Retail News CRM

Author: Mei Ling Tan

  • AirAsia X promotes KL-Jeddah route to Indonesians via charter contract

    AirAsia X promotes KL-Jeddah route to Indonesians via charter contract

    AirAsia X Bhd (AAX) has signed an agreement to charter aircraft from sister company PT Indonesia AirAsia (IAA) for 24 return flights between Jakarta and Kuala Lumpur for US$648,000 (RM2.82mil).

    The long-haul, low-cost airline told Bursa Malaysia that the two companies had on Jan 4 signed the charter agreement which summed up to 8,640 seats as a dedicated fly-through connectivity with its current Kuala Lumpur – Jeddah – Kuala Lumpur operations.

    It said the transaction was aimed at promoting the Kuala Lumpur – Jeddah route to Indonesian passengers via the charter and to generate positive returns for AAX.

    “The charter between AAX and IAA shall commence on the date of the agreement and will expire on Feb 29, 2016 or at the end of the extension period as may be agreed by AAX and IAA,” the airline said.

    AirAsia Investment Ltd, a wholly owned subsidiary of AirAsia Bhd, and PT Fersindo each hold 49% and 51% equity interest respectively in IAA. IAA is deemed to be a related party to AAX as AirAsia Bhd’s directors and major shareholders, Datuk Kamarudin Meranun and Tan Sri Tony Fernandes, are also the directors and major shareholders in AirAsia X.

    Last month Indonesia AirAsia launched the inaugural Jakarta-Jeddah flight, which is scheduled to depart twice a week.

    AAX shares closed unchanged at 18 sen on Monday with 6.75 million shares being transacted.

  • Indonesia revising 2018 Asian Games mascot after criticism

    Indonesia revising 2018 Asian Games mascot after criticism

    Indonesia is revising the mascot for the 2018 Asian Games after criticism that the newly unveiled bird-of-paradise looks more like a chicken.

    Gatot Dewa Broto, a senior official at the Ministry of Youth and Sport, said today that the revision should be finalised over the next two to four months.

    The mascot, called Drawa, was launched December 27 and is named after Cendrawasih, the local name of an iconic bird which is only found in Indonesia’s eastern most Papua province, New Guinea, and eastern Australia.

    However, many online critics have said the design makes it look more like a chicken than a bird-of-paradise, while others have said the mascot is out of date or just not suitable for such a major event.

    Lees ook:

  • SPH Media Fund invests in Indonesia-based cashback app Snapcart

    SPH Media Fund invests in Indonesia-based cashback app Snapcart

    Snapcart, a mobile app based in Indonesia, announced today (Jan 5) that it has successfully raised US$1,675,000 (S$2,385,000) pre-series A funding.

    Among this round’s participants are Wavemaker Partners, SMDV, Ardent Capital and SPH Media Fund – the investment arm of Singapore’s leading media group Singapore Press Holdings.

    “I believe we were able to earn the confidence of investors after our early signing with major FMCG brands Nestle and L’Oreal in Indonesia,” said Reynazran Royono, CEO and Founder of Snapcart. “Our pre-launch and launch traction was also amazing with 12,000 app downloads before any marketing campaigns were launched. In a relatively short period we were able to sign more than 35 brands, including brands from Procter & Gamble and Unilever”

    According to Snapcart, since its launch on Sept 2, 2015, the number of downloads has grown to over 150,000, with more than 85,000 monthly active users.

    However, the company aims to achieve 1 million users downloads in less than a year.

    Snapcart will use the capital to develop new products; including engagement video features and analytical dashboard tools. These features will accommodate brands with the platform they need in order to see their consumer behaviours in real-time, as well as to aid brands in formulating their next marketing actions.

    The company is also planning an expansion to at least two other markets in Southeast Asia, starting with the Philippines early this year. Snapcart’s iOS version launch will also be taking place at around the same time.

    “Our first stage of development was focused on mass data collection and user acquisition, activation, and engagement. Now, with over a thousand receipts received per day, we are looking to perfecting the built-in automation system and upgrading the app. In Indonesia, there are many different formats for receipts, even within the same retail franchise, which makes it harder to be automated. This is the hassle that we want to tackle in the next stage.” CTO of Snapcart, Laith Abu Rakty, said.

    “User acquisition is always on the agenda, but now we’re doing it by partnering with FMCG companies and other verticals through a combination of offline activities and online marketing.” added Mr Rey.

    Lees ook:

  • Matahari Department Store ups stake in MatahariMall.com operator

    Matahari Department Store ups stake in MatahariMall.com operator

    Indonesia public listed retail company PT Matahari Department Store Tbk (LPPF) has increased its ownership in PT Global Ecommerce Indonesia (GEI), which indirectly owns stake in e-commerce player MatahariMall.com.

    GEI is the controlling shareholder of PT Sinar Rekata Earth and PT Lenteng Transcontinental. The two subsidiaries are the principal shareholders of PT Solutions E-commerce Global, which operates MatahariMall.com.

    In a prospectus submitted to the Indonesian Stock Exchange, Matahari Department Store said, it has bought 4.4 million shares of GEI valued at Rp 53.14 billion ($3.88 million).

    LPPF exercised its option to buy the GEI shares at a price of Rp 12,065 per share in accordance with the agreement signed granting option rights on August 15, 2015.

    Prior to the transaction, LPPF’s holding was 2.63 million shares in PT GEI or 1.99%, PT Matahari Putra Prima Tbk (MPPA) 2.63 million shares or 1.99%, PT Duta Wibisana Anjaya 5 million shares, or 3.79%, PT Sinar Mustika Dutamas 10 million shares, or 7.58%, PT Investama Digital Venture 111.65 million shares or 84.64%.

    After the transaction (options were exercised), the ownership of LPPF in PT GEI increased to 5.16%, MPPA at 1.93%, PT Duta Wibisana Anjaya 3.67%, Dutamas Sinar Mustika 7.34% and PT Investama Digital Venture 81.9%.

    In the prospectus, Matahari Department Store said that it carried out the transactions because it considers e-commerce as having high growth potential in the country.

    MatahariMall.com, officially launched its operations in September 2015 to tap Indonesia’s growing online retail space.

    Also Read: Indonesia e-commerce Dealbook : Government mulls five-year roadmap, Mataharimall launches online platform

    Indonesia’s MatahariMall ties up with state postal service for O2O push

    Lees ook:

    Lees ook:

  • DBS Indonesia upbeat, eyes higher loan growth in 2016

    DBS Indonesia upbeat, eyes higher loan growth in 2016

    Private lender Bank DBS Indonesia, part of Singapore’s DBS Group Holdings, expects higher loan growth this year compared to 2015 as it predicts an improvement in the country’s economy.

    DBS Indonesia president director Paulus Sutisna said the bank projected that its loans would grow by 12 percent in 2016, higher than the 10 percent booked as of last year.

    According to its financial report, the bank booked loans of Rp 43.4 trillion (US$3.11 billion) as of September, an increase of 9.87 percent year-on-year (yoy) from Rp 39.5 trillion in the same period of 2015.

    “We are more optimistic about this year because the government is holding early auctions and procurements for its spending on infrastructure projects. Such acceleration will help the country’s economic growth,” Paulus said after an event on Wednesday.

    Paulus said acceleration in government spending would boost the real sector, which in turn would increase demand for bank loans, adding that “our growth will depend on the performance of our clients”.

    Given Indonesia’s large population the bank will focus on sectors related to the mass segment such as retail and consumer goods and some types of manufacturing and infrastructure-supporting industries.

    “We’ll still focus on some commodities, such as palm oil, as well as automotive, chemical and pharmaceutical industries,” he said.

    Paulus said the bank was also planning to enlarge its consumer and retail banking as well as small and medium enterprise (SME) portfolios as it still depended mainly on the corporate segment.

    “Corporate banking is dominant now as our retail business is still under 20 percent of our total lending. We hope to divide evenly our consumer and retail banking, SME and corporate portfolios by one-third each, perhaps in the next five to seven years,” he said.

    The government has forecast that Indonesia’s economic growth will reach 5.3 percent in 2016. The country’s GDP growth stood at 4.73 percent for July to September, a slight increase from the 4.67 percent growth posted in the second quarter and 4.72 percent in the first three months of the year.

    Despite the optimism, Paulus said the bank would remain cautious about various challenges in the global economy that still lingered, such as falls in commodity prices and currency volatility, as they would have an impact on Indonesia.

