Retail News CRM

Author: Mei Ling Tan

  • Playstation VR Price News: Retail Store Now Getting Preorders

    Playstation VR Price News: Retail Store Now Getting Preorders

    A game console and gadget retailer in Singapore has put up a listing for Sony fans to put up pre-orders for Playstation VR. With this now going on in Singapore, Sony still remains silent until today about the launch date of their virtual reality game console.

    Multiplayer, a game shop, is now accepting pre-orders for the PlayStation VR with a $499.90 price tag attached. Attack of the Fan Boy also adds that the Singapore store is offering free shipping to pre-buyers.

    The published price is not one hundred percent confirmed however. It may go lower, or it may go higher as Playstation has also remained fairly silent about this matter as well.

    They add to the disclaimer: “LOWEST PRICE GUARANTEE! HOW DOES IT WORK: Please note! Price and sale date are not confirmed then: If it will cost more, the price of your booking will not change if it will cost less, we’ll refund the difference!”

    The bold move is unconfirmed to be a legitimate one, or whether it is a marketing move to get gamers to notice specific brands as early as now in preparation for the release of the much awaited virtual reality package by Sony. It is however confirmed that moves like this one is not coordinated with Sony.

    However, one area that Sony has been noisy about is the confirmation of more and more games that Playstation VR will run. The most recent, according to Gamerant, is the announcement of Gran Truism 7 for Playstation, which Sony PlayStation president Shuhei Yoshida had something personal to reveal: ” We have been conducting ‘many trial tests’ of different genres that work with PlayStation VR and driving is one of the genres that works ‘fine’.”

    In another game announcement in Playstation’s official US blog, Mike Bithell connotes that the console launch will not be happening until next year. He says: “When the PlayStation VR platform launches next year (Nope, they won’t tell me when either)…”

    Other gamers blogs have also indicated that Sony is bringing Playstation VR to various events, the most recent being the 2015 Armageddon Expo in Auckland, where attendees were each given five minutes to try out the product.

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  • AuchanSuper Vietnam plans 18 stores

    AuchanSuper Vietnam plans 18 stores

    Privately-owned French supermarket operator AuchanSuper has opened its first store in Vietnam, branded Simply Market.

    It plans 17 more before the end of 2016.

    The first store is trading in Ho Chi Minh City’s District 5, a middle class Vietnamese suburb not popular with expatriates, which gives a strong indication of the demographic the French company is targeting in Vietnam, its 15th international market.

    The first store will be followed by two more before this year ends, each with a footprint of 2000 to 3000 sqm.

    As the disposable income of Vietnam’s 90 million population increases, more and more foreign retailers are trying to establish a foothold in the country. The French-Thai joint venture Big C, Japan’s Aeon and South Korea’s Lotte Mart have the early running in the grocery market, while Circle K, FamilyMart and Berli Jucker’s B Smart are busily building networks of convenience stores before 7-Eleven makes its debut as early as next year.

    AuchanSuper is investing up to euro 40 million in its Vietnam foray.

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  • Who needs Santa when there is lalamove ?

    Who needs Santa when there is lalamove ?

    lalamove, the leading professional on-demand delivery service throughout Asia, has added new features to its mobile and web application to handle increased delivery demand in Bangkok during the upcoming holiday season.

    “The holiday season is a busy time for gift-giving and many companies struggle with ensuring that their gifts are delivered on time and handled with care – which are two areas that lalamove has extensive experience with” said Santit Jirawongkraisorn, Co-founder and managing Director of lalamove Thailand.

    “We have added more bikes, MPVs and pick-up trucks to ensure timely deliveries during the busy holiday season. We have also introduced the “route optimization” feature, which saves clients time in having to plan the routing.

    “With this feature, clients just have to type in the addresses where the gifts need to delivered and within minutes, the app with automatically schedule the quickest and shortest route. This is most practical especially when companies are looking at delivering corporate gifts or perishable goods like food hampers and festive cookies to their clients,” added Santit.

