Author: Mei Ling Tan

  • Modern Beauty Salon Holdings posts profit plunge

    Modern Beauty Salon Holdings posts profit plunge

    Modern Beauty Salon Holdings has reported an 87.4 per cent plunge in first half profits as consumers restrain their discretionary spending.

    Modern Beauty runs 42 service centres in Mainland China, Hong Kong and Taiwan, 16 in Singapore and three in Malaysia. The company’s 17 retail stores trade under the banners Pen and Be Beauty Shop across Hong Kong, Kowloon and the New Territories.

    Modern Beauty Salon

    Group revenue across the markets fell 12.2 per cent to HK$402.7 million year on year, while gross receipts from the sale of prepaid beauty packages decreased from $387.5 million to $350.4 million. That produced a profit attributable to shareholders of just $5.7 million, compared with $45.5 million for the same period last year.

    The company said a volatile financial market and weakened Hong Kong economy made people more conservative on their spending.

    “Our beauty, slimming and wellness service business in Hong Kong was inevitably affected. Nevertheless, leveraging on our excellent service management that facilitate greater quality assurance, our management is confident of the further prospects of our business.”

    The company says despite the retarded economic growth in Mainland China, it still believes the beauty, slimming and wellness market there will continue to prosper with a growing demand because “as a larger portion of the population moves up to the bourgeoisie”.

    “Our brand name has secured a presence in the Mainland China with a solid foundation that we have established for years in Beijing, Shanghai and Guangzhou. Plans to open more stores in the Mainland China are afoot.”

    In Singapore and Malaysia, receipts from sales of prepaid beauty packages amounted to $37,768,000, while revenue from services rendered amounted to $55,673,000, down 35 per cent and 36.6 per cent respectively.

    “The drops are mainly due to the new government policies in Singapore and Malaysia. For Singapore, from June 2015, if a local person’s aggregate interest-bearing outstanding balance on all credit cards and unsecured credit facilities exceeds 24 times his monthly income for three consecutive months, his credit lines will be suspended. This means that he will not be allowed to charge new amounts to his existing credit cards and/or unsecured credit facilities. For Malaysia, from April 2015, a GST of six per cent was imposed on local services providers, including beauty services. These policies have hurt the local consumption sentiments significantly.

    “The group will continue to carry out its local business development prudently and we believe that the local people will accustom to the new policies and the consumption sentiments will recover as time goes by.”

    Modern Beauty says it plans to launch an eCommerce website during the next six months.

  • Prolonged summer takes heat out of Uniqlo sales

    Prolonged summer takes heat out of Uniqlo sales

    Uniqlo parent, Japanese giant Fast Retailing, says its total sales dropped 8.1 per cent in November.

    “Same-store sales dipped year on year in November after unusually hot weather in mid-month stifled sales of winter clothing necessities,” the company said in a  brief trading statement which gave only percentages and not total sales data.

    The number of Uniqlo stores operating outside Japan exceeded the number of domestic stores last month – by 864 to 844.

    In November, same-store sales decreased by 8.9 per cent year on year while sales at its own-run stores (excluding franchises) decreased by 9.9 per cent. Total sales, including online, thus fell by 8.1 per cent.

  • Foodpanda Vietnam to shut down

    Foodpanda Vietnam to shut down

    Foodpanda – relentlessly marching its way across Southeast Asia, gobbling up rival food delivery businesses and creating monopolies – has shocked the online community by closing its Vietnam business.

    According to a report in online business news website Deal Street Asia the Rocket-Internet backed company has told its Vietnamese partners the operation will close on Wednesday after three years.

    “Through this notice, we would like to inform you that our company will terminate the business in Vietnam due to the difficulties in financial situation,” Foodpanda said in the letter.

    Deal Street Asia’s Vietnam-based writer was unable to reach Foodpanda Vietnam staff for further comment.

    One of the possible reasons for the market exit is that Foodpanda was a latecomer to the sector with the original, well-liked local service Vietnammm launched as long as five years ago and collaring the expat market which has the disposable income. Other rivals included Eat.vn and Deliverynow.vn.

    Furthermore, Foodpanda’s business model is to attain market dominance by buying out rivals, thus gaining insulation from poor customer service, slow delivery times and other faults – the exact situation in Malaysia which has now left it with brand reputation issues.