    Challenges in the global and domestic economy also affected DBS Indonesia’s income as it saw losses of Rp 178.9 billion as of September 2015, compared to net profits of Rp 366 billion in the same period last year. However, the bank’s unaudited financial report in November shows that it already started to post net profits of Rp 23.79 billion.

    Paulus said the bank would also invest in internet banking, which was essential to support a bigger consumer portfolio in the future, especially in fee-based income.

    As part of its efforts to grow fee-based income, the bank has enhanced its existing partnership with life insurer Asuransi Jiwa Manulife Indonesia, part of Canada’s Manulife Financial, through the launch of a new single-premium, unit-linked product MiWealth Protection.

    The new product is designed for DBS customers who wish to grow their wealth in order to be financially secure and enjoy their life in retirement. DBS Indonesia consumer banking group director Wawan Salum said the bank expected 20 percent growth in the number of wealth-management customers this year.

  • Bengkulu exports Layur fish to Japan

    Bengkulu exports Layur fish to Japan

    The fisheries cooperative of the Bengkulu city has started exporting Layur fish (Trichiurus Lepturus) to many countries, such as Japan, Taiwan, China and South Korea.

    Layur fish export was started as the fishing season began in November 2015, the Management of Mutiara Laut Coop, Hermansyah, said here on Wednesday.

    “This Layur fish catch depends on the season which lasts for six months, and the species is not available for the rest of the year,” he said at Pondok Besi fish auction, Bengkulu city.

    This fish is obtained from North Bengkulu, South Bengkulu and Kaur districts.

    Hermansyah could export 100 tons of Layur fish per month through the Bandung city, West Java.

    “We use a cold store built by the government for this auction,” he said.

    The coop buys Layur fish from fishermen at prices ranging between Rp15 thousand and Rp36 thousand per kilogram, depending on the size of the fish.

    The demand of Layur fish caught from the Indian Ocean is high because it if of better quality.

    “There are no certain standards in case of this fish. They always accept every lot of the species we send. The problem is actually of the production being low because many fishermen still use traditional fishing gear,” Hermansyah emphasized.

    Layur fish could easily be identified, owing to its flat and long shape.

    Various kind of Layur fish are found in the Pacific and Atlantic Ocean.

    Many people like it because the meat is chewy, not too fishy, not greasy, and it has easily removable bones.

    Lees ook:

    Lees ook:

  • Ramada Bali Sunset Road Kuta Opens in Indonesia

    Ramada Bali Sunset Road Kuta Opens in Indonesia

    Demonstrating strong and increasing interest in its portfolio of brands in South East Asia, Wyndham Hotel Group has introduced a third hotel in Bali, Ramada Bali Sunset Road Kuta, located in the heart of the vibrant Kuta district.

    Formerly the Best Western Premier Sunset Road, the 271-room property is owned by Sun Motor Group and managed by PT Wyndham Hotel Management, an Indonesian subsidiary of Wyndham Hotel Group. Ideally located close to Jalan Legian and popular Seminyak Beach, the stylish guest rooms feature contemporary décor, while suites boast separate living areas. The well-appointed facilities include a rooftop pool, gymnasium, on-site spa, meeting rooms, business centre and two distinct dining establishments.

    “Bali is one of Indonesia’s most popular destinations, attracting close to four million visitors a year,” said Barry Robinson, President and Managing Director of Wyndham Hotel Group South East Asia and Pacific Rim. “With the 2013 expansion of Ngurah Rai International Airport and this year’s four-fold increase in government spending on tourism, we believe it’s a market prime for year-on-year growth.”

    Wyndham Hotel Group is focused on strategic expansion throughout South East Asia as part of its larger global development strategy—especially as it relates to its Ramada brand. The company believes Ramada Bali Sunset Road will become a landmark hotel for visitors.

    President and Commissioner of Sun Motor Group, Imelda Sundoro said “Ramada is a globally known brand with an enviable reputation for offering exceptional experiences in some of the world’s most sought after destinations. That strong recognition, combined with the expertise and resources of a partner like Wyndham Hotel Group, made Ramada the clear choice for us as we look to grow our hospitality developments in Indonesia.”

    All Ramada hotels in Indonesia participate in Wyndham Rewards®, the simple-to-use, revolutionary loyalty program from Wyndham Hotel Group that offers members a generous points earning structure along with a flat, free-night redemption rate.

