Retail News CRM

Author: Mei Ling Tan

  • Alibaba taps Jeff Zhang to oversee consolidated retail division

    Alibaba taps Jeff Zhang to oversee consolidated retail division

    Alibaba Group Holding Ltd appointed Jeff Zhang to oversee its main services on Monday, bringing Taobao, Tmall and Juhuasuan into a newly created “China Retail Marketplaces” division.

    The appointment marks one of the highest-profile personnel shuffles since China’s largest e-commerce company went public in September. Together with the creation of the new division, the move will streamline operations and enhance efficiency.

    The company, which now handles more ecommerce than Amazon.com and eBay Inc combined, has been struggling to sustain the rip-roaring pace of growth it enjoyed in past years as it gains scale.

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  • John Lewis to enter Singapore

    John Lewis to enter Singapore

    UK department store John Lewis has chosen Singapore as the first of 15 new international markets it will expand into during the next few years. Founded in 1864, John Lewis has never opened its own stores beyond England, Scotland and Wales. But in 2012 it entered into a partnership with South Korea’s Shinsegae Department Store Co, selling linen and homewares in seven stores. The Singapore presence will be via concessions in two Robinsons department stores, scheduled to open in July, which will primarily sell homewares. CEO Andy Street says he expects to confirm deals to open in a further five foreign markets in 2015. “We have been very successful in Korea. We are really pleased and surprised that, in a market where the John Lewis brand isn’t really known, it has cut through.”

    Further expansion of the John Lewis brand abroad will for now be restricted to exclusive licensing arrangements, similar to those with Robinsons and Shinsegae. The company recently hosted executives of international department stores to an exhibition of its products in London, courting distribution partnerships. Street told The Guardian newspaper its overseas push was an attempt to “seed” the John Lewis brand abroad for the long term. “Anybody taking their eye off the domestic ball at the moment would really regret it. We are not opening shops overseas and diverting management time. This is the icing on the cake,” he said. “Our fundamental strategy is developing bricks and clicks in the UK. We have just got to put a chip or two down on the table with a view on how the world is going to be in 10 years’ time,” he said.

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  • Google unveils world first store

    Google unveils world first store

    Google has unveiled its first ever shop in shop concept at Currys PC World, in the technology hub of London’s Tottenham Court Rd.

    This is the first Google Shop experience anywhere in the world. There will be two more later on in the year in Currys PC World’s Fulham and Thurrock Megastores, in the UK.

    The Google Shop offers customers the chance to sample Google’s range of android phones and tablets, Chromebook laptops and Chromecasts and learn about how they work together.

    Visitors can also sample Google’s software tools and apps on a surround screen installation called The Portal, which enables users to search through Google Earth on the big screen.

    The store features a doodle wall where budding graffiti artists can use digital spray cans to paint their own take on Google’s logo, which they are then encouraged to share on social media.

    Customers can use a Chromecast pod to watch Google Play movies, YouTube and more, through a Chromecast dongle that converts any TV into a smart TV.

    The Google Shop will host regular classes and events for the public.

    Classes will range from online security to simply learning how devices work, and understanding how different devices work together to enable a more connected lifestyle.

    Virtual Space Camps will be offered to teach children the basics of coding and teachers will be invited to Open House events, to keep up to speed on the free educational tools on offer from Google.

    Google’s James Elias said the new store concept is a genuinely unique try before you buy experience.

    “The pace of innovation of the devices we all use is incredible, yet the way we buy them has remained the same for years. With the Google shop, we want to offer people a place where they can play, experiment and learn about all of what Google has to offer; from an incredible range of devices to a totally connected, seamless online life.”

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  • Portugalia Beerhouse lands in Macau

    Portugalia Beerhouse lands in Macau

    Portugalia, the Portuguese beerhouse chain, has marked its 90th anniversary by opening its first restaurant away from home – in Macau.

    The new restaurant, officially opening today (March 6), is the result of an international expansion plan developed over several years and marks the first of several direct investments planned for Asia.

    Located in Taipa Village (Mercadores St No 5), Portugalia is designed in the tradition of a Portuguese house. Three floors are open for dining and are accented with classic tiles brought directly from Portugal.

    Patrons will also find historic images from the beerhouse’s early days, a custom-built wine cellar and a private room adorned with cork decor elements, plus two outdoor terraces.

    The restaurant serves genuine Portuguese cuisine – fitting for Macau, a former Portuguese colony before its handover to China in 1997.

    The steak is the brand’s iconic dish, but patrons can also find fresh seafood and traditional fare such as codfish and “Alentejana” pork.

    Draught beer and exclusively selected Portuguese wines are offered alongside the restaurant’s famous fresh snacks including octopus salad and meat croquettes. For desserts, it offers traditional Portuguese delicacies like egg pudding, rice pudding and the national version of creme brulee.

    The restaurant is designed to create “a relaxed, family ambience together with modern decor plus excellent service” and the management team, including chef Ricardo Alves, came from Portugal for the challenge to represent Portugalia in Macau.

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  • Tous Les Jours China expands

    Tous Les Jours China expands

    Korea’s CJ Foodville has opened its first Tous Les Jours store in the Xinjiang Uyghur Autonomous Region of China.

    CJ Foodville now has Tous Les Jours stores in 14 regions of China and more business region-based contracts than any other Korean bakery franchise company in the world’s most populous nation. It says it is committed to opening more than 1000 stores in China by 2020.

    Tous les Jours China inside 315

    The new bakery is located on the first floor of a landmark department store in Xinjiang’s capital city of Ürümqi, and saw more than 1000 customers on its opening day.

    CJ Foodville established a master franchise contract with a local restaurant operating company last October.

    One of the best-selling baked goods at the store is a Halal sandwich, which accounts for more than 20 per cent of overall sales, reflecting the unique demographic of Xinjiang Uyghur.

    The company has 172 overseas stores in seven countries including the US and Vietnam.

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  • Kim Soo-Hyun: Caffe Bene’s new face

    Kim Soo-Hyun: Caffe Bene’s new face

    Korean-based coffee shop franchise Caffe Bene has named famous Korean actor Kim Soo-Hyun as its global face for the next year.

    Korean film and television drama has massive following throughout China and southeast Asia making Kim Soo-Hyun a recognised personality throughout the region.

    Caffe Bene will use the actor’s image in TV commercials, print advertisements and online, promoting its brand in 13 countries, with particular focus on Taiwan and China.

    Caffe Bene is the largest coffee franchise in Korea, based on store numbers, and now has 1500 cafes in Korea, China, Taiwan, Vietnam, the US, the Philippines, Indonesia, Saudi Arabia, Mongolia, Malaysia, Cambodia, Singapore and Japan.

    Kim Soo-Hyun has been chosen for his pan-Asian popularity, which will help Caffe Bene to make inroads globally.

    The company said that Kim Soo-Hyun has risen to be a global star based on a very hard earned filmography, which can be related to Caffe Bene’s success on the global scene.

    According to Wikipedia, he is an actor, model and singer best known for his roles in the television dramas Dream High, Moon Embracing the Sun, and My Love from the Star, as well as the movies The Thieves and Secretly, Greatly.

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  • New northeast Bangkok mall

    New northeast Bangkok mall

    Thailand’s The Mall Group has budgeted US$91 million to build a new shopping centre in Bangkok’s northeastern outskirts.

    A final decision on the new Bangkok mall will be made within weeks, and represents an additional capital commitment beyond the $2 billion investment in the Emporium, EmQuartier and EmSphere developments in Bangkok and new malls in Phuket, previously announced.

    The new mall would be built on land across the road from Fashion Island on Ram Intra Rd, a key Bangkok arterial route.

    CEO Paiboon Kanokwattanawan told the Bangkok Post newspaper that having a shopping mall in the Ram Intra area “will fulfil our goal to serve customers in all important areas of Bangkok”.

    The Bangkok focus is aimed at cashing in on the establishment of the AEC later this year, of which Bangkok will be the capital.

    Paiboon told the Bangkok Post his company will not be following rival Central Group’s strategy of establishing centres in border towns.

    “We never planned to open our retail projects in special economic zones or border towns because Bangkok will be the capital of the AEC. It’s not necessary for us to develop projects in other locations as Bangkok is bigger than we thought.”

    He said people travelling from AEC member countries like Vietnam or Laos to Malaysia or Myanmar had to transit in Bangkok and while there “they will go shopping”.

    According to a report from Colliers International (Thailand) some 30 new shopping centres are scheduled to open in Bangkok and its suburbs during 2015 and 2016, adding about 1.52 million sqm of retail space to the Thai capital.

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  • Vietnam’s Vingroup announces new retail venture in electronics

    Vietnam’s Vingroup announces new retail venture in electronics

    A Vingroup official announced the establishment of the firm’s new technology and electronics retail brand on Wednesday called VinPro.

    A group representative said opening the chain was part of the group’s strategy to become a leading retail brand in Vietnam, adding that it will open four VinPro stores in Hanoi and HCM City on 21 March.

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  • Tesco food chief exits

    Tesco food chief exits

    Tesco’s in-store restaurant and cafe concepts may be doomed after the man heading the division exited the company this week.

    Analysts are interpreting the departure of Michael Holmes, who headed the Tesco food division, as an admission the concepts had failed.

    Giraffe restaurants and Harris + Hoole cafe chains were opened in a number of larger Tesco supermarkets in the UK as part of former CEO Philip Clarke’s strategy to draw customers back to its stores. Holmes also oversaw Euphorium bakeries and Decks, an in-store restaurant created by Tesco.

    The grocer paid £50 million to buy Giraffe and took a strategic stake in Harris + Hoole. Harris + Hoole reportedly lost £13 million in the year to February 2014 and Giraffe is understood to have also been booking losses.

    Critics of the former Tesco CEO have long said the company should be focusing its investment on cutting prices and improving product quality, focusing on the core grocery business instead of such initiatives like in-store cafes and restaurants.

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  • Seven & I in grocery pact

    Seven & I in grocery pact

    Japanese retail giant Seven & I Holdings is to partner with an Osaka supermarket chain in product development and supply chain initiatives.

    Its new partner, Mandai Co, has about 150 stores in Osaka and four other prefectures in Kansai and achieved ¥279.3 billion (US$2.2 billion) in sales in the year to February.

    While the initial partnership is a working relationship, the Japan Times reports Seven & I, which owns the 7-Eleven convenience store network and Ito-Yokado supermarket chain, may take an equity stake in Mandai.

    Commentators say the partnership will give Seven & I local product and sourcing knowledge, improving its Ito-Yokado offer in Kansai region. Especially beneficial will be food product development and know-how.

    Seven & I, will dominant in Japan’s retail industry, wants to improve the localisation of its offer, reflecting regional characteristics in its food range in particular.

    For Mandai, the partnership could have benefits in its buying power with suppliers and reduce product development costs.

  • Sony US exits direct retail

    Sony US exits direct retail

    Sony US is to close down its direct retail business, closing the 10 remaining stores this year.

    The decision follows the failure of a new Sony store concept which superseded its Sony Style format about four years ago. It has run its own retail stores for more than a decade in the US, but never achieved the sales or awareness of Apple which set a global standard in electronics retailing.

    Instead, the Japanese electronics giant will focus on partnering with specialist retail chains to boost sales in the US market, where it has struggled to achieve profitability for years, against tough competition from Korean and Chinese rivals.

    Sony Electronics, now renamed Sony North America and managing sales, marketing, distribution and customer service throughout the US, Canada and Puerto Rico, will maintain a brand-building flagship in New York and another showcase near its motion picture studio in California.

    Mike Fasulo, president of Sony North America, confirmed this week that 20 stores were closed last year and the remaining 10 will be closed as leases expire or are renegotiated.

    It would now focus on stores-within-multi-brand-stores like Best Buy, a strategy which has worked well for Samsung.

    Most of the Sony US stores were in shopping centres with high rents and were not selling sufficient volume to justify their continued trading.

    Mike Fasulo, president of Sony North America, said Sony US now has concessions in about 400 Best Buys across the US and aims to boost that to 500 this year in that and other chains.

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  • Neteven to help Europeans sell on Tmal

    Neteven to help Europeans sell on Tmal

    Online marketplaces management solution provider Neteven has partnered with China’s Tmall Global to help European brands sell to Chinese consumers online.

    The partnership with Alibaba Group’s Tmall Global marketplace will allow European brands to launch their business across China’s vast consumer market.

    It opens the way for brands and retailers in fashion, home and garden, kids, accessories and many more categories to sell their products to the Chinese market and drive incremental revenues.

    Neteven says its has worked closely with Tmall Global in order to launch “a fully managed solution” which includes the technical integration of the Tmall Global marketplace within Neteven’s platform and the adapted services for brands.

    Launched in April 2008, Tmall provides a premium shopping experience for Chinese consumers seeking quality branded merchandise. Tmall Global allows international brands and retailers to sell on China’s largest third-party platform, with very few localisation constraints. For example, overseas companies without Chinese business licenses are eligible to apply to sell on Tmall Global. Orders can be fulfilled and shipped from outside of China, and customer payments are settled in the preferred origin currency such as US Dollars, Euros, etc.

    For the past 10 years, Neteven has collaborated with leading brands and marketplaces to provide its clients with a comprehensive offering. Thanks to the API integration of Tmall Global within Neteven’s software, European brands and retailers have now access to the most effective entry point for China e-commerce market.

    Greg Zemor, Neteven CEO, says more than half of Neteven’s clients are based outside of France.

    “All our European clients use our solution to trade locally, in Europe or in the US. The logical next step was to open their distribution to the largest and fastest growing e-commerce market in the world – China. Beyond technology, we needed to offer the market a good value proposition.”

    Shaoming Yang, head of Tmall Global Europe said Europe is a key strategic focus for Tmall Global. “Our aim is to help brands and retailers reach Chinese consumers that are eager for their products. To extend our reach we work with trusted and respected organisations such as Neteven to build an ecommerce ecosystem that works for both consumers and brands.”

     

  • KFC China moves into ‘premium’ coffee

    KFC China moves into ‘premium’ coffee

    t’s a hard concept to grasp: ‘quality coffee’ at a fried chicken chain.

    But KFC China is reportedly planning a serious move into the ‘premium’ coffee market, aiming to become a low cost alternative to Starbucks.

    Yum! Brands-owned KFC is the leading fast food player in China already and Starbucks has built a strong and loyal following in the market after 16 years there.

    According to a report on Bloomberg News, KFC China will start selling freshly ground hot coffee this year.

    The new coffee offer made its debut in several restaurants in December and the company is “very pleased with the results” according to CFO Pat Grismer, commending at an investors conference last week.

    So by the end of 2015, KFC China will add ‘premium’ coffee to 2500 outlets – 1000 more than the size of Starbucks’ network. It’s following in the footsteps of McDonald’s, which has McCafes at most of its 2000 Chinese outlets.

    “Trying to beat Starbucks on higher-quality coffee in China makes more sense than it might seem for KFC, which has a long-established breakfast menu featuring such local fare as congee,” Bloomberg observed.

    A premium coffee is priced at about 10 RMB (US$1.60) which is about half the price of a like cup at Starbucks.

    While it is not clear quite the range of coffee styles on offer, it is unlikely to be as broad as Starbucks, which is also gaining favour in Asia for its range of teas.

    “While Starbucks coffee is positioned as a more luxurious product, the entry of a large competitor such as KFC at a midrange price will certainly complicate those expansion plans in a country where tea is far more popular,” observed Bloomberg.

  • China retail sales ‘sluggish’

    China’s retail sector is continuing to expand faster than in any other major market in the world – but the growth rate continues to slow.

    The National Bureau of Statistics said on Wednesday that China retail sales grew 10.7 per cent year on year to 4.8 trillion yuan (US$779 billion) in the first two months of 2015.

    That’s a full 1.3 percentage points slower than the annual growth rate for 2014.

    According to the bureau, the restaurant and catering sector achieved an 11.2 per cent year-on-year sales rise in revenue and sales of ‘other consumer products’ increased by 10.7 per cent.

    Online retail sales soared 44.6 per cent year on year to 475.1 billion yuan.

    Analysts attributed the slowing growth rate to sluggish property sales (reducing demand for housewares and furniture, etc) and the ongoing government clampdown on corruption and gift-giving, as well as general economic malaise.

    The growth rate was lower than the 11.7 per cent consensus of analysts prior to the bureau’s announcement.

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  • Profit surge for 7-Eleven Philippines

    Profit surge for 7-Eleven Philippines

    Philippine Seven Corp, which operates the 7-Eleven Philippines network, has reported a 27.9 per cent jump in income for 2014.

    Its income rose from P682.6 million in 2013 to P873.3 million (US$19.7 million) last year, according to a statement filed with the stock exchange today.

    The result was powered by an aggressive store network expansion program, with a net 273 new stores opened last calendar year – a 27 per cent increase – and higher operating margin.

    In 2015 PSC expects to add as many as 350 more, expanding its network to more than 1600. It will make its first foray into the southern province of Mindanao, in the cities of Cagayan de Oro and Davao.

    About two-thirds of the company’s stores are franchised.

    Network wide store sales rose 19.3 per cent from P17.2 billion to P20.6 billion

    “PSC has taken steps to protect and expand its leadership in light of increased competition, recognising that rewards for market share are especially strong in the convenience store sector,” said PSC president and CEO Jose Victor Paterno.

    “This involves not only an increased pace of expansion in areas contested by competition, but strategic entry into new territories. The latter may be unprofitable for the first few years due to the high fixed costs of logistics, but we believe will later be rewarded with strong first mover advantages.”

    Paterno said the long-term growth prospects for convenience store retailing in the nation are favourable.

    Philippine Seven Corporation operates the largest convenience store network in the country. It acquired the licence for 7-Eleven in the Philippines from Southland Corporation (now Seven Eleven Inc.) of Dallas, Texas in December 1982.

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