    Deal Street Asia says experts say Foodpanda’s business model is not relevant to Vietnamese consumers, where the younger demographic prefer to eat out and local food outlets offer their own delivery service. Others said Foodpanda had struggled with its communications strategy, which was not helped by changing its brand name within a year of launching there.

    Meanwhile, in India Foodpanda is in trouble over alleged fake listings, non-payment of money to restaurants, failure to refund customers for undelivered orders and corporate governance issues, according to website e27.co.

  • Riverside 66 wins top MIPIM Asia Retail award

    Riverside 66 wins top MIPIM Asia Retail award

    MIPIM Asia, the property leaders’ summit in Asia Pacific, has announced 36 winners in the ninth edition of the annual MIPIM Asia Awards.

    Chinese mall project Riverside 66 won Gold, the top honour in the Retail category, from The Breeze BSD City in Indonesia and The MixC in Qingdao, China.

    Sunway Putra Mall in Kuala Lumpur, Malaysia, was awarded a bronze in the refurbished buildings category.

    The winners of the MIPIM Asia Awards, which recognise excellence and innovation in real estate development in the Asia Pacific Region, were announced during a gala dinner on with Carrie Lam, chief secretary for administration of the HKSAR Government as guest of honour. The final Gold, Silver and Bronze rankings were awarded to the 36 projects previously announced, which had been selected by an international jury composed of 16 industry experts.

    President of the Jury, Nicholas J. Loup, said the judging was a very competitive process this year with a number of high-quality and interesting projects among the finalists.

    “We are excited to see how several of these projects are changing the urban landscape in Asia Pacific.”

    The winning retail projects, with key consultants listed, are:

    Best Retail Development:

    Riverside 66, Tianjin, China: Gold.

    Architect: Kohn Pedersen Fox Associates PC, P&T Architects (project architect), Benoy (interior designer); Developer: Hang Lung Properties.

    The Breeze BSD City, Tangerang City, Indonesia: Silver.

    Architect: Jerde & Arcadia; Developer: Sinarmas Land; Others: Ketira Engineering Consultants Landscape, Saraswati Flora,  PT. Policipta Multidesain, PT. Total Bangun Persada Tbk, PT Korra Antarbuana, Lumina Group.

    The MixC, Qingdao, China: Bronze.

    Architect: Benoy Ltd, Callison; Developer: China Resources Land Limited.

    Best Refurbished Builing:

    Sunway Putra Mall, Kuala Lumpur, Malaysia: Bronze.

    Architect: SAA Architect; Developer: Sunway REIT; Other: Aedas.

  • Fashion etailer SuperGurl apologises for rape gaffe

    Fashion etailer SuperGurl apologises for rape gaffe

    Singapore online fashion retailer SuperGurl has apologised online and on social media for a homepage banner inviting rape, described by at least one shopper as “absolutely vile”.

    The banner featured a young woman with her arms up in submission and a button users could click on to gain discounts inviting them to “rape us now”.

    The momentously stupid and insensitive promotion – targeting Black Friday shoppers – has received media attention internationally. UK Lifestyle news blog The Debrief referred to it as evidence that Black Friday “brings out the worst in retail brands”.

    On SuperGurl’s Facebook page one follower of the brand Wei Wei Gwee eloquently summed up community anger: “Rape isn’t an advertising angle that one can exploit when thousands of victims suffer the irreparable damage rape has caused to them every day. Not only do you make light of sexual assault, you used this really young girl in a suggestive pose which seems to be extremely inappropriate. I wonder how the model will feel if she knew her photo was being used this way.”

    SuperGurl creative director Jordus Lim posted an unqualified apology on the SuperGurl website and Facebook page claiming the brand never meant to offend anyone. He says a junior graphic designer created the promotion and uploaded it online before the image was approved.

    “I am writing this to express our sincerest apologies pertaining to our insensitive action and the choice of [the] word ‘rape’ during our ‘Black Friday’ sale. We do not mean for it to be offensive to anyone, and I extend my sincerest apology for the lack of a better word.

    “I hereby acknowledge that we have made a mistake, and that our caption does not advocate the right values to the young women community today.

    “Having regretted [sic] for what we have done, the team at Supergurl will definitely be more careful with what we will put up in future as this is also a lesson learnt for us.

    “This is an honest mistake that we have made on our side, and we do know that it is indefensible. We hope that the public will accept our apology for what we have done wrong.”

    Another follower Christina Chew responded, typing Lim’s response “is uncommon valour”.

    “Perhaps the wounds would leave some lingering scars thereafter. But I pray that the scars will heal and you will grow in increasing wisdom.”

    To be fair, as The Debrief points out, SuperGurl is not alone in its poor judgement.

    Last month, American Apparel was criticised for asking employees to wear shirts that read ‘Ask Me To Take It All Off’, while Bloomingdale’s issued an apology for their Christmas ‘date rape’ advertisement, with the caption: ‘Spike your best friend’s eggnog when they’re not looking’, the site reported.

    “When will fashion brands (or any brands for that matter) get the message that rape is not an acceptable advertising tool?”

    Indeed.

  • Hong Kong’​s Seafood Appetite Threatens Marine Species

    Hong Kong’​s Seafood Appetite Threatens Marine Species

    Hong Kong’s enormous appetite for seafood and its role as a hub for the global seafood trade is having an unfortunate impact on endangered fish species.

    Chinese cuisine prizes seafood, so it’s perhaps not surprising that per capita seafood consumption in Hong Kong averages 70 kilograms a year, about four times the global average. But the city is also a hub for trade into mainland China, where consumption is on the rise. All of that is putting a strain on endangered marine life and driving an unexpected sustainability push.

    On a busy Saturday morning at Hong Kong’s giant Aberdeen Fish Market, traders are milling around buying seafood for restaurants and the city’s retailers. One of the dealers here is Betty Chu, who runs a distributor called Family Care Ltd., which imports seafood from all over the world.

    “The market is really good,” Chu says. “People are looking for prime products, they’re health conscious, and they’re willing to pay more for better food. We import globally lobster, scallop, abalone, shrimp, crabs and more. It’s a lot! My business is good and growing every year.”

    But while business is booming, some of the city’s seafood traders are switching to sustainable seafood. Wong Ping Chai, who runs the Hoi Kee Ho Fresh Seafood import company, began seeking out sustainable seafood several years ago when a Dutch supplier explained to him that many fish species were becoming scarce. It led him to join Fish and Season, a global fish trading network that trades only sustainably caught seafood.

    “Fish and Season is an organization originally from Holland that started around 1992,” he says. “They found out in Europe the fish are getting fewer and fewer, and if it goes on it will be disastrous.” He learned that the same thing was happening in Asia.

    Ocean impact

    Activists have been trying to educate consumers, and are encouraging them to be more careful about the seafood they buy. Allen To, who works in the Hong Kong offices of the World Wildlife Fund, monitors local imports and consumption of endangered seafood species. He says per capita consumption of seafood in Hong Kong is second in Asia and seventh in the world.

    “That’s why in Hong Kong we do have the responsibility to try not only to reduce our own ecological footprint but to try to reduce our impact on the ocean of many other countries,” he says. “We believe if we can push sustainable seafood in Hong Kong, then eventually we can help at least to reduce our impact on fish resources, particularly in the Asia Pacific region.”

    But price is an issue. Keith Tsui, managing director of New Bon Marine, another Hong Kong seafood company concentrating on sustainable products, says education and government awareness campaigns are helping turn consumers onto sustainable seafood. But so far the focus has been on high-value species such as black cod, salmon and shellfish.

    He wants to get lower-income groups switching to sustainable seafood too. “We are trying to get more products for the budget class,” he explains. “A couple of years ago, we did a good job with a fastfood chain in Hong Kong. They use sustainable seafood for breakfast for the budget class. This is a great leap forward for us.”

    Campaigners want consumers to make sustainable choices, but they’re also calling on Hong Kong’s political leaders to clamp down on illegal catches. The WWF’s Allen To says illegal fishing has depleted stocks of rare wild fish such as grouper from the coral reefs of Southeast Asia.

    “Hong Kong and China are the main trading and consumption areas for live reef fish, including grouper and the humpback wrasse,” To says. “Many of the grouper species are already overexploited, and some of them are threatened species.”

    Seafood trader Keith Tsui, meanwhile, wants to bring more sustainably produced seafood products to Hong Kong by focusing on an innovative new approach in the retail sector and in schools.

    “We will try to liaise more with school lunch boxes and let them tell the kids they are using sustainable food,” Tsui says. “This customer group is the future. “They are the biggest influencers on their parents.”

    And Hong Kong wants to ensure there will be fish in the sea for future consumers.

  • Uniqlo to launch Liberty London range

    Uniqlo to launch Liberty London range

    Uniqlo has announced a collaboration with high end UK department store Liberty London to create an exclusive range of apparel.

    Liberty London for Uniqlo will launch with a Spring/Summer 2016 collection, in stores from Spring.

    The collaboration brings together a special selection of Liberty’s iconic floral prints with women’s, girls’, babies’ and men’s products for Uniqlo LifeWear, whose signature innovations make clothing lighter, more comfortable, affordable and accessible to all.

    Liberty started in London’s Regent Street in 1875, selling ornaments, fabrics and artworks from Japan and elsewhere in Asia that inspired some of the 42,000 prints that make up Liberty’s print archives.

    Extensive collections of Liberty catalogues, dresses and textiles, housed at The Victoria and Albert Museum, attest to the myriad contributions to art, culture, and fashion of one of the world’s most prestigious brands.

    Liberty’s mock-Tudor-style building on Great Marlborough St is a destination for fashionistas and an epitome of classical British design.

    The Liberty London for Uniqlo collection will be sold worldwide in Uniqlo stores.

  • Indonesian eCommerce boom

    Indonesian eCommerce boom

    Indonesians are embracing online shopping at an astonishing rate.

    The Indonesian eCommerce Association expects the total online market to treble between 2014 and 2016, worth Rp 283 trillion (US$24 billion) in 2016.

    According to Bank Central Asia, Indonesia’s largest private lender, an Indonesian eCommerce boom will see spending rise an estimated 127 per cent this calendar year. And next year, growth will be as high as a further 80 per cent.

    The head of BCA’s consumer card division, Santoso, says the bank recorded Rp 4.5

    trillion (US$326.3 million) in eCommerce transactions in the first nine months of the year and he is confident it will reach Rp 5 trillion by the end of the year. Shoppers are using both credit and debit cards online.

    Despite such figures, the Indonesian eCommerce market remains in relative infancy. Online shopping still accounts for just 0.5 per cent of sales. Consumers are wary of supplying card details online and a mere six per cent of Indonesians actually possess a credit card. Unreliable logistics infrastructure is a further barrier to growth, although this week’s agreement between Zalora and Pos Indonesia to have nearly 3000 of its post offices double as delivery and return points are a step towards addressing that issue.

    Driving the current growth is the small percentage of Indonesia’s affluent consumers – especially those living in second tier cities who lack physical access to branded retail stores or range of products.

    Next week, BCA will hold a three day long e-Shopping Carnival featuring 16 online merchants. It currently works with 420 eCommerce businesses and plans to add a further 150 to those ranks next year, including hotels, travel businesses and electronics vendors.

    Meanwhile, Indonesia’s National Online Shopping Day (Harbolnas) will take place on December 12 with 140 eCommerce sites offering discounts of up to 90 per cent for one day. The online retail event is likened in magnitude to the Jakarta Great Sale.

  • Geox plans 350 China stores with Hong Kong partner

    Geox plans 350 China stores with Hong Kong partner

    Italian shoemaker Geox has signed a distribution agreement with Hong Kong listed Pou Sheng International to set up 350 stores in Mainland China by 2020.

    The two companies will target China’s rising middle class – 109 million newly affluent, quality-conscious and brand-happy Chinese consumers.

    Geox is one of the leading brands worldwide in the lifestyle footwear market, listed on the  Milan stock exchange and Pou Sheng is one of the leading retailers in China in the lifestyle and sportswear market, retailing brands such as Converse, Rockport and Keds with 4586 retail outlets and another 2691 sub-distributors across China.

    The Geox agreement includes the exclusive distribution of Geox adult collections in China and the opening of 350 new stores in the first five years – including mono brand stores and  shops-in-shops in high end footwear specialist retailers, shopping malls and department stores.

