Retail News CRM

Author: Mei Ling Tan

  • Hang Lung’s Chan Says Hong Kong Property Market Healthy

    Hang Lung’s Chan Says Hong Kong Property Market Healthy

    Hang Lung Group Ltd.’s Chairman Ronnie Chan said Hong Kong’s property market, which began a correction last quarter, is the “healthiest” he’s seen in 25 years.

    Speaking in an interview Monday with Bloomberg Television, Chan said a price decline of 10 percent to 20 percent in Hong Kong’s housing market is “no big deal.” Chan also said the residential property market in mainland China is getting “healthier and healthier,” after data showed that home-price gains are spreading to more Chinese cities, especially smaller ones.

    Chan’s optimism on the Hong Kong market comes against a backdrop of slumping prices in the city. Secondary residential prices in Hong Kong dropped 6.9 percent in the fourth quarter of 2015, the biggest quarterly slump in seven years, according to data from Centaline Property Agency Ltd. Home sales in December fell 32 percent to HK$29.8 billion ($3.8 billion) from a year earlier, the Hong Kong Land Registry said Jan. 5.

    Hang Lung, which is listed on the Hong Kong Stock Exchange, invests in property in Hong Kong and mainland China through its subsidiary.

    Chan’s outlook for the China retail market was less bullish. He said a combination of falling rents, a weakening domestic economy and the slowdown in retail sales, especially for high-end luxury, created a “triple whammy” for Hang Lung’s shopping malls in the mainland.

    He said that retail outlets in Shanghai and Beijing will weather the storm better than in second and third-tier cities, which “are being hit pretty hard.” One of those cities is Dalian, where Hang Lung just opened a new 2.4 million square foot shopping center.

    Still, Chan said the longer-term prospects for China retail are good.

    “If anything in the economic world is sure, it’s going to be consumerism in China,” he said. “In the long run we are okay, it’s just in the short run it is very very difficult.”

  • Central Group eyes Casino’s units in Thailand, Vietnam

    Central Group eyes Casino’s units in Thailand, Vietnam

    Thailand’s largest retail conglomerate Central Group is keen to bid for Casino Group’s Thai and Vietnam operations, a company executive said.

    Casino owns 58.6% of Big C Supercenter Plc, which has a total a market value of $5.5 billion. Casino said last week it was keen to sell this stake after announcing it would sell its Vietnam unit in the first quarter.

    “We are interested in both Big C in Thailand and Vietnam,” Prin Chirathivat, deputy chief executive officer.

    “If the prices are not too expensive, we will be keen to bid,” Mr Prin said adding his family, the Chirathivats, has a combined 25% stake in Big C.

    Central has been actively looking to buy assets overseas as it wants to expand into Southeast Asia and Europe.

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  • Fashion Business will Grow in 2016, Association Says

    Fashion Business will Grow in 2016, Association Says

    Dwi Iskandar, chairman of Bali Indonesian Fashion Chamber (IFC), said that the fashion business in Indonesia is expected to grow by 20 to 30 percent in 2016.

    “We believed that [2016] is better than last year. We also hope our members will use Balinese fabrics, such as the endek, tenun and songket so that the fabric can be recognized outside Bali,” said Dwi on Monday, January 18, 2016.

    Dwi believed that Indonesian fashion products, especially from Bali, has the ability to compete with products fron other Southeast Asian countries. Dwi added that Indonesian fashion products has its own local cultural richness.

    “Last year, we promote flashy colors. For this year, we will still be colorful, but with a more natural touch with monochrome colors,” Dwi said.

    Dwi added that textile export from Bali will continue to attract customers. “Our products are mostly exported to Europe and Asia. Compared with other Southeast Asian countries, they can’t compete with Indonesia because business players in Indonesia focues on quality rather that quantity,” said Dwi.

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  • Kertajati airport project to cost Rp3.7 trillion

    Kertajati airport project to cost Rp3.7 trillion

    The Kertajati airport project in West Java will cost around Rp3.7 trillion, to be paid by the central governmernt West Java Governor Ahmad Heryawan said.

