Retail News CRM

Author: Mei Ling Tan

  • Microsoft helps Big C to deploy cloud solution at its supermarkets

    Microsoft helps Big C to deploy cloud solution at its supermarkets

    US technology giant Microsoft Corp signed an enterprise agreement with Big C in Ho Chi Minh City on 6 February to deploy cloud solution “Office 365” in Big C’s supermarket chains.

    The cloud solution is expected to enhance the quality of customer service by optimising operation costs and boosting system capacity, while ensuring safety and security at the same time.

    Starting in Vietnam in 1998, the Big C supermarket chain currently has 30 commercial centres and supermarkets in 20 cities and provinces in the country.

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  • Electronics firms face stiff competition in Vietnam

    Electronics firms face stiff competition in Vietnam

    The recent closure of a number of Topcare stores following a series of big-name shutdowns, was evidence of the fierce competition in the electronics retail market in Vietnam.

    Before Topcare, the electronics market witnessed the withdrawal of Wonder Buy in 2011, Best Caring in 2012, HomeOne in 2013, and Viet Long in 2014.

    “A lot of enterprises are forced to shut up shop due to economic difficulties these days. However, the electronics market poses more risks with very fierce competition,” said chairman of Ha Noi Supermarket Association, Vu Vinh Phu.

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  • Internet revolution will drive FMCG sales in India

    Internet revolution will drive FMCG sales in India

    Internet not only has an edge over physical retail when it comes to apparel and electronics but also fast moving consumer goods (FMCG). A joint study by Google India and Bain and Company said that the Internet will influence 1/3rd of the total FMCG sales in India over the next five years.

  • Fitch boosts Asian team

    Fitch boosts Asian team

    Retail and brand consultancy Fitch has named two senior executive appointments in Asia.

    Ian Bellhouse has been appointed regional CEO for Asia Pacific and Greater China, reporting into Worldwide CEO Simon Bolton. With more than 20 years at Fitch, Bellhouse moved from London to establish the Singapore business in 1999 and has played a key role in the consultancy’s growth in the region. He also set up operations in China in 2012.

    Bellhouse will switch from his current role as global strategy director.

    Darren Watson, previously creative director for the Singapore studio, has been promoted executive creative director, overseeing creative output across all client work in the region.

    Watson has spent 10 years at Fitch, leading creative strategy for multiple-award winning projects such as Asian Paints in India and Vivid Homes in China, a subsidiary of B&Q.

    Watson will continue to report into Fitch’s chairman and chief creative officer Tim Greenhalgh.

    Bolton said both executives have developed a special partnership, which has led to great work on behalf of clients over the years and in turn to a very successful business.

    “Operating from the Singapore hub, I’m confident that they will emulate these achievements in other parts of the region including South East Asia, North Asia and China as they continue to expand Fitch’s horizons.”

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  • AmorePacific plans 350 new China stores

    AmorePacific plans 350 new China stores

    The Korean parent of skincare brands including Laneige, Sulwhasoo and Etude, plans to open at least 300 new stores in China this year.

    AmorePacific expects a 30 per cent increase in sales in 2015, fuelled by a 15 per cent expansion in its existing China store network now numbering 2335.

    Despite intense competition from local Chinese brands and American multinationals like Procter & Gamble and L’oreal, AmorePacific is thriving in China, largely due to the sales success of its Laneige and Sulwhasoo brands, each of which have their own store networks. The company is South Korea’s largest manufacturer of cosmetics, specialising in facial creams and ginseng extracts. It also owns the Etude and Mamonde brands, which have retail store networks across Southeast Asia.

    Besides expanding its store network – 15 per cent of 2335 equates to around 350 stores – the company plans to increase its presence in Chinese online stores.

    A key factor in the brands’ China popularity is the increasing trend amongst young Asian women to emulate Korean popstars and actresses.

    In an interview with Bloomberg Business, Suh Kyung Bae, AmorePacific’s chairman, said the company recognised the importance of Asia’s rising middle class 15 years ago and this remains a key business driver.

    Despite the size of its retail network, and sales growth, AmorePacific still holds just 2.1 per cent of China’s total skincare market, according to data from Euromonitor International.

    The company said its 2014 sales grew 21 per cent to US$4.3 billion, with China now its largest market outside South Korea. While accounting for 8.6 per cent of group sales in 2013, analysts project it could represent 30 per cent by 2020.

    The company is also targeting substantial growth across

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  • Struggling Vietnam mall offers free space

    Struggling Vietnam mall offers free space

    Retailers are being offered free rent at a Vietnam mall to help the struggling landlord fill space.

    The Hoa Binh Company says it has “reserved” 25,000sqm of space in its Hoa Binh Green City shopping mall in Hanoi, Vietnam’s capital, to lease free for Vietnamese retailers.

    But the deal comes with a catch: the retailers must specialise in trading Vietnamese goods and have a profit margin of no more than 15 per cent. And foreign retailers are not eligible.

    Local players in the Vietnam mall industry are struggling to find tenants for the fast-growing ranks of modern format shopping centres, while more experienced international players, like Japan’s Aeon, are fully tenanted and trading well.

    The Hoa Binh Green City centre is on Minh Khai St in Hanoi. Qualifying retailers are being offered lease contracts ranging from one to five years.

    Nguyen Huu Duong, general director of Hoa Binh Company, told VietNamNet Bridge

    the company wants to help Vietnamese businesses boost sales of their products before foreign retailers have easier access to the Vietnam market through the Asian Economic Community alliance.

    One retailer considering the opportunity said if stores could get space for free they could afford to lower their prices and compete better with goods imported from China or Thailand.

    VietNamNet Bridge quoted Dr Pham Tat Thang, “a renowned trade expert” praising the proposal, saying it would “benefit consumers, manufacturers and the developer as well”.

    He said it is difficult for mall developers to find tenants right now because the real estate market remains “stagnant and gloomy and the economy (is) still sluggish”.

    The Hoa Binh Company believes that offering retailers free space will attract more shoppers to the centre, and encourage people to consider buying apartments constructed above the shopping mall.

  • H&M earnings miss forecast, to add 400 stores in 2015

    H&M earnings miss forecast, to add 400 stores in 2015

    Hennes & Mauritz, the world’s number two fashion retailer, missed quarterly earnings forecasts as it spent heavily on new ranges and websites in its battle with cut-price rivals, a drive it plans to extend in 2015 with a new beauty line.

    H&M said on Wednesday pretax profit rose 7 percent to SEK7.80 billion (USD953 million) in the three months ended November, missing analysts’ average forecast of SEK7.96 billion as it booked a staff incentive payout.

    The Swedish company is investing heavily in new concepts including sportswear and higher-price brands such as COS to try to protect margins over the long term as discount chains Primark and Forever 21 push prices down.

    It aims to keep that up in 2015, planning to add 400 stores to its current 3,511, bring online sales to another nine markets and launch a new range of beauty products, as well as speeding up expansion of upmarket brands including COS.

  • Aldo expands to East Malaysia

    Aldo expands to East Malaysia

    Canadian fashion footwear retailer Aldo will open its first store in East Malaysia.

    The company has leased space in The Spring shopping mall where its store is under fitout in preparation for a January 30 opening.

    The Spring’s marketing and leasing director Andy Song said signing Aldo was part of a plan to bring more international brands to the mall.

    “We are always looking to bring in new and exciting brands into Kuching. Like the up and coming Canadian brand, Aldo, which has a worldwide presence for on-trend fashion footwear and accessories. Their products will be available at reasonable prices,” he told The Borneo Post newspaper.

    Aldo has 11 stores in Malaysia, all currently in Peninsular Malaysia. It 1424 sqft The Spring store will be located on the ground floor between apparel chain Esprit and jeweller Pandora.

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  • Yahoo finds exit path from Alibaba

    Yahoo finds exit path from Alibaba

    US internet company Yahoo will spin off its US$40 billion stake in China’s Alibaba into a separate company.

    Existing Yahoo shareholders will receive shares in the new venture, to be called SpinCo, and will then be free to retain the shares or liquidate them.

    The innovative solution is designed to minimise taxes and return more cash for shareholders. Yahoo bought its Alibaba stake for just $1 billion in 2005 and it now has a book value of $40 billion – effectively most of Yahoo’s own business value of $45 billion. Yet the Chinese online retail player is not part of Yahoo’s core business model. And Yahoo’s CEO Marissa Mayer is trying to refocus the company on its core operations.

    Yahoo has made a massive book profit on the value of its investment in Alibaba which has grown to become China’s largest eCommerce business.

    If it sold the stake outright it would face a massive tax bill, severely denting cash returns to shareholders.

    “We have actively engaged experts in tax efficient structures over the past two years and have considered a variety of alternatives,” Yahoo CFO, Ken Goldman, said in a statement.

    “We remain aligned with our shareholders and our plan is designed to achieve the most advantageous return of capital to Yahoo shareholders with the absolute highest probability of success.”

    Yahoo said separately its profit in the fourth quarter fell 52 per cent from a year ago to $US166 million while revenue was essentially flat at $US1.25 billion.

    “I’m pleased to report that our performance in the fourth quarter and in 2014 continues to show stability in our core business,” said Mayer.

    “Our mobile strategy and focus has transformed Yahoo and yielded significant results.”

    The spinoff will take place in the fourth quarter, and remains subject to regulatory approvals.

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  • Now, Kerala tightens tax noose around e-tailers

    Now, Kerala tightens tax noose around e-tailers

    In yet another stand-off between e-commerce companies and state authorities, Kerala’s commercial taxes department has slapped a fine on Flipkart, Jabong, Vector E-commerce Pvt Ltd (which holds a stake in Myntra) and Robemall Apparels Pvt Ltd (which operates zovi.com). The fine, Rs 54 crore (USD8.7 million) overall, has been levied for evasion of sales tax in 2012-13 and 2013-14.

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  • Philippine telcos unveil more payment options for digital goods

    Philippine telcos unveil more payment options for digital goods

    Telecommunications companies in the Philippines are making it easier for Filipino shoppers to purchase digital goods such as apps, games, books, magazines, music and movies.

    With only around four percent of Filipinos owning credit cards, according to the CIA Fact Book in 2013, it is difficult for consumers to participate in e-commerce and fully enjoy a digital lifestyle.

    With the direct carrier billing service now provided by both Smart Communications Inc. the and Globe Telecom, it is expected that

    The pay-with-load service of Smart Communications, dubbed Pay-With-Mobile, unveiled on Friday, allows subscribers to purchase from the App Store and iTunes using prepaid load or to charge the purchase to their monthly phone bill.

    The service, which Smart said will be fully available on 18 February, eliminates the need for a credit card to make in-app purchases, which has long been a barrier for many Philippine shoppers.

    Smart said a 15 percent premium will be charged on top of the published App Store and iTunes rates to account for VAT (value-added tax) and foreign exchange rate difference in US dollars.

    To get started, users need to register their mobile number to get a Pay-With-Mobile number, which they can enroll in their Apple ID account to start making purchases.

    “Smart understands that not everyone owns a credit card, but that shouldn’t stop people from realizing the full potential of their mobile devices,” said Charles Lim, EVP and Wireless Consumer Division Head at Smart.

    Globe Telecom, for its part, has earlier launched its own direct carrier billing services for in-app purchase on Google Play last October.

    For Apple customers, Globe susbscribers can purchase from the Apple App store through the GCash American Express Virtual Pay, a service it introduced in 2012.

    Globe said app purchases comprise 27 percent of total GCash American Express Virtual Play purchases. Meanwhile, Google Play Store app purchases has more than doubled since its launch last October.

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  • McDonald’s shareholder group calls for changes to board of directors

    McDonald’s shareholder group calls for changes to board of directors

    A McDonald’s Corp. shareholder group called for changes to the burger giant’s long-tenured board of directors, including Chairman Andrew McKenna, because of the company’s ongoing sales woes.

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  • Woodland to invest USD80.5m in 5 years in India

    Woodland to invest USD80.5m in 5 years in India

    Footwear and apparel firm Woodland will invest up to Rs. 500 crore (USD80.5 million) in the next five years on expanding its retail network as part of its plans to double the store count to 1,000 by 2020 and enhance capacity. The company has also set a target of Rs. 2,500 crore (USD402.6 million) revenue by 2020 from Rs. 1,300 crore (USD209.3 million) expected in 2014-15.

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  • Vietnam’s Tran Anh to close electronics stores

    Vietnam’s Tran Anh to close electronics stores

    Vietnamese electronics retailer Tran Anh Digital World JSC said it will close its electronics supermarkets in Vincom’s Times City and Royal City on February 24.

    The closure was announced after Vingroup, the owner of the two retail and entertainment complexes, said it plans to occupy the rented space.

    Tran Anh Digital made the announcement regarding the closures on February 12, saying it is committed to ensuring warranty and other services for customers purchasing products at the two supermarkets.

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  • Jewellers in Vietnam make new products to meet surging Tet demand

    Jewellers in Vietnam make new products to meet surging Tet demand

    Gold shops in HCM City are stocking many kinds of original products and hope to make big profits on them during Tet.

    Gold traders expect the demand for gold products to be particularly high on the 10th day of the new year, which is the birthday of the God of Wealth.

    Last year, many gold shops were hit by a shortage of stock after people flocked to buy gold on that day, according to market observers.

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