Author: Mei Ling Tan

  • Digital Push In China: Can This Impact Starbucks’ Revenues In The Region?

    Digital Push In China: Can This Impact Starbucks’ Revenues In The Region?

    Recently, Starbucks Corporation China announced the opening of its first online store in China’s popular ecommerce site, Tmall, which will feature unique and specially designed e-cards, Starbucks cards and coffee vouchers providing an easy gifting option. [].While this initiative is part of the company’s increased focus on digital presence, it could tap into the significant growth of retail ecommerce in China. According to eMarketer, retail ecommerce sales in China are projected to grow at more than 30% each year, over the next three years and reach more than $1500 billion by 2018. []. While mobile is expected to account for nearly half of the total ecommerce sales in China in 2015, this figure is expected to increase to 70% by 2019. []. We believe Starbucks’ ecommerce initiative in China should benefit from the growing internet users in the region and the online shopping habits of Chinese consumers.

    More Than 16% Of Total Retail Sales In China Through Ecommerce By 2018

    It is estimated that in 2015, ecommerce sales will account for nearly 7% of the total retail sales in the U.S., while this number is much higher at 12% for China. By 2018, it is estimated that these figures will increase to nearly 9% for the U.S. and more than 16% for China.

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    Given the preference of Chinese consumers towards online shopping, we believe Starbucks’ initiative to expand its digital presence in the region is the right strategy.  China is a growth market for Starbucks. For the fiscal year 2015, comparable store sales in the China Asia Pacific region grew by 9% compared to a 7% number for the Americas. This growth was driven by a 8% increase in traffic while the corresponding number for Americas was 3%. []. The company plans to double its store count in the China Asia Pacific region to 10,000 stores in the next five years, with the store account in China projected to be 3,400 by the end of 2019. As the Chinese economy shifts from an export focussed industrial region to one relying on services and domestic demand, we believe Starbucks will benefit from this trend with the urban middle class increasing and becoming well off. With aggressive expansion plans in China, which the company expects will be its biggest international market; we believe the ecommerce entry could drive growth in the region and also provide a boost to the Starbucks loyalty program.

     

  • Indonesia’s E-commerce Industry to Double Its Earnings Next Year

    Indonesia’s E-commerce Industry to Double Its Earnings Next Year

    Indonesia’s e-commerce industry is projected to rake in Rp 20 trillion ($1.46 million) next year, double this year’s estimate of Rp 8 trillion to Rp 10 trillion as Internet and smartphone penetration in Southeast Asia’s largest economy continue to rise, according to an industry group.

    Daniel Tumiwa, chief of the Indonesian E-commerce Association (idEA), noted that the country’s ever-expanding pool of middle-class consumers has provided a significant boost to its e-commerce sector, estimating that the number of online shoppers could reach 10 million next year. The continued rise of smartphone usages across the country will also bolster growth, he added.

    “The e-commerce industry is already becoming one of the pillars of Indonesia’s economy,” said Daniel, who’s also chief executive of marketplace platform OLX.com.

    Indonesia is forecast to see some 34 million smartphones shipped into the country by the end of this year, up 21 percent from an initial 2015 forecast of 28 million units, according to information technology research firm International Data Corporation (IDC).

    MatahariMall.com CEO Hadi Wenas separately added that online retail has great potential in Indonesia, forecasting the industry to contribute up to 5 percent of the economy by 2020 from the current 0.7 percent.

    “Since it was first introduced in Indonesia, the industry has continued to grow and it will grow bigger going ahead,” he added.

  • 2015 Indonesia’s blossoming fashion scene

    2015 Indonesia’s blossoming fashion scene

    The year 2015 has been special for Indonesia’s fashion scene — thanks to the rising popularity of local brands.

    Throughout the year, new fashion labels have been popping up, while fashion events have continued to be a paradise for fashion enthusiasts looking for trendy fashion products.

    Fashion observer Diaz Parzada said that this year the country had seen a phenomenal wave of ready-to-wear fashion, which became the main focus of many designers and brands.

    Ready-to-wear has been thriving for the past two years due to its ability to reach a wider audience, and of course, to generate profit.

    “This is a breakthrough as designers are not just people who make clothes but also professional business players that have many doors through which to distribute their works,” said Diaz, who is also the advisor for designer mentoring program Indonesia Fashion Forward and the business development director at the British Council.

    Veteran designers like Biyan Wanaatmadja and Sebastian Gunawan were the first to tap into the ready-to-wear industry, and many young designers are now following their lead.

    Young couturier Tex Saverio, who is known for his high fashion pieces, is one example.

    He launched his second ready-to-wear line, TXID, earlier this year after receiving good responses to his first ready-to-wear line, Tex Saverio Jakarta, and his collaboration with a couple of foreign online ready-to-wear brands.

    “Through ready-to-wear, I want to promote Indonesian fashion to the world. In addition to that, I want to educate the Indonesian market, to teach them that a fashion house should not have only one line,” Tex said.

    Many celebrities and fashion lovers also set up their own fashion ventures this year, offering fashion products at more competitive prices through various online platforms or fashion bazaars.

    However, that online phenomenon has also made the executive director of the Indonesian Fashion Designers Association (IPMI), Tri Handoko, concerned about a paucity of strong design characteristics differing from one brand to another.

    “Most of those new brands offer similar designs; their lookbooks are even similar with no distinct identity visible in their collections,” he said.

    “On one hand, that movement shows support for local fashion, but on the other hand, the creativity level is stagnant to some extent.”

    From left : Obin (JP/Don), Norma Hauri (Courtesy of Jakarta Fashion Week), Major Minor with Eko Nugroho (JP/Don)

    Diaz also voiced the same concern, saying that some designers had shared with him that their designs had been copied by many online fashion sellers.

    “Like it or not, designers have to accept it. But moving forward, they must explore more creative ideas for their new designs while creating powerful campaign strategies to build strong fashion brands,” he said.

    Another highlight of the year came from Muslim fashion, better known nowadays as modest wear.

    Earlier this year international retailers Uniqlo, from Japan, and Sweden’s H&M, launched a campaign to promote modest wear, moves that have been greatly welcomed by Indonesia’s hijab communities.

    Modest wear designer Norma Moi said that 2015 had been a good year for her business and she had recorded a steady increase in demand.

    “My profit increase has been in line with the increase in my resources — around 40 to 50 percent,” Norma said.

    The thriving business of modest wear in Indonesia has prompted the government to aim to make the country the center of Islamic fashion by 2020.

    It is not an ambitious goal, so long as designers continued to innovate.

    “We have to keep innovating and always be creative, making our designs interesting and unique, if we want to be the center of Muslim fashion,” she said.

    But to really realize the plan, the government must also participate by providing designers with proper production supplies, such as materials.

    Norma said many designers, including her, still used imported fabrics due to the quality and availability.

    “There are local textile producers that also make fine fabric, but most of them only want to sell to big retailers that buy in bulk. We don’t have the capacity to make our own fabric yet, so we have no choice but to import,” she said.

    “The producers and the government should understand that there’s also us in this fashion business, not only big retailers.”

    Though modest wear recorded a strong performance this year, other designers saw lower sales from the middle of the year forward.

    Tri said that his business was declining as it entered the second semester, blaming the slowing economy as a key factor.

    Another designer, Sapto Djojokartiko, echoed him, saying that he also saw slower sales in his mid-priced pieces.

    “I’m not sure about the cause, but I have prepared some strategies to improve the whole business next year,” he said.

    As 2015 moved toward the end, Indonesia’s fashion scene was shocked by the resignation of seven senior members of Association of Indonesian Fashion Designers and Entrepreneurs (APPMI), including the chairman who is also the president director of Indonesia Fashion Week (IFW), Ali Charisma, Deden Siswanto and Lenny Agustin.

    Different visions to those of the association is reportedly behind their resignations. As a consequence, those who replace the steering committee of IFW have their work cut out for them to ensure the continuation of IFW early next year.

    “The resignation of APPMI leading members should be a cause for reflection for our fashion scene; what form of fashion association fits the situation today? Or is it still important to have such an association? Regarding whether it will impact our fashion scene or not, we have to wait and see,” Diaz said.

    In 2016, Indonesian fashion products are predicted to remain favorites for fashion enthusiasts who have developed more pride in wearing local designs.

    Indonesian designers will continue to wow the international fashion audience next year as some will participate in prestigious fashion events, such as London and Paris Fashion Weeks.

  • Seoul shares edge up on pharmaceutical, retail gains

    Seoul shares edge up on pharmaceutical, retail gains

    South Korean stocks rose marginally high on Tuesday, propped up by rallies in pharmaceutical and retail companies. The local currency lost against the greenback.

    The benchmark Korea Composite Stock Price Index (KOSPI) added 2.25 points, or 0.11 percent, to end at 1,966.31. Trade volume was thin at 394.49 million shares worth 3.76 trillion won (US$3.21 billion), with winners beating losers 461 to 368.

    The market started lower and moved in and out of positive terrain. Propping up the market are individual investors who picked up about 265 billion won worth of shares, while institutions and foreign investors remained net sellers.

    “The mood remained subdued in the KOSPI market as investors locked in taking profits from gains prompted ahead of the ex-dividend date when shares lose the right to receive dividends,” said Kim Hyung-rae, a KDB Daewoo Securities analyst.

    Large-cap shares ended mixed, with pharmaceutical companies leading the upward move.

    No. 1 drug maker Hanmi Pharm jumped 14.46 percent to 736,000 won, while Green Cross gained 4.91 percent to 181,500 won. Furniture maker Hansem surged 6.73 percent to 238,000 won.

    Banking and steel issues weighed on the market. The Industrial Bank of Korea shed 5.26 percent to 12,600 won, while steelmaker POSCO fell 3.69 percent to 169,500 won.

    Telecom giant SK Telecom plunged 6.52 percent to 215,000 won following media reports over the SK Group chairman’s planned divorce with his long-estranged wife, which prompted uncertainty over its corporate governance.

    The local currency ended at 1,169.6 won against the greenback, down 4.2 won from Monday’s close.

     

  • Indonesia’s Tourism Growth Exceeds Target

    Indonesia’s Tourism Growth Exceeds Target

    Tourism Minister Arief Yahya said that the tourism sector had contributed 4.23 percent to Indonesia’s gross domestic product (GDP). The number exceeds the four percent target set by the government. As for labor absorption, the sector managed to absorb 12.16 million laborers from the intial target of 11.3 million.

    “Overall, policies in the tourism development in 2015 were on track and we could achieve our targets,” said Arief Yahya on Wednesday, December 30, 2015.

    Arief estimated that Indonesia’s tourism growth by the end of 2015 could reach 5.81 percent, which is higher compared to other ASEAN countries, such as Malaysia, which experienced negative growth of 9.43 percent from January to June 2015.

    Singapore and Vietnam also suffered negative growth from January to October 2015 with 0.09 percent and 1.27 percent, respectively. Thailand, on the other hand, experienced 22.34 percent growth from January to November 2015.

    “From our major tourist destinations compared with those in neighboring countries, we can see that Indonesia has a large tourism potential, but it hasn’t been fully harnessed,” said Arief.

  • Indonesia’s Muslim women hail female-only motorbike taxis

    Indonesia’s Muslim women hail female-only motorbike taxis

    Female motorbike taxi drivers in headscarves zig-zag through heavy traffic in the Indonesian capital Jakarta, the latest two-wheeled transport service for women making a dent in the male-dominated world of ride-hailing apps in the Muslim nation.

    A flurry of new motorbike taxi options have in the past year appeared in the metropolis of 10 million, led by popular service Go-Jek, giving Indonesia’s growing middle class a greater choice of transport to get through some of the world’s worst traffic jams.

    The services — many inspired by ride-sharing app Uber and accessible on smartphones — are a challenge to traditional motorbike taxis in Indonesia, known as “ojeks”, which are ubiquitous but have drawn criticism with their dishevelled, dangerous drivers and unpredictable pricing.

    Several services with women drivers entered the market in 2015 after years of growing piety in Indonesia, which has the world’s biggest Muslim population, and amid heightened safety concerns following reports of attacks on women by male motorbike taxi drivers.

    Popularly known by its nickname “Ojesy”, it is the service that aims most clearly at devout female passengers, requiring its drivers to be Muslim women wearing headscarves and loose-fitting clothes.

    Ojesy drivers can currently only be hailed by a phone call or through mobile messaging service WhatsApp, but the service is also developing an app that was being tested out this month.

    The service, which began in Indonesia’s second-biggest city Surabaya in March before expanding across the main island of Java, only accepts female passengers or children.

    Calls have been growing for heightened security after reports of women being stalked and harassed by male motorbike taxi drivers, while the rape of a young woman in India by an Uber driver last year also added to safety concerns about ride-hailing services.

  • An Investor’s Guide: The Owners of Orchard Road

    An Investor’s Guide: The Owners of Orchard Road

    Have you walked down our Garden City’s famous shopping belt, Orchard Road, recently?

    I was not expecting to see the sheer number of people I did on Orchard Road when I was there recently. The amount of foot-traffic on this famous road seems to move only in one direction year after year – up.

    Imagine that you are a landlord on one of the properties on Orchard Road. Wouldn’t you feel happy just by standing on the roadside and watching the crowd walk by with their handfuls of shopping bags?

    Ho ho ho…

    As it turns out, we can indeed own many of the properties on Orchard Road, albeit indirectly. There are numerous properties in the shopping belt that are owned by companies or by real estate investment trusts that are listed in Singapore.

    If you are interested in the properties on Orchard Road, here is a quick guide on how you can get exposure to some of them:

    1-5) ION Orchard, Wisma Atria, Ngee Ann City, Mandarin Gallery, Mandarin Orchard Singapore 

    6) The Centrepoint

    One of the oldest shopping malls on Orchard road, The Centrepoint has been open since 1983. The shopping mall is owned by real estate outfit Frasers Centrepoint Limited. Valued at S$646 million on its balance sheet, Frasers Centrepoint counts The Centrepoint as one of the most valuable properties in its portfolio.

    7) Paragon

    One of the most upscale properties on Orchard road, Paragon consists of nearly 490,000 square feet of retail space and 230,000 sqft of medical suites and offices. Paragon, which is most recently valued at S$2.6 billion, is part of newspaper publisher Singapore Press Holdings Limited’s real estate portfolio. The company is the majority owner and manager of the retail-focused real estate investment trust SPH REIT, which in turn owns and manages Paragon.

    8) Wheelock Place

    Wheelock Place, a S$915 million seven-storey retail mall and 16-storey office tower, is seated at the edge of Orchard road. The property, which is owned by Wheelock Properties (Singapore) Ltd, had enjoyed close to 100% occupancy as of 2014 and is a very important piece of real estate for the company.

    Summary

    Feeling impressed by any of the buildings you come across while shopping along Orchard Road? Who knows, you just might be able to share in the economic benefits of some of them.

  • South Korea cuts natural gas rates 9% from Jan on lower LNG import bill

    South Korea cuts natural gas rates 9% from Jan on lower LNG import bill

    South Korea will cut retail natural gas prices for households and industry by 9% on average from January 1 to reflect the lower LNG import bill as a result of sliding oil prices, the Ministry of Trade, Industry and Energy said Tuesday.

    “The government will further lower city gas rates if LNG imports costs continue falling,” the ministry said in a statement.

    The 9% cut will lower average retail gas prices to Won 15.69 ($0.01)/megajoule, from Won 17.24/MJ, the ministry said.

    South Korea cut city gas rates several times this year due to falling LNG imports costs — reducing prices by 5.9% in January, 10% in March and 10.3% in May but increasing prices 4.4% in September.

    LNG demand has fallen despite the price cuts. Kogas, which has a monopoly on domestic natural gas sales, sold 27.97 million mt in January-November, down 8.8% year on year.

    Kogas sold 35.17 million mt of LNG last year, down 9.1% from 2013, the first annual decline in five years.

    The trade ministry said Monday it expects South Korea’s LNG demand to fall 5% over the next 15 years due to a steep decline in consumption for power production that offsets mild growth by households and industry.

    It forecast LNG demand to fall to 33.96 million mt in 2022 and 34.65 million mt in 2029, compared with 2014 consumption of 36.49 million mt.

     

  • Why luxury sector woes could be a blessing in disguise

    Why luxury sector woes could be a blessing in disguise

    Hong Kong’s retail sector can bounce back from the current sluggish phase, as it did in the past in the wake of the 2003 SARS crisis and the 2008 global financial meltdown, an industry chief says.

    “Hong Kong retailers are smart; it might take time but the sector will definitely recover,” says Thomson Cheng, the new chairman of the Hong Kong Retail Management Association.

    “Tomorrow will be a better day,” he told the Hong Kong Economic Journal.

    To counter headwinds like a stronger local currency and fewer mainland visitors, Cheng urges retailers to upgrade their services and provide more unique products.

    Hong Kong should not focus too much on Chinese tourists, but should try to attract people from across the world, he said.

    As an executive director of Lane Crawford Joyce Group, Cheng has been involved in luxury retailing for years.

    The industry veteran expects the luxury segment to continue to be the worst performer in 2016.

    “I don’t see much of a rebound next year.”

    But one good thing about the shrinkage of luxury sales is that it will unlock retail space to other shops. During the heyday, high-end stores had crowded out the smaller brands and retailers of other products.

    Many major luxury brands have already announced downsizing plans in Hong Kong amid the current downturn in sales. Some firms are looking to cut their store number by as much as a fifth.

    Shopping malls should consider diversifying and bringing in more retailers that offer goods and services related to everyday living, Cheng said.

    The retail ecosystem will be healthier if there is wider variety and more brand diversity, rather than the present situation in which there are too many jewelry shops, cosmetics retailers and drug stores chasing mainland tourists, he said.

     

  • All about China and oil again as shares slip

    All about China and oil again as shares slip

    Shares in Europe and Asia fell on Monday in trade thinned by holidays in a number of financial centres, hit by slumping oil prices and concerns over Chinese growth and finances – two of the year’s major factors.

    Prices of both Brent and U.S. crude fell 1.8 percent LCOc1 CLc1, reversing a brief rebound that helped shares in the Middle East over the weekend, while Chinese stocks fell almost 3 percent after a weak batch of industrial profits data.

    While most bank dealing rooms in Europe were on skeleton staffing, and London shut, that had repercussions for a range of assets, driving the Australian and Canadian dollars down about a third of a percent and pushing bond yields lower.

    Profits at Chinese industrial companies in November fell 1.4 percent from a year earlier, the sixth consecutive month of decline and another sign that the world’s chief engine of growth for the past decade is sputtering.

    “Over-capacity and declines in producer prices are hurting the Chinese government efforts and if the government cannot come up with a solution to stop this, the picture will keep on becoming more worse,” retail brokerage AvaTrade chief market analyst, Naeem Aslam, said.

    MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gave up early modest gains to fall half a percent, putting it on track for an 11-percent loss this year.

    China’s two main share indexes .SSEC .CSI300 fell 2.6 and 2.9 percent respectively, with banking shares leading the fall. Hong Kong’s Hang Seng .HSI dropped 1 percent. South Korea’s KOSPI .KS11 fell 1.3 percent.

    Stocks affiliated with Samsung Group fell after the South Korean conglomerate said on Sunday its battery-making arm Samsung SDI will sell shares in sister firm Samsung C&T Corp to comply with regulatory requirements.

    Japan’s Nikkei .N225, however, rose 0.6 percent, with soft domestic production and retail data hinting at more pressure on the Bank of Japan to take further steps to stimulate growth.

    International Brent crude traded at $37.26 LCOc1 a barrel, just over a cent above 11-year lows hit before Christmas.

    The fall in oil prices has depressed inflation globally, in turn reducing long-term expectations for price growth that drive longer-dated bond yields. That tends to draw investors back into bond markets at the expense of stocks and pushes up the price of longer-dated government bonds.

    German 10-year Bund yields DE10YT=TWEB, which set the standard for euro zone borrowing costs, fell 2 basis points to 0.60 percent.

    “Oil prices could be part of this but it’s probably just minor trades that we’re seeing here, we shouldn’t read too much into it,” Rabobank fixed income analyst, Bas van Geffen, said. “Most market participants have already closed their books and small…(trades) can move markets quite a lot.”

  • Retail suffers in HK Christmas season

    Retail suffers in HK Christmas season

    Christmas is all around, but this holiday season, Hong Kong is expected to suffer as both locals and tourists are reining in their spending.

    Christmas is in the air!

    Usually, this time marks the peak of consumption but NOT this year.

    Retailers are expecting a grimmer picture.

    A study shows that Hong Kong shoppers are cutting their Christmas budget, with 64 percent saying they won’t spend more than HK$1,000 on Christmas shopping and 52 percent saying they won’t buy any Christmas gifts this year.

    The survey, conducted by Hong Kong Research Association, found Hong Kong citizens are rather cautious about this year’s Christmas consumption, as only 16 percent of 1,084 interviewees expect to spend more money than last year, while 23 percent said they would reduce spending.

    “Even Hong Kong residents prefer to buy overseas, consumer products are much cheaper in Japan and South Korea.”, Hong Hao, the chief strategist of Becom International said.

    Luxury stores are feeling the crunch as shoppers minimize their spending.

    “In this popular shopping district, you would usually see customers waiting in lines for purchases but not this year. Some shops have fewer customers, while others have closed their doors due to high rents. The traditional shopping season is also challenged by the declining tourist arrivals in last six months. ”

    The Travel Industry Council of Hong Kong says, the number of Chinese mainland tourist groups traveling to Hong Kong has dropped 20 percent so far this year.

    “The sharp decrease is partly because the anti-parallel trading protests earlier this year, and the death of a mainland tourist in HK in October, and also some anti-mainland China sentiment.”Jason Wong Chun Tat, the chairman of Travel Industry Council of HK said.

    In October, a Chinese mainland tourist died after he was allegedly beaten unconscious by four men while trying to mediate a dispute between a fellow visitor and the tour group leader.

    “That gives people the perception of HK doesn’t welcome tourists.”,Hao said.

    “We are calling for the diversification of Hong Kong’s tourism development.” Wong said.

    Wong said the travel industry council was trying to attract more overseas tourists by regulating market operations.

    Despite their efforts, it appears a gloomy picture for the retail and travel business industry is expected to continue.

  • Tourism Slows Hong Kong Retail

    Tourism Slows Hong Kong Retail

    While Hong Kong has traditionally been the favored shopping destination of Chinese mainland consumers looking to grab up luxury items, it looks like 2015 may see the biggest drop in retail sales since 2003.

    The drop 12 years ago was an outgrowth of the SARS outbreak that cause a global health scare. This year’s issue seems to be tamer and tourism based. This year saw the first annual decline in tourists from mainland China since 2003. The number of Chinese tourists in Hong Kong decline 15.4 percent between November of 2014 and November of 2015 — the biggest drop in a year where falling figures have been a norm.

    Hong Kong has drawn high rolling consumers for some time with its luxury good shops with Gucci, Louis Vuitton and Chanel on sale for 40 percent less than is the norm in China.

    For the last eight months, however, retail sales have been in decline — down 2.7 percent year-to-year — a bigger drop off than even SARS managed in 2003.

    “There is an urgent need for a new marketing campaign to rebrand Hong Kong as a dynamic, exciting and relevant modern city,” Kwok said.

    There is also the reality that China’s affluent middle class is increasingly likely to search further abroad for luxury goods — aided by several nations that have relaxed visa requirements for visiting Chinese tourists. Hong Kong, on the other hand, has strengthened its visa requirements and disallowed visitors from the neighboring Shenzhen province to visit Hong Kong more than once a week.

    In an attempt to turn things around, Hong Kong is looking to develop more experiential attractions including a second Disney theme park, sporting events and dining venues. But those ventures will take time. The more immediate challenge for local merchants is to fill the hole left by distracted mainland Chinese consumers in the meantime.

  • Thai Government Raises Age to Purchase Cigarettes From 18 to 20

    Thai Government Raises Age to Purchase Cigarettes From 18 to 20

    Deputy Prime Minister YongyutnYuthawong reported on Wednesday that cabinet approved the tobacco draft act which will prohibit the sale of cigarettes to those under 20 years of age and raises the level of punishment for offenders.

    Deputy Prime Minister YongyutnYuthawong said the draft act increased the minimum legal age for cigarette purchases from 18 to 20 years and prohibits the sale of individual cigarettes. The draft act also prohibits cigarette sales in some public places such as temples, public health facilities, schools and public parks, the deputy PM added.

    The draft act bans cigarette companies from advertising their products as sponsors of contests and competitions. Cigarette advertising is banned in print and online media, TV and movies.The penalty of imprisonment for those who sell cigarettes to people under 20 years of age is increased from one month to one year and the fine for smokers in non-smoking areas is raised from 2,000 to 5,000 baht.

  • South Korea Industrial Production On Tap For Wednesday

    South Korea Industrial Production On Tap For Wednesday

    South Korea will on Wednesday release November figures for industrial production and retail sales, setting the pace for a light day in Asia-Pacific activity.

    In October, industrial production slipped 1.4 percent on month and gained 1.5 percent on year, while retail sales climbed 3.1 percent on month and 8.3 percent on year.

    Thailand will see November numbers for imports, exports, trade balance and current account. In October, imports were worth $13.96 billion, while exports were at $18.29 billion for a trade surplus of $4.33 billion. The current account surplus was $5.18 billion.

     

  • Zalora Takes a Look Back to 2015

    Zalora Takes a Look Back to 2015

    With less than a few days until 2015 comes to an end, ZALORA, Asia’s Online Fashion Destination, is proud to unveil its significant milestones achieved this year that changed the online fashion retail landscape in Southeast Asia. Initiated in 2012 with a mission to redefine high-street fashion accessibility in this part of the world, ZALORA has managed to run faster, play smarter and grow bigger in less than four years. Having fostered a strong presence in eight markets, and with more than 6 million followers on social media, ZALORA will continue to grow in its product offering, brand proposition, and customer experience.

    2015 was a remarkable year for ZALORA. As a leading fashion e-commerce player in the region, innovations in mobile engagement were introduced to keep up with changing fashion consumer behaviour towards mobile shopping. In recognition of this shift, ZALORA will sustain its dedication to an ever-improving and meaningful mobile shopping experience in the markets we cover.

    The Year of Mobile for ZALORA

    In an effort to boost online retail consumption expenditure while providing reassurances about the e- commerce sector and building trust with customers in Asia, ZALORA launched the region’s version of Cyber Monday, 12.12 Online Fever, in 2014. Together with more than 300 partners across the region covering different industries from food, home, entertainment, travel, to beauty, 12.12 Online Fever grew bigger on its second run in 2015.

    On 12 December this year, ZALORA enjoyed over six times the volume of any previous day, also sparking a rise in mobile shoppers. With 78.5% of 12.12 Online Fever customers shopping on their

    mobile devices, the number of mobile customers saw a 250% increase from last year. This is in line with the growing trend of consumers within the region shopping heavily on their mobile devices.

    As a retailer, it is important that ZALORA provides a seamless mobile experience for its partners. With utmost convenience in mind, the Marketplace Seller App was launched, allowing independent sellers to run their ZALORA shop while on the move. Developed to expedite transactions and the evaluation of business performance, the app is available in five languages, catering to the culturally- diverse Southeast Asian markets.

    Winning prestigious regionally-recognised awards is a testament to ZALORA’s continued success in mobile innovation. This year, ZALORA clinched the Silver award for the MBEA Best M-commerce Mobile Application of the Year and came out on top as finalist for Mob-Ex (Mobile Excellence) Awards in the categories Best Brand Awareness Campaign, Best use of QR Code and Best Integration of Mobile.

    Fashion Consumer Insights

    ZALORA understands that consumers today are seeking more options and a wide assortment of quality products. To meet this demand, ZALORA carries over 6,000 global and local fashion brands on one single site, carefully curated to provide the best fashion offering for its customers.

    Over the year, we have noticed certain significant purchasing trends. The top three most-purchased fashion items for 2015 are: Quilted wallets, flip-flops and V-neck tees. Aside from apparel, ZALORA also offers beauty products to its customers. Lipsticks topped the list as the most purchased beauty item, followed by mascara and foundation. Aligned with the goal of filling the online fashion gap in Southeast Asia, ZALORA remains a dominant player in enabling accessibility to high-street fashion for consumers in the region,

    ZALORA Milestones

    As the company grew in the last three years, ZALORA has achieved several milestones in 2015, including entering the Taiwan’s fashion e-commerce market. Growing at a significantly rapid pace, the Taiwanese consumers are driven by high internet penetration and widespread smartphone use. With close to 100 brands initially offered, ZALORA gives fashion consumers in Taiwan the best high-street fashion brands, such as Burton Menswear, Finery London, New Look, River Island, and Miss Selfridge, in addition to ZALORA’s eponymous label, exclusively distributed in Taiwan by ZALORA on one website.

    To further strengthen its position as the fashion authority in this part of the world, ZALORA is committed to continually coming up with innovative large-scale events by pioneering omni-channel consumer engagement, through working with top partners across channels (from TV to media).

    ZALORA supports Asia’s diverse forms of beauty and talent, seeking to empower men and women through fashion. By giving them the confidence to own every moment they find themselves in, they are encouraged to be the best version of themselves. ZALORA also plays a critical role in discovering and celebrating the next fashion talent in Asia through partnerships with highly anticipated television series, namely Asia’s Next Top Model, How Do I Look? Asia, and Fit for Fashion, which will air on January 7, 2016.

    Where fashion meets e-commerce, the inaugural ZALORA Scholarship was also debuted this year to attract and nurture young talent in the tertiary student crowd, providing them with valuable industry experience and a partial grant for tuition fees.

    Furthermore, designed to increase awareness of the brand among consumers in Southeast Asia, ZALORA launched The ZALORA Shop, the first click-and-mortar shop in Asia that gives consumers a physical ZALORA experience. Following the success of the first pop-up store in Singapore launched in 2014, ZALORA launched more pop-up stores around the region this year in Hong Kong and the

    Philippines. Due to popular demand, ZALORA Hong Kong opened a second pop-up store, while ZALORA Singapore is now on its third store

    ZALORA prides itself on its commitment to provide relevant fashion choices to consumers in Asia. This is channelled through the ‘Lunar New Year’ collection and ZALIA – an exclusive label created specially for women seeking trendy, conservative styles. Designed for the fashion-conscious consumer, ZALORA launched the Lunar New Year and ZALIA collections for the third year running in 2015. Both collections successfully enable fashion fans to transform their festive wardrobe into something contemporary and fashion-forward without forgetting their local roots and Asian authenticity.

    ZALORA Looks Forward to 2016

    ZALORA celebrates a successful 2015 and its incredible achievements. Entering its fourth year, the young online fashion company aims to maintain its dominant position as market leader in the online fashion sphere. ZALORA will continue to dream big and explore new opportunities and possibilities for the future to build an e-commerce friendly environment in the region.