    The central government through the transport ministry will finance the construction of the international airport in the regency of Majalengka, the governor said here on Monday.

    President Joko Widodo announced the decision on the project financing during his visit to Majalengka on Sunday.

    The governor said construction of the runway and the monitoring tower will cost around Rp1.6 trillion and the terminal and other facilities will cost around Rp2.1 trillion.

    The West Java administration is to pay only for the 1,800 hectare land clearing, the governor said, adding land clearing has been 1,000 hectares completed.

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  • Ford Philippines delivers record sales in 2015

    Ford Philippines delivers record sales in 2015

    Ford Philippines sales last year jumped a record 25 percent to 25,372 units, firmly establishing Ford as the number three-selling automotive brand in the country.

    EcoSport, Everest and Ranger each deliver record full-year sales in the Philippines.

    Record December sales soar 48 percent to 2,824 units, capping record quarterly performance with jumping 50 percent to 8,691 units.

    The record sales year and continuing momentum helped Ford jump one spot to become the number three-selling automotive brand in the Philippines in 2015.

    “It’s been a breakthrough year for Ford in the Philippines. We launched more global Ford vehicles that showcased the very best of Ford, and expanded our retail presence across the country to make the Ford brand closer to our customers through a strong dealer network,” said Lance Mosley, managing director, Ford Philippines. “We’re truly proud of how the Ford brand is being embraced by our Filipino customers.”

    The EcoSport compact urban SUV’s continuing impressive run made it Ford’s best-selling nameplate in the Philippines in 2015. December retail sales of EcoSport rose 49 percent to 799 units, helping drive full-year sales up 67 percent to 8,702 units – the highest full-year total for a single Ford nameplate.

    The highly capable and versatile Ranger finished 2015 as the second best-selling pickup truck in the Philippines with total retail sales that increased six percent year-over-year to 8,445 units.

    “We launched the new Ranger here in August, and it really helped to build on an already strong reputation as the most capable, powerful and smartest pickup in the market,” explained Mosley.

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  • Xiaomi’s sister firm taps into Korean market

    Xiaomi’s sister firm taps into Korean market

    Chinese electronics giant Xiaomi’s sister company Zmi has tapped into the Korean market by partnering with local online retail site 11st.co.kr.

    The online auction and retail site said Monday that it signed a deal with Zmi, offering exclusive retail channels for the Chinese company. This came months after the retail giant signed a memorandum of understanding with Xiaomi last November.

    Xiaomi and Zmi have been at the forefront of the “Made in China” sensation here, selling 3,000 batteries in April. The Xiaomi subsidiary also held a special promotion event for its batteries and fans last month, and more than 10,000 have been sold in three days through the retail site.

    An 11st official attributed its success to its price competitiveness.

    “The Xiaomi and Zmi products are extremely cost effective,” said the official. “Their performance does not lag behind that of its local rivals, but the price is much lower than them.”

    In particular, Xiaomi’s weighing machine, Mi Scale, gained huge popularity last year for its cost-effective features including its connectivity with other Xiaomi products such as Mi Band, a smart band which allows users to check their body condition.

    “The latest deal led us to become a frontrunner in selling Chinese IT products,” said Lee Chi-hun, digital business department chief for the retail site, in a statement.

    He added the company will keep helping Xiaomi affiliates and partnering companies to penetrate into the Korean market.

    Zmi is best known for producing Xiaomi’s portable battery packs. The latest deal will allow 11st to sell Zmi’s light-emitting diode (LED) lamps and electric fans and its own battery packs. The retail giant added it will also introduce Zmi’s new products including multi-tabs and cables through its site.

    “11st has established a strong foothold in the nation’s retail channel, often dubbed as a representative of Korea’s e-commerce market,” said Wenyuan Huang, co-founder of Zmi. “We are pleased to establish an official retail channel through which Korean customers can buy our products.”

    Meanwhile, local smartphone makers have been strengthening their budget phone lineups in their bid to compete with Chinese super-cheap smartphones. In particular, the Chinese telecom giant’s latest budget phone, Y6, has sold more than 20,000 units in less than a month after launching here. Last week, LG Electronics unveiled its new budget smartphone K10 with a price tag of 275,000 won.

