Retail News CRM

Author: Mei Ling Tan

  • Government to privatize Merpati airline company

    Government to privatize Merpati airline company

    The Indonesian government will privatize PT Merpati Nusantara Airlines by inviting investors to resolve the disputes in the company, deputy state enterprises minister Aloysius K.Ro said here on Tuesday.

    “By undertaking this privatization effort, one hopes Merpati is revived again and finds it possible to settle the fate of its employees,” he said at his office.

    He said the investors being invited could come from within the country or abroad and it is hoped that they will be ready in the first quarter of 2016 to resolve the issue, adding, “The investors (who we are looking at) are new players who have never participated in the privatization process (earlier).”

    “Investors who will come will be those ready to run it. They see the brand name Merpati. We are the majority share holder. It is alright. The important thing is to revive Merpati,” he said.

    Initially, Merpati will receive Rp500 billion in capital from the Asset Management Company (PPA) for right sizing, including settling the normative rights of its employees, an issue pending for long now.

    “We must negotiate. What is important is that the unpaid salaries are settled. As for the issue of severance pay, it will be discussed with the prospective investor,” he said.

    In line with the plan, all Merpati employees will be laid off and Merpati will appear as a totally new company with new employees.

    “All employees will be laid off and thus Merpati will be like a new born baby. They, however, will have the right to seek re-employment if the company is already in good health,” he said.(*)

  • Philippines’ Metro Retail IPO priced below guidance

    Philippines’ Metro Retail IPO priced below guidance

    Philippine supermarket and department store chain Metro Retail Stores Group Inc said its initial public offering (IPO) was priced at a steep discount of 35 percent due to market volatility, cutting the expected proceeds from its listing to $86 million.

    The offer price was set at 3.99 pesos each, down by a third from the guidance of 6.10 pesos, said Reginaldo Cariaso, chief operating officer of underwriter BPI Capital Corp.

    Metro Retail is now expected to raise 4 billion pesos ($85.58 million) through the sale of 1 billion shares, including the over-allotment option of up to 92 million shares, to fund its store expansion programme. The company would have raised 6.17 billion pesos as per earlier guidance.

    Only two firms have debuted on the Philippine Stock Exchange this year, raising a total of 1.77 billion pesos ($37.87 million) as markets reel from volatility and investors seek clarity on the next move by the U.S. Federal Reserve.

    “We had strong interest from domestic and international investors but given that markets are very volatile, there was price sensitivity,” Cariaso said.

    Metro Retail’s price-to-earnings (PE) ratio of 15 times was more attractive than its peers, Cariaso said.

    Retail chains Puregold Price Club Inc and Robinsons Retail Holdings Inc traded at more than 20 times PE multiples on Wednesday.

    Listing is scheduled for Nov. 24. BPI Capital and Deutsche Bank are the joint global coordinators and lead underwriters of the IPO. ($1 = 46.7400 Philippine pesos)

     

    Lees ook:

    Lees ook:

  • Tech innovations for retail industry on show at A*Star event at Biopolis

    Tech innovations for retail industry on show at A*Star event at Biopolis

    More than 60 ICT-based solutions for the retail industry are on show at the Media Exploits event at Biopolis on Wednesday and Thursday (Nov 4 and 5).

    Now in its fifth year, the annual event is organised by Exploit Technologies (ETPL), the commercialisation arm of the Agency for Science, Technology and Research (A*Star). While targeted at industry professionals, the event at the Matrix Building is also open to the public from 9am to 5.30pm.

    The innovations on show include an augmented reality application, developed by A*Star researchers, that allows consumers to visualise how a piece of furniture would look in their homes.

    There is also a web application that enables customers to try on different hairstyles at hair salons. This was developed by local start-up Gamurai, based on 3D-modelling technology licensed from A*Star.

    Other projects in various stages of development also propose solutions in the areas of healthcare, robotics, home care and interactive digital media.

    Mr Philip Lim, chief executive officer of ETPL, said a major objective of the event was to bring people from different communities together, particularly those who understand markets and consumer demand.

    He said: “You need to bring teams of people and talent forward to where the technology has been groomed, maybe even to the point where they can influence the technology.

    “They can tell the researchers – why are you doing this? Isn’t this a better way of doing things, because this is what people need out there.”

