Retail News CRM

Author: Mei Ling Tan

  • Burberry Hong Kong deep discounts for Christmas

    Burberry Hong Kong deep discounts for Christmas

    Luxury fashion retailer Burberry Hong Kong has launched an unprecedented deep discounting campaign to move stock in the peak Christmas retail period.

    The British brand has reduced the prices on some lines by 50 per cent, the biggest reductions since the Individual Visit Scheme for Mainland Chinese tourists was launched in 2003.

    Typically, the highest discounts in the pre-Christmas sale is 30 per cent on limited lines.

    It is rare for high end brands like Burberry to offer such large discounts – but rivals Gucci and Prada have already discounted lines by similar amounts in Hong Kong, where such retailers lack an outlet channel for surplus or end of line stock.

    Industry observers say the level of discounting in such a peak retail period reflects the serious challenge faced by luxury retailers since the clampdown on gift giving in the Mainland took effect and the exchange rate fluctuations made it affordable for big spending Chinese travellers to travel to Japan and Europe to shop instead of Hong Kong and Macau.

    “A 50 per cent discount is unusual for big luxury brands like Burberry” Hayman Chiu, associate director at Cinda International, told the South China Morning Post.

    “The whole luxury industry is doing the same thing right now.”

    Burberry’s discounts apply only to a limited proportion of its stock, specifically about 10 styles of handbags and some clothing.

  • Leak suggests Galaxy A9 will retail for just under $500 in China

    Leak suggests Galaxy A9 will retail for just under $500 in China

    Samsung’s latest phablet has come as a surprise for some: unlike the other members of the Galaxy A 2016 family, the Galaxy A9 has no such “subtitle” for it is the first of its kind. Sporting a 6-inch Full HD Super AMOLED display and with a metal unibody frame, the device is perfect for those who wanted a truly large phone from Samsung yet had to make do with a Plus 5. Today, a new leak out of China has added a possible price point as well: 3199 yuan (about $490).

    Given the device’s prime positioning as an upper mid-range phone, the cost would appear to be a fair price, all the more considering how expensive the Galaxy A8 was in some territories.

    Those in need of a spec recap will be happy to note that the Galaxy A9 comes with the aforementioned 6-inch Full HD Super AMOLED display (complete with 2.5D glass), a 64-bit Octa Core Qualcomm Snapdragon 652 SoC, 3GB of RAM, 32GB of on-board storage, a 13-megapixel rear camera and 8-megapixel front camera, an integrated fingerprint sensor, Dual SIM support, a 4,000mAh battery, microSD support, and Android 5.1.1.

    Samsung Galaxy A9

    While the exact release date for the extra-large phone is still unknown, it is possible Samsung will announce its plans in the next few weeks given the decision to launch it prior to CES 2016. At the same time, the phone has currently only been announced for China and is therefore operating on a slightly different release schedule. Perhaps it will hit stores just before Chinese New Year.

    What do you think of the cost? Assuming the leak is legitimate, would you pay around $500 for such a device? Is it too expensive given the competition? Leave us your thoughts in the comments below!

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  • Shortage of warehouse space in Hong Kong likely to continue

    Shortage of warehouse space in Hong Kong likely to continue

    Despite its position as a regional logistics hub, Hong Kong’s lack of industrial land and a resulting warehouse shortage have long been headaches, with the warehouse vacancy rate remaining below 2 per cent and unlikely to improve much next year.

    A slowdown in retail sales led to a slight easing in demand for warehouse space this year, but new supply is extremely limited.

    Warehouse vacancy ratesdeclined to 1.7 per cent in the third quarter of this year, from 1.9 per cent in the second, according to property consultancy Savills, picking up from near zero last year.

    No industrial site is listed for auction or tender on Hong Kong government’s 2015-16 land sale programme and only one of the 36 plots sold in 2014-2015 was industrial land.

    “There will be no large supply of industrial land in the next two to three years; the shortage will continue,” said Thomas Lam, head of valuation and consultancy at Knight Frank.

    Lam said a softening in retail sales due to a decline in demand from mainland visitors had only had a limited impact on the demand for storage space.

    There will be no large supply of industrial land in the next two to three years; the shortage will continue

    Thomas Lam, Knight Frank

    “Luxury brands are closing stores but others such as fast fashion brands are opening new shops, and the latter is a heavier user of stock space,” he said.

    Modern warehouses in prime locations are eagerly sought after and close to full occupancy.

    Goodman, a leading modern warehouse operator and Hong Kong’s largest industrial landlord, owning 14 properties, recorded a 99.6 per cent occupancy by the end of September.

    Although trading and logistics is one of Hong Kong’s four pillar industries and accounts for roughly 26 per cent of gross domestic product, the government has been less motivated to turn over land for logistics use because its main focus is to increase the supply of land for housing.

    Meanwhile, vast amounts of industrial stock have been replaced by residential and commercial developments under the government’s industrial revitalisation scheme since 2010, further depleting the options available to industrial occupiers.

    The authorities have noticed the problem in recent years and have earmarked 10 hectares of land in Tuen Mun for industrial use, but researchers said it was unlikely to come onto the market by the end of 2020.

    Hong Kong Logistics Association president Stephan Chan said he expected the vacancy rate would remain flat in 2016, but rents could be cheaper.

    Chan said two new warehouse projects in Tsing Yi were scheduled to be launched in the first quarter of next year, but demand would be solid because more cross-border e-commerce operators were looking for industrial space in Hong Kong to build up distribution centres.

    “The rent is already too expensive so there is room to decline a bit,” Chan said, adding that some older warehouses in the New Territories had cut monthly rents from HK$13.50 to HK$10 per square foot.

    Hong Kong’s warehouse rents have surged 59 per cent since 2010, according to data from global real estate adviser CBRE.

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  • First Monica Vinader Singapore store opens

    First Monica Vinader Singapore store opens

    British luxury jewellery brand, Monica Vinader has opened the doors to its first Singapore boutique.

    The Monica Vinader Singapore store is located inside the Ion Orchard shopping centre on Orchard Rd.

    “I am delighted to be opening our first store in Singapore, such an internationally vibrant city, and excited to be able to welcome our Singapore customers to our new boutique at Ion Orchard mall,” said Monica Vinader, CEO & founder of the namesake retail brand.

    The new store offers all the Monica Vinader collections from Friendship bracelets, to bespoke cut gemstone jewellery and contemporary diamond ranges. Customers will be encouraged to visit the Friendship bar where they can engrave personal messages, motifs or hand drawn doodles using the complimentary engraving service, or to layer and stack bracelets, pendants or rings to define their individual styles for any occasion.

    The store’s interior features marmorino walls and iconic gold vitrines which align with the brand’s philosophy, “using high specification materials, custom fixtures and fittings to create a welcoming and vibrant luxury shopping environment”.

    Monica Vinader has become globally renowned for its instantly wearable, contemporary designs, and is a favourite amongst A-list names such as Olivia Palermo, Emma Watson and HRH the Duchess of Cambridge.

    Monica Vinader was founded in 2002 after she began creating a jewellery collection while working in South America with her husband. Initially she focused on creating bespoke pieces for private clients, but demand soon grew to a larger audience. In 2006, the company began trading as Monica Vinader Ltd and went on to win Retail Jewellers’ Jewellery Brand of the Year award in 2009 before securing private equity investment for an international expansion.

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  • Isetan Thailand unveils Washoku Gallery food concept

    Isetan Thailand unveils Washoku Gallery food concept

    Isetan Thailand has converted its fifth floor into a food concept called Washoku Gallery, which opens today (December 18).

    Washoku Gallery will, in keeping with the department store’s heritage, feature food products imported from Japan. Japanese food and culture are broadly liked by Thailand’s urban consumers and Isetan wants to tap into the growing demand.

    Isetan Washoku 4

    The Isetan Thailand department store is located in CentralWorld in downtown Bangkok.

    “The Thai retail market has undergone drastic changes since Isetan Thailand opened in 1992, and numerous Thai customers have said they want to see the same things at the store as at Isetan stores in Japan,” a spokesman for the retailer said in a statement.

    Isetan Washoku 1

    “At Washoku Gallery, Isetan offers goods and services so that customers can enjoy Japanese culinary culture. Isetan will also minimise price differences between products in Japan and those in Thailand as much as possible so that as many customers as possible can feel ‘this is Japan’.”

    Most of the products on sale have been introduced to Thailand for the first time. There are also nine Japanese-Western food brands, four Japanese bakery brands, 10 Western bakery brands and a Japanese Food Court with seven Japanese food brands.

    Isetan Washoku 2

    Isetan will work with Japanese food companies to bring experts to Bangkok to demonstrate their artisanship to customers. Tea masters will visit the store when newly harvested tea leaves are put on sale, and sake-brewing masters from rice wine breweries will be invited from all over Japan. Sashimi experts will slice freshly imported fish from Japan as customers look on.

    Isetan Washoku

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Said Isetan Thailand president Takaki Akune: “The newly remodelled floor, Washoku Gallery, is unique – only a Japanese department store can offer [it]. I’m confident that at Washoku Gallery, Thai customers will feel a sense of satisfaction they have never experienced. ‘This is Japan’ is a concept that Mitsukoshi Isetan Holdings recognises as part of its corporate strategy.

    “The whole group uses this concept to present the beauty of Japan to the world, from products to sales and services,” he said.

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  • DJI opens futuristic drone shop in China

    DJI opens futuristic drone shop in China

    DJI, one of the world’s leading manufacturers of unmanned aerial vehicle technology (drones) has opened its first flagship drone shop, in Shenzhen.

    As the photos demonstrate, the store is futuristic in its design and customer engagement let alone the sci-fi nature of the products the brand sells.

    The store, at OCT Harbour, features a full range of DJI’s consumer products and aims to let consumers see, touch and learn firsthand about the company’s innovative and creative platforms.

    “The DJI flagship experience is an important touchpoint to connect people with our cutting-edge technology and get a sneak peek into the future,” said Frank Wang, DJI founder and CEO.

    “Whether you are curious to learn how to fly or a professional looking for the latest aerial imaging technology to create your next big idea, the flagship store will provide you with the opportunity to really experience the DJI brand up close and in person. More importantly, it will allow us to engage our customers in a deeper and more meaningful way.”

    On display and for sale will be DJI’s Phantom 3 series, the Inspire 1 and Spreading Wings series, Matrice 100, Guidance, the Ronin handheld three-axis camera gimbal line, as well as the company’s latest integrated stabilized 4K handheld camera, the Osmo.

    Product Showcase 2

    The flagship’s interior architecture is based on the concept of yuan, the Chinese word for “circular.” It is symbolic of DJI’s drone propellers, which form a circular shape when in motion. This concept can be seen in various places around the store, including the SkyPixel Around the World interactive installation, which is featured on a cylinder-shaped map in the shop’s center. The flagship store also features a theatre, flight area, lounge area and repair counter.

    The OCT Harbour store features a stunning waterfront view and is surrounded by a vibrant culture of tourism, ecology and commerce.

    Highlights of the flagship store include:

    Theatre: Visitors can expect an immersive visual experience at the Theatre, where they can see stories captured from the sky and content from around the world.

    Theater

    SkyPixel Around the World: An interactive installation, where visitors can explore photo and video stories captured by aerial enthusiasts from the Skypixel community.

    Flight Area & SkyPixel

    Flight Area: DJI pilots will be there throughout the day to perform demos, and the LED screen will project different backgrounds to match the different flight experiences.

    Lounge Area: Visitors can sit back and relax in the lounge area, talk with staff and learn about DJI’s latest products.

    Product Showcase 3

    Repair Counter: A team of customer-support staff to provide technical assistance, help with firmware updates and make reservations for drop-off repair.

    Repair Counter

    The DJI flagship store is located at the Shenzhen Tourist Information Center, OCT Harbour, East No.8, Baishi Rd, Nanshan District, Shenzhen, China. Opening hours are Sun-Thu 10am to 10pm; Fri-Sat 10am to 10.30.

    DJI Flagship Store aerial shot 1

    DJI was founded and is run by people with a passion for remote-controlled helicopters and experts in flight-control technology and camera stabilisation. The company is dedicated to making aerial photography and filmmaking equipment and platforms more reliable and easier to use for creators and innovators around the world. DJI’s global operations currently span North America, Europe and Asia, and its products and solutions have been chosen by customers in over 100 countries; for applications in film, advertising, construction, fire fighting, farming, and many other industries.

    The company has a YouTube channel featuring its products in action.

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  • Mujosh makes Australian debut

    Mujosh makes Australian debut

    Mujosh, the Hong Kong fashion eyewear brand, has opened its first store in Australia – at Melbourne Central mall in the city’s CBD.

    Just five years old, Mujosh has already opened stores in Thailand and Malaysia. Australia is its third overseas market entered with a specialty store, although it has distribution agreements in other markets, including Japan.

    “We hand picked a selection including our bestsellers and limited-edition designer series for our customers in Australia,” said Grace Zhang, director of international business division with Mujosh.

    “The latest Mujosh collections will also be unveiled in here at the same time as it will be in other territories.”

    “It is exciting that we can bring Mujosh to our customers in Australia,” said Alan Chen, the brand’s founder.

    “After five years of fast but solid development, Mujosh decided to expand into the international market at the beginning of 2015. Having our first store in Australia is an important milestone for our international business development.”

    Managed by GPT, Melbourne Central located in the heart of Melbourne, attracts a wide variety of customers from the inner suburbs of the city.

    Mujosh was founded by “a group of young creative rule-breakers who believe glasses are not only tools to improve eyesight, but also fashion accessories to differentiate wearers and make them stand out from the crowd,” the company explains.

  • Matahari Putra Smart Club concept debuts

    Matahari Putra Smart Club concept debuts

    Matahari Putra Prima, a multi-format modern retailer in Indonesia, has inaugurated its newest retail channel: a wholesale chain called Smart Club.

    The first store has opened at, Tangerang, Banten, with a gross selling area of  8800 sqm. It is designed to serve business customers, including hospitality enterprises (hotel, restaurant and catering), traders, manufacturers, institutions, offices and business professionals.

    “Smart Club has the concept of One Stop Buying, where all customers’ needs can be met in one place for greater efficiency,” explains Matahari.

    “All the products are available under one roof ranging from fresh products, packaged foods and beverage, electronic products, all household’s needs, to office stationery.”

    At the opening of the Smart Club outlet, MPPA also inaugurated the Foodmart Express (FMX) network under the company’s wholesale division, which is a minimarket concept. In the future FMX will be available through the franchise system and company’s internal expansion.

    Matahari Putra Smart Club

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    The Foodmart Express (FMX) concept focuses on a wide selection of ready-to-eat products. With the store size of between 80 – 150 sqm , FMX is targeting the middle consumer segment to provide top-quality products locally.

    In the near future FMX will open three more outlets in Tangerang.

    Director of Smart Club operations, Emi Nuel, said the banner is expected to become the best choice of a modern wholesale center in Indonesia, with sustainable growth, to become a leader in B2B business and has a large market share in the hospitality sector.

    “From 2016 going forward, we will launch Smart Club centers in several key locations. In addition, we are also positive that FMX concept will be well received by consumers and could have a great step of expansion through franchise system or the company’s internal expansion” he concluded.

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  • Rakuten to open on JD.com

    Rakuten to open on JD.com

    Rakuten, Japan’s largest eCommerce company, is to open an online flagship on Chinese cross-border eCommerce platform JD.com.

    The Japanese company says it aims to take “the best Japanese products to Chinese consumers”. It launched a beta version of the new marketplace on JD Worldwide earlier this month. Plans are under way to expand the merchandise range over coming months, with an initial focus on categories such as cosmetics, snacks and health food products.

    Masato Takahashi, managing executive officer of Rakuten, said the partnership between Rakuten and JD.com will promote cross-border trade by connecting Chinese consumers with authentic and popular Japanese products from a top selection of Rakuten’s merchants from around Japan, both small and large.

    “Rakuten will continue to work to expand our offering to Chinese consumers.”

    Haoyu Shen, CEO of JD Mall, said imported Japanese products have proven popular in China to date.

    “Our focus remains on partnering with the most trusted retailers in key overseas markets to meet the growing demand for premium imported products.”

    Expansion of the product line-up will continue over the coming months.

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  • Boom in teenage arrests for selling counterfeit goods online

    Boom in teenage arrests for selling counterfeit goods online

    Hong Kong Customs officials report they have arrested a record number of teenagers for selling counterfeit goods online via social media.

    According to a report in the South China Morning Post, officials have arrested double the number of teenagers in the first 11 months of 2015 as in the entire previous year.

    The majority of the arrested – 54 secondary school pupils and 28 university students – were allegedly selling fake goods on social media, with Facebook an especially popular channel.

    Last year, just 41 arrested were made, according to Louise Ho, head of the intellectual property investigation bureau of the Hong Kong Customs and Excise Department.

    The 82 arrests accounted for nearly 40 per cent of all the counterfeit arrests made by customs this year.

    Ho says students seem unaware of their legal responsibilities and the criminal nature of selling counterfeit goods online, and see the trade as easy money.

    They appear unaware it is insufficient defence legally to disclose the goods are counterfeit.

  • Estee Lauder settles Have & Be Korea deal

    Estee Lauder settles Have & Be Korea deal

    Estee Lauder has completed the acquisition of Have & Be Korea, the parent of skin care brands Dr Jart+ and Do The Right Thing.

    The New York-listed global beauty powerhouse has not revealed terms of the deal, which gives it an important brand in the fast-growing Korean beauty industry.

    Launched online in 2005 by ChinWook Lee, Dr Jart+ is a Seoul-based, global high-growth skin care brand featuring quality and innovative products designed to address specific skin care needs. The brand’s unique fusion of dermatological science and art – as reflected in the

    brand name, which is inspired by the phrase “Doctor Joins Art” – appeals to a broad range of consumers, especially millennials. Dr Jart+ is sold in many countries around the world, primarily in Asia and the US, through various department stores, specialty-multi and eCommerce channels including Sephora.

    The Estee Lauder Companies’ investment also includes an interest in Do The Right Thing (DTRT), a men’s-focused skin care brand that fuses Korean innovation with a bold New York style. Founded by Mr Lee in 2012, DTRT’s line of cleansers, lotions, moisturisers and serums are sold in Korea through various channels and in the US through Sephora and Birchbox Man.

    Estee Lauder is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The company’s products are sold in over 150

    countries and territories under brand names including: Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, Mac, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, Aerin, Marni, Tory Burch, Le Labo, Editions de Parfums Frederic Malle and Glamglow.

  • Does arrival of Michelin Guide reflect a more mature dining scene in Singapore?

    Does arrival of Michelin Guide reflect a more mature dining scene in Singapore?

    The Singapore Michelin Guide will be launched next year. The confirmation of a Singapore Michelin Guide as early as next year topped what has been an exciting 2015 for a nation of food lovers.

    Local fare has never been more openly celebrated, both here and abroad (what with Anthony Bourdain’s plans to bring Asian street food to New York and the supposed new chicken rice war brewing in Shanghai); and local chefs and bartenders are continuing to rake in top honours on the global stage.

    So what’s cooking for next year? The warm reception to local start-ups this year could mean that we can see more permanent brick-and-mortar outlets emulating the likes of Bird Bird House of Thai Chicken, Park Bench Deli, Paper Crane and L’eclair Patisserie. More independent restaurants are expected to woo people in the heartlands next year — even if these will be of a smaller scale, thanks to the ongoing labour crunch, said Konstantino Blokbergen, director of Singapore-based hospitality and lifestyle consulting company Gastro-Sense.

    But the arrival of the world’s most recognised dining guide is on everyone’s lips, although, whether its presence marks a coming of age for the local dining scene is up for discussion.

    “To see… Michelin penetrate the Singapore market before any other country in South-east Asia is definitely a sign of achievement in recognition and proof of our local dining scene’s maturity,” said Blokbergen.

    It will further reinforce Singapore’s standing as the regional hub for culinary excellence, added Ranita Sundramoorthy, director, Attractions, Dining and Retail, Singapore Tourism Board, who said the guide’s arrival will “encourage continuous culinary innovation and excellence among Singapore players” as well as the growth of gastro-tourism.

    While Mod-Sin cuisine pioneer Willin Low said that the Singaporean diner is far from naive when it comes to the best places to dine, other players adopted a more cautious stance.

    Said Edina Hong-Stroobant, marketing director of Emmanuel Stroobant Group: “I think it’s a budding scene. The Michelin Guide will hopefully reinforce the fact that Rome was not built in a day. One of the reasons the Japanese have a higher number of Michelin restaurants is their culture — it is all about discipline and in-depth knowledge; I think Michelin will help us achieve this maturity … but not yet.”

    Les Amis Group’s Raymond Lim predicted only four restaurants earning a coveted three-star rating. “Maturity doesn’t happen overnight, it will take at least five to 10 years. Yes, Singapore is ready (for the guide) but a market doesn’t transform so much within a year,” he said, adding that the Michelin Guide is not an award but a guidebook to the best restaurants with the best value.

    And while we’ve grown more appreciative of the value our dining scene purveys, there is clearly quite a bit of growing up left to do, before, as Low put it, “the day consumers are willing to pay the same price for a hand made soon kueh as they would for a macaron or cupcake”.

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  • Low petrol prices here to stay

    Low petrol prices here to stay

    Weekly petrol prices

    Unleaded petrol: The Australian Institute of Petroleum will not release the weekly national average petrol price data until next Monday.

    Wholesale petrol: Today the terminal gate (wholesale) price of unleaded petrol stands at a near 11-month low of 107.1 cents per litre (lowest since February 4).

    Diesel: The terminal gate (wholesale) price of diesel fuel stands at 97.1 cents a litre, down 1.2 cents in the past week to fresh 11-year lows.

    What does it all mean?

    There are no signs of an end to low global oil prices. Saudi Arabia is determined to shore up its market share and force the higher-cost oil and – broader – energy producers out of the market. While low oil prices are taking their toll on budgets and foreign exchange reserves in the Middle East, the OPEC oil cartel is content with producing more oil than is required on the global market.

    While the low global oil price is putting pressure on the profitability of producers, it is clearly good news for consumers. The issue for Australian motorists is getting some consistency on price. MotorMouth records a difference of around 25 cents a litre across Australian capital cities. Adelaide and Sydney motorists can fill up at near the cost price of the petrol marketing groups but gross retail pricing margins are higher and more diverse across other capital cities.

    Low petrol prices will keep inflation low, and thus serve as a cap on interest rates. But retailers also benefit fromconsumers having extra spending power. Filling up the car with petrol is the single biggest weekly purchase for most families.

    What do the figures show?

    Today the national average wholesale (terminal gate) unleaded petrol price stands at 107.1 cents per litre, down 1.1 cents per litre on a week ago. The terminal gate diesel price stands at 97.1 cents a litre, down 1.2 cents over the week.

    Last week the key Singapore gasoline price fell by US90c or 1.6 per cent to US$55.50 a barrel. In Australian dollar terms the Singapore gasoline price fell by $2.56 a barrel or 3.2 per cent to $76.50 a barrel or 48.11 cents a litre. On Monday Singapore gasoline fell further to US$54.80 or A$75.53 a barrel.

    In Australian dollar terms, Singapore gasoline is trading at the lowest price since January 30.

    MotorMouth records the following retail prices for capital cities today: Sydney 109.1c; Melbourne 125.7c; Brisbane 118.6c; Adelaide 107.2c; Perth 130.3c; Canberra 128.4c; Darwin 125.8c; Hobart 132.5c

    What is the importance of the economic data?

    Weekly figures on petrol prices are compiled by ORIMA Research on behalf of the Australian Institute of Petroleum (AIP). National average retail prices are calculated as the weighted average of each State/Territory’s metropolitan and non-metropolitan retail petrol prices, with the weights based on the number of registered petrol vehicles in each of these regions. AIP data for retail petrol prices is based on available market data supplied by MotorMouth.

    What are the implications for interest rates and investors?

    The implications stated below haven’t changed from the report issued last week.

    Lower global oil prices have potential to boost economic activity provided that businesses and consumers spend the extra savings reaped at the petrol pump.

    Rising gross retail margins on fuel may be supporting revenues and profits for petrol marketing groups. The big unknown is whether the margins have lifted to cover higher costs in other parts of the business.

    The lower cost of fuel is potentially good news for retailers – that is, providing that the savings are spent, not saved.

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  • Adidas Plans New Super Brand Center In Hong Kong In 2016

    Adidas Plans New Super Brand Center In Hong Kong In 2016

    International sportswear provider Adidas announced that they will open their sixth Adidas Brand Center in the world in Hong Kong’s Central district during the first half of 2016.

    In addition, the company will open their first Hong Kong Sport Performance flagship store in Causeway Bay and the second is expected to open in Tsim Sha Tsui.

    Located at No.36 Queen’s Road Central, the new Adidas Brand Center has an area of about 1,600 square meters. This site was formerly rented by Coach and closed due to the declining luxury market prospects in Hong Kong. However, Adidas said they are optimistic about Hong Kong’s sports fashion market and this location. The company hopes the new Adidas Brand Center, along with the two Sport Performance flagship stores, can be Hong Kong’s new vigorous sports landmarks.

    Prior to this, Adidas’ chief executive officer Herbert Hainer said the year of 2016 would become the brand’s record setting year.

    Financial details of Adidas’ investment in Hong Kong were not released.

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  • Guinness goes alcohol-free in Indonesia

    Guinness goes alcohol-free in Indonesia

    Diageo is still selling its regular brew in large supermarkets and restaurants where sales have not been curbed, but has invested around $1m thus far to launch Guinness Zero and is planning a new facility to produce the drink locally.

    “We already had plans to enter the zero-alcohol beer market,” said Graeme Harlow, managing director of Diageo. “After the ban came in, essentially it made it even more important.”

    UK-based Diageo has around 15 per cent of the Indonesian beer market, which until last year was the world’s fifth-biggest market for Guinness with annual sales of around 400,000 hectolitres.

    Since the ban, sales of Guinness and Diageo’s other alcoholic beverages have fallen 40 per cent year-on-year, said Mr Harlow, as the number of outlets across the archipelago carrying the beer has shrunk from around 70,000 to just 40,000.

    The company blamed the new Indonesia restrictions as it reported a 28 per cent decline in net sales in Southeast Asia for the year that ended in June, even as Asia Pacific sales rose 64 per cent year on year to £2.2bn.

    Guinness Zero, marketed with the tagline, “bold taste, zero alcohol”, is aimed at much the same consumers as the regular Guinness brew — for instance, men looking for a “masculine” drink while avoiding alcohol in a society where drinking is often taboo, said Mr Harlow.

    Diageo has introduced alcohol-free drinks under other names elsewhere, as Kaliber in the UK and Malta in Nigeria, but its aim in Indonesia is to keep the Guinness label prominent in popular minimarkets.

    “We wanted it to be Guinness-branded and we wanted the product to be distinctively Guinness,” Mr Harlow said. He said there are no plans to roll out Guinness Zero beyond Indonesia.

    Diageo’s shift brings it into line with Indonesia’s other major beer producer, Multi Bintang — majority-owned by Dutch brewer Heineken — which already sells two popular alcohol-free drinks.

    The UK group is aiming to capture 10 per cent of Indonesia’s 150,000 hectolitre non-alcoholic beer market within two years, from around 7 per cent now, said Mr Harlow.

    The most immediate hurdle for the world’s largest distiller is the high production cost of the zero-alcohol alternative, which sells for half the price of a can of regular Guinness at Rp9,000 ($0.65).

    Diageo is importing Guinness Zero from Ireland, paying around 10 per cent in duties as well as expensive transportation costs, until it has its new production facility on the island of Bali up and running in a few months.

    But it also faces a hard sell countering Multi Bintang’s Bintang Zero, which with its light and lemony flavour is the country’s favoured zero-alcohol beer.

    Local consumers like Abi Dwi Natadipura, 20, say the distinctive bitter Guinness flavour of hops, malt and barley remain an acquired taste for Indonesians.

    “I have seen Guinness Zero in cans but I’ve never tried it,” he said, while shopping at the Circle K minimart in central Jakarta. “I guess the taste would be more or less the same as regular Guinness — and I’m not interested.”

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