Author: Mei Ling Tan

  • Foodpanda Vietnam gobbled up by rival

    Foodpanda Vietnam gobbled up by rival

    Days after announcing it was shutting down, Rocket Internet’s Foodpanda Vietnam has been bought by local rival Vietnammm.

    Vietnammm, the original online food delivery service in the commercial hub of Ho Chi Minh City, has paid an undisclosed amount to acquire Foodpanda’s customer base and 1000 restaurant partners.

    “This deal enables Foodpanda’s customers and listed restaurants to keep making and receiving orders online in Vietnam,” the company said in a statement sent to Tech in Asia.

    The deal also marks a consolidation in Vietnam’s online food delivery space, which now becomes a battle between homegrown brands Vietnammm and Eat.vn.

    Vietnammm, established by young expat entrpereneuers, is now a subsidiary of one of the world’s largest online food delivery websites Takeaway, and Eat.vn is backed by VC Corp, one of the most prominent Vietnamese online media companies.

    Ralf Wenzel, co-founder and CEO of Foodpanda group, said: “Foodpanda has always been in the front line of market consolidation in the online food delivery sector by establishing clear number one positions in the vast majority of its countries and by conducting a number of complementary acquisitions in the past. This time we contribute our business in Vietnam which allows us to focus instead on more attractive core markets and helps Vietnammm to become the strongest local player.”

    Vietnammm CEO Jochem Lisser added: “We welcome all new customers and restaurants and will do everything we can to ensure a smooth transition to Vietnammm.com.”

    Last week, Foodpanda global head for communications Tim Schefenacker confirmed to Tech in Asia that they closed down the business in Vietnam because “we saw a smaller and rather long-term opportunity.”

    A December 2 notice of termination Foodpanda sent its partner restaurants stated that the company was suffering from a “financial situation” and “facing many difficulties” in the country. It further said that five days following the announcement – on December 7 – the company would have ceased all business activities, primarily its website Foodpanda.vn.

    Foodpanda launched in Vietnam under the HungryPanda banner in 2012, a time when competition in this sector was already heating up around Asia. In Vietnam, the company took a beating from the strong homegrown brands, forcing it to amp up marketing and advertising spend.

    Around the globe, Foodpanda and sister site Hellofood are competing head-on with a variety of meal delivery sites and apps. Foodpanda has gobbled up competitors in Mexico, Russia, Brazil, Eastern Europe, India, and Southeast Asia, bringing its restaurant partners to more than 38,000 in 500 cities worldwide at the latest count.

  • McDonald’s pilots new open concept in Hong Kong

    McDonald’s pilots new open concept in Hong Kong

    McDonald’s first opened its doors in Hong Kong in 1975. Fast-forward 40 years and McDonald’s is pioneering a new dining concept it’s calling McDonald’s Next in the bustling city on the South China Sea.

    Billed as a “food bar,” the open-concept eatery is located in the city’s Admiralty area, a major shopping hub (and hang-out for youths) near the main Central district on Hong Kong Island.

    McDonald's Next Hong Kong digital create your taste ordering kiosk touchscreen

    While a handful of McDonald’s in Hong Kong already offer Create Your Taste digital ordering, the McDonald’s Next location in Admiralty (taglines include: “What’s Next is Now” and “Your creation. Made by us. Worth the wait”) is offering a whole new level of personalization and customer experience for the brand.

    mcdonald's next

    In addition to being open until 1:00 a.m. and offering free mobile device charging and table service after 6:00 pm, what makes the Admiralty location unique is the personalization, interactive design and social nature of the dining experience.

    McDonald's Next personalized Hong Kong table service Create Your Taste

    Almost like a sushi bar in appearance, customers sidle up to the counter (which McDonald’s calls a theater kitchen) to design and order on touchscreens their customized salads and burgers from the DIY “Create Your Taste” menu that launched in Hong Kong in 2014.

    McDonald's Hong Kong Next Create Your Taste #createyourtastehk

    McDonald's Next Hong Kong customer #createyourtastehk #cyt

    As in other CYT locations, the food is served on a wooden plank with a toothpick flag impaling the burger bun and the fries in mesh wire baskets.

    McDonald's Hong Kong Create Your Taste burger menu

    The integrated McCafe menu also includes gourmet coffee in smartly designed packaging, such as premium Ethiopian Sidamo coffee beans bagged in a style that would make third wave coffee snobs swoon.