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  • Toys”R”Us® Opens Its 100th Store In China

    Toys”R”Us® Opens Its 100th Store In China

    Ten years after first entering the market, Toys”R”Us, Inc., the world’s leading dedicated toy and baby products retailer, today announced that the company has opened its 100th store in China. The milestone achievement was marked by a grand opening celebration event that took place Saturday, January 16, at the APM Shopping Mall in Wang Fu Jing, one of the leading retail districts in Beijing, where Toys”R”Us® opened one of its 27 new stores across the country within the past year.

    “It’s our mission to be the best toy and baby products retail company in the world, and international expansion, particularly throughout China and Southeast Asia, continues to be an important part of our long-term growth strategy,” said Dave Brandon, Chairman and CEO, Toys”R”Us, Inc. “The opening of the 100th store in China represents a significant achievement for our business as it allows us to meet the increasing demand for high-quality children’s products and family entertainment experiences in this market.”

    Toys”R”Us opened its first store in China in 2006 and currently operates in 44 cities throughout the country, including six where the company established a presence for the first time last year. China has been one of the most important markets for the company’s global expansion plans, and growth in this region is expected to continue with the planned opening of more than 30 new Toys”R”Us stores in 2016.

    “The grand opening of our 100th store is a major milestone for Toys”R”Us on our exciting journey in China,” said Andre Javes, Managing Director, Toys”R”Us, Greater China and Southeast Asia. “What differentiates Toys”R”Us as a specialty toy retailer is the memorable shopping experience we provide for our customers. This includes a combination of the widest assortment of toys and baby products, including exclusive items not available anywhere else in the market, fun store layouts, interactive in-store experiences, product displays and demonstrations, activities and more.”

    Attending the iconic 100th store opening ceremony in the heart of the Capital were: Dave Brandon, Chairman and CEO, Toys”R”Us, Inc.; Dr. Victor Fung, Group Chairman, Fung Group; Monika Merz, President, Toys”R”Us, Asia Pacific; Pieter Schats, Executive Director of Fung Retailing Ltd; and Andre Javes, Managing Director, Toys”R”Us, Greater China and Southeast Asia, along with many important business partners and executives from the toy industry.

    As part of the grand opening, families were also invited to meet and greet popular mascots such as Geoffrey the Giraffe, Ultraman, Barbie™, Ninjago Kai, Balala Emma and more.

    Toys”R”Us at Beijing APM Shopping Mall Features Innovative Retail Environment
    The new store showcases the very latest in “retailtainment,” digital technology and customer interaction, making shopping at Toys”R”Us a unique and fun experience for kids and adults alike.

    Upon entering the store, customers are immediately immersed into the world of Star Wars™: The Force Awakens – the first-ever Star Wars movie released on the big screen in Chinese theaters – with life-size characters and dramatic scenes from the movie. Shoppers will also find interactive displays from LEGO® and TOMICA, a Balala magical mirror and more.

    Customers can further interact with the huge, 70-inch digital screen at the store entrance, enabling them to browse through promotional items, make purchases, take “selfies” with special photo frames, play games and easily become members of the company’s “Star Card” loyalty program.

    The Toys”R”Us store at Beijing APM also brings amazing exclusive products and assortments, which are not available anywhere else in the market. These private brands offer great value, quality and innovation from the Toys”R”Us brand consumers know and trust, and include FastLane®, Dream Dazzlers®, Universe of Imagination, Pavilion®, Just Like Home®, Edu Science®, You & Me, STATs® and Avigo®.

    In addition, consumers will find various new features throughout the APM mall, sponsored by Toys”R”Us.

    Toys”R”Us in China
     Toys”R”Us has been the leading dedicated retailer of toys and baby products around the world for more than 65 years. Toys”R”Us opened its first licensed store in Shanghai, China in 2006, and since then, has continued to expand aggressively in the country. In 2011, Toys”R”Us, Inc. formed a joint venture with its long-term license partner in China and Southeast Asia, Fung Retailing Ltd, for its businesses in the region, with stores in Brunei, China, Hong Kong, Malaysia, Singapore, Taiwan and Thailand, and became 70 percent majority owned and controlled by Toys”R”Us, Inc. and 30 percent owned by Fung Retailing Ltd.

    As of January 2016, the company has 100 stores in 44 cities across China, including: Beijing, Shanghai, Shenzhen, Chengdu, Chongqing, Hangzhou, Ningbo, Jiaxing, Jinhua, Shangyu, Nanjing, Suzhou, Nantong, Wuxi, Changzhou, Yancheng, Kunshan, Harbin, Shenyang, Changchun, Dalian, Tianjin, Baoding, Tangshan, Shijiazhuang, Zhengzhou, Jinan, Yantai, Zibo, Qingdao, Hefei, Wuhan, Changsha, Luzhou, Ganzhou, Xi’an, Kunming, Nanning, Guangzhou, Xiamen, Fuzhou, Zhuhai, Jinjiang and Zhongshan.

    Enhanced e-Commerce Business and Omnichannel Capabilities in the Chinese Mainland
    Toys”R”Us launched a T-mall Store in April 2012 and its own dedicated e-commerce website at Toysrus.com.cn at the end of the same year. Toys”R”Us, China also operates a mobile-optimized website, enabling tech-savvy consumers across the country to easily shop while on-the-go. Additionally, the company uses its “Ship from Store” capabilities to effectively transform the country’s existing Toys”R”Us stores into mini distribution centers by leveraging their inventory to fulfill online purchases.

    Now, millions of Mainland customers can access a wide assortment of toys, along with product authenticity and a toy safety guarantee from Toys”R”Us.

    Full Range of Toys
    Toys”R”Us provides a broad assortment of products from trusted domestic and international brands for children and their parents in China. Stores feature enticing product displays, demonstrations, “see-me touch-me” packaging, and a large number of products that are only available at Toys”R”Us. All products are made to the highest quality standards and have passed all required safety tests.

    As a global retailer, Toys”R”Us ensures country-by-country shopping patterns are taken into account at the local market level. Parents in China place great importance on the educational value of toys that help children learn and develop skills while they play. Within its Learning category, Toys”R”Us provides among the most comprehensive and widest selection of educational toys, including many uniquely designed by the company’s in-house team. These toys encourage skill development such as learning languages, mathematics, geography, color-differentiation and coordination.

    Digital and New Media Platforms
    Digital and new media is a booming business across China, with rapid growth of brands and stores across e-commerce websites and online instant messaging platforms.

    Mr. Javes also commented, “Toys”R”Us has 1 million followers in WeChat and continues to grow. WeChat followers have been expanding rapidly within the recent two years and we are seeing more than 80 percent of members join in our “Star Card” Membership Program via this social platform, where they can easily play our WeChat game, get the latest promotional information and explore bonus features, which enhance the fun of digital interaction. Along with the fast development of digital platforms such as mobile internet in China, we will continue to engage and excite our consumer on all their digital devices.”

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  • CIMB: No more job cuts in Malaysia, Indonesia this year

    CIMB: No more job cuts in Malaysia, Indonesia this year

    CIMB Group will not undertake any more job cuts in Malaysia and Indonesia in 2016 after last year’s mutual separation scheme exercise.

    CIMB Group chief executive Tengku Zafrul Aziz said the bank was now focused on improving productivity and meeting its business agenda.

    “We have done the mutual separation scheme and we are not planning to do it any more here or in Indonesia,” he told reporters after presenting prizes to winners of the CIMB Asean Stock Challenge 2015 in Kuala Lumpur today.

    On Friday, CIMB cut 32 jobs in its Hong Kong investment banking and equities business due to worsening capital market conditions.

    Zafrul said for the first six months of 2016, the bank expected the outlook to be challenging based on the current economic environment.

    “But having said that, I think the bank has started to appreciate because if we look at the capital and equity ratio of all banks in Malaysia, we more than meet the requirement by the central bank.

    “We are also looking at a compatible growth economic growth of between 4.5 and 4.8 percent for the banking industry this year,” he added.

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  • Foreign Investors Eyeing Indonesia’s Movie Theater Industry

    Foreign Investors Eyeing Indonesia’s Movie Theater Industry

    Foreign investors have had their eyes on Indonesia’s movie theater business for quite some time now. According to the information collected, there are investors from South Korea, Germany, Britain, and India that have made approaches; expressing their desire to invest in the industry.

    One of said foreign investor is Lotte Group. In 2012, the group made aggressive approaches to the government, with plans to open up to 100 cinemas in Indonesia.

    In mid last year, Deutsche Bank and Rothschild Group expressed their interest to provide US$ 100 million for the expansion of Cinemaxx, a cinema network owned by the Lippo Group. Using that fund, Cinemaxx aimed to open 2,000 theaters over the next ten years.

    Endah W. Sulistianti, the deputy for Regional Inter-Agency Relations and Creative Economy Agency, confirmed that foreign investors are attracted to Indonesia’s movie theater business. However, the law prohibits the industry from being entered by foreign investors.

    “Right now the government is discussing over the possibility of allowing foreign investment in the cinema business,” she said last week.

    Hilmar Farid, Director General of Culture, said that the government actually has no problem with foreign involvement in the industry—provided that it poses no harm to national interests. He said it is important to make sure that if foreign investment is allowed, Indonesian cinemas will not only play foreign films.

    “There needs to be clear regulations and the sharing scheme must be clear as well,” Hilmar said during his interview.

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  • Tourism has recovered 100 pct after Jakarta bombing

    Tourism has recovered 100 pct after Jakarta bombing

    Tourism Minister Arief Yahya said the Indonesian tourism had returned to normal and recovered 100 percent after the terror acts and bomb explosions in Thamrin Boulevard in Central Jakarta last Thursday.

    He said that Jakarta, particularly area around Thamrin Boulevard, has returned to normal after it was rocked by the January 14, 2016 suicide bombing and shootouts between police and terrorists.

    The normal condition is like what many people in the social media have described that Jakarta has returned to normal life as usual days.

    “Many people even thronged the bomb explosion site of the police station to take their profile pictures,” the minister said.

    During the car-free day on Sundays in the Thamrin Boulevard residents usually use the HI Traffic Circle, National Monument Square and Senayan as points of gathering.

    But this time (Sunday Jan.17), they changed their points of gathering. The police station at the intersection where the suicide bombing occurred on Thursday became their favorite point of assembling.

    According to the minister the Jakarta residents are clearly not afraid. They have no doubts to have their picture with the bombing site as the background. They could later change their profile pictures on the social media, he said.

    “So, the security condition has really returned to normal. Residents can act personally to report the facts and real condition in the Internet through their twitter accounts, facebook, instagram, path, pinterest and others,” the tourism minister said.

    On Thursday (Jan 14), two terrorists launched suicide attacks on a police station in Thamrin Boulevard near the Sarinah Department Store, which was followed by a shootout between three other terrorists and the police at the Starbucks Coffee shop adjacent to the Sarinah Department store.

    Within hours, the police were able to thwart the attackers, shooting to death three of them while two others died in the suicidal bombing. The incident also left three civilians dead (one died at a hospital three days later) and 32 injured, including police personnel.

    Jakarta Metropolitan Police Command Chief Inspector General Tito Karnavian has confirmed that the terrorists who orchestrated the attack in Jakarta on Thursday were linked to the ISIS terror group.

    “Our team is now on the lookout for members of this terror network who are linked to the ISIS group in Raqqa,” he stated during a press conference held at the presidential office following a meeting led by the president on the issue on Thursday evening.

    He said the ISIS group had changed its strategy. They earlier operated only in Syria and Iraq, but after their leader, Abubakar Baghdadi, ordered them to spread their activities outside Iraq and Syria, they had begun setting up ISIS terror modules across the world, he explained.

    “The terror cells can be found in France, Europe, North Africa, Turkey as well as Southeast Asia, including Indonesia, Malaysia, the Philippines, Thailand, and other countries,” he pointed out.

    In Southeast Asia, there is a figure keen to set up a “Khatibah Nusantara,” and he wants to be the leader of the ISIS group in the region.

    “Of late, a rivalry for leadership has developed. In the Philippines, they have set up a terror module in South Philippines, and now, multiple people are competing for leadership. In this connection, one of the ISIS figures launched these attacks. Meanwhile, we have identified the group, and we are still tracking them down,” Tito affirmed

  • Countries must improve ICT sectors

    Countries must improve ICT sectors

    Countries must continue to invest and pursue reforms in information and communication technology (ICT) to serve the nearly 60 percent of the world’s population who remain excluded from the digital economy, a new World Bank report said.

    In its “World Development Report 2016: Digital Dividends” report, the Washington-based lender noted that the internet, mobile phones and other digital technologies were spreading rapidly.

    “Digital technologies are transforming the worlds of business, work, and government,” said Jim Yong Kim, president of the World Bank Group.

    The anticipated digital dividends of higher growth, more jobs, and better public services, however, have fallen short of expectations, the World Bank said.

    To deliver fully on the development promise, it said countries must pursue “analog complements” to digital investments.

    This means regulations must be strengthened to ensure competition among business, adapting workers’ skills to the demands of the new economy, and fostering accountable institutions.

    Digital development strategies need to be much broader than ICT strategies, it added.
    To reap the greatest benefits, countries must create the right environment for technology, with regulations that facilitate competition and market entry, skills that enable workers to leverage the digital economy and institutions that are accountable to people.

    It noted that in the Philippines, business process outsourcing has few entry barriers and that firms use digital technology intensively, which is not the case for the retail sector.

    “The Philippine retail sector has substantial restrictions to domestic and foreign entry and is dominated by a few incumbent firms, while few firms use ICTs,” the World Bank said.

    Foreign retailers that aim to establish a commercial presence need to pass prequalification procedures, meet minimum capital requirements, deal with limitations to foreign equity participation, and have the majority of their boards comprised by Filipinos, it stressed.
    “Only about 20 percent of retail firms (with at least five employees) sell online in the Philippines,” it added.

    In contrast, the Philippine outsourcing sector is characterized by high entry rates and few regulatory barriers to competition.

    “It is intensive in ICT-related services such as software development, animation, contact centers and transcription. These ICT-specific services experienced high productivity growth in recent years and provided about 1.2 million jobs in 2015,” it said.

    Investing in basic infrastructure, reducing the cost of doing business, lower trade barriers, facilitating the entry of start-ups, strengthening competition authorities and facilitating competition across digital platforms were some of the measures suggested in the World Development Report.

    Digital technologies can transform economies, societies and public institutions, but changes are neither assured nor automatic, the report stressed.

    “Countries that are investing in both digital technology and its analog complements will reap significant dividends, while others are likely to fall behind. Technology without a strong foundation risks creating divergent economic fortunes, higher inequality and an intrusive state,” the World Bank said.

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  • Burberry Christmas sales miss expectations in Macau, Hong Kong

    Burberry Christmas sales miss expectations in Macau, Hong Kong

    British trenchcoat maker Burberry Group Plc reported Christmas revenue that trailed its own forecast, hurt by a slump in demand in Macau and Hong Kong.

    Retail revenue fell to 603 million pounds (USD869 million) in the three months through December, London-based Burberry said yesterday in a statement. Analysts predicted 606 million pounds, based on the median of estimates compiled by Bloomberg. Sales were unchanged on a comparable basis, missing internal expectations, compared with a 4 percent decline in the second quarter, Burberry said.

    Hong Kong sales fell more than 20 percent. The U.K.’s largest luxury-goods maker is scaling back stores, cutting bonuses and consolidating products under one label after forecasting earnings will probably fall for a second straight year. Richemont reported Christmas season sales declined for the first time since 2008 .
    Tourist bookings to Europe have declined following the terror attacks in Paris and an unseasonably warm winter has added to challenges facing luxury companies. Burberry is also more exposed than peers to spending by Chinese clients, which is cooling as that country’s stock market slumps.

