Retail News CRM

Author: Mei Ling Tan

  • Indonesia capital’s airport to open new terminal next week

    Indonesia capital’s airport to open new terminal next week

    Air passenger numbers are soaring in Indonesia, the world’s biggest archipelago nation, as a growing middle class increasingly chooses to fly but ageing infrastructure is struggling to keep up.

    The main airport serving the Indonesian capital Jakarta will next week open a new terminal to ease the burden on the country’s busiest aviation hub, the airport operator said Wednesday.

    The $380 million terminal at Soekarno-Hatta International Airport, which will start operations at about midnight Monday, will have a capacity of 25 million passengers a year once fully operational, said state-owned airport operator Angkasa Pura II.

    The other terminals are currently handling a total of about 60 million passengers a year, way over their capacity.

    The new Terminal 3 will start off handling only flights operated by Indonesian flag carrier Garuda, and it is hoped it will be fully operational by March next year.

    “This will be the biggest terminal in Indonesia,” Angkasa Pura II chief executive Djoko Murjatmodjo told AFP.

    It will eventually be connected to central Jakarta, about 30 kilometres (18 miles) away, by a rail link. There is currently no rail line between the airport and city centre, leaving passengers facing monster traffic jams to get into Jakarta at busy times.

    The terminal’s opening has been delayed for more than a month after the government ordered alterations following the discovery that an important part of the airport was not visible from the air traffic control tower.

    As well as ageing infrastructure, the Indonesian aviation sector also faces problems with safety and has suffered a string of deadly crashes in recent years.

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  • ‘Bilateral agreement will give players greater banking access’

    ‘Bilateral agreement will give players greater banking access’

    Top Malaysian financial players with a presence in Indonesia lauded the bilateral agreement between Indonesia and Malaysia, saying it will pave the way for greater access to conventional and Islamic banking. CIMB Group chief executive officer Tengku Datuk Seri Zafrul Aziz said the agreement is positive for the banking industry of both countries. “It is an additional impetus for CIMB Group to expand its business in Indonesia, particularly in the Islamic and consumer segments, where there are a lot of growth opportunities, given Indonesia’s 260 million population.

    “We also view the agreement between Indonesia and Malaysia as an important step towards better Asean economic integration, paving the way for CIMB to continue delivering its universal banking proposition for customers in the region.” Bank Negara Malaysia and Otoritas Jasa Keuangan of Indonesia have signed the agreement which will provide more access and operational flexibility for Malaysian and Indonesian Qualified Asean Banks operating in the respective jurisdictions. The agreement permits the formation of three banking groups that meet stipulated criteria to be classified as one of the Qualified Asean Banks, which would be afforded equal treatment as local lenders.

    CIMB is eyeing further growth in its banking franchise. Its subsidiary, CIMB Niaga, is ranked as one of the top five banks in Indonesia by asset size, with a current customer base of 3.6 million. It recently posted strong first-half results. RHB Banking Group said a commercial banking presence in Indonesia remains a priority in its overseas expansion plan, adding that it will complement its existing business in the country. “From a merger and acquisition aspect, we will keep an opportunistic mind to ensure the right time, price and strategic fit into our overall group strategy to deliver better value to stakeholders,” said group chief strategy and transformation officer Christopher Loh. Islamic finance is a significant area of potential growth in the world’s most populous Muslim nation, he pointed out.

    “Malaysia, being at the forefront of Islamic finance, could provide expertise to grow this sector, which spells an opportunity for Indonesia as the government aims to deepen the country’s Islamic banking sector. ” RHB has about 14 branches across Indonesia dealing with securities and asset management business. Affin Hwang Capital banking analyst Loh Jia Ying said one more banking licence is available for Malaysian banks to expand into Indonesia, adding that it is also possible that the central bank of Indonesia may allow the Malaysian bank to acquire one of the Indonesian banks. On the impact of the agreement, he said it would be minimal in the near term for Maybank Indonesia, CIMB Niaga and the Indonesian banking sector.