    Mario Moretti Polegato, chairman and founder of Geox, said the strategic agreement is aimed at “developing properly our brand distribution in China where, in our directly operated stores in Shanghai and Beijing, Geox has already demonstrated to have strong potential”.

    “I believe the partnership with Pou Sheng is extremely relevant as it merges the Geox mission of improving everyday life of our endorsers, through our breathable innovations, with a partner whose enlightened mission is providing services and products that promote high quality of living and healthy lives and whose goal is to be the customer’s number one choice and the brand’s best partner in China through the strongest and most innovative multichannel retail network”.

    Geox CEO Giorgio Presca describes China’s emerging middle class as “definitely the best thing” that could have happened to his company.

    “On one hand, the rise of the middle class will boost the economy. On the other, it is the perfect thing for brands like us.”

    Geox is already expecting same-store sales growth in China of 17 per cent or more this year – its highest growth rate globally. But China still comprises just two per cent of its total sales.

  • Kushikatsu Daruma plans Asian expansion

    Kushikatsu Daruma plans Asian expansion

    An iconic Japanese restaurant chain Kushikatsu Daruma has opened its first outlet outside its home market – and announced plans to enter three more Asian countries.

    Kushikatsu Daruma opened its first restaurant in 1929 at the foot of Tsutenkaku, the famous landmark tower in Shin-Sekai, Osaka. Since then it has expanded to 13 restaurants in Japan and this month it opened its first overseas – in the Taipei of Zhongshan in Taiwan.

    The restaurant was opened by G7 International, the overseas investment arm of G-7 Holdingsfollowing a licence agreement struck last June with Daruma International, a subsidiary of Ichimonkai, parent of Kushikatsu Daruma.

    G7 has the rights to develop the brand overseas and says it is already in talks with Ichimonkai to open restaurants in Vietnam, Malaysia and Indonesia.

    Kushikatsu Daruma Zhongshan Chang’an Store, which opened on Tuesday, has a floor space of about 150 sqm and seats 60 people. It trades from 11.30am to 10pm daily.

    Back in Japan, Kushikatsu Daruma has since become known in the Kansai area for good taste and affordable prices, with customers queuing at opening time every day. It specialises in cooking kushikatsu – skewered and grilled cutlets of meat, fish, vegetables and other ingredients.

    The G-7 Group is a mega franchisee operating Autobacs, Business Supermarket and other franchise stores with about 250 stores in Japan and seven stores abroad.

    “Taking advantage of the G7 Group’s accumulated management know-how and Kushikatsu Daruma priding itself on good taste in general… G7 International will proceed to open more restaurants in Southeast Asia,” the company said in a statement.

  • Harvey Norman expands with new flagship megastore

    Harvey Norman expands with new flagship megastore

    Australian department store giant Harvey Norman has expanded its presence in Singapore with a new flagship store in the Central Business District despite a downturn in the retail sector that has crippled many operators here.

    The three-storey, 100,000 sq ft superstore, officially opened in Millenia Walk on Thursday, may seem a risky move but chief executive Katie Page shrugged off notions that she may be betting against the market odds.

    “The retail business is competitive all the time, it didn’t just start becoming challenging. We’ve been in this business for 32 years and there is not one year for me that hasn’t been competitive,” she told The Straits Times .

    “You have to keep evolving your business, you have to make it appealing to your customers, give them an experience. You don’t just open a store, not put in the effort like (the flagship store), and expect customers to shop with you.”

    The megastore, which has replaced Harvey Norman’s old 45,000 sq ft outlet in Millenia Walk, is the largest homemaker department store in the CBD.

    The expansion comes at a time when retailer businesses across Singapore are suffering from cut-throat competition, high operating costs and fragile consumer sentiment.

    Well-known brands such as French retailer Carrefour and the Japanese fashion label Lowrys Farm have beaten a retreat from Singapore in recent times.

    The challenge is also evident in Millenia Walk, with Japanese department store Parco shutting its doors in February last year.

    But Ms Page stressed that she has no issue with the location, which was the site for Harvey Norman’s first store in 2001.

    She said the massive floor size is the strategic advantage she has been seeking for years in Singapore.

    “We never had the space for furniture and bedding like we do now, and in Millenia Walk, we have the opportunity to show Singapore what the Harvey Norman brand truly is.