     

    Lees ook:

    Lees ook:

  • Hana Tour to Reinvent Itself as Global Cultural Tourism Retail Company

    Hana Tour to Reinvent Itself as Global Cultural Tourism Retail Company

    Established in 1993, Hana Tour is the largest travel company in Korea. In the last couple of years, on average, the company has recorded approximately 380 billion won (US$335 million) in sales and 40 billion won (US$35 million) in profits annually. Recently, the company has received a lot of publicity thanks to its successful bid for duty-free businesses in Incheon International airport and in downtown Seoul. The duty-free business is known as a cash cow, and annually generates approximately 300 billion won (US$264.9 million) in sales and 12 billion won (US$10.6 million) in profits. It is likely that Hana Tour will see significant synergy effects from combining tourism and the duty-free businesses, which will also impact the company’s overall business performance.

    It turns out that the company has set itself up for global tourism and cultural enterprises for some time. Following the goal of becoming the number one multinational cultural tourism group by 2020, the company has branched out into the retail, hotel, culture and performance enterprises. In the process, it has also secured significant overseas opportunities.

    Along with launching into the duty-free business, Hana Tour has been expanding into a variety of businesses that create synergy effects combined with the existing tourism business. Locally, drawing on culture and performance businesses, Hana Tour offers accommodation packages featuring art and performance events. Moreover, in cooperation with 8,000 local travel agencies and logistics channels, Hana Tour has also launched into e-commerce featuring ticketing businesses for art and performance enterprises. Titled “Hana Free Ticket,” the company’s retail site handles ticketing for musicals, concerts, and cultural events. Also by getting into the hotel business, Hana Tour can provide  travel packages with competitive prices, as the company can cut down accommodation costs. Beginning in 2012, Hana Tour opened the Center Mark Hotel in Insa-dong, followed by the T Mark Hotel in Chungmu-ro in 2013. A 560 room hotel is scheduled to be opened in the Namdaemun area in 2016. It also opened T Mark City Sapporo in Sapporo. With management expertise under its belt, Hana Tour has been commissioned to run the Pattaya Hotel in Thailand since last April.

    Hana Tour has started focusing on foreign opportunities and selling travel packages to foreign travelers in overseas markets. Hana Tour currently has 33 outpost offices worldwide. Using its overseas network, outpost offices in foreign countries developed travel packages in third countries, targeting local travelers in the foreign country. This is quite an innovation internally, given that in the past, 90 percent of the company’s travel business has been done with local outbound travelers.

    Given this, the Korean government’s recent decision to delegate the Chinese visa handling task to Hana Tour is a big overseas business breakthrough. In March this year, in the face of an increasing amount of Chinese tourists and laborers seeking Korean visas and handling the overwhelming administrative work, the government decided to delegate the task to Hana Tour. Although the delegation is currently in trials limited to the Guangzhou and Qingdao areas and the final decision to extend to other Chinese cities has not been made, many consider that the opportunity would bring many Chinese travelers to use Hana Tour travel products and Hana Tour–run Duty Free Stores in Korea.

    Although a majority of industry insiders consider a company’s venture into the duty-free business a terrific opportunity for the company, some raise concerns.

    The Hana Tour-led consortium SM Duty Free is formed by 10 small and medium enterprises, while Hana Tour represents a 76.8 percent stake. The SM Duty Free store has to stock 50 percent of its stores’ shelves with products produced by local SMEs.

    Although this feature is viewed positively by society, provided this gives SMEs a critical marketing venue, however, many questions whether focusing on SMEs’ products will give SM Duty Free competitive edges compared to its competitors in the duty-free business. Access to high-end products with relatively lower prices is a traditional appeal of duty-free stores for many consumers. Also, the fact that the combined shares of the company’s largest shareholders are mere 17 percent means that in the future, the company can’t make big investments into large-scale projects.

    Nevertheless, positive views about the future of Hana Tour dominate these days. Following the opening of the SM duty-free shops in Incheon Airport in November, Hana Tour will open a duty-free shop in Insa-dong in January next year. In fact, Hana Tour plans to turn its headquarters in Insa-dong into a duty-free store. Insa-dong SM Duty Free store will sell products featuring Korean Hallyu celebrities in partnership with SM Entertainment. An insider in the company said that shoppers will have unique cultural experiences apart from shopping. Hana Tour is also trying to make the best out of commercial and tourist trends in Insa-dong associated with big tourist attractions like Gyeongbokgung Palace.

  • Mazda CX-3 goes on sale in Thailand

    Mazda CX-3 goes on sale in Thailand

    The Mazda CX-3 has been launched in Thailand with prices kicking off at 835,000 baht – or at RM102k, give or take, with the current exchange rate. Taking into account our previous story, where the Malaysian-spec CX-3 is expected to retail from RM130k, that is still a considerable difference.

    Thai customers will be presented with a choice of five trims in total with two engine options – a 2.0 litre SkyActiv-G four-cylinder petrol engine and a turbocharged 1.5 litre SkyActiv-D four-cylinder diesel mill. The former puts out a total of 156 PS at 6,000 rpm and 204 Nm of torque at 2,800 rpm while the diesel unit manages 105 PS at 4,000 rpm and 270 Nm of torque from 1,600 to 2,500 rpm.

    A six-speed automatic transmission is the only gearbox choice offered on the Thai-spec Mazda CX-3 – an engine/gearbox combination that’s slated to be introduced for the Malaysian market, as well. As mentioned earlier, five trims are available – the base 2.0 E is priced at 835k baht while the 2.0 C and 2.0 S retail for 910k and 975k baht, respectively. The top petrol trim, the 2.0 SP, goes for 1.045 million baht.

    Mazda CX-3 4

    Sitting at the very top of the entire range is the aforementioned diesel model. Dubbed the 1.5 XDL, it goes for 1.155 million baht. As for standard equipment, the 2.0 E and C models are equipped with 16-inch wheels wrapped in 215/60 tyres while the rest of the range get 18-inch wheels shod with 215/50 rubber.

    The base 2.0 E and C are also equipped with halogen headlights while the 2.0 S, SP and 1.5 XDL get LED units with daytime running lights (DRLs). As for the interior kit, all models feature push-start button but the base 2.0 E misses out on the keyless entry system. Elsewhere, all models are also equipped with the seven-inch touchscreen and Commander Control interface save for the entry-level variant.

    Mazda CX-3 sTouring Oz 16

    Safety wise, the Thai-spec models appear well-equipped with DSC, EBD, traction control, Hill Launch Assist and an Emergency Signal System. The flagship diesel model one-ups the rest by adding on Advanced Blind Spot Monitoring, a Lane Departure Warning System, Rear Cross Traffic Alert and Smart City Brake Support.

    Also, the Mazda CX-3 is now assembled at the AutoAlliance (AAT) Plant in Rayong, Thailand – making said country the first nation to assemble the CX-3 outside of Japan. So while we wait for the local launch to take place, why not check out our review of Mazda’s HR-V rival here.

    Lees ook:

  • BDO Unibank Nomura partnership presents new opportunities

    BDO Unibank Nomura partnership presents new opportunities

    BDO Unibank, already the Philippines’ largest lender, with total assets of 1.86 trillion pesos ($39.3 billion), has big plans — some of which include a new Japanese partner.

    The bank is part of the SM Group, which mainly operates a range of retail businesses and has piggybacked the Philippines’ economic growth to steady revenue gains. The lender is now aiming to explore new business areas at home and abroad through a joint venture with leading Japanese brokerage Nomura Holdings as well as partnerships with Japanese regional lenders.

    BDO Unibank Chairwoman Teresita Sy-Cosop

    BDO Unibank has been expanding its business scale through a series of acquisitions since 1976. As a result, it now has more than 900 branches throughout the Philippines. Moreover, the lender in recent years has taken various measures to improve the quality of its services; it has extended its opening time by two hours, to 5 p.m., and has used blue as the base color at all its branches in an attempt to create a clean, fresh image.

    The efforts have been led by BDO Unibank Chairwoman Teresita Sy-Coson, the eldest daughter of SM Group founder Henry Sy. Sy-Coson’s business acumen has won the admiration of Tadashi Yanai, chairman and president of Fast Retailing, the Japanese holding company that operates the Uniqlo chain of casual clothing stores. Yanai praised her in one of his books, and Fast Retailing has formed a joint venture with SM Retail, an SM Group company.

    Sy-Coson is eyeing more Japan-Philippine business transactions. BDO Unibank has forged partnerships with a number of Japanese regional lenders, including Joyo Bank, based in Mito, Ibaraki Prefecture. In addition, the Philippine bank is set to open a money remittance center in Tokyo in December.

    As the Philippine economy has been growing, more Filipinos have begun to open securities trading accounts. The trend has Sy-Coson anticipating a future in which more pesos in circulation further boost the country’s economic growth.

    In June, BDO Unibank and Nomura agreed to set up a joint stock-trading venture in which the Philippine lender has a 51% stake and the Japanese securities house holds the remaining 49%.

    BDO Unibank says it manages around 7 million bank accounts. What’s more, the SM Group operates large shopping malls across the country that can attract tens of thousands of visitors a day. As such, the bank is well-positioned to raise the new brokerage’s profile through ads and other platforms.

    Sy-Coson expects synergies from BDO Unibank’s countrywide network and Nomura’s investment banking expertise. “In the future, we hope to offer our clients more services, to include cross-border investments,” she said. “This will provide a wider choice of opportunities to investors, particularly in the context of Asean integration.”

  • Saturation hits luxury retail, but new trends provide hope

    Saturation hits luxury retail, but new trends provide hope

    The Asia Pacific region is experiencing a slowdown in the luxury retail sector, but new emerging trends are set to provide the retail sector with a solid new stimulus for demand in the coming years, according to the CBRE’s special report, ‘The Future of Luxury Retail in Asia Pacific: New Demand Drivers and Shifting Occupier Requirements’.

    Most major luxury retailers are now well established in Asia Pacific with China and Hong Kong being two of the most penetrated markets at 89 per cent and 81 per cent, respectively. However, following several years of rapid expansion, these markets are approaching saturation point.

    “Accounting for one-third of personal luxury goods sales globally in 2014, Asia Pacific is a key region for international luxury brands with key markets including China, Hong Kong, Japan, Singapore, South Korea and Taiwan. However, the high growth period for luxury retailers in the region is gradually coming to an end,” said Dr Henry Chin, Head of Research, CBRE Asia Pacific.

    ”Over-saturation, surging operational costs and weaker retail sales – especially in Hong Kong due to the slowing mainland China economy – have prompted retailers to consolidate their existing store networks and slow their rate of entry into new markets focusing on operational efficiency,” said Dr Chin.

    CBRE has identified three emerging trends which will partially offset some of the negative effects arising from the slowdown and compensate for the loss of demand: Emergence of Affordable Luxury, Inclusion of F&B and Growth of Luxury Childrenswear.

    “With the momentum behind these trends, this will account for a bigger slice of leasing demand for prime retail space,” says Joel Stephen, Senior Director, Head of Retailer Representation, CBRE Asia. “Retailers and landlords can benefit from the projected growth in these market segments,” he adds.

    Emerging retail trends are already impacting luxury retailers’ real estate requirements, resulting in new, and in some cases, weaker demand for different types of retail property, the report said.

    Some of the key trends that CBRE have identified include weaker interest in department stores despite continued interest in prime locations; stronger focus on flagship stores; increased popularity in short-term opportunities for brands to set up exhibitions, pop-up and concept stores, and workshops, to generate greater consumer awareness; affordable luxury brands continuing to drive demand; and more interest in upper floor retail space, but limited to top-tier malls and driven by F&B and childrenswear segments.

    Lees ook:

  • Mazda to cap prices once tax takes effect

    Mazda to cap prices once tax takes effect

    The Mazda CX-3 SkyActiv sport-utility vehicle was launched yesterday for the domestic market. Mazda began making the CX-3 last month at AutoAlliance (Thailand), a joint venture with Ford Motor Co.

    Mazda Sales (Thailand) has vowed to cap retail prices for large passenger cars and pickup trucks that are subject to a new excise tax next year.

    President Hidesuke Takesue said the Japanese car maker would opt to control production costs and manage volume carefully , as the excise tax rates would be based on ex-factory prices, not retail.

    Mazda is also committed to subsidising the difference in amounts incurred by the excise tax.

    From 2016 on, vehicles sold in Thailand will be subject to a new excise tax based on carbon dioxide emissions, E85-gasohol compatibility and fuel efficiency rather than just engine size as before.

    The excise tax on eco-cars with CO2 emissions below 100 grammes per kilometre will be cut to 12-14% from 17%, but the 10% rate for hybrid vehicles will remain.

    The company estimates prices for its Mazda3, CX-5 sport-utility vehicle (SUV) and BT-50 Pro pickup truck will increase by 3-5% early next year once the new tax regime takes effect.

    “There are many factors in setting car prices, based not only on excise tax but also an import duty for some auto parts, local tax and value-added tax, so the company will take all factors into account before announcing retail prices,” Mr Takesue said.

    For the Mazda2 eco-car, the retail price will drop by roughly 20,000 baht next year with the new excise tax.

    Mazda posted sales of 29,641 vehicles in the January-October period, up 2.2% year-on-year.

    The company also gained a higher market share during the period, to 4.8% from 3.89%.

    Mazda2 eco-cars had a 49.6% share of total sales for the period, followed by the BT-50 (21.4%), the Mazda3 (19.6%), the CX-5 (9.3%) and other models.

    Mr Takesue expects sales to grow by 10.7% this year to 38,000 vehicles after falling 35.1% in 2014 to 34,326.

    In related news, the company yesterday introduced the CX-3 SkyActiv, which it started making last month at AutoAlliance (Thailand), a joint venture with Ford Motor Co.

    The Hiroshima-based parent firm has invested 800 million baht in production of the model to serve the local market and exports.

    The Mazda CX-3 is available in both 1.5-litre SkyActiv-D (diesel) and two-litre SkyActiv-G (petrol) engines, with prices ranging from 835,000 to 1.155 million baht (to remain unchanged next year).

    The Mazda CX-3 is the fourth model on the SkyActiv platform in the Thai market after the CX-5 SUV, the Mazda3 and the Mazda2.

  • 11.11.2015: Here’s what to expect on Wednesday

    11.11.2015: Here’s what to expect on Wednesday

    There are just days to go before Alibaba Group holds its 11.11 Global Shopping Festival. Merchants are laying on stock and pre-packing popular products to ready them for shipment. Delivery companies are training hundreds of thousands of temporary workers hired to help deliver the massive volume of parcels generated during the November 11 online sale, held on China’s Singles Day holiday.

    Consumers are gathering digital discount coupons for use during the 24-hour shopping frenzy, locking in deals in pre-sales events, and limbering up their clicking fingers. For members of China’s young and tech-savvy spending class, the 11.11 sale is a race against time as they log on at midnight to vie to complete web purchases for limited stocks of coveted products while millions of others are jamming the Internet trying to do the same. Last year, the total value of purchases on Alibaba’s websites blew past RMB 1 billion (US$157 million) in GMV just three minutes after the sale began. Twenty-four hours later, the total was $9.3 billion – enough to set a Guinness World Record.

    Will this feat be surpassed this year? China Post, the PRC’s postal service, estimates that 760 million packages will be generated by Singles Day sales held by all Chinese online-shopping websites on Nov. 11. That’s up significantly from 540 million packages produced last year, according to the post office.

    For its part, Alibaba Group – which started the sale in 2009 are runs China’s largest online marketplaces – isn’t making predictions. If past is prologue, though, then last year’s results might be indicative. Check out the infographic at the end of this story to see the 2014 sale highlights.

    This year, Alibaba is pushing its 11.11 festival in new directions by involving more international merchants and shoppers. The event will feature more than 6 million products from over 40,000 merchants and more than 30,000 brands from 25 countries, including the US, China, Japan, South Korea and European nations. Participating international brands include P&G, Unilever, Burberry, Estee Lauder, Zara, Huggies, Macy’s, Costco, Apple, Nike, Friso, Topshop, and Uniqlo, to name a few.

    Through Alibaba’s China and international marketplaces including AliExpress, its global B2C website, merchants will be selling directly to consumers in more than 200 countries and regions, according to Alibaba. Still, the company expects the majority of transactions to occur In China, where key product categories for the sale include baby and maternity, fashion and apparel, cosmetics, electronics and home appliances, health and nutrition, grocery, and fresh foods.

    Alibaba is also pushing several other initiatives for 11.11.

    The company has lined up brick-and-mortar retailers to participate through mobile and omnichannel commerce. More than 1,000 retail brands, with 180,000 brick-and-mortar stores in 330 cities across China, have joined the event. They’ll be offering smartphone-enabled shoppers a more integrated and interactive shopping experience whether shopping online or in participating stores. Omnichannel will also give merchants greater insights into customer demographics and shopping habits, according to Alibaba.

    Underscoring the trend in China toward shopping by smartphone instead of PC, nearly 43 per cent of sales took place on mobile phones during the 11.11 sale last year. mCommerce is expected to play an even bigger part this year. The sale will feature marketing campaigns for mobile shoppers, such as rewards of discount e-coupons to consumers who shake their phones while using the Taobao or Tmall mobile applications during promotional periods.

    Ordering the goods is one thing. Delivering them quickly is another. Alibaba’s logistics affiliate, Cainiao Logistics, is bolstering domestic and international shipping capabilities for the sale to ensure faster deliveries to consumers.

    Cainiao, the backbone of a network of 3000 logistics companies linked by centralised information platform, estimates that its partners will deploy more than 1.7 million delivery personnel, 400,000 vehicles, 5000 warehouses and 200 airplanes to handle deliveries for the sale. Cainiao has also launched a “Hassle-Free Logistics Service” consisting of 49 international delivery partners and 74 warehouses that can support 4 million cross-border package deliveries per day, the company says.

    This formidable infrastructure will soon be tested. The countdown to 11.11 has begun.

    Lees ook:

    Lees ook:

  • Primark growth eroded by currency volatility

    Primark growth eroded by currency volatility

    Discount apparel retailer Primark has reported sales growth of 13 per cent to £5.3 billion at constant exchange rates for the year to September 12, demonstrating its continuing dominance in the value clothing market.

    However it was unable to escape the effects of currency volatility, reducing its total sales growth at actual exchange rates to eight per cent.

    While these results are in line with the expectations outlined in September this year, they are compounded by Primark’s two per cent increase in operating profit to £673 million at actual exchange rates – modest compared to growth of five per cent at constant exchange rates, observes Rebecca Marks, consultant at Conlumino.

    Sales growth was driven predominantly by a nine per cent increase in selling space – an additional 93,000 sqm that takes the total footprint to 1.04 million sqm. Considerable expansion in Germany, Belgium and the Netherlands resulted in marginal like for like growth at constant exchange rates of one per cent, as international customers chose to shop more locally, causing sales in existing stores to decline. Primark opened its first US store in Downtown Crossing in Boston in September 2015, with 7200 sqm of selling space.

    Further international expansion planned in the 2015/16 trading year will see a greater increase of 140,000 sqm across the year in northeastern US, Spain, Italy and France – its most successful market entry to date.

    “However, as the retailer continues to invest in international diversification, it endures the risk of substantial movement in currency markets, subjecting the retailer to negative transactional and translational currency exposures – a major challenge that Primark faced this financial year,” explains Marks

    “However, Primark believes a high proportion of this potential impact has been mitigated in-house by taking a shrewd approach to buying new season merchandise for next year.”

    Marks says Primark saw a return to a more normal level of markdown this year, following exceptional trading in 2013/14, resulting in a lower operating profit margin of 12.6 per cent, down from 13.4 per cent in its last financial year.

    “Inconsistent trading over the year resulted in moderated demand; while an unseasonably warm Autumn 2014 impacted sales in the early part of the trading year, Spring 2015 trading was also held back by cool weather. However, a strong Christmas in 2014 limited the impact of these challenging trading periods on its overall performance for the financial year,” observed Marks.

    “Although Primark actively resists plans to go down the online route that many of its fashion peers have chosen, the retailer shows no signs of slowing down. As parent ABF looks to maintain investment in Primark’s expansion opportunities, Primark will continue to see its budget-priced clothing ardently welcomed in all new territories, with its increased scale of distribution infrastructure helping to meet demand,” Marks concluded.

    Lees ook:

    Lees ook:

  • Osim struggles in ‘soft market’

    Osim struggles in ‘soft market’

    Health appliance retailer Osim says its core business is helping it maintain stable gross margins in a retail market it described as “soft” throughout the region.

    Osim’s core is its 546-strong chain of Osim branded stores in 23 countries, which sell therapeutic devices including massage aids. Nearly half of those stores are in Mainland China.

    The company also operates 214 GNC/RichLife stores and 49 TWG Tea cafes with three more planned to open by the year’s end.

    Osim said last week its third quarter sales were S$142 million and profit before tax $10 million. But during the last nine months it has incurred legal fees of $7 million relating to its TWG Tea operation.

    “This has been another challenging quarter where retail sales across the core countries have been soft. This quarter has seen further challenges from gyrating markets and currency turmoil in the region,” the company said in last week’s filing.

    “Despite these challenges, our dominant brand has enabled us to maintain a stable gross margin and cash generative business with cash and cash equivalents growing again in the quarter. We are using our strong balance sheet to invest in new products and continuing our marketing activities.”

    The company expects trading conditions to remain challenging in the short term but says it is cautiously optimistic about its prospects for the remainder of the financial year following the launch of uMagic in key markets and other upcoming planned product launches.

    Lees ook:

    Lees ook:

  • Singapore residential development gets top architecture gong

    Singapore residential development gets top architecture gong

    Rather, the unique construction that won the top architecture gong at this year’s World Architecture Festival in Singapore is actually a cluster of 31 unit blocks named The Interlace — because the towers do just that.

    The creative minds behind The Interlace, architect Buro Ole Scheeren from Germany and Netherlands-based OMA, opted for a medium-density design that features apartment “towers” that are only six storeys high — small fry for Singapore where sky-high living has become the norm.

    The Interlace has got the top gong at the architecture “Oscars”. Picture: Picture: Iwan Baan

    The Interlace has got the top gong at the architecture “Oscars”. Picture: Picture: Iwan BaanSource:Supplied

    The creative minds behind The Interlace, architect Buro Ole Scheeren from Germany and Netherlands-based OMA, opted for a medium-density design that features apartment “towers” that are only six storeys high — small fry for Singapore where sky-high living has become the norm.

    The Interlace covers 170,000sq m and includes 1040 apartments. Picture: Iwan Baan

    The Interlace covers 170,000sq m and includes 1040 apartments. Picture: Iwan BaanSource:Supplied

    What makes the complex much more complex is how the apartment blocks are perched together in groups of four. And there’s a whopping 1040 apartments in it.

    Placed together in a unique formation, the residential blocks create a hexagonal shape which makes room for eight communal courtyards on the site.

    Described by Mr Scheeren as a “vertical village” the winning project also has a 50m pool on site, a clubhouse, reading rooms, gyms and games rooms and even a space for communal karaoke. For fitness junkies living on the densely populated island there is also a 1km running track.

    The unique complex was designed as a village rather than just a building. Picture: Iwan Baan

    The unique complex was designed as a village rather than just a building. Picture: Iwan BaanSource:Supplied

    Described by Mr Scheeren as a “vertical village” the winning project also has a 50m pool on site, a clubhouse, reading rooms, gyms and games rooms and even a space for communal karaoke. For fitness junkies living on the densely populated island there is also a 1km running track.

    Rather than sky-high towers, The Interlace is a cluster of 31 six-storey blocks. Picture: Iwan Baan

    Rather than sky-high towers, The Interlace is a cluster of 31 six-storey blocks. Picture: Iwan BaanSource:Supplied

    Finished in 2013, The Interlace, which covers a huge 170,000sq m surface area, won favour with the panel of judges thanks to its “radical and alternative approach” to contemporary living.

    The mixed-use structure is located within a green belt area of the city-state’s southern ridges.

    Professor Sir Peter Cook, founder of architectural group Archigram, and one of the design event’s jurors, told CNN: “It’s very difficult, with so many beautiful, quite worthy projects.”

    “I think you look for a power of impact. It’s something you know you’ll remember in two years’ time. It’s a game-changer.”

    “So much of architecture is predictable, particularly housing. Another block, another block, another block. But this isn’t ‘ho-hum here we go again’,” he said.

    And Australia also got a look in at the global event with a Sydney site earning a prestigious nod.

    SJB Architects won the Mixed-Use Development Award for its Casba project in Danks St, Waterloo which includes 65 residential units and 3000sq m of retail space.

    Retail and residential development Casba snagged the Mixed-Use Development Award.

    Retail and residential development Casba snagged the Mixed-Use Development Award.Source:Supplied

    SJB Architects won the Mixed-Use Development Award for its Casba project in Danks St, Waterloo which includes 65 residential units and 3000sq m of retail space.

    Casba also won the Urban Development Institute of Australia’s coveted NSW President’s Award this year.

    Casba also won the Urban Development Institute of Australia’s coveted NSW President’s Award this year.

    Lees ook:

    Lees ook:

  • Tmall.com fresh food offer expanded for 11.11

    Tmall.com fresh food offer expanded for 11.11

    As Chinese consumers continue to upgrade their diets with food ordered online directly from international outlets, Tmall.com is gearing up for this year’s 11.11 Global Shopping Festival by offering a wider assortment of international food and beverages for the giant 24-hour e-sale.

    On offer at the Tmall.com fresh foods subsite (miao.tmall.com) is beef from Australia, apples from the U.S., pineapples from the Philippines, lobsters from Canada, avocados from Mexico, kiwi fruit from New Zealand, and crabs from Russia, along with a host of other overseas delicacies.

    Tmall has added wine to the mix: Overseas wineries that have recently opened Tmall virtual stores include California’s Robert Mondavi and Penfolds from Australia. Currently Tmall’s fresh food vertical has listings for more than 100,000 products from more than 70 countries and regions.

    For food and beverage companies participating in the 11.11 festival this year, the sale is less about discounts and more about opening Chinese consumers’ eyes to the high-quality foreign products that, thanks to cross-border e-commerce, they can buy direct from overseas by shopping on Tmall. It’s also a chance to raise brand awareness and introduce new products and trends to millions of Chinese consumers.

    “Our goal for 11.11 is to get Chinese customers to be more discerning,” said Pete Yu, business development manager for Dole (Shanghai) Fruits and Vegetables Trading Co, the international fruit brand’s branch in China. “While good at discovering delicacies, we hope they can also tell the quality of fruit and understand the significance of quality.”

    Dole launched its Tmall shop in September, 2014, offering a variety of fresh-fruit imports such as pineapples and bananas from the Philippines, pears from Belgium, oranges from Australia and longans from Thailand. During the Nov. 11 sale last year, the company completed 17,000 orders.

    Yu said that this year, Dole aims to offer consumers quality fruits at affordable prices, rather than try to shift huge volume at deep discounts.

    “We believe Chinese customers will gradually accept idea of being healthy, and will be willing to pay a slightly higher price for fruits that meet international standards” such as Dole’s non-GMO papayas, he said. He added that the company is satisfied with the progress Dole’s eCommerce business has achieved so far.

    “Like many other international brands in the fresh food industry, our growth is strong and steady.”

    Yu’s insights were echoed by Li En, deputy director of eCommerce at Ocean Family, which has been selling high-end fresh seafood including shrimps from Argentina and king crabs from Chile on Tmall since 2011.

    Ocean Family has a strong offline wholesale network reaching tables of many luxury restaurants and supermarkets, Li said. Selling direct to online shoppers through Tmall provides direct exposure to potentially millions of new customers around the country.

    “By offering the best products and services at reasonable prices on Nov.11, we want to attract more customers to try new products, building a virtuous circle,” he said.

    Some food sellers join the 11.11 festival – the largest online sale in the world – to launch new products during a period of peak Tmall traffic. During a special 11.11 promotion last year, Tmall said it sold more than 90,000 live lobsters from Canada, which subsequently became a popular fresh food item sold on the site throughout the year.

    This year, crawfish from the US states of Washington and Louisiana are slated to make their China market debut.

    “Chinese people have the tradition of eating crawfish, but the water and habitat of crawfish have been polluted in China,” said Yu Zhongyan, CEO of Aichen (Shanghai) Trading Co, which runs a fresh food store on Tmall. Shoppers who order crawfish online during the 11.11 festival can expect to have the live crustaceans shipped by air and delivered directly to their homes within 48 hours.

    “We are confident that wild crawfish from the US will be welcomed by Chinese consumers,” Yu said.

    At this year’s 11.11 Global Shopping Festival kick-off ceremony, Tmall signed strategic collaboration agreements with fresh food associations and government bodies from 25 countries to facilitate fresh food imports. Cainiao, Alibaba’s logistics arm, and its partners can deliver fresh food to homes in more than 246 Chinese cities within 24 hours.

    Lees ook:

    Lees ook:

    Lees ook:

  • Foreign operators threaten Korea’s duty free shops

    Foreign operators threaten Korea’s duty free shops

    Korea’s duty free stores are sensing a crisis because of increasingly tougher challenges from their competitors in China, Japan and Thailand, industry sources said Tuesday.

    According to the Korea Duty-Free Association (KDFA) and distribution industry sources, the nation’s duty free retail market grew to 8.3 trillion won ($7.24 billion) last year, up 21.6 percent from 2013. There were still wide gaps with the neighboring markets of China (5.6 trillion won), Thailand (2.1 trillion won) and Japan (1 trillion won).

    But these regional competitors are rapidly expanding their markets, going all out to draw Chinese tourists to erode Korea’s lead.

    And this year has provided good opportunities for foreign operators, as the number of Chinese visitors to Korea sharply declined to 4.36 million in the first nine months, compared with 6.13 million last year, affected by the breakout of Middle East Respiratory Syndrome in April. But the number of Chinese people who visited Japan and Thailand in the first nine months rose from 2.41 million and 4.62 million to 3.83 million and 6 million, respectively, from a year ago.

    Foreign analysts also saw it as serious. “The Korean duty free retail market may appear to be a golden goose because of the influx of Chinese tourists,” said Martin Moody, chairman of Moody Report, a British distribution magazine. “Those golden eggs could prove to be quite fragile, however, because of unpredictable factors as seen in the MERS crisis.”

    Industry experts stress the need for enhancing the global competitiveness of domestic operators by expanding their store sizes and developing specialized services. Amid the ever-toughening competition, running duty free stores is no longer a preferential business, they said, adding that the government and industry should cooperate to create more competitive operators.

    Lees ook:

    Lees ook:

  • Johnny Rockets Philippines expands

    Johnny Rockets Philippines expands

    Johnny Rockets Philippines has opened a new restaurant in the Ayala Fairview Terraces Mall, Quezon City.

    “With its all-American fare and friendly service, Johnny Rockets is unlike any other restaurant concept in the area,” said Dr Amable Aguiluz IX, franchise owner of the Quezon City Johnny Rockets.

    “We have seen great success with our current Johnny Rockets locations in Quezon City, which has provided us the opportunity to expand our presence further in the area.”

    Aguiluz now operates five Johnny Rockets in the Philippines, halfway to his goal of opening 10 of the franchises during 15 years. The Ayala Fairview Terraces Mall restaurant marks Dr. Aguiluz’s third Johnny Rockets in Quezon City, which is the Philippines’ most populated city. His others are in Mandaluyong, in the upscale lifestyle and shopping destination Shangri-La Plaza, and in Malay, on the popular resort island Boracay.

    The Ayala Fairview Terraces Mall Johnny Rockets is about 113 sqm and can seat 36 guests.

    Johnny Rockets Brought to the Philippines by Dr. Amable Aguiluz IX, Johnny Rockets Philippines is happily serving its customers at five different locations in Quezon City, Malay Aklan and Mandaluyong City.

    Lees ook: