Retail News CRM

Author: Mei Ling Tan

  • Unilever expands Alibaba partnership

    Unilever expands Alibaba partnership

    The partnership began in 2011 when Unilever opened a virtual store on Alibaba’s Tmall.com online shopping portal. Last year it opened a store on Tmall Global, a cross-border solution that allows overseas retailers to sell and deliver goods directly to Chinese consumers online via government-backed FTZs and PRC bonded warehouses.

    Alibaba’s e-commerce “ecosystem” includes China’s retail marketplaces Tmall and Taobao Marketplace as well as logistics and online payment solutions, cloud computing, and a marketing technology platform called Alimama that provides retailers with extensive data analytics.

    Daniel Zhang, Alibaba CEO said the two companies “will jointly innovate in Big Data analytics application, cross-border e-commerce, and supply chain management”. The company will also protect Unilever’s brands by tagging each product with a unique QR code that allows the consumer to verify its authenticity and origin.

    Last year Alibaba began a three to five-year US$1.6 billion program to build 1,000 county-level and 100,000 villaAlibaba Cainiaoge-level Taobao service centers in order to provide e-commerce and logistics services to underdeveloped parts of China.

    The company said its cross-border system gives international retailers greater merchandising flexibility because shipments are made only on demand, reducing the need for sales forecasts and warehouse space in China.

    Online shopping accounted for 10.7 percent of total retail sales in China in 2014, according to the country’s National Bureau of Statistics.

    For the first six months of 2015 Unilever has reported a 12 percent increase in turnover to €27 billion. The operating profit fell 13 percent to €3.8 billion and net profit fell 11 percent to €2.7 billion.

    Unilever CEO Paul Polman noted: “The first half demonstrates again the progress we have made in the transformation of Unilever to deliver consistent, competitive, profitable and responsible growth, now in the seventh year. We plan for another year of volume growth ahead of our markets, steady improvement in core operating margin and strong cash flow,” he added.

    The company has also announced a one-year partnership with the WWF to raise public awareness against deforestation. The program will help protect a million trees by supporting forest protection programs in Brazil and Indonesia. The two countries historically have had the highest rates of deforestation in the world and have some of the largest areas of intact forest globally.

    Polman commented: “Stopping deforestation is an urgent priority in tackling climate change. Forests are second only to the oceans as the largest global store of carbon and support 80 percent of terrestrial biodiversity across the globe. As a business it is crucial that we operate sustainably and take action to help consumers live sustainably. It’s a moral imperative and a business one – to be here for the long term.”

  • Capital Foods’s brand Chings’s Secret exits noodles market

    Capital Foods’s brand Chings’s Secret exits noodles market

    Consumer goods company Capital Foods, which sells the Ching’s Secret instant noodles and Smith & Jones ketchup and masala noodles, has officially exited the noodles category post the Nestle Maggi controvery. The company says it had a marginal contribution from the noodles category to its total business and will restrict its focus to soups and sauces. The company has also shut down its Vapi plant which manufactured noodles.

    The company’s founder chairman and managing director, Ajaay Guptal told ET that the controversy had affected the growth prospects of the category. ” It has never been a focus business and we decided to shut down our factory. As far as our pedigree is concerned, we started off as an exports company and out backend meets the strictest guidelines and laws laid down by global markets, especially the US government.

    The Maggi controversy has impacted the entire processed foods industry significantly especially the ready to eat food category. All food companies are reworking their packaging and ingredients to make sure it meets the strictest mandatory laws.

    Very recently Hindustan Unilever (HUL) had recalled its Chinese range of ‘Knorr’ instant noodles from the market pending product approval from the central food safety regulator FSSAI. “HUL has decided to stop production and sale of its Chinese range of instant noodles till such time as its application is approved by FSSAI. HUL is initiating a withdrawal of its Chinese instant noodles from the market,” HUL had stated.

    Capital Foods sells Ching’s brand and Smith & Jones range of ketchups and ginger-garlic paste in markets such as the US, Canada, Singapore and Dubai. Capital foods recently hired Bollywood actor Ranveer Singh as the brand ambassador, with a campaign ‘My Name is Ranveer Ching’.

    It has tie-ups with the large retailers such as Tesco, Loblaw, and Mustafa in Singapore.

    ITC’s Sunfeast Yippee, HUL’s Knorr and Nissin Foods’ Top Ramen categories are very nascent, so other players are growing the market instead of biting into each other’s share. Capital Foods’ (it has two brands Smith-Jones and Ching’s Secret) consolidated revenue for the fiscal year 2014 stood at Rs 240 crore of which Ching’s Secret contributed a whopping Rs 200 crore.

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  • E-commerce market in China is big enough for multiple players

    E-commerce market in China is big enough for multiple players

    Cross border e-commerce is gaining traction worldwide, partly because of rising business from China. Despite the rise in global players, US online retailer Amazon is not afraid of the competition.

    Amazon has felt the wind of late comers. Alibaba has brought the war onto Amazon’s home turf, recruiting small US businesses to join its sales network after its debut on the New York Stock Exchange last year.

    Amazon’s senior vice president of international consumer business Diego Piacentini says the market is big enough for multiple players.

    “Business is not sport, where there is one winner. Business has multiple winners,” Piacentini said.

    “The size of the business, particularly e-commerce, would be so large. There is room for global players. Amazon is going to be one of them, absolutely, Alibaba and Tmall is one of them and many others.”

    Besides talking the talk, Amazon has beefed up its operation in China since last year. It opened direct mail to China from six of its global locations. Amazon also set up a Chinese e-commerce website and increased its overseas purchases in China to bolster local sales.

    “For countries like China or India, they are not exposed to many years of modern retail, e-commerce, or mobile commerce. You can expect in the next few years, that the vast majority of retail activities in China and India would happen online,” Piacentini said.

    Last year, 18 million Chinese consumers spent US$213 billion overseas—more than double Amazon’s annual sales. For any global commerce site, such potential is hard to ignore.

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  • Global Logistics Properties sets up US$7 billion China-focused fund

    Global Logistics Properties sets up US$7 billion China-focused fund

    Global Logistics Properties launched a US$7 billion fund yesterday dedicated to mainland China, piling in on investment euphoria about warehouse demand as China shifts to a consumption-led economy.

    Singapore-listed GLP has secured US$3.7 billion in equity commitments from seven unnamed investors, six of them national pension or sovereign wealth funds, for the CLF II fund. The largest China-focused logistics infrastructure fund so far, it will have an investment capacity of US$7 billion after adding leverage.

    “We continue to see strong demand from China,” GLP chief executive Ming Z. Mei said. “Despite the recent headlines about the GDP growth slowdown, 7 per cent is by definition a healthy rate anywhere in the world. Retail consumption, which is more relevant to logistics demand, maintains a double-digit growth rate.”

    Retail consumption, which is more relevant to logistics demand, maintains a double-digit growth rate

    Ming Z. Mei, GLP chief executive

    CLF II is an add-on to the US$3 billion CLF I, whose capital was fully allocated more than two years ahead of the planned investment horizon. GLP, created from a spin-off of US industrial property developer Prologis, dominates industrial property markets in China, Japan and Brazil. It is 36 per cent controlled by Singapore’s sovereign wealth fund GIC.

    The US$7 billion in funds will be channelled to develop 13 million square metres of warehouses in four years. GLP, the fund manager, holds a 56 per cent stake.

    China’s burgeoning industrial property market has lured investors from around the world – most recently Carlyle Group, Glodman Sachs and RRJ Capital – who believe a shifting economic pattern has created vast demand for modern warehouses, where courier firms, e-commerce outlets and third-party logistics service providers store, distribute and process goods.

    “Over the last few years, many people make noises about raising capital. Actually raising capital is not the hard part. Executing on the ground is,” Mei said. “As the market gets heated up, it requires deeper knowledge of logistics patterns.”

    As capital flocked in, oversupply had started to surface in certain locations, he said.

    “The market is no longer the way it used to be five, six years ago,” Mei said. “Supply and demand is more balanced now, with some markets oversupplied in the short term.”

    CLSA senior analyst Yew Kiang Wong said: “The big question mark here is demand. These investments are in anticipation of future demand. Third-party logistics companies represent large demand potential and are GLP’s bread and butter. But there’s also some cannibalisation from e-commerce companies which are now trying to develop their own warehouses, such as Alibaba. So there’s some risk in that respect.”

    GLP’s top tenants in China include e-commerce powerhouses JD.com and Amazon, and logistics firms Sinortans and Best Logistics.

    Mei said it was getting harder to source new land. Due to lower tax and employment contributions, local governments are less willing to release land for logistics use.

    In order to gain better access to land reserves and customers, GLP last year sold a 34 per cent stake in its China portfolio for US$2.5 billion to a consortium of state-owned investors including China Life Insurance, China Development Bank and Bank of China.

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  • Scope of e-commerce expanding rapidly

    Scope of e-commerce expanding rapidly

    Thailand’s e-commerce sector is expected to see continued strong growth, of 30-35 per cent this year.

    More and more players are getting into the e-commerce game, such as online merchants, payment-service providers, order-fulfilment providers, tech start-ups and telecoms, and foreign interests as well, encouraged by the government’s “digital economy” initiative.

    Thai E-Commerce Association president Pawoot Pongvitayapanu said e-commerce was a very tough and competitive sector.

    “This year there is tough competition for e-commerce in Thailand. Large players will spend a lot of money to gain a share [of the market]. We recommend that small and medium-sized e-commerce businesses should focus on segmented marketing targeted at their [particular market],” he said.

    He said the rapid increase in mobile Internet users had been helping e-commerce to grow actively this year.

    As of the first quarter of this year, True Mobile had 20.7 million users of its fourth- and third-generation wireless broadband services, Total Access Communication had 14.8 million data subscribers, and Advanced Info Service (AIS) had 20.6 million data subscribers.

    According to research by eMarketer, by 2018, Thailand is projected to have nearly 27 million smartphone users, with mobile-phone penetration reaching 71 per cent, giving the Kingdom the 19th-largest smartphone-user population worldwide, ahead of Australia and Vietnam.

    This rapid increase of smartphone penetration and mobile Internet users is the key factor driving rapid growth of online shopping in Thailand.

    This has obliged all stakeholders included retailers, e-commerce businesses, e-marketplaces, e-payment providers, and logistics companies to focus more on this sector. If they do not, they will lose customers to the other online shopping sites or miss business opportunities.

    Pawoot, who is also managing director of Rakuten Tarad.com, said the company would launch a new e-commerce service next quarter as part of its strategy to grow by 40-50 per cent this year. “This year, our growth comes from an increase in merchant numbers, adjusted internal processes, focusing on the mobile channel, and conducting marketing and promotion. We have a marketing budget of more than Bt10 million.”

    Telecom online stores

    Pratthana Leelapanang, executive vice president for marketing at AIS, said sales through AIS Online Store were growing by more than 200 per cent when compared with last year. All products are telecom-related including devices, accessories, SIM cards, and premium packages and content.

    The sales goal of AIS Online Store this year is to sell 600,000 mobile phones, while the marketing goal is to be a “top of mind” store.

    Convenient payment is one of the factors in the online shop’s success. Customers can pay cash on delivery or via credit or debit cards, automated teller machines, Internet banking, or over the counter at more than 400,000 outlets nationwide such as at Tesco Lotus, FamilyMart, mPay Station and Thai Post.

    “Online business in Thailand is rapidly increasing. According to the latest research by Google in June, a lot of people do online shopping via smartphone. Thailand has the highest ratio with 31 per cent of smartphone users doing mobile shopping. Therefore, there are huge opportunities for online business in Thailand,” Pratthana said.

    However, one of the disadvantages faced by online businesses in Thailand right now is price wars. Many players have absorbed losses after offering big discounts to attract customers to their online shops. Meanwhile, logistics costs in Thailand are still high.

    “Online shopping cannot [allow] customers to try and touch products before purchase. Credit-card use is still limited as people are concerned about security,” Pratthana said.

    Tim Verouden, senior vice president and head of digital services at DTAC, said online business was growing. DTAC’s e-commerce is not confined to its dtac.co.th online store, but is a whole ecosystem of digital commerce-related activities and platforms based on its customers’ understanding that it can make personalised and relevant offers.

    “We see our digital-channel footprint from a holistic perspective where all channels can benefit from each other. In terms of portfolio, we used to have the same portfolio of handsets, packages and offers as the other channels, but especially due to advanced customer understanding we can now offer more and more personalised products and services. And this portfolio will only continue to grow in the big-data age,” Verouden said.

    Revenue from DTAC’s online store alone grew rapidly in the first half of 2015, by more than 30 per cent year on year.

    “When you look at growth rates for e-commerce transactions we have just started, I think overall revenue through digital channels will double in the coming year, for the reasons mentioned earlier,” he said.

    “We also see that channel convergence and digital being just part of a customer journey is an important factor, and having this omni-channel mindset is essential to better understand and accommodate customer needs. We are in the top five [among] e-retailers in Thailand, which is quite remarkable for a telco company.”

    Line Pay

    Last week, Line Pay, a payment platform using the Line chat application, made its Thailand debut. Chase Chang, vice president for global business development at Line Pay, said the service would become a mobile payment platform for both online and offline with the aim to drive growth of online commerce in Thailand.

    Currently there are more than 205 million monthly active Line users worldwide. As of January, Thailand was Line’s second-largest country, following Japan’s 58 million, with more than 33 million users.

    “Line is very big and growing very fast. Line is set to be a ‘life platform’. We started from a communication [chat] platform, then we introduced vertical services such as Line TV, Line Music and others. Line Pay is the fundamental for supporting all of Line’s services as well as to support our partners,” Chang said.

    Line users can apply for Line Pay with ties to their credit or debit card for seamless payment for digital goods and services from Line Shop and other online markets.

    Next quarter, Line Thailand will launch the Line e-wallet, which is a Line Pay account that people can tie to their ATM or bank account. When they make a payment, they can choose between their credit/debit card or Line Pay e-wallet.

    Currently more than 100 merchants accept Line Pay. By the end of this year, Line Thailand aims to get that number above 300.

    Retailers go e-commerce

    E-commerce in Thailand is growing by 30-40 per cent per year, said Worawut Ounjai, chief executive officer of COL.

    Recently, COL redesigned its shopping site www.Central.co.th, which is set to be Central Group’s flagship online store. The group’s online sales account for a very small proportion of its overall annual sales of more than Bt150 billion but are expected to grow strongly, because a lot more people are turning to online shopping.

    E-commerce in Thailand currently accounts for about 0.5 per cent of the retail industry, while globally, it is more like 5.6 per cent. By 2020, it should pass 20 per cent.

    Central’s strategy is to harness its strengths, both online and offline, to increase the competitiveness of Central.co.th such as next-day delivery, flash deals, and click and collect. The company has prepared a 40,000-square-metre warehouse that can support online sales of up to Bt5 billion. For now, it offers online shopping via websites and mobile sites only.

    Recently, Central Group also announced it was opening distribution channels for small and medium-sized enterprises through Central.co.th, This is in line with the group’s policy of supporting SMEs to ensure strong and sustainable growth of the Thai economy.

    Central has partnered with Line Pay.

    “With consumers going online for shopping, merchants who are not part of the e-commerce trend will be out of the era and unable to reach a large number of customers,” Worawoot said. “At Central.co.th, customers can pay for shopping with Line Pay. By the end of this year, there will be 100,000 product items available.”

    Global e-commerce platforms

    Recently, the giant Taiwanese e-commerce company PC Home Online arrived in Thailand. It entered a joint venture with Cal-Comp Electronics (Thailand) to set up PC Home (Thailand) to provide an e-commerce platform for Thais.

    The company will launch a consumer-to-consumer (C2C) e-commerce platform in September and aims to have more than 5 million product listings within one year of operation.

    For the first three years, it will offer its service to sellers free of charge, and after that they will have to pay a fee of 1.5 per cent of a transaction value.

    Hung-Tze Jan, founder and CEO of PC Home Online and the chairman of the Taiwan Internet and E-Commerce Association, said Thailand was the best place to land in Southeast Asia because of its well-established infrastructure.

    Meanwhile Ekachai Rukachantarakul, eBay’s Southeast Asia head, said eBay was strongly committed to the evolution of commerce in Thailand, and continued to work with local SMEs. It aims to provide them with a platform through which they can deliver goods and services on an unparalleled global scale.

    Thailand, as the nation with the highest number of eBay retail exporters in Southeast Asia, with annual sales in excess of US$1 million (Bt34 million), is seeing an increasing number of success stories on eBay’s US, Australia, UK and other global marketplaces.

    An example of a successful Thai entrepreneur benefiting from eBay’s platform is Tuff. Wuttinum Sangon, owner of Tuff, uses eBay as an online marketplace to sell his Muay Thai products such as shorts, gloves and protective gear. He said eBay enabled SMEs to compete with larger companies in the global market.

    Similarly, the giant Chinese e-commerce Alibaba.com has focused on Thailand’s e-commerce market. Thailand is a really important and high-potential market for Alibaba.com, said Thomas Ho, Thailand country manager.

    Alibaba.com provides an e-commerce platform for businesses. As of March, the number of registered users in Thailand had increased by 42 per cent year on year. This was natural growth without having a local reseller, so it is possible to expect more growth in Thailand this year.

    Currently, Alibaba.com has around 570,000 registered users in Thailand, mostly buyers.

    Apart from Alibaba.com’s B2B e-commerce platform, Ho said, the company’s other businesses such as AliExpress and AliPay are under consideration for bringing to the Thai market in the future.

    Local e-marketplace

    The local e-marketplace Weloveshopping.com has adjusted its business with the aim of capturing the rapid growth of e-commerce in Thailand and in Southeast Asia and to become leader in e-marketplace segment.

    Sunsern Samaisut, chief commercial officer for the e-business group at Weloveshopping, said no one had yet dominated the e-commerce markets in Thailand and Southeast Asia, while the markets were growing rapidly. The company is confident of becoming the e-marketplace leader.

    This year, it aims to have 10,000 merchants on Weloveshopping.com, with a combined transaction value of Bt2 billion.

    The company refreshed its brand and changed its business model from earning revenue from rentals of online stores to earning commissions from transaction fees ranging from 2.9 to 13 per cent.

    “This year, we strengthened our position in Thailand with the new business model. Early next year, we plan to expand [into Southeast Asia] through two possible models, including to cooperation with local partners and takeovers of local companies,” Sunsern said.

    Fulfilment services

    Order fulfilment is crucial to the success of e-commerce businesses. Currently, there are many such services. The newest one is Thailand Post Distribution. It is a subsidiary of Thailand Post recently established to provide a total logistics solution in Thailand and Indochina with the aim to be the hub of logistics in the Indochina region by 2019.

    The service fulfils orders for medicines and medical supplies, banks and financial institutions, multinational companies, and border traders, said Warakan Srinualnad, CEO of Thailand Post Distribution.

    The company offers a total logistics solution including packing, warehousing, delivery, and payment services for both private

    companies and government organisations. It also utilises 10 of Thailand Post’s 16 warehouses and distribution centres throughout the country to enhance its logistical efficiency.

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  • Hong Kong residential property prices reached record high in May

    Hong Kong residential property prices reached record high in May

    Residential property prices in Hong Kong reached a record high in May, increasing more than 20% compared with the same month last year.

    The growth in values continues despite the government’s series of property market cooling measures.

    The transaction volume of new homes reached over 8,700 for the first half of 2015, the data from the Rating and Valuation Department shows.

    According to an analysis by international real estate firm Knight Frank it is a result of strong housing demand, ample liquidity partly attributable to the previous rally in the Mainland and Hong Kong stock markets and the continual return of wealthy Mainland investors to the city’s residential sector.

    Amid positive market sentiment, property developers have been actively acquiring residential sites this year, in line with the government’s target to boost housing supply. In early July, a large residential site in So Kwun Wat in Tuen Mun, estimated to require an investment of up to HK$8 billion, was sold for HK$3.82202 billion, representing the second highest ever accommodation value in the area.

    During the third quarter of this year the Hong Kong government will release three residential sites for sale. It has indicated that additional land may be launched by the end of September, depending on the market situation and progress of preparatory work.

    ‘The annual private housing supply target of 19,000 flats is considered achievable this year. Despite the rising supply, we expect home prices to continue rising this year, as it will take time for the new sites to be developed into flats,’ the Knight Frank report concludes.

    Meanwhile in Greater China the Grade-A office market remained active in June, driven by continual expansion demand from Chinese financial institutions, most notably fund and asset management companies.

    Knight Frank believes that Grade-A office rents in Central will continue rising steadily in the second half of 2015.

    Last month, with rents in prime retail districts softening, mid-range retailers gained opportunities to enter high profile streets at lower rents. Retail sales are not expected to recover in the near term.

    Knight Frank says that prime retail rents will continue to come under downward pressure for the remainder of the year.

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  • S. Korea opens mini-sized derivatives market

    S. Korea opens mini-sized derivatives market

    South Korea opened a mini-sized futures and options market on Monday to offer investors wider choices for hedging and trading, hoping to revitalize the once-vibrant derivatives market with robust liquidity.

    The Korea Exchange currently operates futures and options trading based on the KOSPI 200 index, a flagship index composed of the top 200 stocks by market capitalization. The new system offers contracts for as little as 25 million won ($21,900) and 5 million won for KOSPI 200 futures and KOSPI 200 options, respectively, one-fifth of the minimum price for the current contracts. On the first day of trading, 3,132 contracts of mini KOSPI 200 futures were traded. Retail investors and institutions each held 43.2 percent and 38.9 percent, while foreigners held 17.9 percent, the KRX said.

    Mini KOSPI 200 options registered 6,814 contracts, with half of them traded by foreigners. Institutions and retail investors accounted for 26.8 percent and 22.7 percent of the turnover, respectively. The bourse operator expected the low-cost entry will attract more investors to the derivatives market to boost liquidity and improve the pricing mechanism.

    The latest measure comes as the nation’s derivatives market has suffered a sharp downfall in its trading volume since stricter regulations were adopted in 2011 to limit small speculators in response to calls to cool the highly speculative market.  South Korea was the world’s leading derivatives market in 2011, but it fell to 12th place last year as tight access rules have driven investors to other markets, including the United States and Japan, according to the KRX.

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  • China Bank set to open 50 more branches

    China Bank set to open 50 more branches

    CHINA Banking Corp., (China Bank) is planning to open 50 branches this year, on the back of the strong economic fundamentals of the country.

    Of the target branch expansion, three to four banks are set to open in Cebu to strengthen the bank’s foothold in the province.

    Cebu is home to China Bank’s first provincial branch—Cebu Magallanes, which opened in 1948.

    According to China Bank president and chief executive officer Ricardo Chua, Cebu is an important market, contributing 30 percent growth. He said the bank’s planned expansion in Cebu signifies their continued optimism to the strong growth story of Cebu, citing the province’s flourishing industries.

    “We are actually making a big bet in Cebu forward,” said Chua, citing the numerous developments around Cebu such as malls, infrastructure development and tourism, among others.

    Last week, the group opened its BPO tower—China Bank Corporate Center in Cebu Business Park.

    At present, China Bank has about 24 branches in Cebu.

    Alexander Escuchua, senior vice president and head of investor and corporate relations at China Bank, said they foresee growth in all of the bank’s products in retail, corporate and SME.

    Earnings

    “China Bank’s subsidiaries China Bank Savings (CBS) and Plantersbank have various programs, all meant to improve the banks’s performance this year at the same time meet all the customer needs,” Escuchua told Sun.Star Cebu.

    China Bank posted a consolidated net income of P1.21 billion for the first three months of the year, four percent higher than the earnings for the same period in 2014, on the back of strong growth of its core businesses.

    Its net interest income grew 23 percent to P3.71 billion, driven by a robust 31 percent jump in interest revenues from loans. Non-interest income increased six percent to P1.07 billion, boosted by higher trading gains and branch-based fees.

    In the first quarter, one China Bank and seven CBS branches were opened, all part of the planned 50 new branches for the year.

    Network

    Founded in 1920, China Bank is the country’s first privately-owned local commercial bank and now the fifth largest privately-owned universal bank in terms of assets. It serves the banking needs of the corporate, commercial, and retail markets.

    With the acquisition of Plantersbank in 2014 and its eventual merger with CBS, China Bank plans on building a stronger platform for SME finance. The China Bank Group now has 482 branches to date with 318 China Bank, 86 CBS, and 78 Plantersbank branches.

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  • Italian label Antonia to launch in China

    Italian label Antonia to launch in China

    Luxury fashion label Antonia is to open the first of 10 stores planned for greater China in Macau.

    Antonia, headquartered in the Italian fashion capital, Milan, has signed a partnership with Guangzhou Canudilo Fashion and Accessories, which has about 300 stores in China selling its own brands in the mid to high-end fashion space, along with 100 luxury monobrand stores in partnership with Armani, Givenchy, Roberto Cavalli and others.

    Antonia is the first brand to be publicly announced for the new Parisian retail development, another integrated resort with gaming, accommodation, entertainment and shopping.

    The US$5 billion project will feature a half size replica of the Eiffel Tower and 320,000 sqft of retail, housing 150 boutiques grouped in replicas of five famous shopping precincts of Paris, including the Champs Elysees and Rue du Faubourg Saint Honore, as well as 3000 hotel rooms.

    Antonia will take a 33,000 sqft space in the complex, according to Canudilo group president Yongfei Lin, who revealed the details during a Milan media event last week marking his company’s purchase of the Dirk Bikkembergs brand.

    Just five stores will be opened in China between now and 2020, with a further following.

    Antonia was founded in 1999 by Antonia Giacinti, who remains responsible for merchandise selection and store design.

    Luciano Donatelli, strategic consultant for the Canudilo group, said the Macau store will be “the twin” of the Milan flagship.

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  • Ben Sherman rescued by PE

    Ben Sherman rescued by PE

    Loss-making menswear retailer Ben Sherman has been bought by a private equity investor.

    US-based Marquee Brands has paid a mere £40.8 million for the business which it considers still has potential, despite its troubled state.

    “Ben Sherman remains a uniquely classic British brand with a loyal following across five continents and a smartness that’s ageless. Its heritage, style and authenticity fits perfectly within Marquee’s growing portfolio,” said Cory M. Baker, COO of Marquee Brands.

    “We are particularly excited about this transaction as Ben Sherman is consistent with our mission to acquire high quality brands with substantial global growth potential,” added Michael DeVirgilio, president of Marquee Brands in a statement.

    “The current management team under Oxford’s leadership has done a great job building on the core essence of the brand. We’ve received supportive messages from retailers across the globe that share our view of the growth opportunity ahead.”

    Ben Sherman, established back in 1963, is Marquee Brands’ second acquisition this year, after Italian luxury brand Bruno Magli.

    Marquee considers its recent acquisitions as building “a glowing portfolio of relevant, storied brands with rich history and a global footprint”.

    “Our plans to market and promote the brand across various lifestyle categories are well underway with new products and expanded retail coming to market as early as first quarter, 2016,” Marquee said in its statement.

    The brand has had a chequered history over the last 30 years. The last time it changed hands, after two successive management buyouts, was in 2004 when Atlanta-based Oxford Industries paid 3i and Irish PE investor Enterprise Equity about £80 million for the business.

    The brand made a failed foray into womens fashion and childrenswear in the 2000s, axed by Oxford in 2010.

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  • Five trends in Vietnam retailing

    Five trends in Vietnam retailing

    Vietnam’s retail market is set to grow by 8.4 per cent annually until 2020, making it one of the fastest-growing markets in south-east Asia.

    Against a backdrop of increased disposable income, rapid urbanisation and an appetite for change among younger shoppers, we take a look at five trends defining the marketplace for pan-Asian retailers right now.

    Confident investment

    January 2015 marked the first time non-domestic retailers could take full ownership of commercial property in Vietnam, following commitments made to the World Trade Organisation. Now, new trade agreements with Japan, Korea and the countries that make up the Association of South-East Asian Nations (ASEAN) look set to support further growth for international retailers in Vietnam:

    Tailoring the best of international retail

    Domestic retailers may have the advantage when it comes to local shopper knowledge but
    international retailers are drawing on their own strengths to help them compete.

    Dairy Farm, FamilyMart and Aeon have brought their expertise in loyalty schemes, private label and innovative marketing to their stores in the region.

    Other points of difference include appealing to busy office workers with a fast food to go counter (seen at Family Mart and B Mart) and bringing an international flavour to the in-store hot food offer (Aeon Mall).

    Alternative store concepts

    Many retailers have established themselves in Vietnam with a hypermarket presence in one of the major retail hotspots like Hanoi or Ho Chi Minh City.

    Lotte and hypermarket chain Aeon are appealing to families and experimental shoppers with department store formats that act as wider shopping and entertainment destinations. Aeon is also making its mark with a loyalty scheme that includes tailored offers for mums – such as birthday treats or discounts on baby care.

    In the convenience channel, Guardian is the first combined-format health, beauty and drugstore in Vietnam. The store is making waves with its clean layout, colourful signage, bold promotional activity and sales assistants offering a superior level of service.

    Product innovation for a changing market

    A new concept in Vietnam, private label is appealing to young, experimental shoppers thanks to its lower prices and alternative products.

    Aeon has introduced its TopValu private label range, which taps into the popularity of Japanese culture by offering authentic Japanese ingredients and home cooking kits. The retailer is now working with local suppliers to explore domestic production.

    An increasingly affluent middle class is also supporting demand for exclusive and imported novelties. Dairy Farm is well-known for attracting these shoppers with its packaged food, household, health and beauty ranges.

    Expanding to national coverage

    A priority for most retailers is to create a nationwide presence. Lotte has built a network of ten hypermarkets spanning six big cities across Vietnam, making them the first pan-Asian retailer to achieve such a spread of coverage. Meanwhile, Ministop (Aeon), Guardian (Dairy Farm) and Shop&Go are pushing their convenience format in retail hotspots.

    Major retailers are seeing good growth from their franchise models, making partnerships, mergers and acquisitions hot topics.

    Aeon has partnered with local retailers Citimart in the south of the country and Fivimart in the north. The domestic chains are helping Aeon speed up its expansion plans by using their existing store networks. In return, their own customers are benefitting from the retail giant’s private label ranges and investment in infrastructure.

  • JD.com launches US Mall

    JD.com launches US Mall

    JD.com has launched a ‘US Mall’, its fifth in a growing lineup of country-focused retail malls.

    The new shopfront is dedicated to offering authentic imported US products for sale to its customers across China.

    Already American brands including Converse, Samsonite and Ocean Spray have signed up to sell their products on the site along with Global Brands Group’s Nautica Kids and Jeep apparel labels.

    In addition, JD.com says it will feature authentic products from Taylor Swift, including a line of clothes that the artist is designing exclusively for JD.com customers.

    JD.com also announced a partnership with DHL Global Forwarding to help American brands ensure that their products reach Chinese consumers more quickly and easily. Through this partnership, DHL is the preferred logistics service provider for moving American products ordered on JD.com’s US Mall to and across China.

    A launch event, hosted by JD.com founder and CEO Richard Liu, include several hundred representatives from major US brands.

    “As American companies increasingly understand our core advantages of zero tolerance towards counterfeits and unparalleled same-day delivery capabilities, we are gaining excellent momentum attracting US brands to our site,” said Liu.

    “Chinese consumers appreciate that the US is a global leader in the areas of product reputation, quality, reliability and variety of goods, and American companies are clearly benefiting from this unprecedented market opportunity.

    “With JD.com’s U.S. Mall up and running, and great partners like Global Brands on board, Chinese consumers have an ever-growing range of new choices of American products, including Nautica Kids, Converse and Taylor Swift’s branded fashion line,” he said.

    The US Mall follows others created for Australia, France, Japan and Korea this year.

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  • PayPal completes eBay split

    PayPal completes eBay split

    Having finalised its split from eBay, PayPal is now an independent public company trading on the Nasdaq  as PYPL.

    Dan Schulman, president and CEO of PayPal, said the business would be focussing on enabling digital payments on a “technology agnostic platform that creates value for our consumers and merchants online, in apps, and increasingly in stores.”

    “As the world’s open, digital payments platform and most trusted and popular digital wallet, we are excited to celebrate our listing day and embark on our next chapter,” said Schulman.

    “Mobile technology is transforming payments, making it easier, safer and more affordable for people to move and manage their money than ever before. As an independent company, we see a tremendous opportunity for PayPal to expand our role as a champion for consumers and partner to merchants, and to help shape the industry as money becomes digital at an increasingly rapid pace.”

    PayPal previously was listed on the Nasdaq under the same ticker symbol, PYPL, before it was acquired by eBay in 2002 for $1.5 billion. “We’d like to thank our friends at eBay for their tremendous support and partnership over the past 12-plus years,” said Schulman.

    In 2014, PayPal processed $235 billion in total payment volume and generated more than $8 billion in revenues. Also last year, PayPal processed $46 billion in mobile payment volume. The company serves more than 169 million active customer accounts in 203 markets around the world.

  • Hermes weathers storm

    Hermes weathers storm

    Luxury goods retailer Hermes says a slowdown in sales in Hong Kong has been more than offset by solid Japanese trade.

    Hermes International has reported a 22 per cent increase in second-quarter sales as growth in Japan took off, consumers finally opening their wallets on luxury goods after a long season of economic malaise.

    The Parisian company said sales rose to 1.17 billion euros (US$1.27 billion). When currency exchange effects are removed from the result, sales climbed 10 per cent, two percentage points faster than in the preceding first quarter.

    The company says wealthy Chinese are preferring to shop in Japan or Europe, rather than in Hong Kong as goods there are perceived to be cheaper, largely due to favourable currency exchange rates.

    Hermes has seven stores in Hong Kong.

  • Mitsui Outlet mall set for opening

    Mitsui Outlet mall set for opening

    Mitsui Outlet mall, located in Sepang, will finally officially open on July 29.

    The mall commenced trading in May with about 50 per cent of its stores completed. New stores have progressively opened and the first stage of the project is nearly complete.

    Located close to the original Kuala Lumpur International Airport terminal, and alongside a highway, the developers expect it will attract shoppers on stopover and from the nearby cities.

    Mitsui Outlet Park KLIA Sepang is the result of a joint venture (JV) between Mitsui Fudosan Co and Malaysia Airports Holdings. The outlet mall will be managed by the JV company, MFMA Development.

    About 130 stores are expected to be trading by the end of the month, but retailers have been struggling to find staff to work in the mall which is 60km from Kuala Lumpur city and 6km from the airport.

    With Japanese investment, the mall is promoting itself as Japanese-inspired and includes a ‘Japan Avenue’ with traditional arts and crafts, tea and food.

    The developers plan to expand the facility in 2018, as well as 2021, to become the largest outlet mall in Southeast Asia with about 250 stores and floor space of about 44,000 sqm.

    Stores offer luxury and branded products, fashion apparel and accessories, perfumes, cosmetics, confectionery, kids and sports wear, household items and luggage.

    A 24,000sqm foodcourt is included in the first stage of the project.