Retail News CRM

Author: Mei Ling Tan

  • Spykar denim plans 250 new stores

    Spykar denim plans 250 new stores

    Spykar, an Indian-founded denim brand, is planning to open 250 stores over the next five years under a franchise program.

    According to Franchise India, Spykar currently operates 200 exclusive brand outlets across India targeting the youth market.

    Meanwhile, the company is also exploring opportunities for international expansion.

    Spykar COO Sanjay Vakharia told Franchise India the brand has operated stores in London and Melbourne, Australia, for three years.

    “The experience gained during these overseas ventures is invaluable and will help us for future propositions. We will explore more global markets.”

    Grounded in denim, the brand has expanded into casual clothing including t-shirts, shirts and winter clothing. Womenswear and accessories are likely to be added to the portfolio “in the near future”.

    Under its Indian franchising program, the brand will open new stores at a rate of about one a week, focusing on tier 1, 2 and 3 cities: Noida, Kolkata, Pune, Mumbai, Jamshedpur, Indore, Calicut, Kota, Bangalore, Hubli, Coimbatore, Vadodara, Lucknow, Ghaziabad, Ranchi, Jaipur, Alwar, Udaipur, Jalgaon, Chandrapur, Satara, Trivandrum, Thrissur, Kottayam, Kannur, Vizag, Vijaywada, Guntur, Nellore, Rajahmundry, Tirupati, Kakinada, Chennai, Madurai, Bilaspur, Ahmedabad and Hyderabad.

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  • King Power opens downtown Phuket store

    King Power opens downtown Phuket store

    Thai duty-free monopoly King Power mixes international brands with local products in its new downtown Phuket store opened this month.

    The new store’s design was inspired by the nearby Andaman Sea and uses dimensional depth and lighting to mirror the ocean.

    King Power Phuket stocks perfumes, cosmetics, and skincare from leading brands such as Bobbi Brown, Clinique, Dior, Estee Lauder, Lancome, L’Occitane, L’Oreal, Mac, SKII, and Shiseido; apparel, jewellery, and eyewear from brands including Emporio Armani, Bally, Coach, Longchamp, Furla, Hugo Boss, Kate Spade, Michael Kors, Calvin Klein, Dunhill, and Ray Ban; and watches from Omega, Rolex, Chopard, Tudor, IWC, Longines, and Breguet.

    A range of products from leading Thai brands, as well as local Phuket goods are on sale in a dedicated Thai Pavilion and the store also sells electronics and gadgets.

    The store’s interior is painted in pearl white contrasted by fluid lines simulating the movement of water. Additionally, the design incorporates Phuket’s unique Sino-Portuguese patterns.

    King Power Phukhet store 1

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  • 180 flights added to Bali in anticipation of Christmas and New Year’s rush

    180 flights added to Bali in anticipation of Christmas and New Year’s rush

    With natal and tahun baru fast approaching, Bali’s Ngurah Rai Airport has received a list of 180 extra flights destined for Bali. 

    The statement was disclosed by the General Manager of Angkasa Pura I Ngurah Rai Airport, Trikora Harjo. 

    “The flights will account for 34,508 passengers in total. This figure is an increase of 55 percent compared to last year (2014). These extra flights include 88 from Citlink and 68 from Lion Air. All are Denpasar-Jakarta,” he explained on Friday, as quoted by Tribun Bali. 

    Besides the Citilink and Lion Air flights, Garuda Indonesia and Sriwijaya will also be offering extra flight services for the holidays, Harjo added. 

  • Phuket Airport expansion to double passenger capacity

    Phuket Airport expansion to double passenger capacity

    Phuket Airport’s new international terminal is set to double its passenger capacity when it opens next May, according to airport director Monrudee Gettuphan.

    Construction of the terminal is more than 80 percent complete. It will undergo initial systems checks this month ahead of its soft opening on Feb. 14 and is on target to be fully operational by May, Monruidee said.

    “The new international terminal will be able to handle 12.5 million passengers annually, which is almost double the existing one, which can take only 6.5 million passengers per year,” Monrudee said.

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    The new terminal will include 10 aircraft parking bays, four gangways for passengers to embark and disembark from aircraft, and a brand-new shopping area with duty-free shops and restaurants.

    “But we are not only rushing the project to be done according to the plan, but also ensuring that the airport meets the standards by the Civil Aviation Authority of Thailand,” Monrudee added.

    The new terminal is part of a major THB5.7 billion overhaul of the airport, which began more than two years ago.

    phuket_airport_expansion

    Concerns have already been raised that Phuket Airport will be over-capacity soon after the expansion project is complete. A THB3 billion “upgrade of the upgrade” to raise passenger capacity to 18 million has already been tabled.

  • Bangkok Planetarium to reopen in January

    Bangkok Planetarium to reopen in January

    After eight months of renovation, Thailand’s oldest planetarium will finally reopen its doors to the public on Jan. 5 at the same location on Sukhumvit Road.

    The old-fashioned semi-dome planetarium, which first opened its doors in 1964, has undergone a THB92 million refurbishment and upgrade including new digital projects, digital theater system and aurora-themed decor.

    Viewers can enjoy stargazing with the planetarium’s new custom-built fish-eye lens, high-definition 360-degree visuals and 5.1 surround sound.

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    The opening ceremony will take place on Jan 5, and visitors (both Thais and foreigners) will get free admission until Jan. 9. After that, admission prices will be as before: THB20 for students and THB30 for adults.

    It’s unclear when English-language shows will be held for non-Thai speakers, although before the refurbishment they took place every Tuesday.

    The Bangkok Planetarium is located at the National Science Centre for Education, which is just a short walk from BTS Ekkamai.

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  • Don Mueang to reopen terminal 2 on Christmas Eve

    Don Mueang to reopen terminal 2 on Christmas Eve

    Don Mueang International Airport, Bangkok’s hub for low-cost airlines, will reopen its newly renovated Terminal 2 for domestic flights on Christmas Eve.

    Due to the popularity of the budget airline service, Terminal 2 was put into renovation to improve the situation and to also ease the crunch on low-cost flyers. It is expected to serve up to 70% of domestic travel during the New Year holiday.

    Terminal 1 will continue to serve international flights but will soon undergo renovation as well.

    Don Mueang was initially closed down when Suvarnabhumi Airport was opened, but after Suvarnabhumi experienced overcrowding and service issues, Don Mueang was eventually put back into operation.

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    Don Mueang now accommodates between 80,000 and 110,000 passengers daily, and the newly added terminal will enlarge capacity from 18.5 million  to 30 million passengers annually.

    The airport has also recently launched a 33-seat Airport LimoBus Express on Nov. 27 which has free Wi-fi and takes travellers to the city center.

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  • Costa Coffee unveils new concept

    Costa Coffee unveils new concept

    The UK’s largest coffee chain Costa Coffee has opened a new concept, Costa Fresco.

    A food-centric store, the first outlet has opened in central London, selling porridge, pastries, salads, quiches and cakes, as well as coffee.

    Costa says if the concept is a success it will open more across the UK.

    “We really want to bring something different to the food market in London,” said Carol Welch, Costa’s global director of brand & innovation.

    “The store will be similar to the traditional Costa stores, but will have much more of a food focus. All pastries, cakes and bread will be baked on site – our customers are telling us they want more, good quality food.”

    Costa, part of Whitbred for the last 20 years, has 1582 stores in the UK and more in overseas locations, including Asia.

    The move into food is in part an attempt to stand out from rival coffee chains like Starbucks, adding a point of difference to attract customers.

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  • PetSmart opens Hong Kong global sourcing office

    PetSmart opens Hong Kong global sourcing office

    US pet provisions retailer PetSmart will open its global sourcing office in Hong Kong this month.

    The company says it chose Hong Kong to leverage the city’s strategic location to provide high-quality, innovative products for pet owners in North America.

    PetSmart is a renowned specialty pet retailer of services and solutions for the lifetime needs of pets in North America. The new Hong Kong office, located in Kwun Tong, will support the company’s global sourcing efforts in Asia and work closely with the US team to ensure all products sourced meet company objectives and customer needs.