    As for state-owned Bank Mandiri’s keen interest to expand in Malaysia, Loh said although the bank may have the advantage of familiarity for Indonesians here, its profitability may be limited if it focuses only on Indonesian workers, unless there is a significant change in their behavioural patterns. Bank Mandiri, the largest Indonesian bank by assets, currently has five remittance offices in Malaysia, and focuses on the revenue generated from Indonesians working here. It will also have to undertake significant work to generate more revenue from the Indonesian workers and will be limited by the smaller number of branches.

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  • PLDT opens Philippines’ biggest data center

    PLDT opens Philippines’ biggest data center

    Philippine service provider PLDT has opened the country’s biggest data center at major business district Makati City.

    The new facility has been built to serve a wide range of organizations, particularly those handling vital data such as banks, business process outsourcing (BPO) firms, IT and content providers and government institutions.

    Set up by PLDT subsidiary ePLDT, the newest VITRO Data Center sits on a nearly two-hectare property with 3,600-rack capacity. It is equipped with systems and facilities to guarantee continuous operations, ensuring that businesses can utilize robust and scalable digital infrastructure, as well as world-class 24/7 technical support capabilities.

    “PLDT is investing heavily in our VITRO data centers as we believe that these facilities are one of the basic building blocks of the country’s digital economy. This data center will be a vital resource for companies as they ramp up their own digital services,” said PLDT Chairman and CEO Manuel V. Pangilinan.

    The new earthquake-resistant, purpose-built data center in Makati is built on solid ground without seismic faults within its proximity. In addition, special architectural techniques and materials planning were implemented to provide the data center with fire-rated concrete walls and flood-protected design.

    As a result, VITRO Makati is rated to withstand earthquakes up to intensity eight in the Richter scale. The data center is also compliant with global design standards.

    “’PLDT recognizes how vital it is for enterprises to ensure stable operations despite changes in the external environment. The need for scalable and secure hosting facilities to house and manage critical platforms is also growing in importance as the enterprise becomes more data-driven as a result of continuous digital transformation initiatives,” said PLDT executive vice president and ePLDT president and CEO Eric R. Alberto.

    To address the growing concern over digital security, VITRO Makati offers one of the most secure and impenetrable structures in the Philippines with an eight-layer security design, guaranteeing that data and applications will always be protected.

    Each major component of the facility is configured with redundant counterparts in place that seamlessly operate to anticipate adverse events, including power generators and  Uninterrupted Power Supply (UPS) units, among others.

    As part of the VITRO network of data centers, VITRO Makati also serves as a carrier-neutral Internet Exchange facility that provides numerous IP peering services, enabling access to local and international content.

    VITRO Makati is also a Nexcenter-certified facility, allowing its clients to use globally standardized Nexcenter services of world leader NTT Com at some 140 locations in 84 cities of 19 countries, in addition to NTT Com’s Arcstar Universal One private-network service, which is already available in the Philippines and which is largely used by the country’s BPO industry.

    “As the world becomes even more digitally connected, Filipino enterprises must leverage on new technologies to ensure the security and resilience of their operations. PLDT’s digital platforms can enable enterprises to take advantage of disruptive technologies, secure their operations, and promote growth in their businesses,” said Alberto.

    The PLDT Group now operates seven data centers all over the country with a total rack capacity of nearly 7,000 to serve the needs of small, medium, and large enterprises across various industries, including banking, financial services, outsourcing, telecoms, and gaming.

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  • Sainsbury’s China doubling product range

    Sainsbury’s China doubling product range

    With the success of its trial with Tmall Global, Sainsbury’s China is doubling its product range.

    Citing “increasing demand”, the British supermarket retailer is about to release 100 more items, such as tea bags, coffee and pasta.

    “Chinese online shoppers are increasingly demanding high-quality international products,” says Sainsbury’s CFO John Rogers.

    “Many customers also want to replicate tastes and occasions they have enjoyed or heard about through international travel. Products to make a British breakfast and English afternoon tea have therefore proved hits.”

    Sainsbury’s started with Tmall last September, joining such British retailers as Asos, Burberry and fellow grocer Waitrose, which sell products on Alibaba’s Royal Mail online outlet.

    Rogers says the trial with Tmall has taught the company much about China’s digital market, including the importance of sales.

