Retail News CRM

Author: Mei Ling Tan

  • Revamp, new tenants for two Dempsey blocks

    Revamp, new tenants for two Dempsey blocks

    Tanglin Village, already a hip dining enclave, is getting another lifestyle quarter – one boasting well-known multi-label fashion store Dover Street Market.

    To make way for it, two tenants – eatery Chang Korean BBQ Restaurant and antique store Shang Antique – will move out when their leases expire on Feb 29.

    In their place will come “Como Dempsey”, a complex housing Dover Street Market, an edgy concept store conceived by Comme des Garcons’ Rei Kawakubo, and a specially conceptualised restaurant and bar by renowned French restaurateur Jean-Georges Vongerichten.

    The 5,268 sq m site, comprising Blocks 17 and 18 Dempsey Road, will also have a new dining concept offering signature dishes from around the world.

    Popular local Peranakan restaurant Candlenut has also been included in the proposal, although it could not share more details.

    Internships will also be offered to nurture emerging local talents.

    The Singapore Land Authority (SLA) and the Singapore Tourism Board (STB) yesterday announced that the joint-tender for both blocks had been awarded to Como Lifestyle, a subsidiary of local fashion doyenne Christina Ong’s Club 21, whose ventures include the eponymous retailer as well as luxury hotel brand Como Hotels and Resorts. Mrs Ong is the wife of property tycoon Ong Beng Seng.

    The tender was called, said SLA’s director of land operations (private) division, Lee Seng Lai, to “rejuvenate and bring new and exciting concepts to Dempsey”.

    The new project is expected to “significantly contribute to creating and sustaining the vibrant Dempsey atmosphere and Singapore’s tourism scene”, said Ranita Sundramoorthy, STB’s director of attractions, dining and retail.

    Como Lifestyle offered to pay a monthly rent of $106,300 for an initial lease term of three years, renewable up till Dec 31, 2022.

    It won despite offering less than a third of the $350,000 per month its competitor, D Prime, did.

    The debut of Como Dempsey will mark the latest chapter in the area’s transformation.

    Tanglin Village started out in the 1860s as army barracks. In the 1990s, it became known for its furniture shops. After the turn of the century came upmarket restaurants such as PS. Cafe, as well as art galleries.

    In 2007, when Country City Investment (CCI) opened the Dempsey Hill dining cluster – now with more than 25 tenants including Jones the Grocer and The Prime Society – the buzz climbed.

    CCI’s general manager Nicholas Ng said there were initial concerns about who would win the bid.

    “We are happy with the outcome. Como’s concept complements our existing core of tenants,” he said.

    “There might be more competition, but in general it will create more buzz and attract more visitors,” said Mr Ng, adding that the reliability of the winner was important. “If the concept fails, it will be really bad. Blocks 17 and 18 front the main entrance off Holland Road and it is the first thing people see.”

    The situation is less rosy for Chang Korean BBQ Restaurant owner Moon Hichan, who heard the news from The Straits Times.

    “It’s bad. This is my main space with a customer base of more than 15,000,” said the 51-year-old. “I was one of the first to open a restaurant in Dempsey.”

    “And now they kick me out without offering me another space here. I am very disappointed.”

    But Tanglin Village regulars like Beth Demil, 58, are looking forward to the change.

    She said: “It’ll be nice to have more food options. I hope the retail development will offer something different from main street, like things you get in Orchard.”

     

  • IKEA Celebrates 1st Bumper Year in Korea

    IKEA Celebrates 1st Bumper Year in Korea

    Swedish furniture giant IKEA will open five more stores here by 2020, IKEA Korea retail manager Andre Schmidtgall told reporters Wednesday.

    Speaking on the first anniversary of the first IKEA store on the southern outskirts of Seoul, Schmidtgall said the decision was prompted by its better-than-expected performance.

    The store in Gwangmyeong, Gyeonggi Province is IKEA’s second largest in the world. Some 6.7 million customers visited over the past year and sales reached W308 billion (US$1=W1,179).

    “Korea is a great market with huge potential, with a growing customer interest in home furnishing,” Schmidtgall said.

    IKEA plans to invest W1.2 trillion by 2020 to open the five additional stores in Goyang north of Seoul, Gangdong in the eastern part of the capital, as well as Daejeon and Busan. The new stores are expected to create 3,500 jobs. The store in Gwangmyeong employs 913 Korean workers.

    The next store will open in Goyang in 2017 on an even bigger scale.

    Schmidtgall played down concerns that IKEA harms regional businesses. “The actual numbers do not show that,” he said.

    The Korea Distribution Association analyzed credit card transactions from December 2014 to August this year and found that revenues at stores within a 10 km radius of the IKEA Gwangmyeong store in fact rose between 7.5 and 27.4 percent.

    Schmidtgall pointed out that the Gwangmyeong store is the only IKEA outlet in the world to offer part of its underground floor space to small businesses.

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  • China ranked first in the world for online retail trade

    China ranked first in the world for online retail trade

    The period from January to October, witnessed China clinching the world no 1 spot for online retail trade, according to the “Internet Development in China over the Last Two Decades” report, which was published on Tuesday.

    The report was published prior to the World Internet Conference to be held in Wuzhen, China, from 16-18 December, according to the people.cn website.

    The total number of netizens in China reached an estimated figure of 668 million — the world’s largest online population. “The four Chinese companies which made it to the list are Alibaba, Tencent, JD.Com and Baidu,” said head of Chinese Academy of Cyberspace, Yang Shuzhen.

    China’s online retail sales skyrocketed at 2.8 trillion yuan in 2014, as reported by the en.people website. But the figures have more than doubled in 2015, with total transaction reaching 2.95 trillion yuan.

    In the month of November, an online shopping sale was conducted by Alibaba which recorded a sale of 91.2 billion yuan, according to the report.

    Internet has been the biggest boon to the Chinese economy, contributing 7% to the GDP.

    According to statistics, the number of people who shop online now is 307 million.

    China’s cross-border retail transactions reached 449.2 billion yuan in 2014 alone, people.cn reported. China has 321 Internet-related companies (listed) whose market value was estimated at 7.85 trillion yuan—equivalent to 25.6% overall stock market value, according to the website.

    Since the last year, online sales in China have increased 44%.

    Mobile internet is also rapidly developing in China. According to statistics, there were 594 million phone users who accounted for 88.9% of all netizens, as reported by people.cn.

    The development of mobile internet services in China has also brought a boost to travel industry, as well as car rental and medical services.

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  • Mövenpick Signs Hotel in Kota Bharuand and Cam Ranh Bay

    Mövenpick Signs Hotel in Kota Bharuand and Cam Ranh Bay

    Mövenpick Hotels & Resorts is consolidating its expansion campaign in South-East Asia with two new properties announced for Malaysia and Vietnam, both of which will open in 2018.
    Strengthening its development plans in Malaysia, the Swiss hospitality firm has signed a deal to manage the 30-storey Mövenpick Hotel Kota Bharu, a 453-key five-star resort in Kelantan, a state on the country’s east coast undergoing a rapid transformation. This takes the group’s portfolio in Malaysia to three properties strong, with an upcoming hotel in Kuala Lumpur and a beachfront resort in Terengganu.

    In the same year, Mövenpick Hotels & Resorts will open Mövenpick Resort Cam Ranh Bay, an integrated beachfront resort located in Khanh Hoa Province, Vietnam, spanning some 20 hectares and featuring 250 rooms, 100 residences and 100 villas. This will be the fourth Mövenpick hotel in Vietnam. The brand currently has a presence in Hanoi and new openings are scheduled for Phu Quoc and Quy Nhon in the next two years.

    The two new management deals come as Mövenpick Hotels & Resorts prepares to unveil its fifth property in Thailand, with Mövenpick Siam Hotel Pattaya’s opening next month (January).

    Debuts in the Philippines and Indonesia will follow hot off their heels, as Mövenpick Resort Boracay and Mövenpick Resort & Spa Jimbaran in the south of Bali are both on track for a 2016 opening.

    “We are rapidly cementing a solid presence in South-East Asia, where we have identified strong growth opportunities for the upscale hospitality concepts Mövenpick Hotels & Resorts delivers,” said Andrew Langdon, Senior Vice President Asia, Mövenpick Hotels & Resorts.

    “With the new properties signed for Vietnam and Malaysia, we see our cluster strategies for these exciting markets start to be realised, while our debuts in new countries mark another milestone in our strategy to be a major player in a region where we plan to open at least 15 new properties by 2020.”

    Mövenpick Hotel Kota Bharu in Malaysia is a certified ‘green building’, featuring the latest environment-friendly technology to save energy and reduce wastage. Highlights of the hotel will include the 815-sqm Emperor Suite, which will occupy the top three floors of the hotel, a helipad, an expansive banquet hall for 1,000 guests, a restaurant and café, stylish boutiques and retail outlets, male and female swimming pools, spa and gym, club lounge and business centre.

    Stand-out features of Mövenpick Resort Cam Ranh Bay, a mixed-use resort situated along the pristine white beaches of Vietnam’s Cam Ranh Bay, will include an amphitheatre, a cookery school, themed retail village, water park, spa, adventure zone for family activities and team-building retreats, and an exclusive kids’ zone featuring miniature landmarks from around the world.

  • How native apps complement China’s retail experience

    How native apps complement China’s retail experience

    When planning a retail mobile app strategy for China, there are many options available, including developing a mobile-friendly website, setting up a store on any one of the thousands of Chinese e-commerce platforms and developing a native app. So how do you choose which one is best for your brand?

    The big players

    There are a number of key platforms that retail brands in China can consider. The mighty WeChat, for example, has both reach and resonance with a vast audience (more than 600 million monthly users, to be more precise), as well as built-in, trusted payment facilities. Tmall and JD.com are just two examples of the thousands of e-commerce platforms in China. (Even Amazon has a store on Tmall). They offer easy-to-use, well-established e-commerce functionality that can include logistics, warehousing and payment facilities.

    For retailers wanting to take the quickest route to market, establishing a shop on one of these existing services is an easy solution. And of course, investing in a mobile website is also a good alternative.

    Both of these options have a place in the overall marketing mix and should be part of any robust business strategy. But retailers looking to compete in a complex and ever-changing marketplace like China need to consider the advantages of developing a native app and ‘owning’ a space on consumers’ devices.

    What’s so good about native apps?

    While it’s clear that people love to use the major consumer platforms, it’s important not to underestimate the power of an app specifically developed for a brand’s fans and followers.

    According to a report from The Internet Retailer, 42 percent of all mobile sales generated by the world’s leading 500 merchants in m-commerce last year came from mobile apps. Caixin, one of China’s leading business media groups, backs this up, saying that shopping via app in China grew by 168 percent in 2014, with shopping app users making up 39 percent of all mobile users.

    The numbers stack up, but what about the practicalities?

    Native app versus existing e-commerce platforms

    When working with an e-commerce platform, the brand doesn’t have full control over the user experience. Tencent and Alibaba set the rules for look, feel and layout, as well as e-commerce capabilities and payments. Overall functionality is limited to each platform’s abilities. It might not be possible to implement brand-specific features, innovative activities or marketing campaigns that lie outside of its framework.

    This app from online supermarket retailer Yihaodian is a great example of how to fully exploit smartphone functionality for an engaging customer experience.

    China_Apps_Yihaodian_600

    While there’s usually a way to open basic storefronts for free, other marketing activities, such as advertising and special promotions, tend to come at a cost.

    China’s existing e-commerce platforms are an excellent way to begin market entry, as they offer an instant, fully functional digital storefront within trusted, well-established parameters. However, a native app which gives retailers the freedom to develop unique features and marketing opportunities will complement these advantages, leveraging multiple platforms for a true omnichannel experience.

    Native app versus mobile web app

    A web app has technical limitations based on the browser it was set up for. The app will not be able to fully access smartphone capabilities.

    For example, the phone’s built-in features cannot access the user’s address book, offer an unrestricted integrated camera experience, use location services and the accelerometer, or access in-store beacons.

    Web apps cannot offer a personalized experience. Whereas native apps can store and apply a wealth of user data to deliver targeted alerts, discounts, promotions and loyalty schemes based on store proximity and previous activity.

    Another issue with web apps is that if the Internet connection is lost, the user can no longer access it. Native apps on the other hand, allow for offline browsing.

    McDonald’s McDelivery app is a good example of this. It makes a feature of the fact that people can look at the menu ‘any time, anywhere.’

    Apps_China_McDonald's_600

    Native apps allow retailers to send push notifications, an option not possible via a web app. This is an important consideration when it comes to marketing campaigns. Fashion retailer Milanoo makes full use of this in its app.

    Apps_China_Milanoo_600

    Well-made native apps get additional promotion through platform app stores; they may even be featured in top 10 charts and editor picks. This adds to the credibility and popularity of both the app and the retailer.

    Web apps are a viable, speedy way to get content onto users’ mobiles. But they’re not primarily designed for smartphones and while it is essential to make web content available in a mobile-friendly way, smartphone users expect a specific experience.

    Retailers can reap the benefits from this enthusiasm by developing apps for consumers using their phone capabilities to the full.

    The key to success in the world’s biggest mobile market is to have a well-rounded mobile strategy encompassing all trading platforms – and that includes native apps.

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  • Singapore Food and Drink Report Q1 2016 Market Report

    Singapore Food and Drink Report Q1 2016 Market Report

    Food consumption will remain modest over our forecast period, registering a compound annual growth rate of 2.1% over 2014-2019.Technological innovations and cost-saving measures by mass grocery retailers will be realised in 2017, and a steady rise in food consumption will be observed. We forecast real GDP growth of 2.5% in 2016, with economic activity remaining tepid over our forecast period.

    A tight labour market will continue to put upward pressure on labour costs, reducing food manufacturing competitiveness. Rising incomes will bode well for the food and drink industry; however, low consumer confidence will partially offset growth in the short term.

    Headline Industry Data
    – Total food consumption growth in 2016: +1.8%; compound annual growth rate (CAGR) to 2019: +2.1%
    – Per capita food consumption growth in 2016: +0.1%; CAGR to 2019: +0.4%
    – Alcoholic drinks sales growth in 2016: +4.5%; CAGR to 2019: 5.1%
    – Soft drink sales growth in 2016: +2.7%; CAGR to 2019: +2.1%
    – Total mass grocery retail sales growth in 2016: +2.7%; CAGR to 2019: +3.0%

    The Singapore Food & Drink Report features Publisher Research’s market assessment and independent forecasts for food and drink expenditure, consumption, sales, and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments, the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services, sales, investments, partners and expansion strategies.