    The company anticipated in October a return to growth in last part of 2015, driven in part by new products such as lightweight cashmere trenchcoats and ponchos, and new styles of scarves. Bloomberg

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  • National Gallery Singapore teams up with & Co to create a dynamic lifestyle space

    National Gallery Singapore teams up with & Co to create a dynamic lifestyle space

    The National Gallery Singapore and & Co just reinvented the museum store. Located on the ground floor of the newly opened museum, the lifestyle concept space, named Gallery & Co, fuses together several different elements. Comprised of a retail shop, a casual dining area that serves organic bites and a gallery, Gallery & Co seeks to engage museum visitors through its vast offerings. The gallery tapped creative collective & Co to curate and design the space. The retail area features platforms covered in grids, stripes and polka dots, while the cafe consists of clean lines and a green tile floor.

    ‘Each space has its unique aesthetic catering to a different product category and customer type, ensuring relevance and engendering engagement. They are all unified by the custom-designed grey tiles and blue-grey columns,’ says Yah-Leng Yu, co-founder of & Co and the Foreign Policy Design Group.

    The retail shop carries both international and local fashion and design brands, such as French fashion label Kitsuné and Singaporean jewellery brand Argentum. The shop also holds special collaborations between brands and the museum, like the timepiece made collaboratively with Japanese solar watch company Q&Q. The gallery will also exhibit emerging artists.

    ‘Our objective for doing the store was really to make it a living and evolving space, and the idea of the retail store was to really inspire people to be creative. That’s what the museum is for, to bring the public here, and to inspire them through art – and that’s what we aim to do in our store,’ said & Co co-founder Alwyn Chong. ‘That’s why we don’t sell the regular museum souvenirs – really we are about collaborating, about bringing people together, and about creating something special.’

  • Apple Should Open More Outlets in China

    Apple Should Open More Outlets in China

    Apple has seen robust sales in China despite the country’s worsening economic situation. Last quarter, revenues from Greater China grew 99% year-over-year, confirming the management’s opinion that China sales have been strong. Chinese economic slowdown concerns have emerged yet again and it remains to be seen whether Apple will continue its strong performance in the region.

    In its latest note to investors, BofA/Merrill Lynch contends that Apple should open more retail stores in China if it wants to increase market share in the country. The idea is based on Merrill Lynch’s survey of 1,000 respondents across China, which was done to find a correlation between retail store presence and iPhone share/iPad ownership in the region.

    Through a regression analysis, the firm found high correlations between retail store presence and iPhone share and iPad ownership. Of the survey respondents, 24% own iPhones while 39% said that they intend to buy one, which shows that Apple could gain further share.

    Merrill Lynch notes that Apple currently has 26 outlets opened in 11 regions across mainland China. The company intends to increase that number to 40 by the middle of this year. Apple has also announced that it will open two more retail stores in January in Guangzhou (Guangdong region) and Nanjing (Jiangsu region). The firm’s analysis suggests that the four new store launches in January can generate an additional 2.99 million units.

    “We believe these store openings could lead to incremental iPhone units sold in the regions and help Apple continue to increase share in broader China,” analysts at Merrill Lynch said.

    In a prior research note, Merrill Lynch had upgraded Apple shares from Neutral to Buy. The firm said that its upward revision in the rating was based on the launch of iPhone 7, potential roll-out of iPhone 6c (5e), and increase in capital return program in April.

    Apple is expected to release its first quarter fiscal year 2016 (1QFY16) results after the markets close on January 26. The tech giant is expected to report revenues of $76.7 billion and adjusted earnings per share (EPS) of $3.24. Merrill Lynch expects Apple to post strong China sales.

    Chinese stocks dropped significantly last August, pointing to slowing growth in one of the world’s biggest economies. Questions were put forth regarding iPhone’s growth in the region at that time. In response to this, CEO Tim Cook told investors that China business has remained robust.

    In the last earnings call, Mr. Cook told the Street that he doesn’t believe Apple’s results in China are heavily dependent on small changes in growth in its economy. He further stated that in light of the number of customers coming into Apple stores and sales trends, it is hard to say that there is an economic slowdown in the country.

    According to the data from Strategy Analytics, China currently comprises 20% of Apple’s total iPhone unit sales. Hence, if Chinese sales are strong, it is very likely that Apple could overcome the tough comps set by the highly successful iPhone 6 and 6 Plus lineup.

  • Yoo hits the road to promote export plan

    Yoo hits the road to promote export plan

    With a hard hat on, Finance Minister Yoo Il-ho showed up at the Pyeongtaek port in Gyeonggi early Friday morning, just as Kia cars were being readied for the ships that would take them to overseas markets.

    He met with local government leaders and businessmen whose companies specialize in exports, including Panda Korea, a China-based online retail company; Korea FT, an auto parts manufacturer; Dongwoo Fine Chem, a semiconductor developer; and Sinokor Merchant Marine at the Pyeongtaek Port Marine Center.

    Yoo listened to the hardships they face, such as delays in receiving government certificates of product origin and the lack of a bilateral trade agreement with South American countries, over warm bowls of porridge.

    The meeting lasted two hours, an hour longer than initially planned.

    “Our new team will focus on looking for new export products and markets that will boost Korea’s overseas trade,” Yoo said. “Koreans have a certain DNA that allows us to turn adversity into opportunity.

    “We need to undertake structural reforms in order to avoid following Japan’s long stagnation.”

    Yoo’s visit to the port city came a day after he was officially sworn into office as the nation’s finance minister and deputy prime minister for the economy. At the event held Thursday at the Blue House, Yoo promised to focus on bolstering the country’s exports to achieve the targeted 3.1 percent economic growth.

    Yoo’s plan was a marked change from predecessor Choi Kyung-hwan, who unveiled numerous policies the moment he took office in July 2014, including a supplementary budget, lowering the key interest rate and increasing tax cuts, aimed at pushing economic growth through expansion of the domestic market.

    But during Choi’s tenure, Korea’s exports declined for 12 straight months. As the Korean economy is believed to have grown at around 2.7 percent in 2015, it became evident that were are limits to how much economic growth could be generated solely from the domestic market.

    Yoo told the businessmen that he plans to encourage the expansion of online commerce, which will contribute to increasing exports.

    “The government will utilize the Korea-China free-trade agreement and take advantage of Chinese consumer market, which amounts to $6 trillion,” the minister said.

    Later that afternoon, exports were again one of the key issues discussed during Yoo’s first meeting with Bank of Korea Gov. Lee Ju-yeol at the Korea Federation of Banks’ club in Myeong-dong, central Seoul.

    “When I was [in Pyeongtaek], it felt as if we really didn’t have to worry about exports,” Yoo told Lee. “But I get worried when I read the numbers.”

    The finance minister added that he was concerned by the fact that exports in 2015 fell 7.2 percent year-on-year.

    Lee told Yoo that during his recent visit to Basel in Switzerland to attend the Bank for International Settlements meeting, he learned that other countries consider Korea’s economy to be doing better relative to other nations.

    “When I said that Korea’s economic recovery was weak, other participants asked what Korea was concerned about,” Lee said. “They meant [that perspective on an economy] is relative.”

    Lee quickly added, however, that this didn’t mean that he or the finance minister was looking at the Korean economic situation with optimism.

    “We both agreed that the economy is in a difficult state,” Yoo added. “We’re faced with a situation where the G2 risks and uncertainties in emerging markets are overlapping with North Korea’s nuclear test,” the finance minister said.

    “We shared the view that we are at an important point in time where we need to overcome structural problems, including the changes in the global economic structure, changing population structure and weakening foundation of the domestic economy.”

    Later that afternoon, Yoo left for China, which would be his first official visit overseas as the nation’s chief economic policy maker.

    Yoo flew to Beijing, where he will be attending the official launch of the China-led Asian Infrastructure Investment Bank.

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