRM

Author: Mei Ling Tan

  • Pokemon no-go in Thailand

    Pokemon no-go in Thailand

    Thailand’s Culture Minister has warned people against playing Pokemon Go, especially in religious and historic sites while the Tourism and Sports ministry is seeking to use the game to promote the very same.

    Culture Minister Veera Rojpojanarat said Pokemon Go had many potential dangers and players should not spend too much time on it, spend too much money or put themselves in danger.

    “As for entering Buddhist Monasteries or historic sites to catch the [Pokemon] dolls [sic], I know Thai people have the common sense to know what is proper and what it is not,” he said.

    This is in contrast to the Tourism and Sports Ministry which has jumped on board the Pokemon Go bandwagon, though it does seem to lack knowledge on how the game works.

    Last week, Pongpanu Svetarundra, permanent secretary of the Ministry of Sports and Tourism, announced that rare types of Pokemon would be placed at tourist destinations that the ministry wanted to promote.

    He also said that Pokestops (in game places that give out items when within 40 meters) would be placed at famous tourist destinations to attract Gen-Y trainers/travellers.

    Meanwhile the Election Commission of Thailand has warned Pokemon Trainers against attempting to catch Pokemon in polling stations as Thailand went to the polls yesterday in a referendum where they overwhelmingly approved a new military-entrenched constitution.

    Election Commissioner Somchai Srisutthiyakorn said it was illegal to enter polling stations to catch Pokemon. Again in a case of not knowing how the game mechanics work, Somchai said, “in occasions that rare Pokemons emerge in any polling station, please stop playing it near these stations.”

    A trainer can attempt to catch a wild pokemon if it appears within a range of about 100m without having to actually go to the point where it appears on the map.

    Elsewhere Islamic leaders in Kuala Lumpur said today that Muslims should avoid playing Pokemon Go because the popular mobile game was harmful and could “lead to gambling.”

    Mufti of Federal Territories Zulkifli Mohamad al-Bakri, in a statement on Friday (Aug 5) said that the ruling was made at the Federal Territories Islamic Legal Consultative Committee meeting on Aug 1.

    “After studying the opinions of religious scholars and the fatwa (edict) issued, we agreed that the edict has a basis and that Pokemon Go and all the Pokemon characters should be avoided as it can bring harm.

    “The game promoted a search for power and deities with certain powers which could lead to gambling,” he said. Iran has also banned Pokemon Go, but on security grounds.

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  • Kate Spade figures reveal slowing growth

    Kate Spade figures reveal slowing growth

    While the latest Kate Spade figures are respectable, there is a clear slowdown in the pace of growth compared to last quarter.

    This is most noticeable in the direct-to-consumer segment, where comparable revenue rose by a fairly meagre 4 per cent, compared to the 19 per cent uplift posted during the first quarter. Although it is not unreasonable to expect growth to moderate from its heady pace, the expectation of Kate Spade’s management team was that this would not happen quite so soon.

    It is notable that the slowdown is mostly confined to North America, with international sales growth advancing steadily from last quarter’s 3.2 per cent growth rate. Kate Spade has suggested that much of this is tourist related with reduced international visitor footfall at key stores in New York, and lower spending from those that do visit thanks to the strong dollar.

    There is some truth in this, but it does not completely explain away the very slim growth rate in the direct segment – which is now running at just 1 per cent on a comparable basis once eCommerce has been excluded.

    There are three other factors at play which negatively affected growth.

    The first of these is the comeback of competitors like Coach, which thanks to brand repositioning and lower discounting are now attracting more customers. While there is only a partial overlap between Coach and Kate Spade, Conlumino customer data suggests that shopper sharing between the two brands has increased over recent months.

    The second factor is an increase in consumer uncertainty, especially among younger female shoppers. Such softness in Kate Spade’s target market likely reduced both the volume and value of purchasing over the period. This had a slight knock-on effect in terms of discounting which affected margins over the quarter.

    Thirdly, although Kate Spade’s marketing is still achieving cut through with campaigns like Miss Adventure, the impact seemed to weaken over the summer. This likely had a negative impact in terms of visiting and purchasing.

    Given that all of these trends are things that will not suddenly disappear, the danger for Kate Spade is that it is now entering a period of weaker sales growth: something it has reflected in its guidance. That said, slower sales uplifts are not necessarily indicative of a group in trouble. Indeed, Kate Spade will still grow and will do so at a pace that is above overall market growth. It will also continue to deliver healthy profits, which at net income level are running at $38 million in the year to date, compared to a loss of $47 million over the same period last year.

    Kate Spade is still a company moving forward – even if it now does so with slightly less momentum.

    • Neil Saunders is, CEO of retail analyst Conlumino.
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  • Vietnam retail sales growth slows

    Vietnam retail sales growth slows

    The growth rate of Vietnam retail sales is slowing, according to official data.

    The Vietnam General Statistics Office says retail trade and services revenue for the first half of 2016 was US$89.6 billion, 9.4 per cent higher than last year.

    But the rate of Vietnam retail sales growth is generally slower than that of the same period last year once inflation is excluded. The net increase would be 7.4 per cent compared to 8.3 per cent last year.

    Also, according to the records, retailing during the first quarter of 2016 was 7.9 per cent lower than last year; 8.3 per cent lower than for the first four months, and 7.8 per cent in the first five months.

    Analysts suggest a reason for the slowing growth could be linked to slowing accommodation bookings and tourist spending, which totalled US$11 billion (up 7.5 per cent). The decline was most evident in some Central provinces, and likely related to the mass death of fish in Nghe An and Ha Tinh.

    Retail sales of goods, on the other hand, were US$68.23 billion (76 per cent of total sales) and were 9.7 per cent higher than the period of January to July of last year.

    Food, household appliances and garments saw positive increases with 12.9 per cent, 10 per cent, and 12 per cent respectively.

    GSO director Nguyen Bich Lam said consumer concerns about food safety and environmental pollution partly affected the retail growth in accommodation and catering. Locals tended to have home-cooked meals and became more careful in spending their money on tourism services.

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  • Lacoste Korea upgrades boutique

    Lacoste Korea upgrades boutique

    Fashion apparel brand Lacoste Korea has renovated its boutique unit inside the Shilla Jeju Duty Free store, showcasing its “standard premium” concept.

    The retail space is on the fourth floor of the store on Jeju Island, close to Jeju International Airport. The store offers more than 300 brands.

    Lacoste says Korea is a key market for its travel-retail business.

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  • New Look to expand China network

    New Look to expand China network

    Fast fashion retailer New Look is to expand its China store network.

    And while the UK retailer has modest aspirations in terms of store numbers – just 25 globally over five years – it is increasing its focus on menswear. Some of the new stores slated to open in China and France within the next 12 months will stock only men’s clothing.

    New Look is experiencing “exceptional growth” in China, since its debut there early in 2015, according to UK news channel Retail Gazette.

    The first standalone menswear store opened less than a year ago and customers of the previously womenswear brand have taken to its style and range.

    New Look has not broken down the figures by market as to where the new stores will open.

  • China Telecom to turn Shenzhen into a Gigaband City

    China Telecom to turn Shenzhen into a Gigaband City

    China Telecom Shenzhen and Huawei have signed an agreement to deliver gigabit broadband connectivity to 900,000 homes in Shenzhen.

    The companies have entered a five-year deal that aims to transform Shenzhen into a “Gigaband City”, using next-generation optical line terminals and PONs to deliver 100% Gigabit coverage for communities in the city.

    Services will be available for residential users, governments and enterprises, and will be capable of enabling advanced services including 4K video and VR film streaming, Gigaband hotels and passive optical LANs.

    Based on the experience with the rollout, China Telecom and Huawei plan to jointly define the standards for a gigaband city, paving the way for future deployments.

    “China Telecom (Shenzhen) is dedicated to accelerating Shenzhen’s broadband network capabilities and together with Huawei we aim to rapidly transform into an ultrafast landscape,” the China Telecom subsidiary’s general manager commented.

    “This will enable Shenzhen to keep pace with consumer demand for new internet applications such as ultra-broadband (UBB) video, VR and AR, Gigaband campus, and smart homes. We believe a Gigaband city will also foster digital economy innovation in Shenzhen and establish Shenzhen as an oasis for inventors.”

    Announcing the agreement, the companies said this will mark the first time 1,000Mbps all-optical networks will be deployed on such a large scale.

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  • Fortumo brings direct carrier billing to Indonesia

    Fortumo brings direct carrier billing to Indonesia

    Fortumo and Indonesia’s leading digital telco, Indosat Ooredoo, today announced the launch of direct carrier billing. The partnership will enable 69.8 million Indosat Ooredoo subscribers to make online payments by charging purchases to their mobile account without the need to use a credit card.

    “We are pleased to build this strategic collaboration with Fortumo, one that will bring more benefits to Indosat Ooredoo customers and allow transactions at a wider network of merchants. We look forward to continuing to provide innovation that brings more value to our customers as part of our goal to become a leading digital telco,” said Prashant Gokarn, chief of new business and innovation at Indosat Ooredoo.

    Fortumo’s direct carrier billing platform is used by leading app stores (Google Play, Windows Phone Store), digital media companies (Sony, HOOQ, Gaana) and gaming companies (EA Mobile, Gameloft, Kinguin, Rovio). To enable global carrier billing for these merchants, Fortumo has partnered with more than 350 mobile operators across the world.

    “Connecting with Fortumo gives mobile operators immediate access to additional revenue from all the segments of the digital industry. We are excited to partner with Indosat Ooredoo on carrier billing and look forward to growing revenue from carrier billing, the payment method with the widest coverage in Indonesia,” said Siddharth Sahi, vice president of business development and carrier relations at Fortumo.

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  • AirAsia Stops Bandung-Pekanbaru Route

    AirAsia Stops Bandung-Pekanbaru Route

    AirAsia Indonesia has stopped its Bandung-Pekanbaru flight route starting on August 1, 2016, as a part of a network reconstruction effort.

    The official information has been conveyed to all the affected passengers via email.

    As the compensation, the company has informed the customers who have booked tickets for the route after July 30, that they can select one of the options offered by AirAsia as follows:

    1. Reschedule to Bandung-Pekanbaru (roundtrip) departing before August 1, 2016, without additional charges and subject to seat availability.

    2. Credit shell deposit in AirAsia worth the paid ticket/product price that can be used to purchase ticket or other AirAsia products. Credit shell is valid for six months (180 days) since the issuance date.

    3. Full refund worth of ticket/product that have been paid, in accordance with the payment mechanism.

    For further information and assistance, customers can contact: AirAsia Indonesia call center at 0804 1 333/ +6221 2927 0999, online form at www.airasia.com/id/en/e-form.page, AirAsia live chat (available via Ask AirAsia), and AirAsia Customer Service Center available in the airport.

    Passengers are advised to always update their email address and active mobile phone number (included with the country code) on their membership profile on AirAsia website to receive the latest information on flights.

  • Alodokter closes $2.5m round led by Golden Gate Ventures

    Alodokter closes $2.5m round led by Golden Gate Ventures

    Jakarta-based health information portal Alodokter has closed a $2.5 million Series A round led by Golden Gate Ventures. The Series A investment also saw participation from existing investors 500 Startups and entrepreneur Lim Dershing.

    All three are returning investors, having participated in its seed round in April 2015. Daniel Stan, former VP of Lazada Indonesia and head of its online marketing department, has been recruited to lead its international expansion.

    Founded by CEO Nathaniel Faibis in April 2014, Alodokter plans to use the proceeds from the investment to expand its business operations across Southeast Asia. Its current business model sees it generate revenue from premium advertising due to its work with health-related brands.

    “We see a strong trend among patients in South-East Asian towards digital health. They are looking more and more for health information online before and after going to the doctor and also for prevention purposes. We firmly believe that providing reliable and easy-to-understand health information helps families take better decisions about their health,” Fabias said.

    Alodokter released a mobile app in March 2016, to complement a news portal discussing healthcare and wellness matters. The mobile app allows users to connect with and discuss their medical issues with a general practitioner (GP), reportedly combining artificial intelligence (AI) with real-time doctor-patient interaction.