    On the tables, customers will find various makes of charging cords for mobile devices to rejuice their ever-present smartphones.

    Coffee beverages served with latte foam art depicting characters in a marketing tie-in with the new Peanuts movie and a gingerbread man design, part of the local “Hug the Moment” holiday campaign.

    McDonald's Next Hong Kong DIY salad Snoopy foam latte

    Last but not least, for dessert customers can indulge in mixed berry Belgian waffles. Throughout the experience, they are (naturally) encouraged to share photos of their creations on social media with the hashtag #createyourtastehk.

    McDonald's Hong Kong Create Your Taste burger menu

    The “Create Your Taste” menu consist of 19 base ingredients including numerous salad options with cheese, sauces and ingredients like chopped boiled eggs, grilled chicken, couscous, quinoa, asparagus and even crayfish.

    The packaging both rewards and reflects the handiwork of each customer’s creation, with taglines such as “Your creation — made by us, served to you.”

    McDonald's Next Hong Kong Create Your Taste packaging

    On the tables, customers will find various makes of charging cords for mobile devices to rejuice their ever-present smartphones.

    McDonald's Next Hong Kong Create Your Taste mobile charging

    In another inspired touch, limited edition Create Your Taste tote bags given away during the launch promotion reproduced each customer’s unique order as a graphic illustration, whether a hamburger or a salad.

    McDonald's Hong Kong Create Your Taste tote bag

    McDonald's Next Hong Kong Create Your Taste salad tote bag

    To be sure, Create Your Taste is not unique to McDonald’s Hong Kong, and is now available in other markets including New Zealand, Australia,Canada and in select US cities including New York, where YouTube vlogger Casey Neistat reviewed the CYT “$12 burger” in September with a pal.

    The Next concept also has hints of McDonald’s “Corner McCafe” concept concept in Sydney, Australia.

    McDonald's Hong Kong Create Your Taste #cyt localization

    Beyond the customizable menu itself, the McDonald’s Next design is far from the counter interaction McDonald’s customers are use to. The open design of the bar encourages a more social space.

    McDonald's Next Hong Kong employees

    And forget the standard issue gold and red uniforms—McDonald’s Next employees wear a uniform that’s hipper and more appropriate for Hong Kong: black t-shirts. Even the balloons decorating the McDonald’s Next are chic, coming in black and silver.

    And on the tables, customers will find various makes of charging cords for mobile devices to rejuice their ever-present smartphones. McDonald’s is promoting McDonald’s Next as part of the brand’s 40th Anniversary in Hong Kong. The local press has raved about the new “food bars” with local social media users equally excited.

    It’s all designed, of course, to appeal to selfie-happy millennials and post-millennials (i.e. teens), key demographics for McDonald’s in the Chinese territory. But the local media hasn’t been all raving about the cool new McDonald’s Next, even as the Create Your Taste concept gains traction worldwide. For weeks now, Hong Kong’s newspapers have been reporting on how Western chains play into the mad economics of the city, even as BuzzFeed’s reviewers (for one) rave about McD’s only-in-Hong Kong local menu items such as flavored seasonings to shake onto your French fries.

    Scores of former fast food workers recently turned up at Hong Kong’s human services office after spiraling rents resulted in the closure of five of the city’s seven Burger King locations.

    And a homeless woman’s death in a McDonald’s booth—where she sat slumped over, unnoticed for some time—has shined a light on how the 24-hour McDonald’s locations have become de facto homeless shelters, with many of the destitute stretching out in booths overnight.

    Meanwhile, a little north in mainland China in the city of Hangzhou, McDonald’s is weathering a different kind of PR storm. Criticism has met the company’s decision to convert a historic building on the city’s famous West Lake into a McDonald’s.

    The building is the former home of Chiang Ching-kuo, son of Generalissimo Chiang Kai-shek, both of whom were Kuomintang leaders and later presidents of Taiwan—the longtime enemy and ongoing thorn-in-the-side of China’s ruling Communist party.

    Beyond the burger giants, KFC is opening its first ever location on the roof of the world. The chain is not yet in the far west of Tibet but that will change early next year when a KFC will open in Tibet’s capital of Lhasa. It will also come as Yum! Brands spins off its China operations by the end of 2016.

  • Lululemon needs “to work harder”

    Lululemon needs “to work harder”

    Lululemon’s third quarter sales performance – measured on a total basis – was solid with total company revenues up by 14 per cent.

    This was mostly driven by the addition of 52 new stores, with the extra 142,000 sqft of selling space making a good contribution to the top line numbers.

    However, more worryingly the growth contribution from existing physical stores was nonexistent, and while the contribution from direct sales looks reasonable the growth rate is somewhat down on previous quarters.

    As with other retailers, the strong dollar is partly to blame for this lacklustre outcome; indeed, on a constant dollar basis total comparable sales were up by six per cent, with same store physical growth also up by six per cent. That noted, even with exchange rate fluctuations removed, growth is noticeably slower which, points to a much wider set of issues.

    Foremost among these is the rise in competition from both specialist and generalist players. While Lululemon has a following of dedicated fans it also relies on more occasional purchases from those who are somewhat less loyal to the brand, and it is here that the company has lost traction over the course of this quarter. Although arguably Lululemon still has a distinct and well positioned brand, there is no doubt that a more crowded playing field has made growth much harder to come by.

    The impact of the more competitive arena is further exacerbated by the company’s own push into direct selling. While this has been a great success, with online now accounting for 18.6 per cent of all revenue, it has also cannibalised some trade from stores and, with higher fulfilment costs, has been slightly margin dilutive.

    The problem with all of these dynamics is evident in the bottom line performance. Notably, Lululemon’s net income for the quarter fell by a fairly sharp 12.1 per cent and operating income was down by a shade under 16 per cent. Understandably, some of this can be attributed to the higher investment costs as new space opens, but most of it is down to the deterioration in the productivity of the existing operation.

    One of the solutions to the current squeeze is arguably greater product innovation which would stimulate customers into buying new product and allow Lululemon to ease up prices. However, while some movement on this front is apparent, Lululemon has lost much of its edge, and in comparison to a player like Under Armour its product development looks positively glacial.

    In light of the relative lack of innovation it is discouraging to see the recent attempt to hike some prices, which is something the market will not likely bear given current competitive conditions. It also had the effect of upsetting loyal customers who saw little justification for the increases and therefore viewed them as being unreasonable. Given the current struggle for growth, alienating core consumers is arguably the last thing that Lululemon should be doing.

    Despite the challenges, the one area of opportunity is the push into more embryonic areas like mens and teens. However, while Lululemon has made some good progress, the brand still has a somewhat limited appeal to many of these constituencies, mainly because it is strongly associated with its heritage of female fitness. Certainly, it is proving much more difficult for Lululemon to move into mens than it is for Under Armour to move into womens.

    Despite the challenges, the tailwinds provided by continued interest in athletics and fitness – which shows no signs of slowing down – will likely to help cushion Lululemon’s problems. However, the company now needs to work much harder if it is to keep in good shape in what is now a much more competitive market.

  • Metrobooks Hong Kong plans up to 10 stores

    Metrobooks Hong Kong plans up to 10 stores

    Metrobooks Hong Kong plans to open as many as 10 more stores in the territory, undeterred by the demise of rival retail booksellers.

    The company opens its fourth store in Hong Kong this Friday – on the 9th floor of Times Square. The 465 sqm store is split into two: Metrobooks offers lifestyle books and quality stationery to sophisticated professionals and MetroKids by Metrobooks targets young families and expatriates.

    Metrobooks’ parent, National Book Store Inc of the Philippines, chose Hong Kong as its first overseas location back in 2007 and has steadily expanded in the territory during the last few years.

    “NBS strongly believes in the retail market in Hong Kong and targets to open five to 10 more stores in the coming years,” a spokesman told Inside Retail Hong Kong.

    Besides books, Metrobooks offers a wide range of unique stationery items sourced from Japan and the US.

    Included in the Times Square store is an exclusive range from Itoya – the long established Japanese stationery shop. The first store of Itoya opened in 1904 in Ginza, Tokyo. Now Itoya has evolved into the leading stationery store in Japan, with the 12-storey flagship store in Ginza, 18 branches and one overseas store in San Francisco.

    The MetroKids by Metrobooks is the largest and most specialised English language children’s bookstore in Hong Kong, comprising 280 sqm of space split into three zones – Parenting & Early Learning; Intermediate and Young Adult, with more than 7000 items including books, stationery, art & craft, toys and gifts.

    Besides the best-selling series from well-known publishers like Scholastic, Oxford Reading Tree, Jolly Phonics and Usborne, and stationery brands like Tombow and Stabilo, Metrobooks says it aims to source innovative collections and emerging brands from around the world.

    Among the unique offer in the MetroKids by Metrobooks shop is a range from International Arrivals, a stationery brand from the US with fun, functional and easy-to-use crafting and creation tools inspiring children to express themselves with their imagination with creativity.

    NBS is the largest bookstore chain in the Philippines, with over 180 stores nationwide.

    In Hong Kong it has stores at Times Square, in Elements Mall and K11 in Tsim Sha Tsui, and at Mikki in Kowloon.

    The Itoya corner at Metrobooks.

  • SM Malls proves disaster resiliency makes business sense

    SM Malls proves disaster resiliency makes business sense

    SM Malls shopping centres – now a 56-strong network across the Philippines – have evolved into sustainable structures that are proving to be valuable investments in the event of the frequent natural disasters which strike the nation.

    In the last few years, SM malls have consciously integrated disaster risk reduction into design and operations in the midst of worsening effects of climate change.

    Speaking before the annual meeting of the United Nations International Strategy for Disaster Risk Reduction (UNISDR) in London, recently, SM Prime president Hans T Sy shared that the company has taken major steps to ensure the longevity of its developments and safeguard its host communities given this context.

    SM’s malls, with a total gross area of over 7 million sqm, have an average daily foot traffic of over 4 million people and some 15,000 tenants.

    “My experience has proven that investing in resilience of our company’s assets makes good business sense. Depending on the location and assessment of the project, around 10 per cent of capital expenditure is allocated to Disaster Resiliency,” said Sy who is the only Filipino to be part of the UNISDR’s Private Sector Advisory Group.

    “We see the entirety of our malls as a city in itself, with locators, employees, customers and the communities we serve,” he added.

    One of the latest SM malls to open, SM City Cabanatuan in Nueva Ecija, is a good example of how SM Prime has adapted to climate change by making its infrastructure more disaster resilient.

    Cabanatuan was affected by Super Typhoon Lando (International name: Koppu) which caused massive flooding, mudslides and power outages that affected 9 million people in the northern region. The mall’s design allowed the free flow of creek floodwater during extreme flooding while the lower ground structure served as a flood catchment, thereby reducing the risk of flooding and ensuring the safety of the surrounding communities. The mall likewise served as a refuge for over 400 customers and families in the area at the height of the typhoon.

    Over the past several decades, SM Prime has made significant inroads in incorporating disaster resiliency in its centres. The best example is SM City Marikina which opened in 2008 and was built on concrete stilts to allow flood water from the nearby Marikina River to flow freely. When Typhoon Ondoy (International name: Ketsana) flooded most of Marikina City, the mall stood high above flood waters and all its tenants were undamaged and safe.

    The roads surrounding the Marikina mall are at ground level. Anticipating floods during heavy rains at that level, SM Prime constructed the first two levels of SM Marikina as parking areas without wall enclosures. The upper parking level was constructed at an elevation of 20.5 meters. During extreme floods, the parking floors are vacated and the supportive stilts allow for the free flow of water through the lower levels, while the business units continue to operate safely as was seen at the onset of Typhoon Ondoy (Ketsana) when a huge part of Marikina was flooded. The mall became a refuge for stranded people and food seekers. It also became a re-packing center for relief goods.

    SM City Masinag in Antipolo, SM BF Paranaque, SM Angono and SM San Mateo both in Rizal province were provided with catch basins underneath the mall to hold water during flooding.

    SM Muntinlupa in Alabang, was also designed to ensure the safety of the customers even if it was found to be located on a “discontinued major fault line”. Its design features a slab system that minimises the effects of earthquakes.

    The Mall of Asia Complex in Pasay City, one of SM Prime’s biggest investments located on 60 hectares of reclaimed property, has also been been designed for resiliency. He said that the main feature of the complex is that all structures were constructed at a height of 4.5 meters above the National Building Code requirements.

    “SM Prime places crucial importance on disaster resilience, not as an additional cost, but as part of our core business strategy. It allows us to serve our communities better, to be competitive, to increase our value and bottomline. But most of all, disaster resilience ensures the safety of our customers and the communities where we operate,” Sy said.

    Aside from introducing sustainable features in its malls, SM Prime also educates and updates its partners and stakeholders on disaster risk reduction (DRR) through internal procedures and various forums, such as the Green Retail Agenda, Business Case for Disaster Resilience, Top Leaders Forum and others. It also values and supports the government’s programs and initiatives in their information and educational campaigns such as the first Metro Manila Shake Drill for Earthquake Preparedness.

    SM Prime also supports DRR projects such as the Weather Philippines Foundation’s Automated Weather Station (AWS) which specialises in local weather forecasting.  All SM malls have also installed the AWS device which provides online five-day local weather forecasts as a form of public service in support of the government’s weather forecasting.

    SM has also donated 1000 units of disaster resilient houses to victims of Typhoon Haiyan, the strongest storm to make landfall in the southern part of the Philippines.

    SM Prime set up its efforts to lead Philippine businesses and communities disaster-resilient through the Private Sector Alliance for Disaster Resilient Societies (Arise), a worldwide initiative spearheaded by the UNISDR to create more resilient societies.

    Arise was introduced for the first time in Southeast Asia during the 2015 Top Leaders Forum at the SMX Mall of Asia in Pasay City.

    Arise, which was launched in London last September, was created in order to implement the Sendai Framework for Disaster Risk Reduction, a 15-year global roadmap adopted in March 2015 which aims to curb disaster mortality and economic losses substantially.

  • APAC tops retail e-commerce

    APAC tops retail e-commerce

    Retail e-commerce sales in Asia-Pacific will reach $877.61bn in 2015, up 35.7% from 2014, as mobile adoption and the rising middle classes in China, India and Indonesia fuel rapid growth, according to a new forecast.

    Research firm eMarketer said that, for the first time, the region will not only have the largest digital market in the world, but its share of global retail spend will reach a majority of 52.5%.

    China alone will account for more than 40% of global retail e-commerce sales this year, up nearly five percentage points from 2014, and the country is expected to continue growing its share of the worldwide market to more than 50% in 2018.

    By then, the value of retail e-commerce sales in China is forecast to be a massive $1.568 trillion compared to a worldwide total of $3.015 trillion. Meanwhile, Asia-Pacific (including China) will account for $1.892 trillion in three years’ time.

    Online retail sales in China are expected to account for 15.9% of the country’s total retail sales in 2015, compared to a global average of 7.4% and 10.2% in Asia-Pacific.

    Although China dwarfs other Asian nations in terms of online sales volumes – for example, $672bn in 2015 compared with just $14bn in India – the report also highlighted India and Indonesia as other key drivers of growth in the region.

    The latter two markets saw growth of 129.5% and 65.6% respectively in 2015, the report said.

    Monica Peart, eMarketer’s director of forecasting, said rapid online growth in Asia-Pacific, coupled with faster internet service and greater mobile uptake is heating up the competitive landscape.

    “Large local players are increasingly vying for market share by improving their logistics and mobile platforms, and in some cases moving entirely to an app-only service,” she said.

    Finally, eMarketer forecast that overall retail sales in Asia-Pacific would reach $8.57 trillion this year, rising to $11.46 trillion by 2019, or representing 20.4% of worldwide retail sales. Data sourced from eMarketer; additional content by Warc staff

  • First KFC Tibet store to open in 2016

    First KFC Tibet store to open in 2016

    It’s been more than 10 years since US fast food giant Yum! Brands first mooted opening a store in Tibet.

    But next year the plan is set to come to fruition following the appointment of a franchisee there.

    KFC dropped plans to open an outlet there in 2004 on economic grounds – but the plan was opposed at the time by Tibet’s exiled leader the Dalai Lama, who is a staunch vegetarian.

    Now, the first KFC Tibet outlet is scheduled to open in the first half of next year – part of a massive expansion program for the deep fried chicken brand.

    Yum! is preparing to spin off its China operations and almost treble the current 6900-strong store network to about 20,000 through a franchising program.

    The first KFC Tibet store will open in the capital city, Lhasa.

  • France’s Casino puts Vietnam Big C chain on the block

    France’s Casino puts Vietnam Big C chain on the block

    Casino Group plans to unload the Big C hypermarket chain in Vietnam, as part of a restructuring plan to strengthen its financial flexibility in 2016.

    In a news release posted on its website on Tuesday, the French group said it aims to shave off more than 2 billion euros ($2.17 billion) of debt. In addition to selling the Vietnamese Big C business, the company said it is mulling “real estate transactions in Thailand.”

    Potential investors interested in buying the Big C operations include Thai conglomerates and Vietnamese property developer Vingroup, according to local sources. Bloomberg on Wednesday reported that the sale could raise 750 million euros, citing Bruno Monteyne, an analyst at Sanford C. Bernstein.

    Brisk sales

    Big C was one of the first international chains to gain a foothold in the Vietnamese market, where modern retailing is still in the early stages of development. The first of the French-style hypermarkets opened in the country back in 1998. As of December, the chain consists of 32 outlets and 10 C-Express convenience stores across Vietnam.

    It is one of the top five retailers in Vietnam, with total sales in the first half of 2015 reaching 312 million euros, up 26.4% on the year.

    Casino is the second European retail group to move to sell its Vietnamese chain of late. Last year, Germany’s Metro Group signed a deal to transfer its 19-store Metro Cash&Carry Vietnam unit to Thailand’s Berli Jucker for 655 million euros. The transaction was scheduled to be completed in the first half of 2015, but it has hit a legal snag related to Metro’s corporate income tax obligations in Vietnam.

    Meanwhile, Casino Group is seeking to generate 550 million euros through the real estate business in Thailand, and another 200 million euros in Colombia, according to Bloomberg.

    Casino’s Big C chain owns some 800,000 sq. meters of gross leasable area at shopping malls across central Thailand. In Colombia, its Exito unit controls more than 300,000 sq. meters of such space, excluding hypermarkets.

    Casino entered Thailand in 1999, when it acquired a stake in Big C, the country’s No. 2 mass food retailer. The group is now Big C’s majority shareholder. Big C runs hypermarkets, supermarkets, convenience stores and supercenters — which combine a hypermarket and a large mall — in the Thai market.

  • Apple Korea faces antitrust probe

    Apple Korea faces antitrust probe

    Apple Korea has found itself under the spotlight in South Korea over its repair contracts.

    South Korea’s antitrust watchdog Fair Trade Commission (FTC) said today it is checking possible unfair provisions in contracts signed between Apple Korea and local electronic repair companies.

    The FTC did not elaborate on details but said it confirmed there were unfair clauses that favored the electronics giant.

    “The probe was launched by the commission based on suspicions, with investigators processing all the information gathered,” FTC chief Jeong Jae-chan said.

    He predicted that results of the review will be made public soon. He said because many consumers used iPhones in the country, the investigation should generate considerable interest.

    The latest examination follows the corporate regulator’s recent order that eight local repair companies and mobile operators must change their customer service rules that unfairly restrict the rights of consumers.

    Repair firms, such as UBase Inc., Peach Valley and Beyond Tech Co, along with mobile operators SK Telecom and KT, were ordered to make changes earlier in the year.

    An FTC official said that while the ruling against repair firms involved businesses and consumers, the latest ongoing actions target business-to-business arrangements.

    Besides Apple, the FTC said it plans to release repair information by all mobile phone manufacturers within the year, so consumers can personally check how companies fix gadgets.

    Information will be provided by the Korea Consumer Agency on Samsung Electronics, LG Electronics and Apple, with data to go into such matters as costs, how repairs are made, the time it takes to fix broken devices and related procedures that must be followed, it added.

  • Tomei sells 45% stake in Hong Kong unit to tap local expertise

    Tomei sells 45% stake in Hong Kong unit to tap local expertise

    Tomei Consolidated Bhd said it has disposed of 14.49 million shares that is equivalent to a 45% stake in its wholly-owned subsidiary Wealthy Concept Ltd (WCL) for HK$4.5 million (RM2.5 million), cash.

    WCL is a Hong Kong-based company that is involved in the distribution and retail of jewellery. The stake was sold to two Chinese citizens Wang Guang (9.66 million shares; 30%) and Li Yi (4.83 million shares; 15%).

    In its filing with the exchange, Tomei said the sale was to tap on the local expertise of its new shareholders in the retail of gold and jewelleries business in China.

    It added that it intends to utilise the proceeds from the disposal as working capital.

    Following the disposal, Tomei will be left with 17.71 million shares or 55% in WCL.

    “The proposed disposal is not expected to have any material effect on the earnings, net assets, share capital and the substantial shareholdings of Tomei for the financial year ending Dec 31, 2015,” said the company.

    Tomei closed 1 sen or 2% lower at 49 sen today, bringing its market capitalisation to RM69.3 million.

  • Le Saunda sales slip

    Le Saunda sales slip

    Footwear retailer Le Saunda says same store sales in its own stores slipped eight per cent in the third quarter.

    But the company’s online turnover soared 26.7 per cent reflecting rising popularity of online shopping across Greater China.

    Total sales declined 6.1 per cent year on year.

    As at the end of November Le Saunda had 897 retail outlets in Mainland China, Hong

    Kong and Macau – 13 more than at the same time last year. These included 789 self-owned outlets in Mainland China, Hong Kong and Macau and 108 franchised outlets in Mainland China.

    Le Saunda has only released unaudited operational data for its retail business at this stage, not detailed financial data.

  • Uniqlo strengthens Toray partnership

    Uniqlo strengthens Toray partnership

    The partnership which pioneered Heattech and Airism garments have forged a new expanded relationship they say will create “a new industry for the future”.

    Fast Retailing’s flagship Uniqlo and Toray Industries first joined hands 10 years ago aimed at developing technological solutions to make clothing functional rather than just practical – and provide the Japanese fashion giant with a point of difference over fast fashion rivals.

    Uniqlo’s signature Airism garments are meant to be worn beneath any ensemble to keep you cool and dry, making heat and humidity more bearable with properties such as absorbency, breathability and odour control. Heattech garments come with features designed to make it the most comfortable innerwear, including sweat-wicking, quick-drying, anti-odour and anti-static features.

    The most recent seasonal Heattech lines contain camellia oil moisturiser to keep the wearer’s skin soft and supple in dry weather.

    In the new five year third stage of their working partnership, Uniqlo and Toray will work together to:

    Accelerate globalisation and digitalisation to create a new industry by:

    • Realising an end-to-end business model by utilising the Internet of Things (IoT).
    • Further reducing production lead time.
    • Further increasing globalisation of production sites and locations.
    • Optimising production in each location.
    • Expanding production sites to support business growth in Greater China (China, Hong Kong and Taiwan).

    Maximise LifeWear that is made for all by:

    • Improving comfort and functionality of all current products.
    • Adding value to products by conducting research and development.
    • Developing new sportswear to enhance daily lives.
  • New Delhi tops list of Asia’s top cities for shopping

    New Delhi tops list of Asia’s top cities for shopping

    New Delhi has topped the list of Asia’s top cities for shopping, offering a treasure trove of goods through its blend of charming traditional markets and glitzy shopping malls, according to a new survey.

    New Delhi has topped the list for the best shopping city in Asia, followed by Bangkok and Singapore, according to a survey by TripAdvisor.

    “Shopping in Asian cities can be a rich and colourful experience if you know exactly which spots to go to and how to maximise your dollar,” TripAdvisor’s Communications Director for Asia Pacific Janice Lee Fang said.

    Most cities feature top quality malls, where one can find their favourite designer shops, but there are also the night markets or street shops that sell beautiful handicraft and other local gems unique to the culture, she added.

    This ranking is based on the popularity of shopping activities in Asian cities and also includes highly-rated hotel recommendations, which are bookable on TripAdvisor, offering shoppers great value for their stay so they can save as much of their holiday budget.

    The rank of the best cities for shopping is based on the total of commercial activities for shopping, the number of commercial activities for shopping with a good score, the frequency of mention for the word shopping in the reviews relative to the destination and the average score of reviews that talk about shopping in all the languages applicable on TripAdvisor.com.

    Bangkok (Thailand) is second with its huge variety of shopping options for every lifestyle and budget, from the very high-end to street shopping, wholesale and weekend markets.

    Singapore, which ranked third in the list, is famous for its retail options across the city state, with a plethora of shopping malls that open till late.

    Other cities mentioned in the top 10 shopping destination are Beijing in China at the fourth place, followed by Hanoi in Vietnam, Tokyo in Japan, Seoul in South Korea, Kuala Lumpur in Malaysia, Kathmandu in Nepal and Jakarta in Indonesia.

  • Calata corporation innovates for agriculture industry in the Philippines

    Calata corporation innovates for agriculture industry in the Philippines

    The Calata Corporation has made significant strides within the agricultural industry in The Philippines. In fact, the country has grown significantly within this sector and it is now one of the most diverse and innovative in the region. Agriculture is the largest industry in the Philippines. It is vitally important to the country’s gross domestic product and the livelihood of thousands of farmers and millions of people. Although agriculture has been a long-standing industry here, the innovations and modifications made by Calata Corporation really have helped to open the door for opportunity and have changed the industry.

    Investing in Agriculture

    When the founder of Calata Corporation set out, he aimed to provide an improved model for doing business within the agricultural sector. He did so because he believed, and still does, that investing in the agricultural industry will boost the economy and bring improvement in the future of The Philippines. Joseph Calata has talked numerous times about the importance of agriculture, not in just the old way of farming, but in innovative, tech-based improvements that can help the industry to soar locally.

    But, how did he and the company itself change the industry?

    A look back at what Calata Corporation started at can provide some insight. The 30-something-year-old business professional is happy to talk about the retail business his family owned. At that time, it was a small retail outlet that met the needs of just those in the local area. It sold fertilizers that were very important to the industry. Yet, this wasn’t enough to spur the development and growth necessary within the company.

    Today, Calata and his team have opened the door for all farmers and agricultural businesses in The Philippines by providing better access to materials and products that improve the industry. This includes a number of significant changes.

    • He introduced technology that improved the inventory tracking and management processes, reducing man hours spent.
    • He introduced innovative methods for using land and for developing a better quality of product every time.
    • He also worked to expand the company to provide better access to materials to more sectors.

    Once a fertilizer based business, Calata Corporation now dominates numerous industries. It’s AGRI component still offers fertilizers, as well as numerous other products that help to protect the investments farmers make. It also offers a seed division, a planting equipment division, retail stores for local access to farmers, and a distribution network that spans from the ground through the distribution of final products. He’s added in soya, cassava, corn, and rice to the industry while also improving animal feeds and processing.
    As a conglomerate of numerous companies and sectors, it is far easier for the companies within this sector to thrive. They now have better access to materials, high-quality seeds and industry knowledge.

    They also have access to better materials, which has become one of the most important components to the industry’s development and growth. In short, Calata Corporation connects farmers and technology, innovation and proven methods, and cost effectiveness and growth. It is in these connections that the company has been able to change the agricultural industry and the lives of many of those who are working in it today. Calata Corporation and Joseph Calata continue to innovate to achieve even more for the future.

  • Retail Sales Surge in China: Analysts Believe Domestic Demand Supporting Growth

    Retail Sales Surge in China: Analysts Believe Domestic Demand Supporting Growth

    In some positive news for the Chinese economy, it was reported today that retail sales in China rose unexpectedly last month. According to a report released by the National Bureau of Statistics of China, it was reported today that Chinese retail sales rose to an annual rate of 11.2 percent as compared to a reading of 11.0 percent in the preceding month. Analysts on the street had expected Chinese retail sales to rise to 11.1 percent last month. Retail sales are a closely watched gauge as it provides an insight into the inherent domestic demand.

    In other economic reports, it was reported industrial production in China rose unexpectedly last month. According to a report released by the National Bureau of Statistics of China, it was stated that Industrial Production rose to 6.2 percent as compared to a reading of 5.6 percent in the preceding month. Analysts on the street had expected the Chinese Industrial Production to come in unchanged at 5.6 percent last month. The sharp fall in commodity prices and plunge in global demand has meant that the industrial production in the world’s second largest economy continues to remain weak at the current moment.

    The report comes on the back of a report which showed that China’s urban fixed asset investment remained unchanged unexpectedly last month. According to a report released by the National Bureau of Statistics of China, it was reported that Chinese Fixed Asset Investment remained unchanged at a seasonally adjusted 10.2 percent as compared to a reading of 10.2 percent in the previous month. Analysts on the street had expected Chinese Fixed Asset investment to fall to 10.1 percent last month. Many analysts believe that the report is a clear indication that growth in the Chinese economy continues to remain subdued which is a huge cause for concern for economists and investors.