    “So when some retailers say it’s tough for them to do business, I say it’s tough for us that we had not been able to show our full brand like we do in Australia or Malaysia.

    “Having a flagship like this sets the brand, something you can’t do online. You must have the physical space that tells the world what you’re about.”

    Ms Page declined to reveal how much was invested in the new shop, saying only that it was a significant amount for which its return can be achieved “very quickly”.

    “We will know over the next six months where this store really sits within our group in business terms, but I am thinking that this will be as good as our No. 1 store in the world,” she said.

    Harvey Norman, which operates 15 outlets in Singapore, has included some novel features in the shop, including Singapore’s first Fujifilm Wonder Photo Shop and the first Microsoft in-store outlet.

    Ms Page added: “When I sat down with (Millenia Walk owner and) Pontiac Land’s Kwee Liong Phing – a very good friend of mine – about 12 months ago to discuss our plans, we decided for it to be nothing short of the best homemaker department store in the world.

    “This is our largest store in Asia and we want it to be our hub for the region. We’ve got 100,000 sq ft… right in the middle of the city centre. I don’t think you will find that combination anywhere in Asia.”

  • Ikea to ramp up SEA expansion

    Ikea to ramp up SEA expansion

    Swedish furniture and homewares retailer Ikea wants to ramp up its Southeast Asian store rollout.

    The next two markets in its sights are the Philippines and Vietnam.

    But in some key markets, finding suitable locations for its large format stores is proving a challenge, especially in Vietnam where it wants to launch in Ho Chi Minh City, the country’s commercial capital with a catchment of 8 million consumers.

    Speaking to The Nation newspaper after opening its first pickup point (PUP) in the Thai resort city of Phuket, Mike King, retail manager of Ikea Singapore, Malaysia and Thailand, said the company wants to have three large format stores in Bangkok and five or six PUPs in Thailand within five years.

    In July, the company announced it had located site for its second Bangkok store – adjacent to the new CentralPlaza Westgate shopping mall under construction in Bangyai, in Nonthaburi province in Bangkok’s west. Another site has been earmarked in the city’s north, near the recently expandedFuture Park Rangsit shopping centre.

    Ikea is already actively seeking local partners in Vietnam and the Philippines. Typically when Ikea enters a new market, it locates its initial stores in the most populated cities – for example in Indonesia where it has a joint venture with Hong Kong’s Dairy Farm International, it has opened its first store in Jakarta, and in Malaysia it has two in greater Kuala Lumpur. In the Philippines it will focus on Manila with a population catchment of about 24 million.

    “The two new branches [in Ho Chi Minh City and Manila] will possibly be erected within five years,” King told The Nation.

    Ikea plans to open at least one store a year in Southeast Asia from now on – typically about 40,00 sqm in size.

    Meanwhile, the 2651 sqm Phuket PUP is expected to increase the Bangkok store’s sales by 10 per cent annually. Customers can order online, or in the store and have the products shipped to the PUP for collection.

    It is the first PUP store in Asia, although others operate in Spain, the UAE, Turkey, Norway, Finland and Greece, among other places.

  • Zalora Indonesia partners with postal service

    Zalora Indonesia partners with postal service

    Zalora Indonesia has signed a distribution agreement with state-owned Pos Indonesia giving its nationwide delivery services a much needed boost.

    “Pos Indonesia is the right partner for us in bringing an easier and complete online shopping experience to our customers,” said Anthony Fung, Zalora Indonesia MD.

    Under the new partnership, Pos Indonesia will expedite returns. Zalora shoppers will be able to take a purchased item back to any of 2943 post offices across the country free within 100 days if they are not satisfied with their purchase.

    “We did this to shape an easy online shopping culture. We give a comprehensive facility, not only in the shipping process,” Fung said.

    Indonesia is Zalora’s biggest market in Asia Pacific, ahead of Singapore, Malaysia, Brunei, Philippines, Thailand, Vietnam and Hong Kong.

    The e-tailer carries some 70,000 items of clothing and accessories, as well as other goods, the majority of stock from local brands.

    Pos Indonesia has 4154 post offices across the country, 24,410 points of sale and 11,835 agents.

  • mCommerce boom raises cybersecurity risk

    mCommerce boom raises cybersecurity risk

    Asia’s mComerce boom is creating a growing target for online fraud and cybersecurity risks, according to fraud consultancy Fico Group.