    It claims that its news portal has grown from one million to eight million unique monthly visitors since closing its seed investment.

    Elaborating on their competitive edge, Faibis explained the focus on reliable health information being “in the DNA of the company” and a main focus contributing to its brand strength and credibility as a platform.

  • Bank Mandiri to grow Malaysian operations

    Bank Mandiri to grow Malaysian operations

    PT Bank Mandiri Tbk, Indonesia’s largest bank by assets, could soon operate here with full banking rights.

    The move comes after financial authorities from Indonesia and Malaysia signed a bilateral agreement earlier this week, allowing greater access to lenders from both countries to fully operate in the respective jurisdictions.

    Bank Mandiri would pay RM100mil (US$24.6mil) to Malaysia’s central bank as soon as possible and meet the capital requirement of RM300mil by the end of this year so that it could operate soon after the permit is issued by Bank Negara.

    Bank Mandiri currently operates in Malaysia under the licence of remittance office. It has five remittance offices in the country that focus on revenue generated from Indonesians working here.

    Papers in Jakarta reported that the bank planned to immediately apply for a full licence in Malaysia, following the bilateral agreement.

    To recap, the Malaysian authorities had issued a commercial banking licence to five foreign banks, including Bank Mandiri, in 2009-2010 in line with the country’s liberalisation of the financial services sector. Apart form Bank Mandiri, the other recipients were Sumitomo Mitsui Banking Corp of Japan, National Bank of Abu Dhabi and BNP Paribas SA, France, and Mizuho Corporate Bank.

    However, Bank Mandiri’s expansion into the Malaysian market had met with little success because the requirements for the full banking status set by Bank Negara were “too restrictive”, reports had indicated. It was previously quoted as saying that Bank Negara had not responded to its requests for a degree of leeway.

    Foreign banks, under Bank Negara’s funding guidelines, must have a minimum capital, unimpaired by losses, of RM300mil.

    Based on earlier Indonesian news reports, Bank Mandiri was adamant that the amount be lowered to RM100mil.

    The reports also stated that Bank Mandiri was not too happy with the other conditions set by Bank Negara, which included the number of branches and automated teller machines allowed to be opened by foreign banks.

    A main complaint among Bank Mandiri and other Indonesian lenders wanting to open their branches in Malaysia is the “inequality of access” in the two markets. The Indonesian Government had been demanding Malaysia reciprocate the banking freedom its banks enjoy in Indonesia.

    Two Malaysian banks that had established a significant presence in Indonesia are CIMB Group Holdings Bhd and Malayan Banking Bhd (Maybank).

    CIMB Group owns 97.9% of PT Bank CIMB Niaga Tbk, which is Indonesia’s fifth-largest bank by assets. Maybank, meanwhile, operates in Indonesia via 80%-owned PT Bank Maybank Indonesia Tbk.

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  • Indonesian growth beats forecasts

    Indonesian growth beats forecasts

    Indonesia’s second-quarter economic growth beat analysts’ expectations amid President Joko Widodo’s efforts to spur an economy struggling in the wake of a slowdown in China and low commodity prices.

    Gross domestic product increased 5.18 per cent from a year earlier, compared with a revised 4.91 per cent in the first three months, the statistics bureau said in Jakarta on Friday. That exceeded the 5 per cent median estimate in a Bloomberg survey of 24 economists.

    Widodo, known as Jokowi, oversaw a 36 per cent surge in government spending from the previous quarter as he seeks to lift growth from the slowest level since 2009. The president has embarked on an ambitious infrastructure program and launched a tax amnesty aimed at luring back billions of dollars of undeclared income back to Indonesia. The central bank has cut its benchmark rate by a percentage point this year in an attempt to revive lending.

    “The outlook for Indonesia’s economy has improved in recent months, raising hopes that the economy could be on the cusp of a sustained recovery,” said Gareth Leather, senior Asia economist at Capital Economics Ltd. in London. “In particular, the passage of a number of reforms including steps to open up more industries to foreign investment as well as tax incentives to encourage more labour-intensive industries to set up in Indonesia has helped boost sentiment.”

    Market reaction

    The Jakarta Composite Index extended gains after the figures were released, rising 1 per cent as of 9:57am in the city. The rupiah strengthened 0.1 per cent to 13,120 a dollar, according to prices from local banks. Indonesian sovereign bonds advanced, pushing the 10-year yield down two basis points to 6.89 per cent, Inter Dealer Market Association prices show.

    While the data exceeded economists’ expectations and the outlook has improved, the result still remained “considerably below” the 5.8 per cent average over the past decade, said Leather.

    On a quarterly basis, the economy grew 4.02 per cent from the previous three months.

    Government spending rose 6.28 per cent from a year earlier, while exports declined 2.73 per cent. Investment was up 5.06 per cent year-on-year while household consumption, which makes up more than half of the economy, rose 5.04 per cent.

    “They can really pause now for a while to see what impact of the fiscal decisions as well as the cuts they’ve announced so far are having,” said Charu Chanana, an economist with Forecast Pte Ltd. in Singapore “I think this buys them some time to hold on for now but easing still remains on the table.”

    The second quarter growth figures come after the central bank left rates on hold in July despite saying there was room for further easing if needed.

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  • Lion Air Pilots to Sue Management

    Lion Air Pilots to Sue Management

    Labor Union-Pilot Association of Lion Group (Serikat Pekerja Asosiasi Pilot Lion Air / SPAPLG) is planning to file a lawsuit against the management Indonesia’s low-cost airline Lion Air.

    SPAPLG Chief Eki Adriansjah said the move is made following the alleged union busting by the company’s management.

    “We will file a lawsuit against the management because of the union busting it has committed,” Eki said in Jakarta on Sunday (7/8).

    It is planned that lawsuit will be filed to the National Police’s Criminal Investigation Deparment on Tuesday next week, Eki said.

    He added that management also violates Law Number 21 of 2000 on Labor Union and said that SP-APLG had been formally registered at Tangerang Manpower Agency with the registration number 558.4/2529-HI/2016.

    Lion Air, however, does not recogzine the Union.

    On Wednesday (3/8), Lion Air President Director Edward Sirait annouced that the company does not recogzine the union labor within the company.

    Edward also said the pilots who claimed to become members of the union are ‘troublesome pilots who often make mistakes’.  Edward even called those pilots ‘swindlers’.

    The use of the company’s name without permits, he added, is an act of ‘forgery and fraud’.

    “They often violate regulations of the management; they don’t work according the schedules and they are now undergoing a training,” Edward said.

    Eki further said that the management’s rejection to the union has caused anxiety and surprises among the pilots.

    According to him, the establishment of a labor union does not need an approval from the company’s management but only needs a written notification to Lion Air management.

    “We sent a written notification to Lion Air management on a letter dated June 3, 2016,” he said.

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  • Number of Indian tourists to Bali up 55.83 percent

    Number of Indian tourists to Bali up 55.83 percent

    The number of Indian tourists to Bali reached 92,731 people, during the first semester of 2016, up 55.83 percent from 59,509 people during last years same period.

    Data from the Central Bureau of Statistics (BPS) showed that the tourist arrivals from India recorded the highest increase among ten countries contributing the largest number of tourists to Bali.

    The Indian tourist arrivals constituted 4.08 percent of the total foreign tourist arrivals reaching 2.27 million in Bali during the first semester, up 18.59 percent from 1.91 million in the same period in the previous year.

    The Bali Provincial Tourism Office has set a target of attracting as many as 4.2 million foreign tourists this year.

    In 2015, Bali received 4.001 million people, 6.24 percent more than previous year when 3.76 million people had arrived.

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  • AirAsia may launch sale of leasing arm, valued at RM4b

    AirAsia may launch sale of leasing arm, valued at RM4b

    AirAsia Bhd, Asia’s biggest budget airline, will kick off the sale of its leasing unit this month, seeking to cut debt with a deal that could value the business at about US$1bil (RM4.04bil), people familiar with the matter told Reuters.

    A successful deal would help group CEO Tan Sri Tony Fernandes, one of Asia’s best-known entrepreneurs, to bolster AirAsia’s finances and spur growth.

    At an overall valuation of US$1bil, the sale would be significant for a carrier with a market value of US$2bil (RM2.08bil).

    AirAsia is looking to sell a majority stake in the leasing unit, Asia Aviation Capital (AAC) but is also open to a full sale, sources said, adding that the final valuation could change depending on talks with potential buyers.

    They said AirAsia was considering paying a special dividend from the proceeds. The people declined to be identified because the discussions were confidential. AirAsia declined to comment.

    The carrier planned to tap potential suitors including the leasing units of China’s HNA Group, China Merchants Bank, and the aviation leasing company backed by Hong Kong billionaire Li Ka-shing for the sale, the people familiar with the matter said.

    China Merchants Bank, HNA Group and Li’s Cheung Kong Infrastructure Holdings Ltd did not respond ’ requests for comments.

    Fernandes, who built up AirAsia into multi-billion dollar business from a two-plane operation in 2002, is cashing in on a booming leasing sector after AirAsia ordered hundreds of Airbus planes at bargain prices in recent years and emerged as one of Airbus’ biggest customers.

    AirAsia responded to a critical research report last year by Hong Kong-based GMT Research saying it stood by its accounts.

    “This is a landmark transaction if Tony manages to pull it off,” said Shukor Yusof, founder of Malaysian aviation consultancy Endau Analytics, adding that AirAsia could use the funds to invest in its businesses in India, Indonesia and Japan.

    Sources said AirAsia was expected to approach about a dozen suitors including infrastructure and pension funds to bid for the leasing company.

    “Aircraft are good US-dollar denominated, cross-border assets to own,” said Shukor.

    AirAsia has a fleet of some 170 jets operating across Thailand, the Philippines, India, Indonesia and Malaysia and competes with the likes of Indonesia’s Lion Group, Singapore Airlines, Qantas Airways, Malaysian Airlines and some of their budget affiliates.

    Deal making is picking up in the US$228bil global plane leasing sector, with Asian lessors grabbing a bigger share, buoyed by the growth in China.

    “This is a way to unlock the value of the aircraft orders while also managing AirAsia’s balance sheet,” said one person familiar with the matter.

    In a regulatory filing in May, AirAsia said it had received preliminary interest for AAC.

    AirAsia has hired Credit Suisse, BNP Paribas and RHB Bank to handle AAC’s sale and expected to complete it by early next year, the people familiar with the matter said.

    BNP Paribas and RHB Bank declined to comment, while Credit Suisse did not respond to Reuters requests for comments.

    Though AAC has only 55 planes, primarily leased to AirAsia affiliates outside Malaysia, it expects to get more aircraft from the airline and lease them to other airlines. — Reuters

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  • Retail giants seek to cash in on hallyu

    Retail giants seek to cash in on hallyu

    The leading retailers in Korea are seeking to cash in on the global popularity of hallyu by sealing strategic tie-ups with entertainment companies to sell exclusive merchandise.

    Products bearing the images of popular K-pop artists and actors have largely been available only online. However, the success of a small store at Lotte Department Store’s Young Plaza in Myeong-dong, Seoul, appears to have caught the fancy of the retailer.

    The store dedicated to K-pop stars saw sales grow fivefold this year, half of which were accounted for by Chinese customers.

    This has prompted Lotte to join hands with YG Entertainment — home to some of the biggest K-pop acts such as Psy, Big Bang and 2NE1, as well as actors and actresses — to open a larger store on Aug. 12 where fans can now touch and try the goods before they pull out their credit cards.

    Big Bang.

    Lotte will offer officially endorsed celebrities goods available in over 100 categories, ranging from the mandatory clothing and stuffed toys to scented candles and cosmetics.

    Earlier in March, Korea’s top retail chain E-mart teamed up with SM Entertainment to introduce its private brand products bearing the name and face of its artists such as EXO Sonjjajang and Shiny Sparkling Water.

    Meanwhile, the two entertainment giants are also tapping into the restaurant business. SM is running tapas restaurant SMT Seoul in Cheongdam-dong, while YG opened YG Republique in Myeong-dong and Yeouido.

    By the end of this year, both will expand out of the country: SM will branch out into Tokyo and Los Angeles while YG will branch out in LA and Bangkok.

     

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