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  • Korean Government to Develop ‘Bojeong-dong Café Street’ in Indonesia

    Korean Government to Develop ‘Bojeong-dong Café Street’ in Indonesia

    The Small and Medium Business Administration (SMBA) announced its plans on August 3 to develop a small business K-town in Indonesia modeled after “Bojeong-dong Café Street” as a means of supporting the small business’ overseas expansion.

    The café street developed spontaneously from the mid 2000’s in the Bojeong-dong café street. Currently, total 126 stores are operating in the area of 22,000 ㎡, and small theme streets are developed in every eight alleys.

    Additionally, the SMBA announced its policy to co-operate K-culture and other by developing “small business K-town” in the peripheral region of Jakarta, around at the end of year 2018,

    For the policy, the SMBA proceeded a field investigation with Small Business Association, International Council for Small Business (ICBS Korea), Small Enterprise and Market Service (SEMAS), etc., and the Indonesian Government also has expressed a will to support the project.

    Joo Young-sup, administrator of the SMBA said, “The ultimate goal is to produce 1,000 successful similar cases until year 2020 by pushing ahead of the small business’ overseas expansion policy.”

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  • AXA, Alibaba, Ant Financial enter global partnership

    AXA, Alibaba, Ant Financial enter global partnership

    AXA, Alibaba and Ant Financial Services have agreed jointly explore opportunities to distribute AXA’s insurance products and services through Alibaba’s global e-commerce ecosystem.

    The deal is expected to benefit the businesses and consumers that transact via Alibaba’s marketplaces. The companies will work together to co-innovate and to develop value-added products and services to customers around the world and mutually support each other in developing and exploring new markets and segments.

    The first phase of the collaboration will see AXA develop various insurance products for users of AliExpress, Alibaba’s wholesale marketplaces and Ant Financial Services.

    AliExpress is a global retail marketplace targeted at consumers worldwide. AXA will develop and provide insurance products for AliExpress’ global customers, including extended warranties for repairs and/or damaged goods and enhanced online payment protection.

    On Alibaba’s wholesale marketplaces (Alibaba.com,1688.com), AXA will provide insurance products to small and medium businesses globally who are trading on these platforms.

    AXA will offer travel insurance products for Chinese travelers going overseas through Ant Financial Services, an Alibaba-affiliate.

    These insurance products and services will be developed by AXA’s local entities according to the customers’ local requirements.

    “Our collaboration with industry-leader AXA is a key part of Alibaba’s globalization strategy and our vision to enable small businesses and consumers alike to enjoy the convenience and benefits of e-commerce in a safe trading environment,” Alibaba Group president Michael Evans said.

    “As cross-border e-commerce grows rapidly, it is critical that we evolve our services and offerings to the businesses and consumers that conduct trade on our platforms. The collaboration between AXA and Alibaba will enable us to create new solutions and ultimately improve the overall customer experience.”

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  • Strong quarter buoys Matahari Putra Prima

    Strong quarter buoys Matahari Putra Prima

    A solid second quarter sent Matahari Putra Prima’s sales up 2.1 per cent in the first half to June 30.

    The Indonesian mixed format grocery retailer has reported net sales for the six months of Rp 7 trillion (US$560 million). Of that figure, 3.7 trillion was achieved in the second quarter, an increase of 6.5 per cent on the back of new store openings. Same store sales fell 0.3 per cent in the first half and rose 4.5 per cent in the second quarter.

    The company posted a net loss for the half of  20.7 billion ($1.66 million), after a healthy second quarter pared back a first quarter loss of 123 billion ($9.8 million).

    MPPA says its total sales growth improved from 2.1 per cent to 8.4 per cent during the first half, after the negative effects of poor economic conditions in Sumatera/Kalimantan and permanently closed stores are excluded.

    CEO Noel Trinder said second quarter sales were led by Lebaran (the two day Eid al-Fitr  holiday) and a strong performance in stores that have been renovated to the new generation G7 store format.

    “Aggressive inventory actions that negatively impacted earnings since the second half of 2015 have now finished, positioning MPPA well for future growth. We believe the resumption of growth which began in the second quarter will carry into the second half,” he said.