    Criminals who used to focus on ATM skimming are turning their attention online in an effort to compromise credit and debit card data. These attacks can be far more lucrative, with more details stolen and a lower chance of getting caught, warns Fico.

    “The demographics suggest that this this will soon become a very big data problem.  In the next 15 years, Asia is expected to add another 1 billion internet users, which comes on top of the 700 million it has today, making it the world’s largest market for online consumers.”

    With fraud challenges growing, the issues and technologies needed to address them will be discussed this week in Bali, Indonesia, where Fico will hold its regional Fraud Forum with bank executives from across Asia Pacific.

    The last year alone has seen an average 22 per cent increase in shopping on mobile phones across 13 Asia-Pacific markets, according to a 2015 study from Visa. Indonesia, China and Taiwan reported the highest rates of growth for 2015 at 36 per cent, 34 per cent and 28 per cent respectively.

    With these card-not-present (CNP) transactions, the retailer never sees the customer or their physical card, and the cardholder doesn’t enter their PIN. At last year’s Fico Asia Pacific Fraud Forum in Singapore, 94 per cent of attendees said that cases of online or CNP fraud had increased at their organisation.

    Spotting and finding anomalies in this pool of data requires sophisticated self-learning and adaptive technologies so banks can catch fraud vectors as quickly as criminals exploit them. Fico is currently testing the geolocation abilities of mobile devices and integrating them with the Fico Falcon Platform, which protects 2.5 billion payment cards worldwide. By validating whether a consumer’s phone is in the same place where their card is being used, the system can reduce false positives while focusing on the most likely incidents of fraud. Banks can also send SMS messages to the consumer’s mobile to validate a transaction in real time.

    Maintaining trust in shopping from mobile devices will also require a new approach to cybersecurity. Data breaches at poorly protected retailers can threaten ecommerce sales. Predictive analytics is needed, rather than signature-based solutions, so that so-called “zero day” attacks can be identified and controlled.

    Raed Taji, head of global fraud consulting for Fico in Asia Pacific, said: “We are seeing rapid changes in customer behavior which then open up opportunities for fraud. In Australia, for example, cash withdrawals from ATMs have fallen 20 per cent in three years, thanks to

    tap-and-go card and mobile payment technologies. The focus on online fraud is growing very rapidly, so we must stay nimble to reduce losses.”

    Dan McConaghy, president for Fico in Asia Pacific, added: “Digital disruption to financial services may present fraud challenges, but it also presents opportunities for us to stop criminals. If consumer payments shift toward a new form of payment, fraudsters will seek out the most vulnerable element – which increasingly means a mobile device.

    “By investing in an analytics-based solution, lenders can add a powerful tool to their arsenal to stay ahead of new criminal fraud patterns.”

  • eGG Optical continues stellar growth

    eGG Optical continues stellar growth

    Hong Kong based fashion eyewear chain eGG Optical Boutique is continuing its stunning growth trajectory.

    According to parent Stelux, the chain’s sales increased by 46.4 per cent to HK$80.5 million in the six months to September 30.

    Its 21 Hong Kong stores have now reached breakeven point and the 34 Mainland China stores cut their operating loss to just $3.3 million. Same store growth in all markets continued to grow.

    A further three stores have recently opened in Southeast Asia.

    Stelux believes the eGG Optical Boutique fast fashion eyewear concept has found favour with shoppers because it captures consumer preference for trendy and fancy optical eyewear.

    In the first half of last financial year the Hong Kong operations lost $500,000 and in the second half $200,000, finishing the year with just 15 stores. That a further six have been opened in the first six months of this year demonstrates the confidence Stelux has in the new brand. Its Hong Kong stores improved sales by 45 per cent due to both network expansion and increasing same store sales.

    In the mainland, eGG Optical’s sales rose 48.8 per cent to $31.0 million.

    “The loss was reduced to $3.3 million owing to significant operating improvements in Northern China and close to breakeven achieved in Southwestern China through turnover growth,” reported Stelux.

    “Combined with eGG’s attractive and eye-catching shop visual merchandising and ability to attract consumer traffic appreciating lifestyle and fashion design, the group will capture the opportunities in the current soft leasing market to further expand into Mainland China.”