    “As PetSmart continues to bring pet owners closer to their pets, we have an opportunity in Hong Kong to get closer to our supply chain controlling quality and costs, consolidate our non-food product assortment and develop innovative products in-house that our customers desire,” said Jim Persinger, director of PetSmart International Holdings.

    “Hong Kong is a fast-paced and growing market with close proximity to a significant Mainland factory base that develops high-quality, non-food pet products. Setting up an office in this strategic location will allow us to better serve our customers.”

    Dr Jimmy Chiang, associate director-general of Investment Promotion with Invest Hong Kong, said the establishment of PetSmart’s sourcing operations in Hong Kong reaffirms the territory’s status as an international trading and sourcing hub.”

    PetSmart operates 1444 pet stores in the US, Canada and Puerto Rico and approximately 202 in-store PetSmart PetsHotel dog and cat boarding facilities.

  • Thais taking firm steps towards Vietnamese market

    Thais taking firm steps towards Vietnamese market

    VietNamNet Bridge – The business fields that Thais have poured money to in Vietnam – infrastructure, building materials, retail, consumer goods, food and automobiles – are all fields with great potential.

    MAF’s research team, in its latest report, pointed out that the merger and acquisition (M&A) in 2015-2016 will still focus on consumer goods, finance & banking, real estate and retail. However, the investors from Thailand will be the major buyers.

    Thai investors have many reasons to come to Vietnam. It is not only a large market with increasingly high demands, but also serves as a ‘jumping board’ for them to access neighboring markets.

    In the retail sector, Central Group in early 2015 spent $100 million for a 49 percent stake of Nguyen Kim, a home appliance distribution network, and announced a plan to turn the network into the leading distribution chain of its kind in South East Asia.

    Commenting about Thai investment strategy, a branding expert said Thais have been following a professional investment strategy based on their knowledge about local culture and habits.Meanwhile, Berli Jucker stirred up the public with the announcement about taking over Metro Cash & Carry Vietnam at $879 million. Prior to that, BJC bought Family Mart and 65 percent of Vietnamese Phu Thai Group.Central Group plans to open 50 Nguyen Kim shops by 2019, twice as many as the existing number of shops. Prior to that, Central Group established Robins, a high end retail chain in Vietnam.

    The investors have drawn up clear roadmaps for penetrating the Vietnamese market: they know well when and what they should do to acquire Vietnamese businesses – an important move in their plan to conquer the Vietnamese market.

    The branding expert also noted that the Thai capital flow to Vietnam comprises capital from billionaires with Chinese origin.  Charoen Sirivadhanabhakdi, the owner of ThaiBev, BJC and TCC Holdings, and Dhanin Chearavanont, chair of CP Group, are of Guang Dong origin. Meanwhile, the Chirathivat family which owns Central Group, is of Hainan origin.

    Thai investors are mostly targeting most important and potential business fields in Vietnam.

    The retail sector, for example, is predicted to have annual growth rate of 15 percent with  total revenue of $97 billion by 2016, according to Economist Intelligence Unit. Meanwhile, CP Vietnam has been succeeding in the animal feed market worth $6 billion a year, and the animal meat market worth $18 billion.

    Thai investors, who have powerful financial capability, tend to take shortcuts to Vietnam by acquiring Vietnamese leading enterprises. SCG, after buying Prime Group, now controls Vietnam’s building material industry with 20 percent market share. The investments in two Vietnamese leading plastics manufacturers – Binh Minh and Tien Phong Plastics – promises to help SCG cement its position in the industry.

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  • Meet the man behind EZ-Link cards in Singapore

    Meet the man behind EZ-Link cards in Singapore

    Nicholas shared his strategies to displace cash totally. Always try and do not be afraid of failure. Every failure is part of our learning experience and must help us improve.This is so that we do not stagnate nor remain in the status quo while the environment around us continues to evolve. Those are the words from Nicholas Lee Tat Meng, the man behind Singapore’s EZ-Link cards, a contactless smart card used for the payment of public transportation fares in the city, with limited use in the small payments retail sector.

    Nicholas started his engineering career as a systems engineer in a local systems integration company prior to joining the Land Transport Authority of Singapore (LTA) in early 1997. In the LTA, he held various engineering portfolios before being seconded to its Policy Division to work on international relations and the development of business models for new transportation projects.

    In 2000, Nicholas was assigned to manage the island-wide implementation of the EZ-Link card. This included the design, development and implementation of a clearing-settlement backend system and the rollout of acceptance terminals across all mass rapid transit and bus transport systems in Singapore.

    Following the launch of the EZ-Link card in 2002, Nicholas then moved on to EZ-Link Pte Ltd, a wholly owned subsidiary of the Land Transport Authority. Over the years, he held several portfolios from developing business models and operating structure to supervising the company’s marketing efforts and corporate communications. On 1 October 2011, he was appointed as CEO of EZ-Link to lead the company to greater growth in adoption, transactions and applications of cashless payments.

    EZ-Link’s humble beginning

    EZ-Link was formed on January 8, 2002 with its core business of clearing and settlement of all EZ-Link card transactions generated in transit and non-transit (retail/merchant) environments, as well as the sale, distribution and overall management of EZ-Link cards. In 2009, EZ-Link became the first card issuer in Singapore to launch the CEPAS-compliant EZ-Link card. Thereby extending the company’s influence beyond the local public transport sector and into the retail and food and beverage industries.

    These new EZ-Link cards are also accepted as a mode of payment for Electronic Road Pricing (ERP) and at carparks fitted with the Electronic Payment System (EPS) when used in the dual-mode in-vehicle unit. To date, more than 17 million new CEPAS-compliant EZ-Link cards have been issued.

    “Over the years, we have been working towards the vision of a cashless society with the launch of several ground-breaking products and services such as the My EZ-Link Mobile, the world’s first and award-winning mobile application for EZ-Link card top-ups; EZ-Charms, the first EZ-Link non-card form factor in Singapore; and EZ-Link Rewards with Perx, the first-in-Singapore rewards scheme for public transport EZ-Link users,” said Nicholas.

    Apart from benefitting the consumers and commuters, EZ-Link is also looking to help businesses in Singapore to enjoy the benefit of cashless transactions through their services. Currently, there are over 30,000 acceptance points island-wide tapping on the EZ-Link card payment system which provides quicker customer service and lower costs related to cash handling.

    According to Nicholas, EZ-Link has the privilege of serving more than 3 million customers using their products and services daily. “This is a huge responsibility for us to undertake as we have to ensure that customers’ expectations are met when they interact with the cards, and the availability of sufficient infrastructure and capability to assist them in using our services,” he said.

    The biggest challenge

    However, the task of transforming Singapore into a cashless society was not that easy. Nicholas shared that their biggest challenge has been in the area of cash or in other words, how they can displace cash and encourage greater use of electronic money via the EZ-Link card. “Of course, our scope is not just limited to usage of the EZ-Link card, but also on topping it up as well. For instance, more than 40% of top-ups of the EZ-Link card are still done via cash.”

    To address this challenge, Nicholas shared that they have introduced schemes such as EZ-Reload to link an EZ-Link card to a bank account or credit/debit card account. In the event when the card runs out of stored value, it will automatically top itself up so that the cardholder will never have to go to a device to do a top-up.

    “We initially charged a $0.25 fee for this service, but have been progressively making it free for all DBS/POSB and Citibank card holders. With EZ-Reload, our customers are able to rely less on physical top-up points, and save themselves from the hassle of queuing up at Ticketing Offices and General Ticketing Machines,” said Nicholas.

    Nicholas shared that the next challenge is displacing cash in the retail/F&B area for small sum payments meaning those less than $20. In the past, the firm have invested into infrastructure to enable merchants to accept the EZ-Link card as a means of payment. However, Nicholas shared that there has been much resistance to this change by consumers and eventually, cash still prevailed.

    The journey ahead

    Moving forward, Nicholas said that they have partnered with various industry players to create a more open and efficient payment infrastructure that will accept all means of payment including the EZ-Link card. This means a collaborative approach with other industry players to enable multiple modes of payment so that consumers have more choice and flexibility in choosing the right electronic payment method to use, as opposed to cash payment. “Hopefully, the EZ-Link card will be the preferred choice of payment for consumers. In doing this, we are working together with the industry to tackle a challenge instead of facing it alone,” he said.

    Furthermore, Nicholas said they are gradually transforming into a new organisation, in terms of how they operate, how they engage with their customers and how their services are delivered.

    “We are looking at new digital services, increased personalisation of services to fit individual consumers, more exciting EZ-Link products that may come in different shapes and sizes and capable of interacting with individuals. With the rapid advancement of technology, we have an opportunity to evolve EZ-Link to another level,” Nicholas adds.

    Nicholas’ guiding principles

    Apart from not being afraid to fail, Nicholas believes that it is important to always question themselves why and how should they remain relevant to their customers and stakeholders. This, he said, ensures continual renewal of practices and business to keep up with the rapid changes in the environment, which is especially important given the rise of various disruptive business models.
    Secondly, he emphasised on the need to stay focused on their core business and do what they do best. “We innovate by collaborating with industry partners through win-win relationships and are always mindful of doing things beyond our capabilities,” he said.

    Meanwhile, in his journey building a cashless Singapore, Nicholas is focused in three goals:

    • To transform the EZ-Link card into a lifestyle product (beyond public transport but also in cars, taxis, private buses, identity card) and make it the preferred choice of consumers in their everyday lives
    • To be a consumer-centric company whereby services and innovation are developed around consumer needs and expectations
    • To contribute substantially towards Singapore’s goal of becoming a cashless society
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  • Hotel Lotte to apply for IPO next week

    Hotel Lotte to apply for IPO next week

    Hotel Lotte is reportedly set to file its application for listing on the nation’s main stock bourse early next week, according to sources Friday.

    They noted that the hotel unit of South Korean retail giant Lotte Group will submit its application to the Korea Exchange on Monday for a preliminary regulatory review of its initial public offering, which will mark the company’s debut on the stock market as early as March.

    Hotel Lotte in Seoul (Yonhap)

    The move was expected as Lotte Group chairman Shin Dong-bin has been pushing for listing Hotel Lotte on the Seoul bourse for months, as part of his reform plans to bring transparency to the governance structure of the group.

    An official at Lotte Group, however, denied the report, saying the date has not yet been fixed. He added that the application would be submitted as soon as possible.

    The listing plan came amid concerns that its market value would be lower than expected.

    The group expects the hotel chain to have a market capitalization of around 10 trillion won ($8.46 billion) when it goes public.

    But market watchers said Lotte Hotel’s recent loss of the operational license for a duty-free store at Lotte World Tower in southeastern Seoul could further drive down its valuation.

    Despite a negative outlook, they said the company would push for the stock listing as planned.

    The plan was released amid a bitter family fight over control of the retail business-focused conglomerate operating businesses both in Korea and Japan.

    At a parliamentary hearing in September, the chairman said the plan was approved by his father, Shin Kyuk-ho, with whom he had an ugly succession battle in August.

    In a bitter fraternal competition, Shin Dong-bin ousted his elder brother Shin Dong-joo and won control over the nation’s fifth-largest conglomerate.

    After a shareholders meeting, Dong-joo was stripped off the company’s registered executive position — leaving him with no foothold in Lotte Group Korea and Japan apart from the shares he holds.

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  • Airline retail conference organiser grounded

    Airline retail conference organiser grounded

    The organiser of the Airline Retail Conference (ARC), has gone into liquidation. Memphis Media was due to host two inflight retail events in 2016 – the ARC Asia-Pacific at Marina Bay Sands Singapore on 25-26 February, and the ARC Conference Europe on 7-8 June at Olympia Conference Centre, London.

    The firm tried to transfer paid delegates from the Singapore and UK event to other conferences, the well-established Aviation Festival Asia (23-24 February), organised by Terrapinn in Singapore and a similar event in London on 8 and 9 September.

    But Memphis Media lacked the client numbers to run the events effectively, a problem exacerbated by increasing pressures on the inflight retail channel.

    The firm’s website has not been updates with teh news and managing director Karim Halwagi did not respond to our calls.

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  • Generics revive Philippines pharma

    Generics revive Philippines pharma

    The Philippines is a developing country in which nearly 70 per cent of healthcare spending goes to the private sector. This combination means that for most Filipinos, medicines are expensive. But a regulatory shift has boosted the use of generics — cheaper copies of proprietary medicines with expired patents — and is shaking up the market to the benefit of local manufacturers.

    The shift has followed a law passed in 2008 that imposed price caps and stiffer fines on doctors prescribing brand-name medicines instead of generics.

    One result is that Unilab, a local pharmaceuticals group, has captured nearly 48 per cent of the pharmaceuticals market, at the expense of multinational giants such as Pfizer, Abbott Laboratories and GlaxoSmithKline.

    Generic medicines took 65 per cent of the market in 2014, from less than 40 per cent in 2009, according to the Pharmaceutical and Healthcare Association of the Philippines, an industry lobby group.

    Foreign pharmaceuticals makers suffered price caps imposed by a 2008 law on prescription drugs considered to be essential medicines, such as those used to treat hypertension, diabetes and pulmonary diseases.

    In response, companies such as Pfizer have begun to introduce their own branded generic lines or have dismantled production in the Philippines altogether.

    Increased use of generic drugs has been spurred by the emergence of generics-only pharmacies such as Generika and The Generics Pharmacy, two chains that have more branches between them than the retail leader Mercury Drug’s 1,000 stores.

    FT Confidential Research, a Financial Times research service, expects the market share of generics to expand to 70 per cent by 2020, as the government bolsters spending on healthcare with revenues from rising taxes on tobacco and alcohol.

    This year, the Philippine pharmaceuticals market is expected to grow 4.4 per cent to 152bn pesos ($3.25bn). Growth however is expected to accelerate to 4.7 per cent next year and 5 per cent in 2017–2018, with the administration of President Benigno Aquino raising healthcare expenditures by 38 per cent to 132.7bn pesos under the 2016 budget.

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  • Indonesia just banned a $100 million Uber-like startup, and it is suddenly worth nothing

    Indonesia just banned a $100 million Uber-like startup, and it is suddenly worth nothing

    Go-Jek, the $100 million Indonesian start-up which provides an Uber like service with motorbikes has just been made illegal.

    Indonesian media is reporting that the Ministry of Transportation has asked local police to take action against the operators of internet based transport services as well as prohibit drivers of the service due to their effect on other forms of public transport.

    The government is claiming that their reasoning behind the bans of the services are due to the motorbikes not meeting the requirements needed for a public transport vehicle.

    Go-Jek currently has around 20,000 drivers in Indonesia across major cities such as Jakarta, Bandung and Bali, with many driving as their sole source of income.

    Just yesterday Google announced that Go-Jek was the most searched term in Indonesia in 2015.

    Uber and other local app based transport services such as Grab Taxi have also been banned in Indonesia as part of the ruling.

  • M&S opens new store in China

    M&S opens new store in China

    Marks and Spencer has opened its first store in Beijing. In 2014 the high street stalwart earmarked China, Russia, India, the Middle East and Western Europe for international expansion. Chief Exec Marc Bolland cited plans to open 250 new stores overseas in three years. The aim was to boost international sales by a quarter and increase profit up by 40%.

    Patrick Bousquet-Chavanne, M&S’s Executive Director of Marketing & International, told Reuters the company was still committed to both Russia and China but that those overseas targets were now unattainable. The plans changed.

    “We’re looking at places which are very much ‘tier 1’… where you have an upper middle class consumer base… where we will do well even in the context of a slowdown in the economy,” Bousquet-Chavanne said in September.

    The new store in Beijing follows a change in company policy which outlines the closure of stores in ‘secondary cities’ across China, and a focus on flagship stores in major cities instead.

    The 1,500 sq m store opened at The Place shopping centre, and will sell selected food and drink as well as M&S clothing.

    Although this will be its first venture into Beijing, M&S has 10 stores in the Shanghai region and 20 in Hong Kong. Its empire covers over 1,300 stores, 852 of which are in the UK.