    Hiring freelance couriers or motorcycle taxis can be tiresome and sometimes unreliable, but thanks to lalamove, clients now have a delivery service which is fast, cost-effective, transparent and professional.

    lalamove allows personal users and businesses to quickly find a professional driver anytime of the day to help move their goods with a few clicks on their smartphone. By typing the vehicle type, location, destination, the weight of the physical goods, and other information and special instructions via the app, users will be notified within minutes if a driver is available.

    In addition to the driver verification feature, lalamove also has a driver rating system, a GPS tracking which allows full transparency on the route, on-demand booking and an insurance protection of up to Baht 2000 for each delivery, ensuring that delivery via lalamove is both easy and safe.  It is also the only delivery app offering 24/7 service and advance booking.

    In September, lalamove secured an investment of USD 10 million led by Mindworks Ventures as well as  AppWorks, Crystal Stream and individual investors. lalamove is preparing for the advanced stages of its expansion — adding 50 cities throughout Asia to the company’s delivery network by the end of 2016. 

    The number of registered users regionally has grown to 435,000 while over 23,000 drivers have been registered. The app has been downloaded more than half a million times in the past year.

    In Thailand, the number of download is currently 27,000 with over 1,600 drivers registered drivers.

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  • The Melting Pot eyes Asia

    The Melting Pot eyes Asia

    The world’s largest fondue restaurant chain is looking to expand throughout Asia after early success in Indonesia.

    Franchisees are now actively being sought for The Melting Pot in Hong Kong, Macau, China, Japan, South Korea and India.

    The Tampa, Florida-based restaurateur plans to enter China by opening at least five restaurants in Hong Kong and Kowloon as well as in Macao and numerous cities in Mainland China, including Guangzhou, Shanghai, Beijing and Shenzhen.

    Markets outside Asia, including Brazil, Canada and Mexico, are also in planning.

    The Melting Pot operates more than 125 restaurants across 35 US states, Canada, Mexico, Southeast Asia, and the United Arab Emirates, and has more than 15 locations in development internationally.

    The concept is known for its assortment of flavorful fondue cooking styles and unique entrees served with signature dipping sauces. The menu features a variety of a la carte selections, highlighting customisable options that invite guests to enjoy one, two, three or more courses as they select any combination of individually-priced cheese fondues, salads, entrees and chocolate fondues.

    “The Melting Pot is a proven 40-year American franchise concept that is unlike any other,” said Dan Stone, chief business and people development officer for Front Burner Brands, the chain’s parent.

    “Featuring four distinct courses, guests dip menu items into heated fondue pots at the centre of each table. The concept provides a very social and interactive dining experience that has proven to translate well to multiple countries,” said Stone.

    “We provide our franchisees the necessary training and support to ensure success, as well as expert resources to assist with identifying the best sites for our restaurants. We are ready to do business in Hong Kong and are seeking qualified candidates to build a strong brand presence throughout Hong Kong and the People’s Republic of China over the next few years.”

    The concept will be exhibiting at the Franchising & Licensing Asia 2015 from October 29 to 31 at the Marina Bay Sands in Singapore.

    Earlier this year, The Melting Pot opened its first restaurant in Jakarta, Indonesia and most recently its first Middle Eastern location in Dubai.

    Franchisee candidates or groups should have access to a minimum of US$3 million in capital and at least one partner must be fluent in English. Depending on the real estate site selected, franchisees of The Melting Pot in the US can expect the total investment for one restaurant to be approximately $959,000 to $1.436 million. The initial franchise fee ranges from $45,000 to $60,000 per unit depending on the number of units committed and there is a one-time training fee of $50,000.

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  • Japan duty free sales boom

    Japan duty free sales boom

    Japan duty free sales soared in the first quarter of the current financial year as Chinese tourist ranks swelled.

    Major duty free retailers have reported sales on the mainland soared 20 per cent or more year on year, with brands preferred by Chinese shoppers performing the best.