    “In addition, MPPA continues to exploit the future growth opportunity of new channels by increasing our shareholding in PT GEI, operator of MatahariMall.com, to 10 per cent in June.”

    As of June 30, MPPA operated 297 stores across Indonesia (112 Hypermart, 25 Foodmart, 106 Boston, 52 FMX and two SmartClub). During the first half MPPA closed three Hypermart stores (one permanently closed, one converted to Foodmart and one converted to SmartClub).

  • Indonesia joins Malaysian halal e-commerce

    Indonesia joins Malaysian halal e-commerce

    The Indonesian Chamber of Commerce and Industry (Kadin) has joined Malaysia’s halal e-commerce website to tap into a larger international consumer base for local products, while at the same time giving local consumers easier access to imported halal products.

    The halal business sees a large market of 1.8 billion Muslims worldwide with a variety of products ranging from food, cosmetics, to pharmaceuticals. Markets for the halal business include the ASEAN region — led by countries such as Indonesia, Malaysia and Thailand, which have a large Muslim population — as well as the Middle East and North Africa.

    Now that Indonesian businesses have joined Malaysia’s e-Halal, a commerce directory portal of halal products not only from Malaysia but other countries such as China and India, Kadin chairman Roslan P. Roeslani said the country should not only be a market for halal products but also a producer and supplier.

    E-commerce platforms are becoming increasingly popular to showcase Indonesia’s potential, from big players to smaller enterprises, he added.

    Current trends show that the halal business and market will continue to grow. In 2014, the global halal market value reached US$2.3 trillion.

    “As long as there are Muslims in this world, the halal market will continue to thrive. We must see the business opportunity in this, while still upholding Islamic values,” Rosan said during an event to introduce e-Halal in Jakarta on Monday, adding that Indonesian products can be accessed through the official portal, kadin.ehalal.com.

    Malaysia’s halal industry is more developed and advanced than Indonesia’s, but the latter could still
    work to catch up and learn from Malaysia’s experiences. Indonesia’s potential is not only in food and beverage, Roslan explained, but also cosmetics, such as the popular Wardah, and fashion.

    E-Halal director Michael Teh said although most of its suppliers were Malaysian, it hoped to add Indonesian suppliers to its list from the cooperation with Kadin. E-Halal was launched in Malaysia in May and now has hundreds of products, from prawn crackers and baby food to fresh vegetables and bath salts.

    Michael said suppliers may join e-Halal for free, so long as their products are certified halal from the local issuing authority. From Indonesia, for example, products must receive halal certification from the Indonesian Ulema Council (MUI).

    “All our suppliers must be certified, and we will verify the certifications they upload. Our concept is to enable and safeguard halal suppliers to reach the world of e-commerce,” he said during the same occasion.

    Malaysian International Trade and Industry Ministry’s Halal Industry Development Corporation (HDC) CEO Dato Seri Jamil Bidin said Malaysia and Indonesia must cooperate in developing the halal industry, which holds large economic potential.

    “Amid the increasingly borderless global trade, it is important to seize opportunities and develop with sophisticated technology like e-halal,” Jamil said.

  • Globe lifts 1H16 profit by 3%

    Globe lifts 1H16 profit by 3%

    The Philippines’ Globe Telecom has reported a 3% year-on-year increase in net profit and an 11% increase in revenue for the first of the year despite heightened competitive intensity.

    The operator recorded net income of nearly 9 billion pesos ($191.4 million), on the back of revenue of 53.8 billion pesos. Mobile revenue also grew 3% year-on-year to 45.7 billion pesos.

    Globe’s prepaid brands drove revenue growth for the quarter, with TM revenues up 5% and Globe Prepaid revenues growing 3%. Postpaid revenues grew a more modest 2%.

    Mobile data service revenues swelled 46% year-on-year to 12.2 billion pesos, offsetting an 11% decline in mobile voice revenue and a 16% slump in SMS revenues. Mobile data comprised 39% of total mobile revenues for the half-year period, up from 27% a year earlier.

    Home broadband revenues meanwhile grew 49% year-on-year to 7 billion pesos, while total subscribers increased 38% over the same period to 1.14 million.

    Corporate data revenues were up 55% to 5.9 billion pesos, driven by strong demand among Philippine enterprises for data connectivity and other telecoms services.

    “We are proud that the company’s overall results in the first half remained robust amidst the heightened competitive intensity and the unique challenges and opportunities posed by increasing levels of smartphone penetration and mobile postpaid ownership in the market,” Globe president and CEO Ernest Cu commented.

    “We believe that with the aid of the additional frequencies that we have recently acquired, Globe Telecom’s leadership as the preferred brand for Filipinos’ digital lifestyle choices will be strengthened moving forward.”

    The operator recently committed to use its newly-acquired spectrum to achieve coverage of 95% of the Philippines’ municipalities and cities by end-2018.

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  • Asia driving ‘significant’ growth in airport retail

    Asia driving ‘significant’ growth in airport retail

    Asia is driving “significant growth” in the global airport retail market, according to a new report from Credence Research.

    This is based on the increasing disposable income of middle-class families in emerging countries coupled with affordable travel options, says the report, Airport Retail Market – Growth, Share, Opportunities, Competitive Analysis, and Forecast 2016 – 2022.

    Emerging countries such as China and India are increasingly investing in new terminals and expanded retail areas.

    Widening budget options are boosting the number of travellers, particularly in Asia Pacific, says the report.

    Fashion and accessories is the largest product category in airport retail, accounting for more than half of revenue share. The segment can expect considerable growth, says the report.

    However, the fastest growth is expected in the F&B segment with rising sales for premium liquor products and the expansion of food chains.

    By store type the largest segment is the independent store and showroom. These are steadily growing in number with concessions being offered by airport authorities to local companies. The fastest growth is predicted in the duty-free stores segment, which is bolstered by more and more promotional activities.

    Asia Pacific is the largest regional market for airport retail, accounting for 40.5 per cent of revenue share last year. It is forecast to have the fastest growth, particularly in India, China, Australia and Southeast Asia countries.

    The report says the global airport retail industry is highly competitive with a strong multinational component. Major companies involved include Aer Rianta International, Autogrill, Dubai Duty Free, Dufry, Duty Free Shoppers, Heinemann, LS Travel Retail, Lotte Duty Free, Nuance Group, Shilla Duty Free and Stellar Partners.

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  • Asian tourists boost Australian luxury retailing

    Asian tourists boost Australian luxury retailing

    International tourists, particularly from Asia, have been a major driver of strong revenue growth in Australian luxury retailing over the past five years.

    The latest Luxury Retailing in Australia report from business data company IbisWorld predicts that across the sector, which covers the sales of such goods as Swiss watches and designer handbags and clothing, revenue will reach AU$1.8 billion next year, an 11 per cent annual growth rate. For the ensuing five years, growth is anticipated to continue at the rate of 8.2 per cent a year to reach more than $2.7 billion.

    IbisWorld anticipates that about 30 per cent of industry revenue can be attributed to inbound tourists, especially from increasingly sophisticated markets in Asia.

    Its reports says these tourists have traditionally been drawn to heritage luxury labels and flagship stores, mainly because of the perceived prestige of brands like Chanel, Gucci and Louis Vuitton across Asia, particularly China.

    A gradual depreciation of the Australian dollar since mid-2013 has helped drive growth in inbound tourism, boosting demand for luxury goods.

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  • Unicom warns to expect an 80% profit slump for H1

    Unicom warns to expect an 80% profit slump for H1

    China Unicom has warned it expects to report an 80% year-on-year slump in net profit for the first half of the year as a result of a surge in expenses.

    In a stock exchange filing, the operator said that selling and marketing expenses grew significantly during the six month period.

    New tower usage fees resulting in the outsourcing of tower assets to new joint venture China Tower, higher energy charges and property rentals also contributed to the growth of expenses.

    China Unicom reported a profit for 1H15 of 6.99 billion yuan, so the company is estimating a profit fo the period of around 1.4 billion yuan.

    The operator noted that this is nonetheless a significant improvement of the 3.36 billion loss – excluding the gain from the tower asset disposals – recorded during the second half of last year.

    The filing also states that Unicom’s mobile business has “achieved initial success in overcoming operational challenges.”

    As a result the company achieved a net addition of mobile subscribers of 8.39 million during the period. This compares favorably to the operator’s performance last year, when the company recorded net losses of customers for consecutive months.

  • SmarTone launches multi-device Wi-Fi calling

    SmarTone launches multi-device Wi-Fi calling

    Hong Kong’s SmarTone has introduced Wi-Fi calling for multiple devices using equipment provided by Ericsson.

    The new Wi-Fi calling service allows customers to pair up to five personal devices that lack SIM cards – including tablets, computers and smart watches – to enable operator voice calls via Wi-Fi connections.

    Devices can be located across different Wi-Fi access points, and calls can be seamlessly transferred to a user’s smartphones. The service also supports multiple simultaneous calls using the same number.

    Ericsson has adapted its existing Wi-Fi calling offering to support multi-device functionality. The company is offering an end-to-end platform comprising the evolved packet core, IMS, user data management and OSS/BSS.

    “SmarTone has always focused on delivering outstanding experience to our customers. With the trend of more and more customers using multiple devices nowadays, we offer Wi-Fi calling for multi-device service to our customers,” SmarTone CTO Stephen Chau said.

    “We believe the new capability to extend our voice service to devices without a SIM-card is adding genuine convenience to our customers.”

    A recent Ericsson ConsumerLab survey of basic Wi-Fi calling users in the US showed that four in five are very satisfied with the service. Around one in three international smartphone users are aware of the technology, Ericsson said, and of these seven in 10 find the prospect appealing.

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  • YLKI Protests Indecent Bikini-brand Snack

    YLKI Protests Indecent Bikini-brand Snack

    Chairman of Executive Committee of the Indonesian Consumers Organization Foundation (YLKI) Tulus Abadi protested on a Bikini-brand snack product. Tulus said the brand sold in social media is considered as indecent.

    “That is a snack (fried noodle) product with a non-educational, even indecent, brand name”, Tulus said Wednesday, August 3, 2016.

    Recently, information of the Bikini snack circulates through chain messages. The product shows a woman’s body from shoulder to hip with just wearing a bikini. The worst part is the package has “remas aku” (squeeze me) slogan written on it.

    YLKI protested the circulation of the product and asked to recall the product from the market. Tulus requested the National Drug and Food Agency of Indonesia (BPOM) to reprove the manufacturer and demand to shut down any form of sales through social media.

    “Online selling, particularly via e-commerce Olx.com and Bukalapak.com, must be immediately stopped. Consumers must not purchase the product, especially the children,” said Tulus.

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  • Cloud infra services up 52% year on year to $9.5b

    Cloud infra services up 52% year on year to $9.5b

    Worldwide cloud infrastructure services expenditure grew 52.3% year on year in Q2 2016, reflecting the ongoing adoption by businesses and expanding use of consumer-centric services, such as social media, gaming and video streaming.

    Amazon’s AWS remained the leading cloud infrastructure services provider, accounting for 30.4% of total spend, according to a new report from Canalys Research.

    Its early mover advantage, aggressive pricing, broad geographic coverage and wide range of service offerings are key factors behind its success. But it is under growing pressure from Microsoft Azure, Google Cloud Platform and IBM SoftLayer.

    Overall, these four providers represented 60.5% of total worldwide cloud infrastructure services spend.

    Daniel Lu, analyst at Canalys Research said, “The need for scalable and on-demand infrastructure is being driven by application testing, development and hosting; content delivery, big data and analytics; machine learning, IoT, disaster recovery and back-up; plus storage.”

    “But not every organization and every workload will migrate to the cloud. Cost is a major issue, but also compliance and regulations, security concerns, and application readiness are determining factors in cloud migration strategies. The adoption of hybrid cloud and on-premises solutions is prevalent as organizations seek to get the best of both worlds,” Lu noted.

    The total value of the cloud infrastructure services market was $9.5 billion in the second quarter of 2016.

    North America remained the largest market, representing 55.3% of the worldwide total, followed by EMEA at 24.7%, Asia Pacific at 15.9% and Latin America at 4.0%. For full-year 2016, Canalys predicts that the worldwide market will grow 50.3% to reach $37.8 billion.