    Publisher’s Singapore Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in Singapore.

    Key Benefits
    – Benchmark Publisher’s independent food and drink industry forecasts for Singapore to test other views – a key input for successful budgeting and strategic business planning in the Singaporean food and drink market.
    – Target business opportunities and risks in Singapore through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
    – Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.

    Coverage
    Summary of Publisher’s key industry forecasts and views, covering food and drink manufacturing and consumption and the mass grocery retail market.

    Industry SWOT Analysis
    Analysis of the major strengths, weaknesses, opportunities and threats within the food, drink and mass grocery retail sectors and within the broader political, economic and business environment.

    Publisher’s Food and Drink Risk Reward Index
    Publisher’s Risk Reward Index provides investors (food and drink manufacturers and mass grocery retailers) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic points. These provide indices of highest to lowest appeal to investors, with each position explained.

    Food Forecasts
    Publisher’s food chapter is divided into sections such as meat, fish, confectionary, dairy and canned foods, and provides insight into each market’s food industry, centred on a forecast to end-2019 for the sector.

    The chapter includes the following elements:
    – Industry Forecast Scenario: Historical data series and a forecast to end-2019 for growth of key indicators within a market’s food industry. Indicators include food consumption, food consumption as % of GDP, canned food sales, confectionery sales and food and drink imports and exports, among others.
    – Industry Developments: A summary of corporate developments, including news on M&As, FDI, expansions, closures and financial results, in addition to analysis and explanation of the latest industry events and how these could influence further investment.
    – Market Overview: An overview of the structure of the market, introducing the key players and discussing underlying trends.

    Drink Forecasts
    Segmented the same way as Publisher’s food chapter, the drink section provides insight into each market’s drink industry, centred on a forecast to end-2019 for the sector. Forecast indicators include alcoholic and soft drink sales by value, volume and sub-sector and tea and coffee sales, among others.

    Mass Grocery Retail Forecasts
    Segmented the same way as Publisher’s food and drink chapters, the mass grocery retail section provides insight into each market’s grocery retail industry, centred on a forecast to end-2019 for the sector. Forecast indicators include mass grocery retail sales by format (including supermarkets, hypermarkets, convenience and discount stores) and a breakdown of the organised retail sector versus the traditional sector, among others.

    Competitive Landscape
    Illustration of the mass grocery retail and food and drink industries via rankings tables comparing revenues, number of outlets and number of employees. This chapter also includes data-rich, in-depth regional analysis of the market position, business strategies and investment potential of the region’s leading mass grocery retail and food and drink operators.

    Company Profiles
    – Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of Publisher’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses.
    – The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

    Sources
    The Food & Drink reports draw on an extensive network primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

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  • Olivia Burton launches first stand-alone retail presence in Hong Kong

    Olivia Burton launches first stand-alone retail presence in Hong Kong

    British watch brand Olivia Burton has launched its first stand-alone retail presence in Hong Kong.

    The move comes as a partnership with the company’s Hong Kong distributor – Working Unit – and has seen three Olivia Burton-dedicated ‘watch corners’ open across the city in Kapok retail stores.

    The company said it launched the stores in December 2015 in an effort to capitalise on the Christmas shopping period.

    Located in prime locations that offer “high traffic and consumption”, the Olivia Burton watch corners are based in the LCX store in Tsim Sha Tsui, the apm mall in Kwun Tong and the New Town Plaza in Shatin.

    Jemma Fennings, brand founder and managing director of the brand, said the launch of the retail corners mark a “huge milestone” for the brand and its international presence.

    She said: “The label has proved extremely popular with the Asian market since we started trading internationally and to be able to offer a dedicated retail space that is designed and merchandised by our in-house team is really exciting.

    “We’re looking forward to increasing our brand awareness and product offering within the Asian market and hope to add additional retail spaces to the current portfolio in the coming year.”

    The stand-alone corners will stock a wide range of Olivia Burton styles and new collections will be added every two months.

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  • Hanwha Galleria to open Seoul downtown duty-free store next week

    Hanwha Galleria to open Seoul downtown duty-free store next week

    Korean department retailer Hanwha Galleria is to partially open its first duty-free store at the 63 City Building in downtown Seoul next week, Hanwha Galleria Duty Free merchandising division representative Ji Su Kim told DFNIonline.

    Kim, was unable to reveal further details, but a YonHap News Agency report indicated Hanwha Galleria plans to open 60% of the proposed space in the gold-tinted skyscraper, one of Seoul’s best known landmarks in Yeouido on December 28. Hanwha Galleria and HDC Shilla Duty Free, a joint-venture between Hotel Shilla and Hyundai Development Co were awarded the main downtown duty-free licences in Seoul by the Korea Customs Service in July following a hotly contested tender.

    The report said the pre-opening would showcase 369 brands, including cosmetics, watches and jewellery with nearly half of them Korean brands. The new duty-free shopping space will be located in the first lower level floor of the main 63 building and floors one to three of the annex building. With a total floor area of 10,072sq m, shoppers will have a  one-stop experience in a modern and comfortable space, according to the company.

    Once the entire store is complete, it is hoped the luxury boutiques and cosmetics stores in the first lower level floor and the watches and jewellery section of the first floor will feature global luxury brands.  The second floor will be filled with Korean cosmetics brands showcasing the best of “K-beauty”. This floor will also feature sections for fashion, accessories, tobacco and liquor. The third floor will be home to “K-Special Hall”, an exclusive concept to Galleria Duty Free. This unites more than 100 of Korea’s top brands and small and medium-sized enterprises.

    Shoppers looking to take a break from shopping can enjoy views of the Han River at “Studio Rue”, a media complex café located on the fourth floor, and browse a selection of Hallyu content products and purchase refreshments.

    Meanwhile, Hanwha Galleria, whose Hanwha Timeworld subsidiary runs the duty-free concession at Jeju International airport, is believed to have made little progress in terms of attracting global luxury brands.

    Hanwha Galleria CEO Hwang Yong-deuk said during a briefing. “Although we want to have luxury brands in the stores they are not yet considering opening new shops, thinking they have enough shops in South Korea.”

    The company added it would continue negotiations to house global brands when the Lotte World Tower store closes this month after the Korean powerhouse lost its licence to travel-retail newcomer Doosan Group.

    It also vowed to continue expanding its duty-free business and revealed it is targeting sales of $429.6m million in the new store next year.

    Stay close to DFNIonline and future editions of DFNI for more on the Hanwha Galleria duty-free expansion project.

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  • MyNews parent plans 150 new stores

    MyNews parent plans 150 new stores

    Malaysian convenience store operator Bison Consolidated plans to use the proceeds of an IPO to fund 150 new store openings by 2017.

    Bison currently has 237 newsstands and convenience stores under its brands, which include myNews, Newsplus, MagBit and The Front Page. It also runs WHSmith outlets in Malaysia, in a joint venture with UK’s WH Smith Plc.

    “It has always been our plan to expand our network of stores. With the proceeds raised from the initial public offering (IPO), certainly we will make use of it to expedite our expansion plan,” Bison founder and MD Dang Tai Luk told The Edge Financial Daily.

    Bison recorded a 15.5 per cent revenue increase last financial year to RM182.41 million (US$42.17 million) as its store network continued to grow. It currently claims 8.6 per cent of the convenience store market by network numbers and 8.3 per cent by revenue. 7-Eleven is the dominant convenience store brand in Malaysia with 1900 franchised stores.

    In the company’s draft prospectus, Bison says it will invest 45 per cent of the proceeds of the float in network expansion, but has not yet put a price on its shares.

    The company owns all its own stores – it does not franchise.

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  • Marks & Spencer Hong Kong plans giant new store

    Marks & Spencer Hong Kong plans giant new store

    UK department store Marks & Spencer is planning to open one of its largest stores in Hong Kong early next year in Cheung Kong Property’s Wonderful Worlds of Whampoa centre in Hung Hom.

    According to a report in the South China Morning Post, California Fitness is vacating its space in the centre to make way for the new Marks & Spencer Hong Kong store, which will take up at least 40,000 sqft (3700 sqm). Other smaller tenants will also be moved to make way for what will be M&S’ 24th store in the territory.

    Helen Mak, senior director of retail services at Colliers International, told the SCMP Whampoa has been “a missing district for international brands” in the past.

    “With the new MTR station in place very soon, the landlord sees more chances for retail business.

    “It is more of a consideration of adding diversity to the existing mall, from landlord’s point of view,” Mak said.

    The Whampoa MTR station, part of the Kwun Tong extension line from Yau Ma Tei, is currently under construction and scheduled to open late next year.

    Fast fashion brands Uniqlo and H&M recently opened in the Wonderful Worlds of Whampoa centre and Mak says she expects more international brands to follow as the mall morphs into more of a regional mall.

  • Why Alibaba bought the South China Morning Post

    Why Alibaba bought the South China Morning Post

    Alibaba Group has struck a deal to buy Hong Kong’s venerable English-language newspaper, the South China Morning Post, adding a relatively small but influential content provider as the Chinese eCommerce giant expands into online entertainment and information.

    The agreement calls for Alibaba to purchase the media assets of Hong Kong-listed SCMP Group for an undisclosed amount. In addition to the daily newspaper, Alibaba is acquiring other SCMP operations including magazines, outdoor media, recruitment, events and conferences, and education and digital media businesses. Publications involved in the deal include the Sunday Morning Post; SCMP.com and related mobile apps; Chinese websites Nanzao.com and Nanzaozhinan.com; and a portfolio of magazine titles such as Esquire, Elle, Cosmopolitan, The PEAK and Harper’s Bazaar.

    Through the acquisition, Alibaba said it will “combine the heritage and editorial excellence” of the SCMP, which was founded in Hong Kong in 1903, with Alibaba’s digital capabilities “to provide comprehensive and insightful news and analysis of the big stories” in Hong Kong and China. The company plans to use technology to create content more efficiently, and provide resources to expand the SCMP’s audience beyond Hong Kong through digital distribution.

    “The South China Morning Post is unique because it focuses on coverage of China in the English language,” said Joe Tsai, executive vice chairman of Alibaba Group, in a statement. “This is a proposition that is in high demand by readers around the world who care to understand the world’s second-largest economy.”

    With the rise of the Internet, newspapers and magazines have suffered steep declines in readership and advertising revenue while struggling to make a profitable transition from print to digital distribution. In an open letter to the SCMP’s readers, Tsai said some may ask why Alibaba is buying into traditional media “considered by some (to be) a sunset industry.”

    “The simple answer is that we don’t see it that way,” Tsai wrote, calling the acquisition “the perfect opportunity to marry our technology with the deep heritage of the SCMP to create a vision of news for the digital age.”

    To enable greater access to SCMP content on computers and mobile devices anywhere in the world, Tsai said Alibaba intended to make all digital content available for free, eliminating the newspaper’s “pay wall” that requires readers to subscribe to get access to stories posted on the Internet. This change would occur “with enough preparation time after we take over operations,” Tsai wrote.

    SCMP CEO Robin Hu said Alibaba’s “proven expertise especially in mobile Internet” placed the company “in an excellent position to leverage technology to create content more efficiently and reach a global audience”.

    “We welcome Alibaba’s commitment to invest additional resources in its editorial and business operations to make the SCMP even stronger,” Hu said in a statement.

    Alibaba has been pursuing a media strategy that builds on its extensive eCommerce assets and consumer connections – the company’s China marketplaces have 386 million annual active buyers – to bring content to China’s entertainment-hungry masses. Alibaba has rapidly expanded in this area through investments in a variety of traditional and Internet businesses, including film production (Alibaba Pictures), sports (Alibaba Sports Group) and streaming video. Last month Alibaba agreed to buy Youku Tudou, A Chinese version of YouTube, in a multibillion-dollar deal.

    Tsai’s letter to SCMP readers:

    Marrying Heritage and New Technology: a Vision for the Digital Age

    Dear Readers,

    By the time you read this, you will have heard the news that Alibaba Group is acquiring the South China Morning Post.

    With an age difference between the two companies of nearly one hundred years, this is truly a mix of the old and the new. The SCMP is resonant with the history, heritage and culture of the region, just as Alibaba has its place in the new age of digital technology.

    We at Alibaba are both humbled and excited to be the new owner.

    Our Business Case

    So, you’re probably wondering why. Why is Alibaba buying into traditional media, considered by some a sunset industry? The simple answer is that we don’t see it that way.

    The SCMP has iconic status in the region, with a strong reputation internationally for the quality and credibility of its journalism over the years, thanks to its reporters and editors who have worked hard to build this heritage.  Like many print media, however, the SCMP faces challenges amid the dramatic changes in the way news is reported and distributed. But these changes play to Alibaba’s strengths, which is why we believe the two companies complement each other well.

    We see a compelling business case for the acquisition because we believe that Alibaba is best positioned to take the SCMP to the next level. The foundation for this work must be the quality of the content. And what underpins this will be editorial excellence: a clear prerequisite to maintaining readers’ trust and, ultimately, achieving commercial success. Be assured, we get that.

    Yet, the news business is in a state of flux. It has already gone digital and is now moving from online destination to other forms of distribution, in particular social media and mobile. Media now has a global audience and the challenge is to reach it in the most efficient and reader-friendly way. With proven expertise in digital distribution, especially on mobile devices, Alibaba is in an excellent position to leverage technology to create content more efficiently and expand distribution without borders.

    In other words, we see the perfect opportunity to marry our technology with the deep heritage of the SCMP to create a vision of news for the digital age.

    Our Vision

    Our vision is to grow the readership globally. We believe we can do this because the SCMP, from its base in Hong Kong, is uniquely positioned to report on China with objectivity, depth and insight, a proposition that is in high demand by readers around the English-speaking world – from New York to London to its home in Hong Kong – who care to better understand the world’s second largest economy.

    To help achieve our vision, we plan to make the SCMP more readily available. In this spirit, with enough preparation time after we take over operations, the pay wall on SCMP.com will come down, and you will be able to access its content for free on the Internet and on your mobile device.

    We will also invest to strengthen the foundation of editorial excellence. Only through additional resources will the SCMP be able to stay true to its core values of quality, integrity and trust. Further, the SCMP will stay close to its roots, with a strong China focus offering distinctive and informed analysis on trade, business, economy and society while maintaining its status as the paper of record for Hong Kong.

    Editorial Independence

    Some have suggested that ownership by Alibaba will compromise the SCMP’s editorial independence. This criticism reflects a bias of its own, as if to say newspaper owners must espouse certain views, while those that hold opposing views are “unfit.”

    In fact, that is exactly why we think the world needs a plurality of views when it comes to China coverage. China’s rise as an economic power and its importance to world stability is too important for there to be a singular thesis.

    In reporting the news, the SCMP will be objective, accurate and fair. This means having the courage to go against conventional wisdom, and taking care to verify stories, check sources and seek all viewpoints. These day-to-day editorial decisions will be driven by editors in the newsroom, not in the corporate boardroom.

    It’s humbling to assume the responsibility of ownership of such a storied newspaper. We thank the Kuok family who have been tremendous stewards of your trust; we hope Alibaba will have an opportunity to earn your trust.

    Sincerely,

    Joseph C. Tsai

    Executive Vice Chairman

    Alibaba Group Holding Limited

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  • Philippines to launch new tourism campaign next year

    Philippines to launch new tourism campaign next year

    Following the success of the “Visit the Philippines Year (VPY) 2015” campaign, the country’s Department of Tourism (DoT) will launch a similar initiative again next year. The “Visit the Philippines Again (VPA) 2016” drive is part of DoT’s intensive marketing efforts to establish the Philippines both as a tourist and business destination.

    “Visit the Philippines Again 2016 is going to be a massive retail-focused effort. We are negotiating with tour operators and travel agents to give incentives to returning visitors to the Philippines,” DoT secretary Ramon R. Jimenez, Jr. said.

    Aside from the special packages for visitors, the DoT, together with its Tourism Promotions Board (TPB), has partnered with the private sector and local government units in promising a bigger, greater, and more exciting line up of events and tourism product offerings that showcase the country’s competitive advantage as a destination.

    Among these major events are the Asean Tourism Forum 2016, Routes Asia 2016, Madrid Fusion Manila 2016, 2016 Ironman 70.3 Asia Pacific Championship, MTV Music Evolution 2016, and the Travel Blog EXchange (TBEX).

    “Our VPA campaign will again highlight the Philippines as a multi-level experience destination with our warm Filipino people, exciting activities, and endless new discoveries in our award-winning destinations that are worth a repeat visit. We are also putting together packages and rewards, so that when a tourist returns to the Philippines for a second or fifth time, he will get discounts in several establishments,” the tourism chief added.

    Of particular note for the Middle East is the “Kids Stay Free Campaign”, which has been designed exclusively for families (both nationals and expatriates), living in the GCC and offers exceptional value.

    The campaign packages provide two children per family under the age of 11 with an exciting array of activities, food, accommodations and other experiences all on a complimentary basis. Additionally the packages allow families to twin the Philippines capital Manila with another exotic destination such as Cebu, Palawan, Boracay, Bohol, Davao or Bicol, allowing for both an urban and idyllic getaway experience.

    GCC nationals require no visa to visit the Philippines. The country’s many popular shopping experiences, tranquil beaches and numerous family-friendly attractions have resulted in an increasing number of GCC residents choosing to make the Philippines their holiday destination of choice, a statement said.

    A total of 65,642 visitors from the GCC visited the Philippines between January and September 2015, resulting in a 12 per cent increase compared to 2014 figures for the same period, data showed. Saudi Arabia accounted for the highest number at 40,453 travellers, an increase of 17 per cent compared to the year before.

  • Cafe de Coral Group plans 20 new restaurants

    Cafe de Coral Group plans 20 new restaurants

    Quick Service Restaurant giant Cafe de Coral Group says it plans to open at least 20 new outlets in Hong Kong in the current financial year as it seeks to revive profit growth.

    The company this week revealed a three per cent increase in sales to HK$3.73 billion in the first half of the year, but a 14.7 per cent decline in profit to $207 million.

    “Seizing the opportunity of a softer leasing market, our Cafe de Coral and Super Super Congee & Noodles chains will be more proactive in further expanding its network,” the company said in its stock exchange filing.

    “Our team has been working on building greater network for our QSR platform with opening more than 20 shops in FY2015/16. We will also steer our current and new QSR concepts to

    further drive a bigger market share in this segment. Lifestyle cafe kiosk Just About Food and new innovative take-away concepts in key commercial hubs are tailored to target the needs of busy working crowds. These new QSR concepts have also led us to higher efficiency in the backdrop of high rental cost and persistent labour shortage.”

    Cafe de Coral Group’s QSR business in Hong Kong recorded a healthy turnover growth during the first half.

    “Performance of our fast casual and casual dining business was, however, held back by the significant investment we ploughed in to support our continual expansion in this segment. The group’s overall performance for the period has, to some extent, reflected a downturn in retail sentiments, driven by the weakening economy. Some of the group’s restaurants in the major shopping precincts saw a slow recovery in the aftermath of the community disruptions since the last quarter of 2014.”

    Despite the prevailing challenges, the group’s Hong Kong operations recorded turnover growth of four per cent to $3.12 billion. The Café de Coral chain saw its sales from comparable stores increase four per cent from the same period last year. The Super Super Congee & Noodles chain’s sales grew three per cent.

    In the fast casual and casual dining sector, Oliver’s Super Sandwiches continued to generate positive comparable store sales growth.

    “The Spaghetti House and Spaghetti 360˚, despite being affected by the temporarily weakened customer spending during the period, seized the opportunity to rejuvenate and strengthen our presence in the Italian dining sub-sector with The Spaghetti House re-launching its flagship store in Cityplaza, Hong Kong.

    “Shanghai Lao Lao and Mixian Sense, our home-grown brands that underscore the group’s diversification strategy, reported an encouraging performance. During the period of review, both chains continued their trajectories of steady growth and reinforced our solid leap into the Chinese dining sub-sector.

    Leveraging on the franchising model in our Japanese and Korean dining sub-sector, The Cup and Don Don Tei restaurants have opened in Hong Kong.

    Mainland China ‘flat’

    In Mainland China, Cafe de Coral’s fast food business growth was flat compared with last year and its casual dining business saw a steeper decline, “due to the rising tide of consumer reluctance to spend on higher priced meals”.

    “We made the deliberate move to slow down our growth in scale and pace in the country.

    “A balanced business portfolio with the right mix of our QSR, fast casual and casual dining and Mainland platforms will provide us with a greater room for expansion – a cornerstone of sustainable growth for the Cafe de Coral Group,” the company said.

    “Business in Mainland China has remained stagnant and consumption patterns are changing. Aware of the market deteriorations, the group has carefully gauged local consumption behavior, with a prudent approach towards operating its business there, primarily the Cafe de Coral and The Spaghetti House chains. We have deliberately adjusted our expansion pace and consolidated our operations, closing underperforming stores as well as strengthening our infrastructures, systems and teams in pursuit of a viable, future-oriented growth strategy.”

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  • Inditex Asia: the relentless push continues

    Inditex Asia: the relentless push continues

    As Spanish apparel giant Inditex continues its global expansion in earnest, the Inditex Asia business is accounting for a major share of the action.

    Inditex is committed to both multi-brand and multi-channel strategies as it builds it global dominance of the fast fashion market.

    During the first nine months of 2015 it opened 230 stores in 48 markets.

    Online, Zara extended its eCommerce presence to Taiwan, Hong Kong and Macao. Inditex also launched online operations in the southern hemisphere with the launch of Zarahome.com in Australia on December 3 – soon after the homewares brand opened online in Japan.

    Pull&Bear, Massimo Dutti, Stradivarius and Oysho all launched online in China.

    Inditex opened physical stores in all continents during the nine months to the end of October. The net number of stores across the group’s brands increased by 109 in Europe, by 47 in the Americas – and in Asia and the rest of the world, by a net 74, taking the group’s global store count to 6913.

    In Asia, these openings included new Zara stores in Osaka (Japan), Beijing, Harbin and Hong Kong (China) and in Singapore.

    Bershka opened its first store in Taiwan and a flagship store in Korea; and Stradivarius, with openings in the Chinese cities of Chengdu and Harbin.

    Oysho has opened its first store in Korea; Zara Home opened its flagship in Sydney (marking its 500th store worldwide).

    As at the end of October, Inditex had a presence in 88 markets, with online operations in 28 of these.

    Inditex said its net profit over the first nine months of the year was up 20 per cent to €2.020 billion. Net sales increased 16 per cent year on year to €14.74 billion.

  • Under Armour Singapore store largest yet

    Under Armour Singapore store largest yet

    The new Under Armour Singapore store at Bugis Junction is the fast-growing sportswear brand’s largest in the city, and second largest in Southeast Asia.

    The fashionable sportswear brand is growing rapidly, especially in Asia where it has 15 solo-brand retail stores and a presence in nine markets.

    The new Bugis Junction store is 2960 sqft (275 sqm), a fraction smaller than its largest, the 3000 sqft store at the Pavilion in Kuala Lumpur, Malaysia.

    An instantly recognisable statuesque Under Armour logo is proudly erected at the front of the new brand house, while the concept for it echoes the industrial and gym-inspired interiors displayed in existing Under Armour brand houses, retaining the signature accents consistent to all global Under Armour stores – including the use of metal and wood furnishings and the Under Armour Thrones, large black leather seats with the logo stitched in red built within the footwear zone.

    Under Armour says the Bugis Junction store “embodies a retail experience that awakens the fierce and high- intensity energy and signature philosophy of the Under Armour brand”.

    It is the first store to exclusively stock the basketball range and childrenswear, and will soon exclusively stock the Hunting, Tactical and Outdoor series.

    “Bugis Junction has been a key locale for entertainment, recreation and retail for both the youth and working professionals for decades. With many specialised gyms and fitness destinations in the area, Under Armour Bugis Junction is the ideal complement to kickstart or to maintain a fit and healthy lifestyle,” explains Michael Binger, CEO of Triple, the local licensee of the brand.

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