Retail News CRM

Author: Mei Ling Tan

  • Indonesia to import 600,000 live cows in 2016

    Indonesia to import 600,000 live cows in 2016

    Agriculture Minister Andi Arman Sulaiman said the government will still import live cows in 2016 to meet domestic requirement.

    Andi gave no detail including number of cows to be imported, but he said “we will import breeder cows that could give birth 10-12 times.”

    However, secretary general of the ministry Hary Priyono said the country would import around 600,000 cows in 2016 to meet domestic consumption of 675,000 tons of beef.

    The ministry and the Board of Logistics have only a stock of 416,000 tons , therefore, the country would need to import 600,000 cows equivalent to 236,000 tons, he said.

    He said there are many cow production centers in the country like East Nusa Tenggara, but buyers prefer to imports because of difficult access to the the centers.

    Last month, a new cattle ship began its regular service transporting live cows from East Nusa Tenggara to Jakarta.

    The KM Camara Nusantara arrived in Jakartas Tanjung Priok port last month with 353 live cows, the minister said .

    With the ship, East Nusa Tenggara began its regular shipments of live cows to Jakarta.

    The 353 male Bali cows were ordered by the state run Board of Logistics (Bulog), the minister said, welcoming the first shipment at Tanjung Priok.

    The live cows each weighing 250-350 kilograms, would produce 125 kilograms of meat on the average, the minister said.

    The minister said the plan was that shipments by KM Camara Nusantara would be made twice every month from East Nusa Tenggara bringing around 150,000-200,000 beef cows a year to Jakarta.

    He said the vessel would also brought in beef cows from South Sulawesi, West Nusa Tenggara , East Java and Lampung to Jakarta.

    He said the target is to change the market structure with 80 percent of beef requirement in Jakarta to be locally supplied.

    So far beef market in Jakarta has been dominated by meat of imported cows mainly from Australia.

    The minister said he hoped the operation of the cattle ship would reduce cow transport and distribution costs in the country.

    The government of President Joko Widodo is set to improve efficiency in the distribution of beef cow by using local cattle ships .

    Transport problem has caused the price to soar making it difficult in shipment of live cows from the regions especially East Nusa Tanggara to Jakarta .

    The availability of the special cattle ship would better guarantee market for cows from the breeding centers and supply of beef with a lower prices in consuming regions, the minister said.

    The KM Camara Nusantara 1 has spaces enough for 500 cows with international standard . It will be busy transporting live cows from production centers in East and West Nusa Tenggara and East Java to the Greater Jakarta area , the largest consuming region in the.

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  • Garuda Indonesia to open direct flight on Shanghai-Denpasar route

    Garuda Indonesia to open direct flight on Shanghai-Denpasar route

    Indonesian flag carrier Garuda Indonesia is planning to start a direct flight between Shanghai, China, and Denpasar, Bali, on January 13.

    “The non-stop flight between Shanghai and Denpasar will operate twice e a week using an Airbus-330 aircraft,” Vice President of Garuda Indonesia for China Region I, I Wayan Subagja, in Beijing, on Tuesday.

    As Bali is the favorite destination for Chinese tourists visiting Indonesia, hence Garuda will continue to increase the number of direct flights to Bali through regular and unscheduled flights.

    Garuda Indonesia also provides regular flights on the Beijing-Jakarta route that operate thrice a week and seven weekly flights each on the Shanghai-Jakarta and Guangzhou-Jakarta routes.

    Since January 2013, the national flag carrier has been operating four non-stop weekly flights on the Beijing-Denpasar route and has also added a new flight on the Guangzhou-Denpasar route at the end of 2015.

    Moreover, Garuda facilitates unscheduled flights for people from eleven Chinese cities who plan on visiting Bali for the Chinese New Year and summer holidays.

    “They still have huge interest to visit Bali due to which Garuda has tried to provide ease and comfort to tourists who want to visit Bali. We also promote other destinations in Indonesia,” Subagja emphasized.

    The opening of flights between several cities in Tiongkok and Bali is expected to support an increase in the number of Chinese tourists to Indonesia, which is targeted to reach ten million people in the next five years since 2015.

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  • Sari-sari stores in Davao City to thrive vs 7-Eleven

    Sari-sari stores in Davao City to thrive vs 7-Eleven

    Philippines’ corner stores called ‘sari-sari stores’ will be affected by growing competition from convenience stores sprouting in Davao City but they will continue to survive, according to a local government official.

    Ivan C. Cortez, officer-in-charge of Davao City Investment Promotions Center (DCIPC), said, in an interview with Sun Star Davao, that the increasing number of 7-Eleven stores in the city will affect small retailers’ sales especially those of the ‘sari-sari’ stores.

    However, Cortez said that ‘sari-sari’ stores will continue to thrive as their market is different from convenience stores.

    ‘Sari-sari’ stores, considered as neighbourhood stores, sell a variety of products in retail from a cigarette stick, shampoo sachets, to a small pack of peppercorn. They are ubiquitous in residential areas and sometimes offer goods on credit.

    The market of 7-Eleven and other convenience stores, on the other hand, are mainly young professionals.

    “7-Eleven is an upscale sari-sari store with 24 hours service, this will have an effect on local sari-sari store, on the survival rate, because 7/11 is getting the bulk the sales,” added Cortez.

    7-Eleven, the largest convenience store chain in the Philippines and operated by Philippine Seven Corp. (PSC), has more than 20 stores in the city.

    PSC aims to open 70 stores in Davao City in June this year and 120 stores by 2018 in the entire region of Mindanao.

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  • Hong Kong retail sales worse than expected in November

    Hong Kong retail sales worse than expected in November

    Hong Kong’s retail sales by value declined for a ninth consecutive month in November, falling by a worse-than-expected 7.8% from a year earlier as inbound tourism slowed further, the Census and Statistics Department said Monday.

    The decline deepened from October’s 3.0% fall, and was more severe than the median forecast of a 6.5% decrease from three economists surveyed by The Wall Street Journal.

    Hong Kong’s 2015 retail sales are expected to suffer their biggest annual decline since the outbreak of severe acute respiratory syndrome, or SARS, in 2003. Retail sales by value for January-November fell 3.1% from a year earlier, steeper than the 2.3% decline recorded in 2003 when tourists shunned Hong Kong for several months during the SARS outbreak.

    Hong Kong’s retail sales by volume fell 6.0% in November from a year earlier, reversing October’s 1.2% rise, and worse than the survey’s median forecast of a 3.2% contraction.

    A government spokesman said retail sales dropped amid weak tourism. “The increased downside risks to the economic outlook and recent stock market corrections might also have resulted in more cautious local consumption sentiment,” the spokesman added.

     

  • How China’s online retail appetite is eating our lunch

    How China’s online retail appetite is eating our lunch

    Commerce Minister Gao Hucheng (pictured) boasts online sales will reach four trillion yuan (US$16 billion) this year.

    China has attained the key targets (outlined in the 12th Five-Year Plan) by the end of 2015 to become a genuine giant trader, Gao said at a national meeting on commerce. As a result it has outpaced its global competitors.

    chinese commerce minister

    China is now home to over 80,000 trade markets and total retail sales of consumer goods would each 30 trillion yuan this year with consumption contributing to about 60 percent of total GDP growth, he added.

    In the past five years, China’s exports of goods grew at an annual average of 6.5%, with its share in the global market rising from 10.4% in 2010 to about 13.2% in 2015, faring much better than major global economies. Service trade grew over 13.6% each year,marking the world’s second largest service trader.

    China’s actual use of foreign capital during the 20102015 period is expected to reach $620billion with the tertiary sector taking over 60% of total foreign capital. Outbound direct investment grew at 14.2 % annually.

    China is expected to receive foreign direct investment worth $135 billion both in financial and non-financial sectors in 2015, according to Gao.

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  • China stocks plunge 7%, activate circuit breaker for the second time

    China stocks plunge 7%, activate circuit breaker for the second time

    Trading in China’s stock markets has been halted for the rest of the day, after a 7 per cent plunge in the blue-chip CSI300 index in the afternoon trading session triggered a circuit breaker mechanism which came into effect on Monday (Jan 4).

    Earlier in the session, trading in both the country’s equity indexes and equity index futures had been halted for a brief 15 minutes, following a 5 per cent decline in the benchmark index.

    The rapid activation of the second trading halt just after 1.30 pm local time indicated “a rise in market volatility” following the first trade suspension.

    “There was uncertainty in the markets. Investors were worried that maybe they might not be able to sell stocks after markets were halted,” Jackson Wong, associate director at Huarong international Securities, said in a telephone interview. “So when markets resumed trade, we saw an acceleration in selling.”

    The fact that retail investors account for nearly 70 per cent of China’s stock-market trading volume also contributed to the rapid selloff.

    “Retail investors are by nature more risk averse than institutional investors.. It isn’t hard to understand why markets legged down hard to the 7 per cent final breaker limit when markets reopened after the first circuit breaker was triggered and halted the market for 15 minutes, as this 15 minutes give a big window of opportunity for investors, mostly retail, to get new sell orders queued into the market,” Gavin Parry, managing director of Hong Kong-based Parry International Trading, said in an email interview.

    For most of Monday’s session, Chinese shares were on the back foot, following a dismal reading from the latest Caixin manufacturing purchasing mangers’ index (PMI) and ahead of the imminent expiration of a share sales ban on listed companies’ major shareholders, according to IG’s market strategist Bernard Aw.

    In addition, the move by authorities to cut the yuan’s value against the greenback on Monday, making it weaker than 6.5 for the first time in more than four-and-a-half years, added to the risk-off sentiment.

    The Shanghai Composite ended down 6.9 per cent, while the smaller Shenzhen Composite nosedived 8.2 per cent. In Hong Kong, the benchmark Hang Seng index was pulled down nearly 3 per cent.

    Mr Aw expects China’s stock markets to remain on a downward spiral on Tuesday. “I’m quite sure that there will be downward pressure tomorrow,” he said. “Circuit breakers only help to stall the pace of declines, but they do not stop the direction of movements.”

    For CMB International’s Strategist Daniel So, China’s A-shares will likely see downward pressure in early trading on Tuesday, but may “turn north by (the) market close” on the back of support from some investors who believe that now is “a good opportunity for bottom fishing amidst panic selling”.

    CIRCUIT BREAKER: BOON OR BANE?

    The idea of a circuit breaker mechanism was first raised by the Shanghai Stock Exchange last September and officially confirmed on Dec 4, 2015.

    Under the mechanism, a move of 5 per cent in either direction from the CSI300 index’s previous close will trigger a 15-minute trade suspension across the country’s stock indexes if the move occurs before 2.45 pm local time. After that, a 5 per cent move will prompt a trade suspension until the market closes at 3.00 pm.

    Moves of 7 per cent in the index will spark a trading halt for the rest of the day.

    The introduction of a circuit breaker seems to have sparked more unease among Chinese investors, despite its good intentions of limiting market volatility, according to Huarong’s Mr Wong.

    “Investors are just getting used to the new mechanism. After they get used to the idea, it may not be as bad,” the Hong Kong-based analyst said. “But to be honest, 5 to 7 per cent swings is very normal for China’s markets so while the stock market circuit breaker is introduced with good intentions, it might not be a good idea given the experiences of Chinese investors.”

    On the other hand, IG’s Mr Aw believes that investors should look beyond the short-term repercussions as the new mechanism will bring China’s markets more in line with international standards.

    The circuit breaker system will also “complement” the current 10 per cent daily limit rule which is usually limited to only “a handful of stocks”, he noted.

    Under current rules, individual stocks and index futures in China are allowed to rise or fall a daily maximum of 10 per cent from the previous closing level. Trading of a stock stops when it hits the daily maximum allowable limit.

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  • Government stuck in past in retail shop payment systems

    Government stuck in past in retail shop payment systems

    Mr. Park, a 50-year-old manager of a coffee shop in Yeouido, western Seoul, recently bought an integrated circuit (IC) card reader for 400,000 won ($343). Last summer, the country’s financial authority required shops to use them so customers could pay with credit cards with an IC chip embedded in them.

    However, as more locals use the Samsung Pay mobile payment system, IC card readers are fast becoming dinosaurs. The card reader that Park bought recently does not have ability to process Near Field Communication (NFC) payment system. If Apple decides to expand its mobile payment system in Korea, shops will have to buy new card readers with NFC capabilities.

    “I don’t understand why the government told us to buy the new card reader so early in the transitional process,” Park said. “They could have waited until the different mobile payment systems were established.”

    Many industry insiders are critical of the financial authority forcing shop owners to buy IC card readers in July. They say the government is behind in the latest technological trends.

    The government’s decision came after an information leakage scandal last February. Financial authorities believed that it was safer to use cards with IC chips compared to traditional magnetic strips, which are thought to be more vulnerable to financial crimes, including card duplication.

    Due to the government’s decision, approximately 2.47 million credit card company affiliates, or 95 percent of the total 2.6 million stores, were forced to buy the new card reader. The credit card companies chipped in 100 billion won to support their affiliated stores.

    Unfortunately, Samsung Pay, which Samsung Electronics introduced in August, turned the market upside down. Samsung Pay can work with cards that have magnetic strips and allows its customers to secure their identities with fingerprint recognition authentication.

    Samsung Pay users have grown significantly thanks to its ease and safety. Samsung Pay does not require stores to have IC card readers.

    “We did not consider Samsung Pay prior to commercializing IC card readers,” said a representative for the Financial Supervisory Service (FSS). “We intended to adapt the magnetic payment system just in case IC chips run into trouble.”

    IC card readers currently cannot process NFC. The payment system enables a portable device such as a smartphone to establish radio communication with the card readers nearby. Currently, Google’s Android Pay and Apple’s Apple Pay are using this system. Samsung Pay has NFC payment systems in its smartphones as well.

    The financial authority failed to include NFC payment systems in the new IC card readers because there was discord between the major credit card companies. Hana and BC agreed to adapt the system while others were unwilling due to extra charges the companies would have to pay mobile service providers.

    Some industry insiders argue that a lack of government’s efforts further complicated this situation. “Financial authorities failed to ease or mediate the tension between credit card companies,” said a representative for a credit card company.

    Many worry that store owners will have to pay another 100,000 won or so for a new card reader if NFC gets popular.

    Moreover, Kakao Bank and K-Bank – the first two Internet banks in Korea – are expected to open next year and shake up the existing payments market. They would not require any type of credit card readers in transactions. Customers could pay directly using their registered banking accounts, which would save them transaction fees as well.

    Experts recommend the government consider upgrading the existing card readers to enable mobile transactions.

    “As the credit card industry develops rapidly, we also need to adapt to new technologies such as NFC as fast as possible,” said Kim Jong-hyun, a senior researcher at Woori Finance Research Institute.

    “As of now, more people use traditional plastic credit cards, and we need to prioritize them in our policies,” said a representative at the FSS.

    BY LEE TAE-KYUNG [kim.youngnam@joongang.co.kr]

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  • Hong Kong must boost efforts to weed out malpractices that hurt city’s tourism industry

    Hong Kong must boost efforts to weed out malpractices that hurt city’s tourism industry

    Blacklisting unscrupulous operators in an industry is a common practice. But convenience and inadequate supervision mean the bad apples can easily reinvent themselves by re-registering under a different company name. Amid growing concerns over mainlanders tricked into signing up for compulsory shopping trips to Hong Kong, the Guangdong authorities have rightly introduced an unprecedented measure – honouring good travel agencies by putting them on a “red list”. This has also prompted the local travel industry to put its own house in order. Starting from last Friday, tour guides are required to wear identify badges at work. More spot checks at tourism and shopping outlets will also be carried out, followed by warnings or points deduction under the existing licensing regime.

    Against the backdrop of a deepening decline in tourist arrivals from across the border, the measures are essential. But they are not a panacea. The so-called “forced shopping” and “zero-fee” tours are supposed to be banned under regulations adopted by the national tourism authority in 2103. But lucrative returns means some are willing to risk acting outside the law. The use of “coupons” to attract customers to sign up for low-cost tours is just one of the many tricks to get around the ban.

    The red list scheme is a first on the mainland. To succeed, accreditation needs to be stringent. It would be meaningless if every travel agency made it to the list.

    Forced shopping would not be possible without the help of tour operators and stores in Hong Kong. The local retail and tourism industries should also do their part to help weed out such malpractices. But this is easier said than done because the financial and business interests of so many are at stake.

    But what is most at stake is the lifeline of the city’s tourism industry. Growth in arrival numbers has already slowed as mainland tourists venture into more exotic foreign destinations. The red list will not necessarily boost our tourism industry. But transparency can help consumers make informed choices and malpractices can hopefully be confined to the dustbin of history.

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  • TPP and RCEP ‘will be good for Thailand’

    TPP and RCEP ‘will be good for Thailand’

    In an interview with regional media, he said Thailand should benefit from joining both trade blocs as the RCEP’s centre points are China, Japan and India, while the TPP is spearheaded by the US and Japan, with Thailand’s automotive industry among the potential gainers for exports to the huge TPP markets.

    The RCEP is the extended trade bloc of the AEC, with a combined economy worth US$2.6 trillion (Bt83.8 trillion).

    Incalcaterra said the AEC, which ushered in a new era at the start of this year, would lead to more effective flows of capital and trade in services, in addition to the freer flow of goods.

    However, he said trade in services was more difficult due to non-tariff barriers, but the situation should now continue to improve as member countries hope to achieve their liberalisation goal in 2025.

    Within the AEC area, he said, the “single window” facility for cross-border trade had lowered transaction costs, while global supply chains had benefited from cost savings in the area’s single production base.

    However, the economist said Asean countries needed more political will to further integrate the member states and boost foreign direct investment from outside the region, while implementing structural reforms to boost auto and other industries, as well as infrastructure investment projects using the public-private partnership model.

    Regarding the TPP, he said, the 12-nation trade bloc should complement the RCEP of the Asean countries plus their partners – China, India, Japan, South Korea, Australia and New Zealand – as more free trade was better for the region.

    “In the AEC, Thailand is among those at the forefront with a head start due to its large consumer market, big auto industry, et cetera, hence many Thai firms can take advantage [of the opportunities],” he said, adding the country’s political challenge has, however, hindered the economy in the past one or two years.

    In addition to Thailand, he said, other Asean countries such as the Philippines and Indonesia were moving towards joining the TPP trade bloc over the next two years.

    In the case of Thailand, there are clear benefits in joining the TPP in addition to the RCEP, he added.

    At present, Singapore, Vietnam, and Malaysia are already members of both the RCEP and the TPP.

    For this year, Incalcaterra said Thailand’s economic growth rate would likely remain the lowest among Asean countries, with HSBC projecting 3.3-per-cent expansion.

    China’s slowdown will affect Thailand and Malaysia significantly, due to the two countries’ large share of exports to China, where growth this year is projected to be less at 6.7 per cent, against 7.1 per cent in 2015, he said.

    On the US Federal Reserve’s interest-rate hike – the first in nine years – the economist said the move would create short-term volatility, but the gradual cycle of rate adjustments would not lead to a major disruption.

    Meanwhile, Hai Pham, HSBC’s chief executive officer in Vietnam, said there was plenty of room for intra-trade growth among Asean economies, which currently represented only 20 per cent of their total trade, compared to more than 60 per cent among members of the European Union.

    He said cross-border investment was another high-growth area for Asean companies, citing Thailand’s Berli Jucker and other firms as examples of Asean firms investing in Vietnam’s retail and electronic-goods sectors.

    For Vietnam, GDP growth is projected to be around 6-7 per cent this year, but the challenge is for local businesses to step up their efforts to meet the challenges presented by the AEC, as many are still not ready to take on increased competition.

    The CEO also expects more consolidation of companies in Vietnam in 2016, due to the coming into effect of the AEC.

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  • Starbucks app debuts on the Samsung Gear S2 smartwatch in Korea

    Starbucks app debuts on the Samsung Gear S2 smartwatch in Korea

    Starbucks Coffee Korea launched in November the new Starbucks app on the Samsung Gear S2 smartwatch in South Korea. 

    Through the  app, customers can track their My Starbucks Rewards status and pay for Starbucks purchases directly from the wearable device, a first in Asia.

    “We’re pleased to make the Starbucks digital experience convenient and rewarding for our customers,” said SJ Paik, chief marketing officer, Starbucks Korea. “This new Starbucks app for the Gear S2 smartwatch reflects Starbucks continued commitment globally to lead, innovate and connect with customers using mobile technology.”

    With the circular design of the Samsung Gear S2 smartwatch, Starbucks fans can access uniquely designed Starbucks smartwatch face designs, such as the My Starbucks Rewards cup icon design.

    The Starbucks smartwatch face designs were specially created by Starbucks and it said new designs will be regularly available on the Samsung Gear S2 Manager app to bring even greater personalization to the mobile Starbucks experience.

    Samsung launched the Gear S2 smartwatch in the market last September.

  • Singapore needs to boast about its entrepreneurial success

    Singapore needs to boast about its entrepreneurial success

    Singapore and London can use more “buzz” to promote their technology ecosystems to the world – though each is already an innovation and finance hub in its own right, said Eileen Burbidge, the UK government’s first Special Envoy for FinTech, and venture capital partner at Passion Capital.

    “Tech is a noisy industry, just look at (what’s happening on) Twitter,” she told BT in an interview. While the buzz can be a distraction, it is legitimate when “something happens”, she said, which in the startup world could entail a successful fundraise, an exit, or even a favourable review of a new product.

    But compared to Silicon Valley, London and Singapore are “not boasting enough” about their entrepreneurial successes, said Ms Burbidge. And investors care for buzz, which can also spur ambition and competition among entrepreneurs, she added.

    Asked why London is excelling as a fintech hub, she said: “London combines the innovation of Silicon Valley with the financing heritage of New York’s Wall Street and the policy-making of Washington – all in one city.”

    Plus, the UK government genuinely supports entrepreneurship, she pointed out. “The 2007/2008 financial crisis crippled London’s services industry, and London doesn’t want to go through that again. So the government encourages companies to embrace innovation, and recognises that this is an ecosystem.”

    For instance, the UK now leads the world in equity crowdfunding, an industry that has matured and burgeoned owing to “progressive” policy-making by regulators, said Ms Burbidge. Retail investors in the UK are allowed to invest in companies in exchange for shares – an act reserved only for accredited investors elsewhere – though they must certify that they are not committing more than a 10th of their net investable assets.

    While the US is reportedly following the UK’s lead, other countries, such as Singapore, remain wary. Said Ms Burbidge: “It’s tricky. Singapore is being more protective (of its retail investors) and is still testing the waters . . . It’s got to let it happen and see how it pans out.”

    Policies and standards should not be enemies of innovation, according to Steve Leonard, executive deputy chairman of the Infocomm Development Authority of Singapore (IDA).

    He had pitched this last December to an innovation festival audience at unBOUND London 2015, an event that observers said capped off a good year of fraternising between Singapore and London, the two cities having forged stronger synergies in tech and entrepreneurship.

    unBOUND, for instance, was organised by Singapore- and London-based tech conference producer AcreWhite, and supported in great measure by Singapore companies, which include Singtel Innov8, NUS Enterprise, IDA and IDA’s venture arm Infocomm Investments (IIPL).

    Jeremy Basset, head of the Unilever Foundry and a speaker at unBOUND, pointed out: “Just as Singapore is the hub to test interesting opportunities and business models for South-east Asia, London is the gateway to Europe.”

    For that reason, the London-based corporate innovation platform, which connects startups to Unilever’s over 400 consumer brands, in January 2015 set up shop in Singapore – its fourth market after the UK, Australia and the Philippines.

    Entrepreneur First (EF), another London-based initiative, a “pre-idea, pre-team” startup accelerator that finds and grooms the best technical individuals into entrepreneurs, is also considering a launch in Singapore.

    Co-founder Alice Bentinck said: “I visited Singapore (in 2014) and was impressed. There are good universities and good technical talent. The startup ecosystem is also in its nascent stage like where Britain was three years ago.” Last July, EF raised £8.5 million (S$17.7 million) in a funding round in which IIPL participated.

    Then there was the 2015 Founders Forum (FF) Smart Nation Singapore launch in April, organised by IDA and FF (a London-based private network of tech entrepreneurs) to invite global tech influencers to join Singapore in discussions on Smart Nation. That had been FF’s first meeting in Asia.

  • After Indonesia, dating app Spotted eyes Malaysia and Thailand

    After Indonesia, dating app Spotted eyes Malaysia and Thailand

    The German dating app Spotted is out to woo Southeast Asian users. Dating apps have become relatively widespread in Indonesia, with Germany’s Spotted merely the latest aiming to carve out a piece of the pie.

    Having entered Indonesia in October 2015, Spotted is now eyeing Malaysia and Thailand as its next two Southeast Asian markets, its optimistic outlook fuelled by its US$14.5-million (RM62.6 million) Series A round in August 2015.

    That investment round, which involved Media Ventures, Wolfman Holdings, and a Deutsche Balaton affiliate based in Heidelberg, Germany, brought Spotted’s total funding to US$15.3 million to date.

    “Once we get the funds from our investors, we want to expand to Asia and other parts of the world,” its business development head Andre Sierek told via email.

    “However, at this moment our focus is first on Southeast Asia, especially Indonesia, as well as Malaysia and Thailand in 2016,” he added.

    After its founding in 2013, Spotted initially targeted German-speaking countries such as Austria, Switzerland and North Africa, describing its product not so much as a dating app but a “social discovery” app.

    The hyper-local app helps users meet again with others they have met before. For instance, if you met someone in a café and are interested in them, Spotted will help you meet up with them again.

    According to Sierek, Spotted currently has one million users across the world, with its app being downloaded 10,000 times daily.

    To increase its user base, it realised it could not depend on just the European market – which explains its Southeast Asian foray, and Indonesia being established as its launchpad.

    Sierek said Spotted’s internal research found that people in Southeast Asia were enthusiastic users of social and dating apps.

    Two months after launching in Indonesia, the app had been downloaded by 15,000 users.

    “Our users in Indonesia really like our app, and they mostly like our ‘anonymous love notes’ feature,” said Sierek.

    Content localisation

    Moving from a German-only market to the diverse Southeast Asian region has not been easy, Sierek admitted. It had to tweak its content to cater to the local market and local language.

    “Our main challenge would be building the local user base, as well addressing the different needs of each market in the region,” he said.

    Although it has not established an office in Indonesia yet, Spotted has formed a partnership with a local company, mainly to localise its content and conduct online promotions.

    “We will use the same approach for the Malaysian and Thai markets — that is, cooperating with local companies,” said Sierek.

    He said the company does intend to open an office in Southeast Asia, as well as one in San Francisco, sometime this year, although he did not elaborate on which Southeast Asian country would house this office.

    Not a ‘booty call’ app

    Spotted was founded by Nik Myftari, Nicolas Amann, Christian Kapp, Alexander Pelz, and Tung Nguyen, who met as students at the University of Heidelberg in Germany.

    Its goal is “revolutionise” the way people connect to others, by giving them a second chance to form a relationship.

    “Spotted is not a dating app that brings random people together,” said Sierek.

    “The concept is more like a time machine – it brings together people who have actually met before, but did not have the time or opportunity then to follow up on a relationship.

    “Our approach is unique, and focuses on establishing serious relationships and finding true love,” he declared.

    The app’s main function, called “Deja-Vu,” allows the user to “see” people who once crossed his or path – say, at a restaurant or while travelling. The user can use the “Wink” function to hail that other person, and if that person is interested, he or she can send a “Wink” back in response.

    From there, they can go on to private online chatting or messaging.

    Users can also send anonymous love letters or notes if they are looking for potential partners – but only with people they have met before and not random partners, Sierek emphasised.

    Users must turn on the location-based feature on their smartphones so that Spotted can accurately record the location and date where users might have met their potential partners.

    “The more users, the more opportunities to record people who have crossed our paths,” he added.

     

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  • Singapore’s Migme snaps up Shopdeca Indonesia

    Singapore’s Migme snaps up Shopdeca Indonesia

    Singapore digital media company Migme is to buy Shopdeca Indonesia.

    Shopdeca sells a curated range of lifestyle products online through two websites: shopdeca.com andsportdeca.com.

    The move buys Migme a gateway into the neighbouring Indonesia market – as well as boosting the Migme executive team and Shopdeca.com founder Andreas Thamrin will joing Migme as global head of eCommerce once the deal is settled during the first half of 2016.

    Migme CEO Steven Goh said the acquisition would give the company valuable local Indonesia market expertise.

    “We look forward to the acquisition being a positive contributor to group results in 2016.”

    In January this year Migme bought Sold.sg after listing on the ASX last year. It owns the chat app LoveByte and a share in MatchMe.

  • Malaysians sell Singapore mall

    Malaysians sell Singapore mall

    Malaysia-listed DRB-Hicom and minority partner investors are selling at property at Little India which will be converted into a mixed use development including a multi-storey shopping centre.

    The property, previously named Tekka Mall and now known as The Verge, is located opposite the Tekka Centre in Serangoon Rd and has been on the market for a year.

    Heritage Group, headed by Keith Tang, the grandson of the late Tang Choon Keng, who founded Tangs department store, has spent $317 million to buy the site.

    Heritage owns a network of luxury hotels and serviced apartments in Australia and New Zealand and this project will be the company’s first in Singapore.

    DRB-Hicom stands to record a gain of about MYR427.5 million (S$139.4 million) from the sale of the Little India mall.

    The property comprises two blocks: The Verge, a six-storey shopping mall with two basement levels; and adjoining block Chill@The Verge, an eight-storey building with two storeys of retail units and a six-storey car park. The two buildings boast a combined 238,527 sqft of retail GFA.

    Leslie Ang, a spokesman for Mr Keith Tang, told the Straits Times Tang plans to redevelop the property into “Studio by Tang” serviced apartments, a mall and a “Signature” block which is likely to be offices or retail space.

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  • International Housewares profit slumps

    International Housewares profit slumps

    Hong Kong listed retailer International Housewares has reported a 52.6 per cent slump in profits in the first half year, despite improved sales in key markets.

    The company reported a seven per cent same store sales growth in Hong Kong in the six months to October. Macau revenue rose 16.6 per cent to HK$18.7 million, with same store sales up 2.5 per cent.

    But despite a healthy 6.6 per cent increase in total group sales to $960.4 million, the listed retailer reported a 52.9 per cent fall in profit attributable to shareholders, to just $21.1 million (down from $44.8 million during the same period last year) – a decline flagged in a profit warning in early December.

    It said the decrease was mainly the result of increasing operating costs across the group, weak consumer sentiment in Singapore and Malaysia and an exchange loss arising from the depreciation of the Renminbi fixed deposit.

    International Housewares trades under the retail banners Japan Home Centre (JHC), City Life and Epo Gifts and Stationery. It ended October with 368 stores worldwide, in Hong Kong, Singapore, Malaysia, Mainland China, Macau, Cambodia, Indonesia, Saudi Arabia and New Zealand.

    Despite Singapore’s stagnant retail market, International Housewares reported growth there of 9.6 per cent on a local currency basis, compared with a 6.9 per cent fall in the corresponding period last year. Same store sales grew 0.3 per cent compared with a 6.9 per cent decline last year, reflecting “conservative consumer spending patterns”.

    In Mainland China, sales decreased 11.6 per cent in local currency terms to HK$2.28 million, but comparable store sales growth was a healthy 40.4 per cent, reflecting the closure of underperforming stores.

    And in west Malaysia, revenue was down 46 per cent in local currency; same store sales were down 19.3 per cent.

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