    Lees ook:

    Lees ook:

  • First passenger drone makes its debut at CES

    First passenger drone makes its debut at CES

    Chinese entrepreneurs bring their one-person craft, which is controlled by tablet and capable of flying 60mph, to the annual technology convention CES.

    A Chinese company claimed a world first on Wednesday by unveiling a drone capable of carrying a human passenger.

    Guangzhou-based Ehang Inc pulled the cloth off the Ehang 184 at the Las Vegas convention center during the CES gadget show.

    In a company video showing the 184 flying, it looks like a small helicopter but with four propellers spinning parallel to the ground in a similar configuration to other drones.

    The electric-powered drone can be fully charged in two hours, carry up to 100kg (220lb) and fly for 23 minutes at sea level, according to Ehang. The cabin fits one person and a small backpack and is fitted with air conditioning and a reading light. It is designed to fit, with propellers folded, in a single parking spot.

    After setting a flight plan, passengers needed only to give two commands – “take off” and “land” – done with a single click on a tablet, the company said.

    The drone is designed to fly 300 metres to 500 metres (1,000 to 1,650 feet) off the ground with a maximum altitude of 3.5km (11,500 feet) and top speed of 63 mph (100km/h).

    US authorities are starting to lay out guidelines for drone use, and a human-passenger drone seems certain to face strict scrutiny.

    Michael Huerta, head of the Federal Aviation Administration, was at CES but could not immediately be reached for comment.

    Shang Hsiao, Ehang’s co-founder and chief financial officer, said his company hoped to sell the device for $200,000-$300,000 this year but acknowledged it occupied a legal grey area. “The whole world never had something like this before,” he said.

    A passenger would have no controls as a backup, he said. The company was planning a remote control centre that would take over the vehicle in the event of a problem and ensure it landed safely.

    Derrick Xiong, the chief marketing officer, said the vehicle had been flown more than 100 times at low altitudes in a forested area in Guangzhou, including several times with a person aboard.

    One feature that made the quadcopter safer than a helicopter was its numerous propellers, Xiong said. Even if three of the four arms had their six propellers disabled, the final arm’s working propellers could ensure a rough landing by spiralling toward the ground.

    The company, which also makes smaller drones, said in August that it had raised $42m in capital from various investors including GP Capital, GGV Capital, ZhenFund and others, after raising $10 m the previous year.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Hong Kong Retail to Reshuffle as Sales Remain Lackluster

    Hong Kong Retail to Reshuffle as Sales Remain Lackluster

    Hong Kong retailers are far from optimistic about sales during next month’s Lunar New Year holiday as retail sales fell for nine months in a row, with a 7.8 percent plunge last November compared to a year ago.

    At the same time, the tourism industry and retail sectors have been adjusting their strategies in the hope of finding a way forward.

    The year-end period is the traditional high season for retailers, however, the latest government data shows that in November last year, sales in most categories recorded a significant drop, with jewelry, watches and clocks, as well as high value gifts continuing to be the hardest to hit.

    This is in line with sluggish inbound tourism, which dipped by 10.4 percent over the same period.

    Hong Kong’s wholesale and retail lawmaker Vincent Fang believes it’s bound to affect employment and the retail landscape.

    “For example, is it possible that I just hire three salespersons instead of four? For chain stores, if the lease expires, and I cannot afford to keep five or six shops, maybe I’ll close one down.”

    Hong Kong Retail Management Association chairman Thomson Cheng is estimating a single-digit percentage sales drop during the coming Lunar New Year holiday.

    “If people in Hong Kong ask for two days off, they’ll have a nine-day holiday, I think they’ll travel overseas. So local consumption won’t be ideal. At the same time, The Hong Kong dollar remains strong, which also makes the price unattractive to tourists.”

    A total of 10 million Hong Kong dollars have been allocated to ten local attractions to help promote them to overseas markets during winter period, but according to tourism lawmaker Yiu Si wing, the measure is not proving effective.

    “The Retail sector has been through a hard time. Tourists from the mainland are selective when consuming, they have a smaller appetite for luxury goods, as well as high-end restaurants. The government is hoping to attract tourists with higher spending capability to fill the gap, but it seems that it is failing to achieve the desired results. ”

    But it is not all bad news. Skyrocketing rents in Hong Kong are declining following disappointing retail performance, which is enabling some stores to expand their network. Digital products and home appliance provider Hong Kong Suning Commerce Groups is one of them. Kim Li is the Operations Director of the company.

    “We have entered the retail winter, but property owners also realize that they cannot keep the current rent based on how many customers we receive. So they reduce rents significantly, some drop by 40 percent. We think we still have opportunity to develop and expand our market with lower costs.”

    To better protect tourists’ interest, Hong Kong’s Travel Industry Council has asked operators to take tour groups only to the pre-registered shops, but industry practitioners are not cooperating and some say they’ll boycott the list.

    For CRI, this is Li Jing in Hong Kong.

    Lees ook:

    Lees ook:

    Lees ook:

  • Canada’s Manulife seeks to revive Singapore REIT IPO this year -exec

    Canada’s Manulife seeks to revive Singapore REIT IPO this year -exec

    Canada’s Manulife Financial Corp is looking to revive a plan to list a real estate investment trust in Singapore this year after an initial public offering (IPO) was shelved last year due to poor market conditions.

    “We’d very much like to bring it back,” Chief Financial Officer Stephen Roder told reporters at the launch of a 15-year life bancassurance partnership with Singapore’s DBS Group Holdings Ltd on Tuesday. He did not give an exact time frame or expected size of any IPO.

    Manulife shelved a nearly $400 million real estate investment trust IPO in Singapore in the third quarter last year citing deteriorating global markets.

    That left BHG Retail REIT as Singapore’s sole REIT IPO last year after several other deals were pulled due to uncertain financial markets and concerns over the impact of a potential U.S. interest rate hike.

    On Tuesday, Manulife and DBS also said they would co-invest up to S$100 million ($70.24 million) over the next 15 years in digital technology and innovation.

    ($1 = 1.4237 Singapore dollars)

    Lees ook:

    Lees ook:

    Lees ook:

  • Hong Kong retail sales figures fall for 12th straight month

    Hong Kong retail sales figures fall for 12th straight month

    Hong Kong retail sales fell 7.8 per cent in November – a drop worse than expected that prompted retailers to draw parallels to 2003, when the city was hit by Sars.

    Thomson Cheng Wai-hung, the chairman of the Retail Management Association, predicted the full-year figure for 2015 would have fallen at least 3 per cent “for sure”.

    When severe acute respiratory syndrome hit in 2003, the city’s full-year retail sales decreased 2.3 per cent. The first 11 months of last year saw a drop of 3.1 per cent year on year.

    And retailers can see no light at the end of the tunnel.

    “We couldn’t see any positive signs that retail would turn around in 2016,” said Cheng. He said most members surveyed by the association expected single-digit declines this year.

    The Hong Kong government also expects a gloomy year ahead. A spokesman said the retail sector would remain weak due to low numbers of inbound tourists.

    Most retail categories saw sales fall in November, with only three areas recording growth.

    Jewellery, watches, clocks and valuable gifts ranked worst, with sales down 20.6 per cent. They were followed by department store goods and clothing, with sales declining 4.8 per cent and 8.6 per cent respectively.

    Supermarket sales did better, rising 1.4 per cent – a rise matched by food, alcoholic drinks and tobacco. Motor vehicles and parts saw a rise of 7.8 per cent.

    Cheng said tourists from the mainland were “crucial” to the city’s retail sector, as they spent substantial portions of their travel budgets on shopping.

    While there has been a steady increase in visitor arrivals from overseas in recent months, Cheng said foreign tourists spent more of their budgets on leisure activities such as sightseeing and food, rather than shopping.

    “They wouldn’t help much on retail sales,” said Cheng.

    Retailers at the Hong Kong Brands and Products Expo also received disappointing sales results yesterday, with total sales standing at HK$900 million, unchanged from last year’s figure.

    Sales at the popular Macau ­baker Koi Kei Bakery declined 20 to 30 per cent compared to last year, according to the man in charge of its booth, Arthur Lee. He said tourists from the mainland used to contribute one-third of the baker’s sales at the expo, but this year had been responsible for less than 10 per cent.

    Meanwhile, the number of visitors to Hong Kong during the Christmas and new year holidays shrank compared to last year. The Immigration Department said visitor arrivals for December 24-27 and December 31-January 3 dropped to 1.46 million, down 2.53 per cent from last year.

    Tourists from the mainland were down 5.45 per cent and overseas visitors fell 1.28 per cent.

    Lees ook:

  • Apple Inc. Continues To Bet Big On China, To Open 29th Store

    Apple Inc. Continues To Bet Big On China, To Open 29th Store

    Apple Inc. continues to bet big on China. It did so last year, and is doing so this year also. The US firm will open its 29th retail store in Shenyang – capital city of Liaoning – on January 9. The store will be in the MixC shopping mall at 288 Qingnian Street in Shenyang’s Heping District.

    Apple is expanding its footprint in China at a very aggressive pace under retail chief Angela Ahrendts, and has opened new stores in Nanning on December 12, Beijing on November 28 and Chengdu on November 21. In 2015, the US firm also opened retail stores in Chongqing, Hangzhou, Hong Kong, Nanjing and Tianjin.

    Apple Inc's Apple Store NASDAQ:AAPL

    Apple’s new store will be open on all five days from Monday to Sunday between 10 a.m. and 9:30 p.m. local time, and will offer traditional Apple Store services. At the same time, it will include the Genius Bar, Workshops, JointVenture, events and seminars. This new store in Shenyang will be the company’s 25th retail store in mainland China, and it already operates four retail stores in Hong Kong.

    Magic fading in China?

    Apple Inc. has been generating huge revenue from China on YoY basis. In the past three years, China has contributed 23%, 41% and 53% to Apple’s total revenue. In fiscal 2015, China for the first time overtook Europe, in terms of revenue. Despite the impressive growth, there are many who believe economic slowdown in the region will impact the iPhone sales.

    However, CEO Tim Cook says there is no issue at all. A few months back, Cook gave reasons for his stance, saying, “if I were to shut off my web and shut off the TV and just look at how many customers are coming in our stores regardless of whether they’re buying, how many people are coming online, and in addition looking at our sales trends, I wouldn’t know there was any economic issue at all in China.”

    But, two indices suggests, that Apple sales in China may not witness the growth it has seen in the last few years. These two indices are – drop in quarter-on-quarter sales in Greater China and an erosion of Apple’s overall market share, said an earlier report from Bloomberg. In the last quarter of fiscal 2015, Apple witnessed a 5.4% drop in revenue versus the prior quarter.

    In the Q2 this year, Apple Inc.’s smartphone market share in the region dropped to 7.7% from 10.8% in the previous quarter, as per the data from Bloomberg Intelligence. This may suggest that Apple’s magic in China may be fading.

    Lees ook:

  • Retail sales slumps 7.8 per cent in HongKong

    Retail sales slumps 7.8 per cent in HongKong

    Hong Kong retail is going on its year-long downturn, with an estimate of total retail deals drooping 7.8 percent to HK$38.1 billion last November contrasted to figures a year before. This is the most noticeable bad month to month execution since January previous year ago, denoting its twelfth consecutive month of turn down.

    The city’s once blasting retail area is on its voyage to record its most exceedingly bad year since 2003 when SARS hit as the value of retail sales in the initial 11 months a year ago fell by 3.1 percent contrasted to the same period in 2014.  Among all the retail classifications, jewellery, watches and clocks and other gifts positioned most exceedingly bad, with deals down 20.6 percent. They were trailed by commodities in retail chains and attire, with deals declining 4.8 percent and 8.6 percent for each.

    Most retail classifications saw sales retreat in November, with just three outlets recording growth: sales of grocery stores; food, mixed beverages and tobacco; and motor vehicles and parts. They extended 1.4 percent, 1.4 percent and 7.8 percent respectively. Alongside the estimation of retail deals, November volumes additionally diminished by six percent contrasted to a year before.  A government representative said the “distinctly” slack retail deals were for the most part tottered by the lull in inbound tourism. Local utilization conclusions were prone to be influenced by a troubling financial viewpoint and late securities exchange remedies, he said.

    Lees ook:

  • Vipshop Stock Slumping as China Trading Halted

    Vipshop Stock Slumping as China Trading Halted

    Shares of Vipshop Holdings are lower by 7.99% to $14.05 on Monday morning, as stocks traded in the U.S. but based in China tumble due to the global stock selloff, spurred by concerns regarding the Asian nation’s economic stability.

    Vipshop is a Guangzhou-based holding company that operates as an online discount retailer for brands in China.

    Weak manufacturing data in China sent the country’s markets plummeting, with the Shanghai index falling by 6.9% and the Shenzhen down by more than 8% before trading was halted on Monday.

    Contributing to the decline in China’s market is a lower than expected Caixin survey, which was released earlier today, CNBC.com reports. The Caixin index is a gauge of nationwide manufacturing activity, with a focus on small and medium sized companies.

    The Caixin December manufacturing PMI was lower at 48.2 versus 48.6 in November.

    Recently, TheStreet Ratings objectively rated this stock according to its “risk-adjusted” total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer’s view or that of this articles’s author. TheStreet Ratings has this to say about the recommendation:

    We rate VIPSHOP HOLDINGS LTD -ADR as a Buy with a ratings score of B-. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company’s strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

    Highlights from the analysis by TheStreet Ratings Team goes as follows:

    • VIPS’s very impressive revenue growth exceeded the industry average of 38.0%. Since the same quarter one year prior, revenues leaped by 54.6%. This growth in revenue appears to have trickled down to the company’s bottom line, improving the earnings per share.
    • VIPSHOP HOLDINGS LTD -ADR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VIPSHOP HOLDINGS LTD -ADR increased its bottom line by earning $0.23 versus $0.09 in the prior year. This year, the market expects an improvement in earnings ($3.48 versus $0.23).
    • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Internet & Catalog Retail industry and the overall market, VIPSHOP HOLDINGS LTD -ADR’s return on equity significantly exceeds that of both the industry average and the S&P 500.
    • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet & Catalog Retail industry average, but is greater than that of the S&P 500. The net income increased by 79.9% when compared to the same quarter one year prior, rising from $27.70 million to $49.83 million.
  • Hong Kong e-money ordinance to boost retail payment market

    Hong Kong e-money ordinance to boost retail payment market

    Hong Kong’s new e-money ordinance will help further develop the retail payment services market in the SAR and enhance public confidence in using such products, according to experts in the banking, financial and legal sectors. However, the high capital requirement for a licensed operator may be a barrier for startups to enter the market.

    The global retail payment landscape is changing rapidly as we see a growing number of new and innovative payment products and services. E-money or stored value facilities (SVFs) is one of them. It allows users to store pre-paid money on smart cards, mobile phones or Internet-based payment accounts and use them to pay for goods or services.

    Apart from banks, non-banks like telecom operators, e-commerce companies, technology solutions providers, FinTech startups and alike are moving into the retail payment market especially in the Internet and mobile spaces.

    New e-money regulatory framework

    Enacted on November 13, the Payment Systems and Stored Value Facilities Ordinance (PSSVFO) puts into effect a new regulatory framework for stored value facilities (SVF) and retail payment systems (RPS).

    Compared to RPS, SVF has aroused interests and concerns among industry players and the public.

    Under the Ordinance, the Hong Kong Monetary Authority (HKMA) is empowered to implement a mandatory licensing system for multi-purpose SVFs. One-year grace period is allowed for existing SVF issuers or new market operators to apply for a license from the HKMA.

    From 13 November 2016 onwards, it will be illegal for any issuers, unless exempted, to issue or operate any SVFs without a license.

    The Ordinance covers both device-based (card-based or physical device-based) and non-device based (Internet-based or mobile accounts) multi-purpose SVFs.

    The only device-based SVF that is already regulated is the Octopus card, which is licensed under the Banking Ordinance. Banks licensed under the Banking Ordinance will be deemed to be licensed to issue and operate SVFs.

    Exempted SVF types include single-purpose SVF such as prepaid cards or loyalty cards; bonus and loyalty point schemes such as airline mileage programs; and SVFs used for purchasing digital products through electronic devices.

    “We started seeing a lot of e-money products — online and mobile, but they were not captured by our regulatory regime. We saw the need to expand the scope to cover those products,” said Li Shu-pui (photo left), head of financial infrastructure development division at the HKMA at the Hong Kong International Computer Conference last November.

    He added, “We carried out consultation with industry players. They wanted us to expand the scheme because they can see the benefit of being regulated by HKMA. It provides confidence to users. As a result we expanded the Clearing and Settlement Systems Ordinance to an amended ordinance which is now called PSSVFO.”

    Lees ook: