Retail News CRM

Author: Mei Ling Tan

  • Is Nike golf equipment journey ending?

    Is Nike golf equipment journey ending?

    Nike is phasing out its golf equipment business to focus on shoes and apparel.

    The company has announced it is accelerating its footwear and apparel business and will transition out of Nike golf equipment range – including clubs, balls and bags.

    “We’re committed to being the undisputed leader in golf footwear and apparel,” says Trevor Edwards, president, Nike Brand. “We will achieve this by investing in performance innovation for athletes and delivering sustainable profitable growth for Nike Golf.”

    The global giant said it will continue to partner with more of the world’s best golfers as part of its changed golfing segment strategy.

    “Athletes like Tiger, Rory and Michelle drive tremendous energy for the game and inspire consumers worldwide,” says Daric Ashford, president of Nike Golf.nike golf

    “Over the past year the MM Fly Blade Polo, the Flyknit Chukka and Air Zoom 90 have all connected strongly with golfers. We’ll continue to ignite excitement with our athletes and deliver the best of Nike for the game.”

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  • Shopping by mobile devices rises

    Shopping by mobile devices rises

    More shoppers are using smartphones and tablets to do business with Korean online retailers – both Koreans and foreigners.

    Chinese shoppers – particularly those who have visited Korea and fallen in love with its products – have been a particular boon to the online shopping business.

    According to Statistics Korea, online shopping transactions rose 18.8 percent in June compared to a year ago, hitting 5.18 trillion won ($4.64 billion). Mobile shopping via mobile devices surged 34.4 percent during the same period, and accounted for 51.2 percent of total online shopping, or 2.65 trillion won.

    “Mobile payment services have improved recently so more customers are using mobile devices compared to the past,” said an official from Statistics Korea.

    Mobile device transactions accounted for only 29 percent of all online transactions in April 2014. The figure topped 40 percent early last year and surpassed 50 percent in December. It continues to grow.

    Even though transactions rose from a year ago, they dropped from the previous month. Online shopping transactions dropped 0.3 percent in June compared to May and mobile shopping fell 2.2 percent during the same period.

    By sector, people purchased more cosmetics and travel services online, while the figure for food, including agricultural produce, livestock and fishery products fell.

    People spent 52.1 percent more on cosmetics in June compared to the previous year, and the figure for travel services increased by 42.3 percent.

    “The number of Chinese tourists visiting Korea rose in general, and they were interested in buying cosmetics at both brick-and-mortar stores and online retail shops,” an official at Statistics Korea said.

    According to Statistics Korea, Chinese tourists visiting Korea rose 201 percent from 223,000 in June 2015 to 671,000 in June 2016. The outbreak of Middle East respiratory syndrome (MERS) lowered the number of tourists last year. The first MERS fatality in Korea occurred on June 2, 2015.

    “More Chinese entered Korea and this also helped travel services transactions grow,” said an official at the agency.

    Statistics Korea surveyed a total of 983 online retailers for its data.

    Meanwhile, foreigners buying Korean goods rose 83 percent year-on-year in the second quarter of this year compared to the previous year, hitting 497.4 billion won.

    Koreans buying goods through foreign online retailers increased by 5 percent during the same period, recording 411.8 billion won.

    Chinese purchasing goods through Korean online retailers jumped 103.1 percent year on year in the second quarter of this year to record 373.2 billion won. The figure for Japan rose 72.1 percent and the European Union (EU) countries increased by 95.7 percent.

    “Cosmetics were the most popular products for foreigners and they accounted for 67 percent of total transactions by foreigners,” said Sohn Eun-rak, a director at the statistics agency.

    Americans purchasing goods through Korean retailers were the highest at 266.9 billion won in the second quarter, followed by the EU (79.2 billion won) and China (33.2 billion won)

    The most popular items that Koreans bought from foreign online retailers were clothes and fashion-related goods. Koreans bought 149.4 billion won worth of fashion related goods from foreign online retailers in the second quarter of this year, down 1.6 percent compared to the previous year.

    BY KIM YOUNG-NAM

  • High street brands replace luxury stores that exit HK prime space

    High street brands replace luxury stores that exit HK prime space

    From fast-fashion chain H&M to lifestyle brand Maison Kitsune and cosmetics firm Innisfree, mass-market retailers are setting up shop in premises previously occupied by luxury brands in Hong Kong’s prime shopping districts.

    Aided by falling rents in top locations, accessory, sport and lifestyle retailers are emerging as a new driving force of Hong Kong’s US$60-billion (S$80.4-billion) retail industry, part of a major makeover the city is going through amid a slump in retail sales.

    “This trend will continue,” said Mr Joe Lin, executive director at property consultant CBRE. “We are going to see more mass-market brands reappear in prime locations.”

    Weak sales of luxury goods drove Hong Kong to report a 16th straight monthly drop in retail sales on Tuesday.

    Sales of jewellery, watches and valuable gifts tumbled 21 per cent in January to May, driving a 10.8 per cent fall in overall retail sales, while cosmetics and medicines posted a 2.7 per cent sales decline and furniture and fixtures reported a 5.3 per cent drop, government data showed.

    Luxury retail in Hong Kong exploded over the past decade as increasingly wealthy Chinese flocked to the city to buy high-end Western brands, pushing out local jewellers and other shops that once dominated the high street.

    “Back in the day, we used to see only (jewellers) Chow Tai Fook, Luk Fook and pharmacies,” said Ms Cynthia Ng, director of retail services of Colliers International.

    “They (new retailers) are not necessarily local brands, but tend to be cheaper in pricing and younger… Not only does the adjusted rental fit their budget, but at the same time the craze and demand for fitness and sports are also helping them.”

    Still, mass-market brands might struggle to achieve the margins and profitability needed to justify prime rents in a weak retail environment, said Mr Kevin Lai, an economist at Daiwa Capital Markets in Hong Kong.

    “The luxury sector usually has much more value added,” Mr Lai added. “So these guys may not be able to do exactly the same.”

    Retail rents in Hong Kong’s core shopping districts, still among the world’s highest, are likely to fall another 5 to 8 per cent in the second half of this year, bringing the full-year correction to 10 to 15 per cent, said CBRE.

    Those declines are attracting new tenants to shops large and small.

    On Russell Street in the prime Causeway Bay shopping district, the 400 sq ft space that jewellery group Follie Follie occupied has been replaced by footwear outlet Joy & Mario, while Swatch Group’s Jaquet Droz luxury watch shop has gone to South Korean cosmetics brand Innisfree.

    Nearby, H&M opened a flagship store last year.

    “For us, best location is always key, and when opportunities arise, we look at the possibilities for opening new stores,” a spokesman for H&M in Stockholm said.

    Sports brand Adidas last year leased a 13,000 sq ft shop in the city for 22 per cent less than its former occupier, Coach, as the premier American brand closed its fourstorey flagship store in Central amid weak retail sentiment and a drop in tourist arrivals from China.

    Big shopping malls are renovating and offering attractive terms as vacancies grow, and stores on street level have also become more affordable.

    Swire Properties’ Pacific Place, where British fashion house Burberry will halve the size of its store by next year, is reshuffling its tenant mix, bringing in more food and beverage stores.

    Lifestyle store Homeless recently opened a store in CityPlaza shopping mall, after years of effort to secure a place in a prime shopping district, and is planning to relocate its shop in Tsim Sha Tsui this year to a location with much better traffic.

    Retail and property experts see the trend continuing as sales of luxury goods remain weak, despite steep discounts.

    “In the second half of May, many brands kicked off their summer sales much earlier than before, offering much higher discounts than they normally did,” Mr Thomson Cheng, chairman of Hong Kong Retail Management Association. “It failed to significantly boost sales. The situation is worrying.”

    In early June, French fashion house Chanel slashed prices by as much as 70 per cent on selected items, while Coach cut some prices by half, in line with moves by Burberry and French luxury group Kering’s Gucci.

    “The spending pattern of mainland tourists has changed and their consumption power is weakening,” Mr Cheng said.

     

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  • Aeon Myanmar launched with acquisition

    Aeon Myanmar launched with acquisition

    Japanese grocery and mall giant Aeon is expanding its Asian footprint yet further, acquiring a 14-store supermarket chain in Myanmar.

    The Aeon Myanmar operation will be run by a new company, Aeon Orange, which has acquired the supermarket chain from Hypermarket Asia, one of the affiliate companies of Creation Myanmar Group.

    At the same time, the newly established company is preparing to open its first supermarket in Myanmar before year end.

    Aeon says that the economic liberalisation after transition to a civilian government, has seen

    Myanmar’s retail industry modernise, and the ranks of the nation’s middle class are growing.

    “With the population of 53 million people, the real economic growth rate in the country is 8.3 per cent – dramatic growth exceeding the average rate among five developed nations in ASEAN countries,” Aeon said in a statement.

    CMG’s 14 supermarkets are mainly in Yangon, Myanmar’s largest city, and it also holds more than 20 overseas brand sales licenses including Adidas and Mango operating some 130 stores.

    The launch of the Aeon Myanmar business follows successful forays into China, Thailand, Vietnam and Cambodia as the Japanese retailer looks for growth internationally to offset declining sales in its home market which is suffering from a falling population.

    “In order to develop business in a speedy manner in this fast growing Myanmar market, Aeon believes that cooperation with CMG is indispensable, as it has the retail business infrastructure in the country and is also familiar with the customer needs which differ from region to region,” the company said.

    Aeon will learn the customer needs in the region and the know-how of community-based

    product procurement, while offering Aeon’s private brand “Topvalu,” the global sourcing

    through utilising the group’s comprehensive multinational strength and quality control to assure “safety and security,” and bring logistics, IT, and human resource development to CMG.

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  • Burgers and beers lead Hong Kong restaurant industry growth

    Burgers and beers lead Hong Kong restaurant industry growth

    Restaurant industry analysts remain sceptical about the sector’s growth prospects despite promising year-on-year figures.

    Census and Statistics Department figures show restaurant receipts in Hong Kong increased 3.1 per cent year on year, at the end of the second quarter 2016.

    Fast food and bars did the best while Chinese restaurants saw fewer diners and lower spending, according to the figures.

    Fast food receipts increased 6.4 per cent year on year, bar sales increased 4.3 per cent, other drinking venues’ sales increased 3.9 per cent and Chinese restaurants increased 1.7 per cent.

    But the upwards trend for the local restaurant industry could be short lived, according to Simon Wong Ka Wo from the Federation of Restaurant and Related trades.

    There will be a 2 to 3 per cent “slight decrease” in the restaurant sector in terms of its overall performance for the whole year, Wong forecast. He warned that some Hong Kong restaurants might have to “suffer a little bit” over coming months, but the industry will bounce back in the fourth quarter.

    “The increase seems a little bit surprising to me as the performance of the economy for the past six months does not seem so promising,” Wong said.

    “The major reason is people tend to spend more on some middle to low-end restaurants like McDonald’s instead of high-end ones due to the stagnant economy, contributing to the increase in overall value of total receipts.”

    The optimistic figures come against a backdrop of slowing retail trade, which registered an 8.9 per cent decrease year on year.

    Professor Terence Chong Tai-Leung from the Chinese University of Hong Kong said rising incomes could help the city rebound from the retail slump.

    “As you can see from the low unemployment rate and the increased average income figure recently, Hong Kong people still have large purchasing power,” he reasoned.

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  • Under Armour China recruits star power

    Under Armour China recruits star power

    Star power is being used to connect fast-growing athleisure brand Under Armour with Chinese consumers.

    NBA All-Star Stephen Curry heads back to China next month for another promotional tour for sportswear brand Under Armour China (UA).

    As UA seeks to take market share away from rival Nike, the basketballer will be touring the greater China region, including Taiwan, from September 2 to 6.

    Under Armour CEO Kevin Plank plans to more than double the company’s annual revenue to $10 billion by 2020, identifying three key growth areas: channels, categories and geographies.

    “Our eCommerce in China has basically exploded for us,” he says, “so this is not just a bricks-and-mortar story.” He believes China may actually end up providing the script for the balance between digital and store sales.

    So far this year, UA has reported a 157 per cent increase over the same period last year from its eCommerce initiatives in China. In just 10 years, the company has grown its overseas business exponentially, to $454 million last year from $6 million in 2006.

    Probably trying to catch this wave, low-end Chinese sneaker manufacturer Tingfei Long Sporting Goods introduced its Uncle Martian apparel line in April with a logo similar to UA’s trademark intersecting arches. UA responded by saying it will pursue “all business and legal courses of action.”

    To thrive in China, brand recognition over knockoffs is key for UA, which is why it is sending spokesman Curry into play. Following his first tour two years ago, quarterly revenue in China grew three-fold (Nike had a 23 per cent gain).

    UA plans to open 120 stores in China, more than doubling its presence, by the end of this year. Adidas and Nike have between 8000 and 9000 stores in China already. Nike’s market share grew to 14.3 per cent last year from 11.2 per cent in 2011, while Adidas grew its market share to 13.8 per cent from 8.5 per cent over the same period, according to research company Euromonitor.

  • Scion of Metro store family facing drugs charges

    Scion of Metro store family facing drugs charges

    A member of the family which founded Singapore’s iconic Metro department stores, Ong Jenn, is facing more than half a dozen charges related to the possession, consumption and trafficking of cannabis – which is a Class A controlled drug.

    Ong Jenn

    According to court documents obtained, the alleged offences happened in October 2014.

    For the amount of cannabis Ong has been accused of trafficking, he faces between five and 20 years’ jail and five to 15 strokes of the cane for each charge. For the possession and consumption of a controlled drug, the 41-year-old could be jailed for up to 10 years and/or fined up to S$20,000 per charge. His case has been scheduled for a pre-trial conference on Aug 19.

    Court documents detail how on or before Oct 30, 2014, Ong allegedly conspired with Mohamad Ismail Abdul Majid to traffic cannabis. On that date at about 4.20pm, along Jurong Port Road near bus stop B05, Mohamad Ismail was in possession of one block of “not less than 92.68 grams of… cannabis” and another block containing “385.1 grams of fragmented vegetable matter which was analysed and found to be cannabis mixture”.

    The charges allege that Mohamad Ismail had the two blocks so they could be delivered to Ong.

    At about 1.20pm the next day, in a car parked at Ngee Ann City, Ong was found in possession of a vaporiser, which is an inhalation device. According to the charge sheets, he allegedly intended to use the vaporiser to consume a Class A drug. Ong is also accused of consuming “11-nor-delta-9-tetrahydrocannabinol-9-carboxylic acid”, which is a component of marijuana.

    Authorities found Ong allegedly in possession of one block of cannabis weighing 75.32 grams and one block of cannabis mixture weighing 284.7 grams at a home in Bishopsgate at 2.10pm. He is accused of having these for the purpose of trafficking.

    Ong is represented by a team from law firm WongPartnership, including Senior Counsel Tan Chee Meng. Ong’s lawyers declined to comment as proceedings are ongoing.

    According to his LinkedIn profile, from 2003 until August this year Ong was a Business Development Manager at Metro Holdings, whose core businesses are retail, property development and investment. The retail interests include three Metro stores in Singapore. He’s also the founder of Tompang, a peer-to-peer retail platform operator.

    Metro’s latest annual report lists Ong as a “substantial shareholder” in Metro Holdings as at Jun 13. Ong is the son of the late Jopie Ong Hie Koan, who helmed Metro from 1973 until his death in February this year.

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  • New Zalora CEO appointed

    New Zalora CEO appointed

    Zalora has appointed a new CEO, Parker Gundersen, who joins the online fashion retailer from DFS Group, the travel retail subsidiary of  Louis Vuitton Moet Hennessy.

    The new Zalora CEO has more than 15 years of retail and leadership experience in key management positions across Asia, the Middle East and North America.

    parker G

    From 2011 to 2015, Parker served as GM for DFS Singapore, and recently held the position of VP for DFS North America, overseeing the company’s operations and business development function in the region. Prior to DFS, Parker worked in management consulting in the Strategy & Operations practice at Deloitte Consulting.

    Romain Voog, CEO of Global Fashion Group, said Gundersen’s experience in retail across Asia and his strong leadership skills will be instrumental in strengthening Zalora’s leadership in Southeast Asia’s e-fashion space.

    Parker holds degrees in economics and management from the University of St. Thomas and has an MBA from The Kellogg School of Management at Northwestern University.

  • Chinese tourists cancel trips to South Korea after THAAD

    Chinese tourists cancel trips to South Korea after THAAD

    Analysts warn of possible blow to tourism, retail industry

    A number of Chinese tourists are cancelling trips to South Korea in the wake of the country’s decision to deploy a missile defense system, a trend which experts say might lead to a blow to South Korea’s tourism industry if it continues, as the sector depends heavily on visitors from China.

    A Beijing while-collar worker surnamed Wang who planned to travel to South Korea in August told the Global Times that although she has already placed a non-refundable payment on a hotel, she was cancelling because of THAAD.

    “After all, there are still a number of travel destinations where I can go,” Wang said.

    Travel agencies in China and South Korea have also noticed the trend.

    Xu Xiaolei, manager of marketing at China’s CYTS Tours Holding Co, said that there have been a handful of clients who cancelled their bookings on a South Korea tour recently.

    “Also, compared with last year, the recruitment process for tours to South Korea during the Golden Week three-day holiday has been slow.” Xu told the Global Times on Monday.

    South Korean tourism industry officials, along with officials from travel agencies that specialize in hosting Chinese tourists in the country, have said that there are “a rising number of Chinese tourists cancelling reservations for August,” according to report on koreabizwire.com.

    The most recent cancellation was for the Chimaek festival, an annual celebration of fried chicken and beer that began on July 27 in Daegu, a city in southeastern South Korea.

    To attract Chinese tourists, the committee came up with a scheduled program in May and organized a train for incoming tourists from Seoul to Daegu, Korea JoongAng Daily reported on July 25.

    The number of Chinese tourists who signed up for the organized tour was 500 by early July, the report noted.

    But in the two weeks since South Korea announced the deployment of the Terminal High Altitude Area Defense (THAAD) anti-missile system, which has received intense backlash among the Chinese public, over 60 percent of the bookings have been cancelled, said the report. As a result, the committee has decided to offer a sightseeing bus instead of the originally planned train.

    Several days ago, Daegu’s 23-year-old sister city in China, Qingdao, East China’s Shandong Province, said it would not be participating in the festival due to “inappropriate timing,” the report noted, citing a Daegu city official.

    The Qingdao government also called off plans for a Daegu government exchange visit to the Qingdao Beer Festival, which started on July 29, amid public outcry to boycott South Korean products, the official said.

    Heavy reliance on Chinese tourists

    Recent years have witnessed a soaring number of Chinese tourists visiting South Korea.

    The number of Chinese arrivals grew 29.4 percent year-on-year to 3.82 million in the first six months of 2016, accounting for 48.8 percent of the country’s foreign visitors, the Korea Tourism Organization data showed.

    Wei Changren, CEO of Beijing-based Jinlu Consulting, told the Global Times on Monday that South Korea’s tourism and travel retail sector rely heavily on visitors from China.

    In the first half of 2016, an estimated 65 percent of the sales volume of Samsung Group’s Shilla Hotel and Resort, the country’s second largest duty free shop, was generated by Chinese visitors, up 45 percentage points over the same period last year.

    “About 70 percent of Chinese tourists travel to South Korea to shop. But average spending by Chinese tourists has decreased recently,” Zhu Zhengyu, an industry analyst with Enfodesk told the Global Times on Monday. “If the number of Chinese visitors continues to drop, the retail industry in South Korea will suffer.”

    Zhu’s opinion is echoed in a report published by Samsung Securities, which reveals that if the number of Chinese visitors shrinks by 1 percent, the operating profit of Shilla Hotel and Resort could fall by 2.6 percent.

    “Besides, considering the size of China’s economy and population, no other country can fill the vacancy if Chinese visitors go away,” Zhu said.

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  • Another bad month for Hong Kong retail sales

    Another bad month for Hong Kong retail sales

    Hong Kong retail sales slumped 8.9 per cent year-on-year by value in June to HK$33.7 billion.

    That’s marginally higher than May’s fall of 8.3 per cent, but a slower rate than the 10.1 per cent of the first six months of this year. It marks the 16th consecutive month of year-on-year decline.

    A spokesperson from the Census and Statistics Department said the fact sales were still notably lower than the year-ago level, reflected the fall in visitor spending and more cautious consumer sentiment amid subpar economic conditions.

    “Nevertheless, on a seasonally adjusted basis, retail sales improved moderately in the second quarter compared to the first quarter.”

    The HKRMA said in a statement that most of its member companies anticipate the downward trend to continue, but slow in the remainder of 2016, “taking into account a lower base recorded in the second half of 2015”.

    While sales of consumer durable goods posted the biggest decline – 37.2 per cent – the larger jewellery, watches and valuable gifts category caused much of the damage, falling 20.4 per cent. Department store sales were down 10.5 per cent, electrical goods and cameras by 25.7 per cent and optical shops by 5.5 per cent. The decline in apparel sales appears to be largely over with the category down just 0.6 per cent.

    Supermarket sales rose 1.9 per cent, food,liquor and tobacco sales by 2.9 per cent and cosmetics and medicines by 5 per cent.

    “Looking ahead, the near-term retail sales performance will still depend on the performance of inbound tourism as well as the extent to which consumer sentiment will be affected by the lingering uncertainties about the economic outlook,” said the C&SD spokesman.

  • Burberry China buys out minor shareholder

    Burberry China buys out minor shareholder

    Fashion brand Burberry China has spent £54 million (US$71.2 million) to take full control of its retail business, buying the 15 per cent interest held by Sparkle Roll Holdings.

    Headquartered in London, the 160-year-old label launched its foray in China in 2010. The mainland now accounts for about half the retail spend of Burberry’s Chinese customers. Last year it was relatively stable, but significantly lower footfall again was a challenge in Hong Kong, which accounts for 9 per cent of global retail/wholesale revenue.

    Burberry says it has been looking to cut costs to ensure its Hong Kong stores stay profitable, with its first-quarter trading showing improvement over the fourth quarter but comparable sales continuing their double-digit percentage decline, reports DigitalLook.

    Like-for-like sales on the mainland were broadly unchanged in the first quarter.

  • Duck Scarves spreads wings to mall

    Duck Scarves spreads wings to mall

    Founded by Malaysian blogger and fashion entrepreneur Vivy Yusof, online fashion outlet Duck Scarves has come to ground, opening its first store, in Pavilion Kuala Lumpur.

    duck scarves

    Since launching in May 2014, Duck products have become known for their presentation and packaging, as well as design and quality. Each scarf comes with special hem detailing and a shiny Duck charm.

    Duck’s new store has a minimalist design with a spacious layout and ample light. Its grey and white palette is accented by purple, the brand’s main colour. It features a private fitting area.
    The Duck brand revolves around a character named D, and its evolution echoes her life and adventures.

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  • Toyota, Daihatsu jointly debut new ‘green’ cars in Indonesia

    Toyota, Daihatsu jointly debut new ‘green’ cars in Indonesia

    Toyota Motor Corp. and Daihatsu Motor Co. jointly launched two different cars in Indonesia on Tuesday, a day after Toyota acquired all of Daihatsu’s shares.

    “It is a new relationship between Daihatsu and Toyota,” Daihatsu President Masanori Mitsui said during the launch in the industrial town of Karawang in West Java Province, where the cars are manufactured.

    Toyota launched the Calya, which means “perfect” in Sanskrit and will be sold at between $9,973 and $11,538, while Daihatsu launched the Sigra, which means “fast response” in the same language and will sell at between $8,153 and $11,461.

    The two companies earlier collaborated in producing the Avanza and Xenia in 2003, the Rush and Terios in 2006, and the Agya and Ayla in 2013.

    According to Mitsui, they have reached a huge achievement in production resulting from their cooperation.

    Toyota Managing Director Hiroyuki Fukui shared that view and said the collaboration will improve the companies’ performance amid tough global competition.

    The Calya and Sigra are multipurpose vehicles, which each can carry seven passengers. They are categorized into low-cost green car, a type of car highly encouraged by the Indonesian government.

    “Those kinds of cars in great demand, so we’re hoping for a positive response (from the market),” said Sudirman Maman Rusdi, president of PT Astra Daihatsu Motor, an Indonesian subsidiary of Toyota.

    According to him, his company has invested about 1.1 trillion rupiah (about $84.61 million) for the two cars’ production.

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  • ‘Wonderful Indonesia’ campaign boosts tourism industry

    ‘Wonderful Indonesia’ campaign boosts tourism industry

    The government’s efforts to promote tourism in the archipelago with its Wonderful Indonesia campaign have had a positive impact, the president director of tour and travel company Panorama Sentrawisata said on Tuesday.

    Budi Tirtawisata said that in the first six months of this year, his company booked a 19 percent increase in gross revenue to Rp 2.38 trillion, from Rp 1.99 trillion in the same period last year, as more foreigners were drawn to Indonesia.

    “The government’s free visa policy is also contributing to growth in the tourism sector,” Budi told reporters at a press conference in Jakarta.

    Budi was upbeat the company’s business volume would increase, and possibly double, in the second half of 2016, compared to the first half, because more tourism activities were expected to take place in the period.

    “The peak season for tourist visits to Indonesia is during the summer, which occurs in the second half of the year,” Budi said, adding that more tourists would also visit the country during the Christmas holidays in December.

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