    Japanese government figures show inbound tourists into the nation soared 47 per cent in the first six months of the 2015 calendar year – to 11 million. In the whole of 2014, inbound visitors totalled just 13.4 million.

    Sales of jewellery – especially gold jewellery – and watches lead the growth in a virtual mirror image of the experience of Hong Kong retailers, demonstrating clearly how the cashed up Chinese have changed their preferred duty free shopping destination.

    Leather goods are reportedly selling well and airport boutiques are experiencing healthy turnover increases.

    Japan’s government scrapped visas for Chinese mainlanders early this year, which has definitely helped fuel the boom.

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  • Internet of Things China gains momentum

    Internet of Things China gains momentum

    The Chinese are appearing quick to embrace the Internet of Things, in turn driving demand from businesses and app developers for enabling technology.

    Jasper, a global Internet of Things (IoT) platform leader, says three months after it made its enabling software available in China, more than 500 enterprises have activated trial accounts on the China Unicom Control Center IoT platform.

    The enterprises, serving a growing demand for Internet of Things China services, included retail, connected cars, theft prevention and wearables.

    A large number have already converted their trial accounts into paid accounts enabling them to deploy their IoT services to customers across China.

    “We see significant appetite across China to capitalise on the Internet of Things,” said Cindy Patterson, chief customer officer at Jasper.

    “The response and market adoption illustrate the demand for an IoT platform that can help enterprises rapidly and cost-effectively launch, manage and monetise their IoT services throughout China and globally.

    “Forward thinking companies across industries have been quick to adopt the Control Center IoT platform. These innovators are seizing the opportunity to transform their businesses with IoT services in ways that add value for their customers while growing their revenues,” she said.

    “The diversity of industries represented by these companies is remarkable and it is exciting to see this level of activity in such a short time period.”

    The combination of China Unicom’s mobile network and Jasper’s IoT service platform enable fast time-to-market for businesses, and provides a flexible, turnkey solution that can be configured to meet the specialised needs of businesses across any industry. For example:

    • Several major retailers have selected the IoT service platform from China Unicom and Jasper to deliver wireless POS and mobile payment services.
    • Jasper’s Control Center is being used to connect aftermarket theft detection devices to enable more robust theft prevention services nationwide.
    • Two of China’s 10 largest auto manufacturers are now using Control Center to cost-effectively deliver connected services in cars. One manufacturer is using Control Center to enable a new line of budget-friendly vehicles, giving more people access to value-added connected services in their cars.
    • A large provider of consumer hotspots, which wanted powerful nationwide connectivity and mobile service management, provisioning and real-time diagnostics, chose to deploy on Control Center to ensure the best service for its customers.
    • Several aftermarket telematics service providers have selected Control Center to deliver connected IoT services to vehicles in China.
    • Personal health device manufacturers are leveraging Control Center to transform their hardware-based businesses to service businesses.

    China Unicom is the only operator in China using the same 3G and 4G technologies as the majority of mobile operators worldwide, enabling seamless entry into the Chinese market for multinational enterprises. Jasper partners with 27 mobile operator groups worldwide, representing over 100 mobile operator networks – enabling enterprises to configure their services on Jasper’s platform once and easily turn on services on other operators worldwide.

    Jasper describes itself as a global Internet of Things (IoT) platform leader. It has designed a cloud-based IoT platform to enable companies of all sizes to rapidly and cost-effectively launch, manage and monetise IoT services on a global scale.

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  • Anytime Fitness and Dancing Crab win big at the FLA Awards 2015

    Anytime Fitness and Dancing Crab win big at the FLA Awards 2015

    The crème de la crème of the franchising and licensing industry were recognised and awarded at the annual regional Franchising & Licensing Association (FLA)Awards 2015 held at the Marina Mandarin hotel. This year, the Awards saw a 20% increase in entries with an upward trend in participants hailing from unconventional sectors, such as property, retail and health & fitness, even as veteran industries, such as F&B and education remained strong in the franchising & licensing playing field.

    Anytime Fitness bagged the top prize for two award categories, mainly top ‘Franchisor of the Year’ and ‘International Franchisor of the Year’, reflecting the growth and popularity of unconventional industries within the franchising and licensing scene. At the same time, traditional industries like the Food & Beverage sector remained strong, with Louisiana-style eatery, Dancing Crab, being crowned the overall winner in the ‘Promising Franchisor of the Year’ category.

    Other winners include 7-Eleven, Kumon, Pezzo, Seoul Garden and ECG Property Services. 

    Group Photo_All Winners

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  • FamilyMart-Uny seal merger

    FamilyMart-Uny seal merger

    A merger of Japan’s third and fourth-ranked convenience store operators is set to create a “third force” in Japanese retailing behind Seven & I and Aeon.

    The FamilyMart-Uny merger terms have now been agreed and the two companies are now working towards an implementation date of September 2016.

    FamilyMart will soak up smaller Uny, which operates the Circle K Sunkus convenience store network in Japan. A new holding company will be created, 30 per cent owned by Japanese trading house Itochu, which currently owns three per cent of Uny and is FamilyMart’s single largest shareholder.

    Once merged, the new business will turn over around US$42.2 billion from some 18,000 stores, a network larger than current second placed Lawson and on a par with Seven Eleven Japan.

    The merger has already taken some eight years to negotiate making it nine years by the time the merged entity begins trading. It was back in 2007 when FamilyMart first approached Uny, an offer initially rebuffed.

    Some details have yet to be finalised – or announced – such as the future of Uny’s 230 or so general merchandise stores in what will essentially become a convenience store operator.

    Uny president Norio Sako says there will be some store closures, decided “on their individual merits”.

    There is also no final agreement yet on whether a single operating brand will be adopted.

  • Asos China braces for losses

    Asos China braces for losses

    Online fashion retailer Asos is budgeting for losses as it breaks into the China market.

    Announcing a pretax profit of £47.5 million for the year to August 31, the company offered an overview of its future plans geographically, including a lessened focus on the Australian market.

    New CEO Nick Beighton said China was a “key market” for Asos moving forward but the company was still in startup mode there.

    “It’s all about planting the seeds for future growth.”

    He said Asos expects losses of £5 to £7 million over the next 12 months in China as it builds its offer.

    In the year ahead, Asos will be focusing more on the UK – which remains its biggest market, Europe, the US and China.

    Last year, global sales rose 17 per cent to £1.12 billion. UK sales rose 27 per cent while international sales were up 11 per cent.

    Beighton said the online retailer’s mission to be the number one fashion destination for twenty-somethings, remains the same. The new CEO won’t be changing the Asos culture or the way the business does things, but he acknowledged the world Asos plays in is changing fast.

    “It’s more about mobile, it’s more about social, it’s more about content,” he said.

    The online retailer’s strategy is made up of four key pillars: great fashion at a great price, be awesome on mobile and, deliver engaging content and experience, supported by best in class service (ie. a friction-free experience from logistics through to customer care).

    “This really has been another year of mobile,” Beighton said.

    “In the last 12 months mobile penetration has increased throughout our business. In August 60 per cent of our global traffic came from mobile devices alone.” He added, just in the UK in August, 50 per cent of orders – not traffic – came from mobile devices.

  • Indonesia Wants More Tourists from Malaysia, Singapore

    Indonesia Wants More Tourists from Malaysia, Singapore

    For 2019, Indonesia wants to have 3.7 million Singaporeans to visit. From Malaysia, the government is targeting to 3.2 million travelers.

    Wonderful Indonesia on Thursday, October 29, quoted Tourism Ministry’s deputy of International tourism marketing that the ministry will hold a number of promotional campaigns in Singapore and Malaysia in November 2015.

    The events include the ‘Wonderful Indonesia’ campaign at the Singapore West Gate Shopping Mall from November 1-8, the Sales Mission MICE (November 18), the Halal Fair International 2015 (December 3-6), The Special Destination Sales Mission in Malaysia (November 24), Consumer Selling campaign in Melaka (November 27-29 November), and many more.

    Right now, Indonesia is on promoting its tourism in Singapore through the Indonesia Food Festival 2015 held from October 20 to November 14 November. At least 30 Indonesian dishes are being promoted to the international community, particularly to Singaporeans.

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  • Missha Barcelona debut

    Missha Barcelona debut

    South Korean cosmetics brand Missha has opened a new store in Barcelona, Spain.

    The new Missha Barcelona store marks the Able C&C-owned brand’s second European market, after it opened a store in Ingolstadt in Germany in February.

    Missha is the first Korean cosmetic brand to open a retail store in Spain.

    While Missha had ‘shop in shop’ stores in Seville and Madrid, the Barcelona store is its first stand alone shop in Spain.

    Missha management say they chose Barcelona as the location for the newest European store because Spain is the fifth largest cosmetics market in Europe.

    “Since the economic slump, the demand for middle-low priced cosmetics has risen. Imports of Korean cosmetics have been increasing, which made us decide to branch out to Spain,” said a spokesman.

    Missha currently manages 2100 stores in 30 countries, and is considering opening more stores in Berlin and Munich, Germany.

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  • Worldhotels Touches Down at Five-star Sama-Sama Hotel Kuala Lumpur International Airport

    Worldhotels Touches Down at Five-star Sama-Sama Hotel Kuala Lumpur International Airport

    Well-poised to take contemporary convenience and comfort to greater heights, Sama-Sama Hotel has joined the ranks of 450 independent hotels worldwide to fly the Worldhotels’ flag. Occupying a strategic location adjacent to the Kuala Lumpur International Airport, the award-winning hotel epitomises unsurpassed Asian hospitality that complements the best in proximity, convenience and comfort, perfectly suited for the needs of discerning travellers with business and leisure pursuits alike.

    Sama-Sama Hotel is connected by a sheltered sky bridge to the main terminal building of the Kuala Lumpur International Airport (KLIA) which houses the Arrival and Departure Halls. A dedicated check-in counter at the airport ensures a hassle-free and quick check-in for visitors right from their arrival, making the hotel a perfect base for transit air travellers with long hours in between flights and those with early morning departures or late night arrivals. The hotel also operates a complimentary 24-hour buggy shuttle service that runs between the airport and the hotel for added convenience.

    Service philosophy rooted in warm Malaysian hospitality

    Service at Sama-Sama Hotel is inspired by the melding of Malaysia’s rich tapestry of cultures into a harmonious collective. The name “Sama-Sama”, meaning “togetherness” in the Malay language, is a testament to the hotel’s commitment in delivering warm, personalised and memorable Sama-Sama experience to its guests – a guiding philosophy deeply rooted in the works of the team. The hotel’s logo aptly illustrates two hands coming together, a symbol of the inclusiveness of the nation’s diverse people and cultural heritage.

    Designed for the ultimate in comfort and peace of mind

    Guests visiting the capital city can touch down in five-star comfort and retreat into any of 442 non-smoking accommodations, including four types of suites.

    Designed for a revitalising stay and a comfortable work environment, the elegantly styled and soundproofed rooms and suites feature perspectives of lush greenery, along with thoughtful, contemporary amenities including high-speed Internet connectivity, touch-screen control panels, LCD televisions, video-on-demand, and a spacious work desk, among others.

    Guests staying in the suite categories enjoy exclusive access to the hotel’s Premier Lounge which offers a host of additional privileges.

    Elite functions space meets leading edge technology

    Totaling almost 2,800 square metres of function space, Sama-Sama Hotel boasts excellent facilities for conferences and events, including 10 superbly-appointed multifunctional rooms that accommodate up to 1,700 delegates, as well as an auditorium with a capacity of 180. Alongside a spacious foyer, high-speed Internet access and leading edge audiovisual equipment, the hotel plays host to a wide range of international conferences, seminars, exhibitions and gala dinners.

    First-class facilities reinvigorate weary minds and souls

    Enjoy quiet sanctuaries to relax at Sama-Sama Hotel with its comprehensive wellness facilities. Sweat it out at the tennis court or shape up at any time of the day and night at the 24-hour health club comprising gymnasium, jacuzzi, steam room and sauna. Relax with a refreshing dip in the outdoor pool, or pamper oneself at Tamara Spa, where a range of indulgent treatments and therapies beckons.

    Three dining establishments invite guests to savour delectable dining options including scrumptious buffet of Asian, International and Fushion specialties at Degrees, the hotel’s all-day dining restaurant; unwinding with a cocktail amid soothing music while staying up-to-date with flight information at Palmz Lounge; or gather for a good game of darts and snooker with delightful appetisers and entréesprepared in an open bar kitchen at Travellers’ Bar & Grill.

    “As an organisation which represents a curated collection of unique hotels, Worldhotels connects today’s more independently minded travellers to the world’s finest hotels, and we are thrilled at the addition of yet another remarkable affiliate in Sama-Sama Hotel,” remarks Roland Jegge, Worldhotels Executive Vice President Asia Pacific.

    “This addition illustrates the strategic importance we attach to our continual expansion across the Asia Pacific region. With 45 years of experience in the global field, we look forward to realising the full potential of Sama-Sama Hotel’s unique resources and positioning.”

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  • Chinese tourism drives record result for McArthurGlen

    Chinese tourism drives record result for McArthurGlen

    Chinese travellers are discovering the thrill of shopping at one of McArthurGlen’s 21 Designer Outlets, all near important tourist destinations across eight countries in Europe and most recently, a new centre in Canada.

    Sales by Chinese shoppers at McArthurGlen’s Designer Outlets have increased more than 7 fold over the past four year years (2010-2014); as they discover the most sought-after European fashion and international luxury brands. McArthurGlen offers tax free shopping alongside year-round savings of 30-70% in stunning and vibrant shopping environments which take inspiration from local design and architecture.

    McArthurGlen’s Designer Outlets offer the largest choice of luxury and premium lifestyle brands in the European outlet market. The centres are home to nearly 3,000 stores and 900 brands. At the same time, the centres are part of the local tourism fabric, within easy reach of major European city centres by shuttle bus or public transport, including: Vienna and Salzburg in Austria; Luxembourg, near our centre in Belgium; Lille and Reims (the Champagne region) in France; Berlin and Hamburg in Germany; Athens in Greece; Düsseldorf, near Roermond, our centre in Holland; Florence, Milan, Naples, Rome and Venice in Italy; and Bath, Cardiff, London, Manchester, Nottingham and York in the UK.

    In July 2015 we opened our first centre outside Europe, in Vancouver. The centre is built adjacent to Vancouver’s International Airport and we have just recently celebrated our millionth visitor at the centre.

    Shaeren McKenzie, Group Marketing Director, says: “Our McArthurGlen Designer Outlets offer the finest European shopping experience. Shoppers can find the top international luxury names alongside premium niche brands worn by the fashion crowd, all with year-round savings of 30-70%. We also enhance our customers’ shopping experience with exclusive events, offering special promotions.”

    Anthony Rippingale, Head of Tourism, McArthurGlen, adds: “We are heading for yet another record year at our 21 Designer Outlets, welcoming more Chinese shoppers than ever before. As the biggest operator of designer outlets in Europe, our Chinese customers have always been extremely important to us, and even more so now given that they account for nearly one in four euros spent by our international shoppers, and rising. We have also just had our most successful Golden Week ever.”

    The look and feel of McArthurGlen’s Designer Outlets reflect the luxury and premium brands that we represent: show-stopping sculptures by famous artists, dancing fountains, green walls made from thousands of plants, piazzas and porticoes, as well as a wide range of cafes for a refreshing cup of tea and restaurants for a leisurely lunch or a quick snack, with al fresco seating for the warmer months.

    Spending by our Chinese customers is growing faster than any other nationality visiting our Designer Outlets. Sales to Chinese travellers increased by 80 per cent in the first nine months of 2015, compared with the same period last year. Some of the biggest rises were at our five Italian centres (which include Italy’s largest designer outlet, Serravalle, near Milan), with sales up 95 per cent in the first nine months of 2015.

    The favourite brands of Chinese shoppers at our centres are, in particular, the most-loved names in international luxury, as well as niche local brands popular with the local fashion and style crowd, whether Dsquared2, Agnona or Patrizia Pepe in Italy, or Jil Sander, Karl Lagerfeld or Marc Cain in Northern Europe.

    We look to engage with our Chinese customers while they plan their trip to Europe, whether through our office in Beijing, or through social media in China (including Weibo and WeChat) and our centre websites which are available in Chinese.

    Once Chinese shoppers arrive in Europe, our centres offer Chinese-language maps and guides, while UnionPay is accepted in most stores. Our most popular Designer Outlets offer special promotions, including limited-edition gifts and additional savings, during key Chinese holidays, namely Golden Week and Chinese New Year.

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  • Yum China to split from parent

    Yum China to split from parent

    US fast food giant Yum! Brands is to spin off its troubled Chinese operation into a separate business.

    The new company will be called Yum China.

    The move will strengthen the parent company which will retain 41,000 restaurants trading under the KFC, Pizza Hut and Taco Bell brands in 125 countries – and which will no loger be saddled with the ongoing losses from the Chinese operations. Nearly all of its restaurants will be operated by franchisees.

    “Following the separation, each standalone company will be able to intensify focus on its distinct commercial priorities, allocate its own resources to meet the needs of its business, and pursue distinct capital structures and capital allocation strategies,” said Yum CEO, Greg Creed in a statement.

    “This will provide a clear investment thesis and visibility to attract a long-term investor base suited to each business.”

    The likely interpretation of that statement is that Yum China will seek local investors or possibly a joint venture partner to help bring the business back on track.

    Yum China has 6900 KFC and Pizza Hut restaurants, but has struggled for more than two years after high profile food safety scares involving suppliers.

    Mid last year, a Chinese TV network screened footage of a supplier mixing allegedly expired meat with fresh meat. The company, a subsidiary of OSI Group, was a minor supplier to Yum! and its contract was cancelled immediately. But the TV news footage was sufficient to spook Chinese customers, many of whom stopped eating at KFC China outlets.

  • Axiata’s Indonesia unit plans RM1.4bil sukuk programme

    Axiata’s Indonesia unit plans RM1.4bil sukuk programme

    Axiata Group Bhd’s Indonesian unit, PT XL Axiata Tbk, plans to establish a five trillion rupiah (RM1.4bil) sukuk programme to optimise its balance sheet and improve its capital efficiency.

    In a filing with Bursa Malaysia, Axiata said the sukuk programme would be established under a two-year shelf registration programme.

    The first tranche or Shelf Sukuk Ijarah I XL Axiata Tranche I Year 2015 will see the issuance of up to 1.5 trillion rupiah based on the syariah principle of Ijarah, with the payment of Ujrah to be made quarterly in arrears.

    The Tranche I sukuk will have four series, with Series A having a maturity of 370 calendar days, Series B (three years), Series C (five years) and Series D (seven years).

    The net proceeds from Tranche I sukuk are to be utilised for working capital purposes to support PT XL Axiata’s business activity in terms of 2G radio frequency fee payment to the Government for the period of December 2015 to  December 2016.

    The Tranche I sukuk has been assigned a rating of AAA(idn) by PT Fitch Ratings Indonesia.

    A major cellular provider in Indonesia, PT XL Axiata is 66.43% owned by Axiata through Axiata Investments (Indonesia) Sdn Bhd, and currently serves 62.9 million subscribers.

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