Author: Mei Ling Tan

  • Denim brand joins Global Brands portfolio

    Denim brand joins Global Brands portfolio

    Hong Kong-based Global Brands Group has signed a 10 year licensing agreement covering two North American denim brands.

    In a joint venture between Iconix Brand Group and Buffalo International Global for the Buffalo David Bitton and i Jeans by Buffalo labels.

    Under the agreement, Buffalo David Bitton and i Jeans by Buffalo will join Global Brands’ portfolio of fashion and lifestyle brands, with Global Brands to design, produce and distribute products across both brands’ core categories.

    Global Brands CEO and vice chairman Bruce Rockowitz said with the addition of the Buffalo brands, “we have taken another significant step to establish Global Brands as a leader in the denim category”.

    “We are focused on categories where we want to be a key player and achieve scale.  Denim is one such category which we are excited about and where we see excellent potential for growth. We’re seeing a revival of denim as a fashion essential and believe that it will continue to trend strongly,” he said.

    Founded in Montreal, Canada and with a 30-year heritage, the Buffalo brands are known for a long-standing tradition of trend right, quality clothing and accessories. The brands are leaders in their respective channels of distribution, offering multiple denim styles and a full fashion collection that spans a range of men’s, women’s and children’s products, including denim jeans, pants, shirts, sweaters, jackets, dresses and other apparel, as well as accessories, suits, bags, sleepwear and small leather goods. The products are distributed through multiple channels, including better department stores, as well as fine specialty stores throughout North America.

    Gaby Bitton, chairman, Buffalo International, said: “This long term strategic partnership with Global Brands will strengthen the Buffalo David Bitton and i Jeans brands around the world. The JV will continue its extensive marketing support that have helped make the brands leaders in the category.”

    This is the second long-term licensing agreement signed by Global Brands in the denim space, following a similar agreement with the Joe’s brand this month.

  • Radisson Medan set to open in Indonesia

    Radisson Medan set to open in Indonesia

    Radisson Medan will be the fifth Carlson Rezidor hotel scheduled to open in Indonesia after Radisson Blu Bali Uluwatu, Radisson Golf & Convention Center Batam, Park Inn by Radisson Lampung and Radisson Jakarta Cengkareng.

    Medan is the fourth largest city in Indonesia, and within a one-hour flight radius of Singapore, Kuala Lumpur and Penang. Given its status as the gateway to the Lake Toba tourism region, which the Ministry of Tourism in Indonesia is focused on developing, Medan is also growing as a tourist destination.

    Radisson Medan is a 219-room hotel located in the heart of downtown Medan, next to the Medan clock tower, along the major thoroughfare of Jl. H. Adam Malik. The hotel offers convenient access to the airport, which is the second largest in Indonesia and is well connected to key domestic markets, acting as a hub for the main Indonesian carriers. Radisson Medan is also close to major shopping malls and golf courses, as well as tourist attractions including the Great Mosque, the Sultan’s Palace and historical buildings. Conference and meetings facilities at Radisson Medan will include meeting rooms and a ballroom and the hotel’s recreational facilities include a swimming pool and a gym. Food and beverage options will include an all-day dining restaurant and a lobby bar.

    “We are proud to be planting the Radisson flag in Medan. As the economic and commercial hub of northern Indonesia, Medan is an important destination for domestic business travelers,” said Thorsten Kirschke, president, Asia Pacific, Carlson Rezidor Hotel Group. “Radisson Medan is a great addition to our portfolio in Indonesia where we are continuing to grow with our long-term strategic partner, Panorama Group,” he added.

    In 2013, Carlson Rezidor signed a strategic partnership with Panorama Group, an integrated group of companies focusing on tourism, transportation, hospitality and related businesses in Indonesia,to develop Carlson Rezidor hotels in attractive tourist destinations and top-tier Indonesian cities including Bali, Jakarta and Surabaya, as well as emerging destinations such as Bandung, Bintan, Lombok, Makassar and Palembang.

    Radisson Medan is owned by VIGOUR Group, a diversified family business that has interests in agribusiness, hotels, consumer goods and alcoholic beverages. “This is a part of VIGOUR Group’s strategy to enhance our hotel portfolio. Radisson is a globally recognized brand and we are confident that the rebranding, coupled with Carlson Rezidor’s management expertise, will drive hotel performance and deliver a strong return on our investment,” said Philander Jong, member of the family, Commissioner of VIGOUR Group and Director of the group’s hotel arm PT. Aiho Indah.

    Radisson is one of the world’s leading global hotel brands. It delivers vibrant, contemporary and engaging hospitality that is characterized by its unique Yes I Can! service philosophy. Radisson hotels offer an upscale stay experience, backed by its 100% Guest Satisfaction Guarantee and a range of World of Radisson services and amenities, which have been created specifically to be empathetic to the challenges of modern travel.

    In Asia Pacific, there are currently 13 Radisson hotels in operation and 21 more in the pipeline.

  • End near for HMV Singapore?

    End near for HMV Singapore?

    In Hong Kong, HMV is enjoying a renaissance. But HMV Singapore appears about to become extinct.

    The last surviving store bearing the brand in the city state will close on September 30 after the company decided not to renew its lease on the Marina Square shopping mall.

    On its website the company says it plans to “re-open a new store in the near future”, but retail commentators aren’t so certain the brand will survive offline.

    The Straits Times newspaper reports the company held discussions with centre management for several months on renewal terms but has now confirmed terms to vacate the premises.

    HMV was once Singapore’s largest music retailer but has become a victim of the digital age and high retail rents which made it uneconomic to continue selling music CDs and movie DVDs.

    HMV Singapore GM Michele Tan told the Straits Times she was not authorised to reveal the location and opening date of the new store.

    The Singapore business is operated by Hong Kong-based AID Partners which is enjoying success reinventing the brand in Hong Kong. New concept stores there include cafes and an expanded product range including a focus on headphones, DJ equipment, apparel and gifts – along with a more curated offer of music and DVDs.

    HMV opened its first store in Singapore in 1997, a 25,000 sqft two-level superstore at The Heeren. That store relocated to a smaller space at 313@Somerset, which was replaced by a Sony store in 2013. At its peak there were at least three stores in the city.

  • Bellabox expands to China

    Bellabox expands to China

    Australian beauty subscription service and e-commerce platform, Bellabox, has confirmed its expansion into China in partnership with Australia Post’s Tmall store-front platform.

    The move is part of the beauty company’s growth strategy to become the dominant beauty e-commerce platform across Asia.

    Supporting its push into China, Bellabox will be moving away from its subscription-based model and introducing limited edition themed beauty boxes exclusively for the Chinese market.

    According to the company these will feature “the best of Australian beauty and cosmetic brands” to provide discerning and brand aware Chinese shoppers with more choice and variety.

    “Chinese consumers are sophisticated shoppers who are selective about the brands they use and buy. We are seeing strong demand for Australian brands as they are perceived to be higher quality and environmentally friendly, for this reason the market represents a huge opportunity for our business,” said Bellabox, CEO and co-founder, Sarah Hamilton.

    Hamilton adds that China is a key market in the company’s continued expansion across the region.

    “The market potential is huge with analysts[1] predicting the cosmetic market will become a US$113.9 billion industry by 2017, of which 25 per cent coming from online sales fuelled by tech savvy millennial. China has a high adoption rate of smartphones and online shopping, it provides the perfect platform for growth and we look forward to working with Australia Post to build our position in the market. ”

    Australia Post’s Tmall service opens the door for local e-commerce players to access China’s traditionally challenging market by crossing language and cultural barriers, and cutting through red tape to sell on a unique marketplace.

    With an audience of more than 300 million estimated Chinese consumers who, in 2014, spent more than half a trillion US dollars online, Tmall presents a strong opportunity for Australian e-commerce businesses.

    Ben Franzi, GM global e-commerce platforms and digital at Australia Post said, “We’re focused on delivering e-commerce solutions that make it easier for Australian retailers to grow, compete and succeed online.

    “Australia Post’s Tmall storefront (auspost.tmall.hk) is helping home grown businesses, like bellabox, sell into China – one of the world’s largest consumer markets.”

    “Bellabox has a tremendous opportunity to benefit from the trust, broad reach and revenue opportunities that comes with Tmall’s reputation and high visitor traffic. We’re excited to partner with bellabox to launch this exclusive offer that ticks the boxes against China’s growing consumer demand for authentic, quality, Australian-made beauty products,” said Ben.

    Bellabox is now one of 36 Australian brands with a virtual storefront on Australia Post’s Tmall store, which this month celebrated its first birthday.

    Bellabox is headquartered Melbourne and works with more than 900 beauty brands to create monthly-customised boxes for 40,000 subscribers.

  • 3 Hong Kong to sell iPhone 6s, iPhone 6s Plus for HKD 0

    3 Hong Kong to sell iPhone 6s, iPhone 6s Plus for HKD 0

    3 Hong Kong will launch Apple’s iPhone 6sand iPhone 6s Plus smartphones on the local market. Stating 25 September, 3 Hong Kong will offer the iPhone 6s 16GB and the iPhone 6s Plus 16GB for HKD 0 with a refundable deposit on the iPhone monthly plan.

    Customers will be able to acquire the iPhone 6s 16GB for HKD 0 for HKD 408 or above iPhone monthly plans. The iPhone 6s Plus 16GB will also be available for HKD 0 for HKD 498 or above iPhone monthly plans. The iPhone 6, iPhone 6 Plus and iPhone 5s will also be available.

    Customers who acquire the iPhone 6s and iPhone 6s Plus from 3 Hong Kong will be able to connect to the operator’s LTE network with VoLTE HD voice functionality. Users will also have internet access at 3 Hong Kong’s over 16,000 Wi-Fi hotspots.

    Customers can buy the iPhone 6s and iPhone 6s Plus at 3 Hong Kong’s retail shops and online at the iphone.three website.

  • The Apple-IBM MobileFirst Program Set to Launch in China

    The Apple-IBM MobileFirst Program Set to Launch in China

    In July 2014 the Apple and IBM global partnership was formed to transform enterprise mobility via the iPhone and iPad. The alliance formed MobileFirst. By mid-November the MobileFirst website was launched and began promoting the new apps that were being custom designed for key segments of business including Banking/Finance, Travel/Transportation, Retail, Telco, Insurance and Government. It has since expanded to Healthcare, Industrial Products, Law Enforcement, Energy/Utilities and Social Programs.

    It’s being reported today by Guanzhou’s 21st Century Business Herald that the Apple-IBM MobileFirst Enterprise program will be officially coming to China in the coming weeks. The program will reportedly begin with 10 apps aimed at the retail, insurance, financial, telecom and aviation sectors, as well as the government, and events will be held in Beijing and Shanghai to showcase the new products.

    The goal of the Apple-IBM MobileFirst was to have 100 apps finished by the end of this year. Thus far 32 of them are completed with more on the way. Guo Jijun, president for strategy at IBM Greater China, who is also in charge of MobileFirst in the country, noted that “IBM has also formed partnerships with companies, including Twitter, Tencent, SAP, Facebook and China Telecom, so the MobileFirst platform can integrate the strength of these businesses.

    Apple introduced the new iPad Pro on September 9 that now adds the ability to work with a new Smart Keyboard and a digital smartpen called the Apple Pencil to support  professional markets.

    2AF 55 APPLE IPAD PRO, APPLE PENCIL, SMART KEYBOARD

  • Chinese shoppers still spending on luxury goods

    Chinese shoppers still spending on luxury goods

    China’s share market plunge and currency devaluation have not resulted in Chinese shoppers cutting back their spending on luxury goods as had been feared, a top-ranked HSBC analyst said this week.

    Mr Erwan Rambourg, HSBC Global’s co-head of consumer and retail, said the declines in stock prices and in the yuan need to be put in context.

    “The Shanghai composite index has been down roughly 40 per cent since its peak. On a 12-month view, if you had invested 12 months ago, you would still be up about 30 per cent,” he said.

    And while the yuan’s devaluation of about 2 per cent last month instantly made everything more expensive for travelling Chinese shoppers, the currency is still up in value relative to the euro compared with last year, he noted.

    “Purchasing power of the Chinese in Europe is still a lot stronger today than it was just 12 months ago,” said the Hong Kong-based Mr Rambourg, who has been covering the luxury and sporting goods sectors for 10 years.

    “The reason we look at euro-yuan and not (the US) dollar-yuan is because Chinese consumption abroad is mostly taking place in continental Europe, places like France and Italy. So obviously I don’t see that as a big negative.”

    It is the appreciation of the euro that could be a bigger issue than the decline in Chinese equity markets, Mr Rambourg said.

    He said the recent correction of the equity markets in Asia “has had a much bigger impact on Hong Kong than it has had on mainland China”.

    Reuters reported last month that Hong Kong retail turnover fell for the fifth straight month in July, as a slowdown in tourist arrivals further battered sales of big-ticket items such as jewellery and watches, while a plunge in the stock market hurt consumer sentiment.

    Mr Rambourg believes that luxury sales fell in Hong Kong because Chinese spenders have moved to more “fashionable” destinations such as Japan, South Korea and Taiwan.

    HSBC Global Research’s latest report estimated about 70 per cent of luxury revenue in Hong Kong comes from Chinese consumers.

    One of the issues in Hong Kong and Macau is the lack of diversity – Hong Kong is all about shopping, Macau is all about gaming, and there is not a lot that is offered beyond that, said Mr Rambourg.

    But when Chinese tourists go to Japan, they return home to tell people about the culture, creating a snowball effect which goes beyond just the price arbitrage, where some destinations become fashionable and other destinations become less fashionable.

    About 10 per cent of luxury revenue in Japan now comes from Chinese tourists and Mr Rambourg believes this figure will rise as it did in South Korea, which saw an increase from 10 per cent to 30 per cent.

    About 25 per cent of luxury revenue in Singapore comes from Chinese tourists.

    Mr Rambourg suggested that Singapore should look at providing more diversity in terms of the brands represented here in order to draw in more Chinese shoppers.

    While there will be ups and downs, he foresees Chinese consumers becoming dominant over the next decade.

    About 35 per cent of today’s luxury consumers come from China and the figure could double over the next 10 years, he said.

  • China’s fake Apple Stores alive and well, look to profit on iPhone 6s launch

    China’s fake Apple Stores alive and well, look to profit on iPhone 6s launch

     Thanks to lax copyright enforcement policies, growing demand for all things Apple and a lack of official retail channels, China’s fake Apple Stores are experiencing a resurgence on the back of iPhone 6s preorders.

    In electronics manufacturing mecca Shenzhen, a major cog in Foxconn’s iPhone and iPad production machine, a multitude of counterfeit Apple stores are popping up to take advantage of Friday’s iPhone 6s release, reports Reuters. According to publication estimates, more than 30 storefronts bear Apple’s iconic logo, with some unauthorized outlets kitting out personnel with Apple Store-style blue t-shirts and lanyard name tags.

    As they have in the past, these counterfeit stores are taking advantage of China’s seemingly insatiable iPhone demand. Just hours after iPhone 6s preorders went live last week, Apple’s allotment for the Chinese market sold out, pushing buyers loathe to wait an extra two to three weeks toward unauthorized stores that buy stock from official resellers and flip them for a hefty profit.

    With iPhone viewed as a status symbol in China, many consumers are willing to pay more than double retail prices to get their hands on one the day it comes out. For some buyers the high costs are apparently worth the added cachet that comes with nabbing a copy on day one. Consumers in other markets are also keen to get their hands on Apple’s latest smartphone, but Chinese customers are especially zealous.

    The benefits are more concrete for resellers, who risk minimal retail overhead and an upfront investment by smuggling iPhones in from Hong Kong, the U.S. and other far-flung markets. If successful, however, they stand to haul in huge returns.

    Apple has for years dealt with counterfeit stores, an issue that gained media attention in 2011. While Chinese officials ultimately ordered a handful of operators to shut down, the unauthorized resale industry was never completely wiped out. Now with iPhone 6s, resellers are back in business.

    Part of the problem stems from an inadequate official retail presence in the region. Apple only had 22 stores serving all of China as of June. By comparison, there are 53 Apple Stores in California alone. The disparity is stands in contrast to China’s market potential, which is widely viewed as vital to Apple’s growth and sales sustainability. The company has plans to expand its retail footprint to 40 stores by 2016, however, the most recent being a second Hangzhou location in April.

  • Hard Passage to India for China’s Phone Makers

    Hard Passage to India for China’s Phone Makers

    For Chinese smartphone and mobile phone manufacturers, the crowded Karol Bagh market district in Delhi, India, is a key outpost for an exciting business frontier. Vendors in cramped shops peddle handheld devices from India and around the world. Most shops feature budget phones, although in recent years expensive smartphones have been added in increasing numbers to store shelves.

    Chinese smartphone makers such as Xiaomi Inc. and Huawei Technologies Co. Ltd. are working hard to unlock what they see as enormous sales potential at Karol Bagh and similar markets around India. Analysts think Indian sales of Chinese-made phones could explode very soon.

    Contributing to these expectations are figures from researchers such as Gartner Inc., which found only 115 million of India’s 1.2 billion people owned a smartphone at the end of 2014. It also found the country is home to about 610 million mobile phone users.

    Anshul Gupta, a researcher at Gartner, said he expects the Indian smartphone market to expand by 40 percent annually over the next two years.

    Kiranjeet Kaur, Asia-Pacific division director for the market research firm International Data Corp. (IDC), said Chinese phone makers have accelerated efforts to expand in India in order to offset a sales slowdown at home tied to the cooling economy.

    Officials at Chinese smartphone manufacturers echo those sentiments.

    “Today’s mobile phone market in India is just like China’s four or five years ago, with golden opportunities everywhere,” said a source at a mobile phone maker who asked not to be named.

    Chinese brands account for about one-quarter of mobile phone sales in India, said Gupta. But the Chinese market share is rapidly increasing, according to an IDC report. Brands including Lenovo, Xiaomi, Gionee and Huawei cornered a combined 12 percent of the market in the second quarter of this year, the report said, up from 6 percent during the same period last year.

    Although store sales are important in India, the role played by Internet shopping is growing. According to IDC, online sales accounted for 27 percent of all smartphone sales in India in the second quarter, rising from 10 percent in the same period 2014.

    Survival Tactics

    Chinese companies that are now growing their sales in India survived an assault that began a few years ago when competitors flooded the market with cheap knock-off brands. That attack dented business and the reputations of legitimate phone makers, including the first Chinese players in India, Gionee and Coolpad. Today, some Chinese phone brands are still plagued by a negative image.

    Chinese companies bounced back by investing in brand-building ads and retail sales networks. Another tactic, used by companies such as the relatively young phone maker Xiaomi, involved building Internet sales channels and social media promotions aimed at India’s diverse market.

    Another Internet-savvy smartphone manufacturer is Meizu Technology Co. Ltd., which in August became the latest Indian market player by premiering its MX5 model at a press conference in New Delhi. Meizu is selling devices online through Amazon and the Indian e-commerce website Snapdeal, foregoing the costly task of building on-the-ground sales networks.

    “Chinese companies want to take advantage of the opportunities presented by India’s market boom,” said the manufacturing source. “But building sales networks takes time and resources in the face of challenges from domestic brands in India. So using e-commerce channels is much safer for Chinese phone makers.”

    Xiaomi is relying on the Internet for sales and has opened an Indian operations headquarters in Bangalore, an e-commerce hub in India.

    Xiaomi’s strategy in India mimics its successful strategy China: “flash sales” through which consumers are offered a limited number of products during a single marketing event. Most flash sales are promoted through social media.

    Xiaomi’s first online sales event targeting Indian shoppers came in 2014 through a partnership with India’s largest e-commerce site, Flipkart.

    Manu Jain, the chief executive of Xiaomi’s India division, said 10,000 Xiaomi phones were sold through the Flipkart website in just two seconds in July last year. By early December, he said, Xiaomi has sold 1 million phones in India, making it India’s fifth-largest phone supplier.

    Xiaomi has hit some bumps on its fast road to success. The company’s sales surge in India caught the attention of its Swedish competitor Ericsson, which in December filed a complaint in the Delhi High Court claiming Xiaomi broke the law by using Ericsson-patented parts in its phones without paying royalties.

    The court agreed with Ericcson and barred Xiaomi from selling phones in India that are equipped with chips made by its parts supplier MediaTek. Devices equipped with Qualcomm-made parts were not covered by the ban.

    Indian courts are still considering the case, Jain said. And Xiaomi is still expanding in India through partnerships with retailers and e-commerce firms.

    Some Chinese phone makers have paid an even higher price in India. Shenzhen-based Coolpad has been in India since 2007, but has had a hard time competing against the Samsung, Nokia and Blackberry brands. The company is hoping its recently launched partnership with Amazon will, after years of lukewarm sales through Indian telecom tie-ups, boost online sales.

    Brand Building

    Coolpad’s plan for enhancing its image in India is to launch a new model every month and then sell the phones through e-commerce websites.

    “Unless we start building up the brand now, there will be no future opportunities” said Syed Taj, head of the company’s India division. “Coolpad has to catch up.”

    Not every smartphone manufacturer has switched to e-commerce sales. Some companies, such as Shenzhen-based Gionee, continue to rely on brick-and-mortar retailing for most sales in India.

    Arvind Vohra, head of Gionee’s India operations, said the online sales strategy pursued by many Chinese companies has quick effects but lacks long-term brand-building efforts. “It’s hard to say how it will go,” he said.

    Gionee has taken the old-fashioned route by building up a retail sales network in India. According to Vohra, the company has maintained contracts with 10 dealers operating 35,000 shops across the country since 2007.

    And Gionee’s retail effort has paid off. The company sold about 4 million devices last year in India, or about half of all Chinese-made devices in that country, pocketing US$ 300 million in revenues. And since the Indian smartphone market is only about three years old, Vohr said, there’s plenty of room for growth.

    Still, building a retail sales network in India from scratch means competing against established players such as Samsung, one of several international brands that dominate the market. It also requires navigating a retail environment characterized by a large number of phone dealers and retailers spread over a wide area.

    It’s easier to switch to an online sales strategy from a retail environment than the other way around, Vohra said, because consumers in stores are more brand-focused while those shopping online pay more attention to price.

    Samsung shipped more phones to India – 6 million – than any competitor in the second quarter of 2014, according to IDC, giving the South Korean company 22.6 percent of the market. Indian mobile phone manufacturers Micromax, Intex and Lava were the second, third and fourth largest, underscoring the fact that Chinese firms face an uphill climb.

    Chinese phone makers Vivo Electronics Corp. and Oppo Electronics Corp. have each spent hundreds of millions of yuan in India on retail marketing campaigns since the beginning of the year, an industry source who asked not to be named said. Yet “the effects of this huge investment have been limited.”

    Lenovo is also trying to break into the Indian market through store sales. The company’s devices are sold by more than 7,000 retailers across India, a number that Ye Zhuliang, vice president of Lenovo Group Ltd., expects will rise to 15,000.

    “Sales networks are quite complicated in India, which has more cities and greater regional differences” than China, said Ye.

    Yet brand-building may be the most important task for Chinese device-makers in India. And different companies are taking on that task in different ways.

    To get people talking about its phones, Gionee sponsors Bollywood movies and cricket matches. According to Vohra, the company also buys newspaper and TV ads that say its high-tech products are built for high-end consumers. These ads often stress that a Gionee phone costs about 20 percent more than Indian-made brands.

    To give the Chinese device maker even more support, Vohra said, Gionee plans to step up newspaper and TV ad spending, and look into expanding online sales.

    Xiaomi is trying a different approach, targeting young consumers through online marketing campaigns. It’s using an online forum and social media to connect with younger Indians, mirroring the company’s online marketing efforts in China. The firm also modified its phone operating system and added user functions designed for Indian users.

    It’s also common for Xiaomi to pitch its phones by mentioning the price tag can be half of what other brands charge, said Jain.

    Chinese phone makers also see the Indian frontier as a future production base.

    Gionee plans to invest US$ 15 million over the next three years to build phone production facilities, Vohra said. Xiaomi, through a partnership with electronics supplier Foxconn Technology Group, has started assembling smartphones in India. And Coolpad hopes to open a research and development office in India within two years.

     

  • 11street Leverages #MYCYBERSALE to Encourage Online Shopping

    11street Leverages #MYCYBERSALE to Encourage Online Shopping

    11street, one of the largest online marketplaces in Malaysia, is leveraging its participation in the nation’s biggest online sale, #MYCYBERSALE 2015 (www.mycybersale.my), to attract a wider net of Malaysian consumers to shop online.  Organized by the Multimedia Development Corporation (MDeC) the online sale starts today and lasts until 2 October 2015. As a premium e-tailer, 11street will be offering exclusive discounts and deals during the one-week period.

    As part of their strategy to enthuse and convert offline users to shop online, 11street aims to give away RM6 million worth of coupons with discounts of up to 99% along with other bank offers and deals. Consumers will be spoilt for choice as there are close to 2 million products available, making finding what they love at 11street easier. Sellers will of course benefit from the #MYCYBERSALE as they would be able to expand their reach to new customers and increase overall sales.

    Hoseok Kim, CEO of 11street says, “The #MYCYBERSALE 2015 online event is a great opportunity for us to reinforce our position as a leading e-commerce site as we are constantly looking at ways to offer consumers more value and help them enjoy the convenience of online shopping. Being part of the largest online sale event in Malaysia, MDeC not only helps us grow but also bolster the local e-commerce landscape as sellers will enjoy increased sales.”

    “We are delighted to have 11street onboard #MYCYBERSALE2015. They have been growing rapidly in Malaysia and we see them as a credible partner in supporting the government’s efforts to enhance the positive development of the e-commerce landscape in the country”, says Ms. Wee Huay Neo, Director of e-Commerce, MDeC.

    “Through the attractive deals that are offered by 11street, we are confident that it can lead to the growth of the e-commerce here, which will eventually set Malaysia as a net exporter”, she further adds.

    11street’s Exclusive Deals at #MYCYBERSALE2015

    Some of the promotions that will be available for #MYCYBERSALE 2015 include the Cyber Shocking Deals, which is similar to 11street’s signature Shocking Deals, and exclusive brand-specific deals. Shoppers can expect markdowns of up to 90% from big names such as Samsung, Mothercare, Laneige, L’Occitane, Thermos, Nike, Ralph Lauren and Longchamp, just to name a few.

    There are also special bundle offers for Vincci and LEGO, along with Happy Hour deals for meal vouchers and mobile top-ups that will take place at 11am, 3pm and 6pm.

    To further enrich Malaysian’s affinity with Korean culture and lifestyle, a main highlight for #MYCYBERSALE 2015 would be the Cyber Korean Fair that focuses on Korean beauty and skincare products, snack foods and also K-fashion items. That’s not all; selected brands come with free shipping deals along with an 11-day delivery guarantee of which RM11 will be refunded in the case of delays.

    Kim adds, “Since 2008, 11street has become one of the most popular e-commerce platforms in Korea that provides both sellers and shoppers trustworthy and convenient online trading experience. Through our participation in #MYCYBERSALE 2015, we wish more Malaysian sellers and buyers can be introduced and led to our proven platform where we can offer them the same quality of service, and together we boost the local e-commerce market.

    “Also, what makes us a leading e-commerce player is our wide variety of quality products at competitive prices which enriches a consumer’s shopping experience. We are very optimistic that Malaysians will now be even more motivated to start reaping the benefits of online shopping,” ends Kim.

  • Singapore consumer prices post biggest drop in 5 years

    Singapore consumer prices post biggest drop in 5 years

    Consumer prices in the Republic fell 0.8 per cent in August, the biggest year-on-year drop since November 2009.

    The decline, which came after a 0.4 per cent fall in July, was mainly due to the lower cost of private road transport, according to a joint news release from the Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS) on Wednesday (Sep 23).

    The cost of private road transport fell by 2.9 per cent in August after a decline of 0.1 per cent in July, as a result of the high base a year ago when Certificate of Entitlement (COE) premiums for cars saw a sharp increase, as well as a one-year road tax rebates for petrol vehicles.

    Accommodation cost declined by 2.9 per cent following the 2.8 per cent drop in the previous month, reflecting the continued softening of the housing rental market, MTI and MAS said.

    Services inflation edged down to 0.5 per cent from 0.6 per cent in July, while the cost of retail items fell by 0.6 per cent, mainly due to lower clothing and footwear prices. Food inflation was 1.9 per cent, unchanged from the previous month.

    Core inflation, which excludes the cost of accommodation and private road transport, fell to 0.2 per cent from 0.4 per cent in July, reflecting lower services and retail goods inflation, the news release said.

    “MAS Core Inflation and CPI-All Items inflation could rise towards the end of the year and are expected to pick up further in 2016, as the effects of the budgetary measures and the drag from the past fall in global oil prices dissipate on a year-ago basis,” it said.

    For 2015 as a whole, core inflation and CPI are projected to come in at the lower half of the forecast range of 0.5 to 1.5 per cent and -0.5 to 0.5 per cent, respectively.

     

  • Siyaram announces joint venture with Italian lifestyle brand Cadini

    Siyaram announces joint venture with Italian lifestyle brand Cadini

    Domestic textile player Siyaram Silk Mills today announced joint venture with leading Italian lifestyle brand Cadini.

    “We have entered into joint venture with leading Italian lifestyle brand Cadini. We have bought ownership rights to manufacture and market Cadini brand for its fabric segment in India, Sri Lanka and few other countries in Middle East,” Siyaram Silk Mills Chairman and MD Ramesh Poddar told PTI here.

    “We want to give Indian consumer the Italian feel at a reasonable price by customizing it to our market. Some products will be imported from Italy, but a major portion will be from India. We will bring the Italian innovation and manufacture it over here,” Poddar said at the launch of the brand in India without disclosing the consideration.

    He added, “Siyaram’s currently has annual revenue of around Rs 1,550 crore and expects to grow by 10-15 per cent annually this year. We expect Cadini to contribute around Rs 100 crore of our total revenues in the next financial year.”

    Cadini will also help Siyaram’s in sourcing and designing. The brand will be available in India in superior fabrics followed by garments and accessories, while the company also plans to open its Cadini exclusive outlets and shop-in shop in the near future.

    Expecting a great response from the humongous and fast growing Indian market Cadini Brand Director Daniella Nicolle said, “This venture has not only provided us a platform to showcase our collection to the Indian consumer but has also helped us to discover various avenues in terms of global marketing.”

    Cadini derives 95 per cent of its revenues from international market and only 5 per cent from Italian market, Faralli said.

    Siyaram’s has spent Rs 80 crore to modernize its manufacturing facility this year and will spend around Rs 70 crore next year funded through internal accruals as well as government incentive Textile Upgradation Fund Scheme (TUFS), Poddar said.

    He added, this will enable the company to add 10-15 per cent more to its monthly sales of 65 lakh metres of fabric per month.

  • WS Retail’s Logistics Division Has Been Bought Back By Flipkart

    WS Retail’s Logistics Division Has Been Bought Back By Flipkart

    Flipkart Ltd., the parent company of India’s homegrown ecommerce portal Flipkart.com, which is based in Singapore, has bought back the shares of their logistics business from WS Retail. Business analysts are predicting that this move has been made keeping in mind their IPO launch, which can happen somewhere between 2016 and 2017.

    This acquisition has been made via Instakart Services Pvt Ltd., a new entity which was formed in June, 2015. This new entity’s directors are Ankit Nagori (Chief Business Officer at Flipkart) and Rajnish Singh Baweja (Flipkart’s Finance Controller). It is not yet clear how much money has been traded in this acquisition, and Flipkart has refused to share more details.

    One spokesperson from Flipkart said, “We, as a policy, do not comment on specific transactions.”

    Flipkart’s IPO Plans

    By purchasing the logistics arm of WS Retail, a company which is again, a part of Flipkart Ltd., the management is trying to simplify the company structure and make it more presentable for public listing scrutiny in near future.

    In May this year, Flipkart Chief Financial Officer Sanjay Baweja said that Flipkart is not looking for IPO for the next couple of years, as they are not ready with the strict regulations and scrutiny which comes with it.

    Sanjay had said, “We are still at a stage where we do not want to stand scrutiny on a quarterly basis. We would rather keep ourselves private for as long as we can and then we will see what lies ahead.”

    Considering that Flipkart is headquartered in Singapore, an Indian listing is not possible. As per insider sources, Flipkart is aiming for a listing at New York based NASDAQ, which is world’s second largest stock market.

    Flipkart’s Complex Company Structure

    As per various speculations, WS Retail will be closed down in the next few years, as Flipkart will convert fully into a marketplace and advertisement based business model, ditching inventory based model.

    WS Retail was actually created to get around the strict FDI rules in India. WS Retail was formed in 2009, as a seller on Flipkart’s own platform.

    Technically, WS Retail buys the products from Flipkart India Pvt. Ltd., and sells to Indian customers. Flipkart India Pvt. Ltd. is the B2B division of Flipkart Ltd. And as FDI is allowed in B2B ecommerce, but not in B2C; this arrangement made sense to the tax collector.

    However, In 2013, Flipkart sold WS Retail to a group of investors led by former OnMobile Chief Operating Officer Rajiv Kuchhal. This was done to comply with other FDI norms in India, as a special investigation had started to look into the tax issues inside the company.

    Buying back the logistics arm from WS Retail is just the start of a new restructuring process, specially aimed for the IPO listing or so we think…

    We will keep you updated as more details come in.

    “WS Retail’s Logistics Division Has Been Bought Back By Flipkart Ltd; Is It Preparation For IPO Launch?”, 5 out of 5 based on 2 ratings.

  • Superdry to launch in China

    Superdry to launch in China

    Superdry was paraded down a catwalk in Beijing to officially launch the company in China.

    The launch event showcased some of the key product lines at the British Embassy Residence.

    The Rt Hon Sajid Javid MP, Secretary of State for Business, Innovation and Skills was at the event, as well as a strong representation of a number of current and former Chinese government officials.

    Mr Javid said: said: “We are delighted to see British brand Superdry join forces with Trendy International Group as they continue to further their international expansion in mainland China.

    “For decades, fashion has been at the core of British culture, something Superdry knows only too well. 2015 marks the UK-China Year of Cultural Exchange and both markets have a great deal they can share with each other.

    “Chinese consumers have a huge appetite for British brands so Superdry is well placed for success. Good luck to both SuperGroup and Trendy International as they embark on this auspicious partnership.”

    The agreed partnership to bring Superdry, the premium British lifestyle brand to China, will see an investment of up to £18 million (180 million RMB), on a 50:50 basis across a minimum period of 10 years. The joint venture was evolved from an initial introduction from the UKTI.

    The Chinese apparel market, with a current total retail value of $351 billion, presents an immense opportunity for the Superdry brand, particularly as it is forecast to become the largest apparel and footwear market in the world, overtaking the US this year.

    Euan Sutherland, CEO of SuperGroup, said: “Today marks a significant milestone in our joint venture with Trendy.

    “We are excited at the prospect of entering this market with such an established and experienced partner. We look forward to gaining a deep understanding of the Chinese market and customer, and this launch marks another significant step in Superdry becoming a global lifestyle brand.”

    The partnership with Trendy, a highly experienced retailer which already operates 3000 stores across China, will offer invaluable market insight and knowledge.

    Trendy will utilise their expertise and knowledge of the Chinese market and consumer to manage the joint venture, with a focus on operations and logistics in China, whilst SuperGroup will provide support from the UK, concentrating on brand guidance and merchandising.

    Both Trendy and SuperGroup believe Superdry has the potential to flourish in this market as it already has the appropriate product offering, pricing model and infrastructure for effective delivery in China.

    For Superdry customers it is about attitude, not age nor demographic. The Superdry product is contemporary and fuses vintage Americana and Japanese-inspired graphics with a British style. With an increasing demand for British brands abroad, Trendy sees Superdry as well-placed.

    Jacky Xu, founder and chief executive of Trendy International Group said: “We are delighted to be working with the SuperGroup team to launch Superdry in China.

    “Superdry is an innovative British brand, which we believe will sit well amongst our existing brands and have great appeal in the Chinese market.

    “Today, there is an increasing shift in consumer tastes in China, as individuals are moving away from the luxury brands to those more influenced by pop culture.

    “We believe Superdry is well placed to take advantage of this shift, presenting an excellent opportunity for our new partnership.”

  • Hong Kong plans upgrade to industrial estates

    Hong Kong plans upgrade to industrial estates

    Alan Ma Kam-sing, chief executive of Hong Kong Science and Technology Parks told that the first phase will see multi storey factories build by 2020, with a focus on “high value-added” clients such as robotics, pharmaceuticals and biomedical manufacturers.

    Ma’s company runs three industrial estates in Hong Kong and has already updated its policies to attract more technology related tenants, he said.

    These tenants will not be using “labour-intensive production, but rather modern manufacturing fueled by science and technology. This will create new industries and job opportunities throughout the advanced manufacturing value chain,” Ma said, speaking ahead of a conference on science parks and “areas of innovation” in Beijing.

    Reindustrialisation through innovation and technology is needed to counter Hong Kong’s reliance on finance and real estate, Ma said.

    Hong Kong can attract tenants due to its strong technology infrastructure, rule of law and intellectual property protection.

    Hong Kong based technology expert Paul Haswell of Pinsent Masons, the law firm behind Out-Law.com said: “High rental prices for tenants as well as an infrastructure that is built more for finance companies and retail has meant that whilst there is an abundance of tech innovation in Hong Kong, those innovators can find it hard to find a base from which to build a business.”

    “Hong Kong’s Science and Technology Park offers excellent space and facilities, as well as attractive terms for tech startups, but those startups find it hard to survive once the time comes to expand beyond the Science Park. As such, any plan to utilise Hong Kong’s warehouse and disused industrial space to build an environment where technology business should be encouraged,” Haswell said.