Retail News CRM

Author: Mei Ling Tan

  • Indonesian Retailers Restrict Premium Rice Sales as Paddy Tops Rp8,000

    Indonesian Retailers Restrict Premium Rice Sales as Paddy Tops Rp8,000

    Modern retailers across Indonesia are restricting consumer purchases of premium rice due to severe supply constraints as farm-gate paddy prices surged past Rp8,000 per kilogram.

    Indonesian Retailers and Shopping Mall Tenants Association (HIPPINDO) Secretary General Haryanto Pratantara said in September 2026 that the shortage stems from pricing bottlenecks tied to the government’s highest retail price (HET).

    Modern retail chains strictly comply with state ceilings, but suppliers can no longer afford to deliver stock at mandated prices, prompting many to halt operations or shift to specialty rice.

    The Millers’ Squeeze

    Harvested dry paddy prices climbed from Rp7,000 to more than Rp8,000 per kilogram at the farm gate, wiping out processor margins. The Indonesian Rice Millers and Rice Traders Association reported that seasonal harvest dips sparked aggressive bidding among processing plants for available grain.

    Millers have slashed output because raw input costs exceed the threshold required to mill, pack and distribute grain under the legal ceiling. Plants still running have shifted capacity to unregulated specialty lines to avoid laying off workers.

    Selling premium rice at retail will definitely violate HET and create problems.

    This pivot has concentrated commercial supply in specialty grain lines. Sellers can legally price those items above statutory caps.

    Regulatory Pullback in Specialty Grain

    Agricultural regulators worsened supply pressures by revoking the licenses of 25 fortified rice brands for non-compliance. The action pulled packaged fortified inventory straight off retail shelves.

    National production of fortified specialty rice averages roughly 15,000 tons per month, according to miller association data. Taking two dozen active brands off the market created an immediate deficit in modern grocery aisles. Shoppers can no longer swap basic premium rice for fortified alternatives.

    Urban grocers across Jakarta and surrounding districts have posted customer purchase limits to curb speculative hoarding and protect floor stock.

    Bulog Intervention and Market Imbalance

    Agriculture Minister and National Food Agency head Andi Amran Sulaiman ordered state logistics agency Bulog to release government reserves directly to modern grocers. Amran maintained that public stockpiles can meet consumer demand despite the private milling bottleneck.

    Public reserves stand at 4.6 million tons, up 18 per cent from a year earlier. Yet state grain injections struggle to reach private supermarket checkouts at the volume demanded by daily foot traffic.

    Bulog also handles social assistance distribution, managing an allocation of 997,200 tons of rice aid across 33.24 million households. That welfare program competes directly for the domestic transport and freight capacity needed by commercial grocers.

    Border Controls and Enforcement Targets

    Widening price gaps between local grain and regional markets have drawn illegal shipments toward Indonesian ports. Customs and excise officers recently intercepted 30 containers of smuggled rice and salt alongside imported clothing valued at Rp27.3 billion across Tanjung Priok, Tanjung Perak and the Malacca Strait.

    Finance ministry officials have ordered border units to tighten port checks and block untraced grain from reaching domestic distribution channels. Statistics Indonesia data shows price gains for medium and premium rice grades have continued uninterrupted since February 2026.

    Retail buyers and store operators now await the Ministry of Agriculture’s upcoming review of the HET price matrix. Officials must decide whether to lift statutory retail caps before the fourth quarter closes.

  • Singapore Expands Drug Regulatory Alliances Across Malaysia, Middle East and Africa

    Singapore Expands Drug Regulatory Alliances Across Malaysia, Middle East and Africa

    Singapore’s Health Sciences Authority signed cross-border regulatory pacts with counterparts in Saudi Arabia and Africa. At the same time, Malaysia began piloting Singaporean medicine assessments to speed up commercial drug clearances.

    The pilot with Malaysia’s National Pharmaceutical Regulatory Agency started on 1 September 2026. It establishes a formal reliance framework to eliminate duplicate clinical reviews across both markets.

    Under the bilateral trial, Malaysia’s agency is evaluating whether referencing evaluations by Singapore’s Health Sciences Authority can shorten review timelines without lowering safety or efficacy benchmarks. A successful trial will prompt Malaysia to designate Singapore as an official reference agency. That step would give drugmakers with Singaporean clearances an accelerated registration route in Kuala Lumpur.

    Faster approvals across ASEAN

    For pharmaceutical distributors, biotechs, and consumer healthcare brands, duplicative licensing remains a costly barrier to scaling products across Southeast Asia. Fragmented national registries across ASEAN historically forced manufacturers to submit separate dossiers. Companies then had to wait out multi-year evaluation cycles in each domestic market.

    Singapore’s push to become an international evaluation hub shifts that dynamic for regional supply chains. Under mutual reliance models, regional health agencies replace independent full-scale assessments with shared technical oversight. This cuts administrative overhead for suppliers and speeds up treatment rollouts in retail pharmacies and hospitals.

    Bilateral deals with Riyadh and the African Union

    Beyond Southeast Asia, HSA signed two agreements between 14 and 16 September 2026. The agency inked a memorandum of understanding with the Saudi Food and Drug Authority to exchange pre-market and post-market safety data. The deal also builds regulatory pathways for biotechnology and artificial intelligence applications in healthcare.

    The second agreement, signed with the African Medicines Agency, creates a cooperative framework covering regulatory science, capacity development, and technical reviews. Under the pact, African regulators can use Singaporean approvals as technical benchmarks for national decisions across member states.

    “A medicine or medical device should not have to wait because trusted regulators are repeating the same high-quality work,” HSA CEO Raymond Chua said. “By enabling partners to draw on HSA’s assessments, we can reduce duplication, support more timely access to safe and effective health products, and help innovators reach patients across more markets.”

    Expanding European lab standards

    Ties with European and British authorities also expanded. Following a joint audit, the European Directorate for the Quality of Medicines and HealthCare extended Singapore’s associate membership in the General European Official Medicines Control Laboratory Network to include the city-state’s National Biologics Testing Laboratory.

    The European accreditation allows Singapore to participate in global testing programs for complex biological drugs. At the same time, Singapore and the UK Medicines and Healthcare products Regulatory Agency reaffirmed their Regulatory Innovation Corridor. Opened in December 2025, the initiative gives developers of novel drugs early, iterative regulatory guidance across both jurisdictions.

    The timeline for regulatory convergence

    During its 2026 chairmanship of the International Medical Device Regulators Forum, Singapore delivered an operational playbook for regulatory reliance. It also released technical frameworks for artificial intelligence in medical devices and product cybersecurity. In addition, HSA deployed a large language model tool built with GovTech Singapore to map medical device adverse event reports directly to global classification standards.

    Regulators in Kuala Lumpur will track data from the reference pilot over the coming quarters. Their findings will determine whether to formalize Singapore’s status as a permanent reference agency for Malaysian drug registrations.

  • Myer Slips to $276.5 Million Annual Loss on Heavy Store and Brand Write-Downs

    Myer Slips to $276.5 Million Annual Loss on Heavy Store and Brand Write-Downs

    Australian department store operator Myer posted a statutory net loss of $276.5 million for the financial year to July 25. Heavy write-downs across its store network and brand assets drove the result.

    Total sales edged up 0.7 per cent to $4.1 billion, crossing the four-billion-dollar mark. Weak discretionary spending squeezed margins across the department store sector.

    This statutory deficit is the second-largest in company history, behind only a $486 million loss in 2018. A post-tax, non-cash impairment of $279.6 million hit goodwill, brand intangibles and store asset valuations across the group. Underlying net profit after tax fell roughly 3 per cent to $42.5 million.

    Impairments Bite Across Apparel Portfolio

    Book valuations fell across Myer’s physical retail footprint and apparel labels as performance split sharply between categories. Weaker demand hit apparel businesses, including specialty fashion label Portmans. Core fashion, cosmetics and loyalty-driven sales held steadier.

    Trading deteriorated sharply during the second half. Three Reserve Bank of Australia interest rate increases and higher household bills thinned retail traffic across shopping centres.

    The second half of FY26 was characterised by a volatile and significantly more challenging macroeconomic and retail environment than 1H26 or FY25.

    Trading Headwinds Spread to Fiscal 2027

    Demand weakened notably through June and July, leaving store footfall volatile heading into the new fiscal year. August trading stayed soft as shoppers continued to trim non-essential purchases.

    Regional peers across Asia-Pacific face similar pressures as inflationary shocks exhaust household savings. Landlords and concession partners must now contend with an anchor tenant focused on store rationalisation and tighter capital allocation rather than floor space expansion.

    Stock management carries the primary near-term risk. Department store models carry substantial working capital commitments. Prolonged discounting to clear sluggish apparel stock will compress underlying gross margins further if volume fails to rebound.

    Board Reshuffle and Strategic Pivot

    Top shareholder Solomon Lew takes a seat on the Myer board in September. Lew returns to the boardroom decades after past shareholder disputes, bringing direct oversight of the retailer’s operational turnaround.

    Myer previously responded to footfall declines by building out digital channels, expanding customer loyalty incentives and refreshing designer concessions. Those investments preserved top-line sales above $4 billion. However, escalating store lease costs and inflationary overheads eroded net profitability.

    Executives are counting on key discount peaks to stabilise earnings this half. Promotional activity leans heavily toward Black Friday clearance events, Christmas gift pop-ups and end-of-year trading.

    Attention now turns to the group’s early trading update ahead of the crucial November discount period for signs of a consumer recovery.

  • Mazda Adds Hesai LiDAR to Updated EZ-60 in China Starting at 113,900 Yuan

    Mazda Adds Hesai LiDAR to Updated EZ-60 in China Starting at 113,900 Yuan

    Changan Mazda launched its updated 2027 EZ-60 electric SUV in China on Saturday. Pricing starts at 113,900 yuan ($16,880) across four new LiDAR-equipped variants.

    The roof-mounted sensor package sits on upper trims, lifting the top of the nine-model range to 172,900 yuan before a promotional 6,000 yuan discount across all configurations. The baseline official guide price holds steady at 119,900 yuan. That matches the entry level from the model’s debut.

    Buyers pay a 12,000 yuan premium for the LiDAR options. The extended-range electric vehicle (EREV) Pro LiDAR variant costs 151,900 yuan, while the battery electric (BEV) Max LiDAR edition tops the lineup at 172,900 yuan. Dimensions stay unchanged. The SUV measures 4,850 mm long, 1,935 mm wide, and 1,620 mm tall on a 2,902 mm wheelbase.

    Sensor Package and Driver Assistance Architecture

    A single Hesai ATX LiDAR mounted on the roof line drives the driver assistance suite. The optical unit delivers a detection range of 200 meters. It works alongside three millimeter-wave radars, 11 high-definition cameras, and 12 ultrasonic sensors to scan forward past 250 meters.

    Software runs on an end-to-end architecture that handles highway navigation assistance between 0 and 130 km/h. Urban navigation assist operates between 0 and 80 km/h. Automated parking supports more than 300 bay geometries. Features like memory parking will arrive via over-the-air updates alongside 25 active safety functions.

    Powertrain Options and Battery Capacities

    Powertrains carry over unchanged. EREV trims pair a 70 kW 1.5-liter range extender with a rear electric drive motor producing 190 kW (255 hp) and 290 Nm of torque. A 31.73-kWh battery pack provides 200 kilometers of pure electric driving range under the CLTC cycle.

    Pure electric trims use a 77.94-kWh lithium iron phosphate pack with the same 190 kW rear-wheel-drive motor. That setup delivers a CLTC driving range of 600 kilometers per charge.

    Joint-Venture Rivalry in China’s Electric Market

    Legacy joint ventures face intense pricing pressure in China as domestic automakers make semi-autonomous driving standard in mass-market brackets. International brands have largely avoided putting LiDAR on mid-tier models to protect profit margins. That left their products exposed against high-specification Chinese rivals.

    Putting Hesai LiDAR and end-to-end software below 180,000 yuan takes direct aim at rivals like the Buick Electra E7 and the Nissan NX8. Japanese and American joint ventures need this equipment bundling to protect showroom share in China’s tier-two and tier-three cities.

    Global Export Track and Deployment Plans

    The EZ-60 anchors Mazda’s electrification export program developed with Changan Automobile. It serves as the production base for the CX-6e, which debuted at the Brussels Motor Show in January. Retail shipments to European distributors are already underway.

    Changan Mazda launched the original EZ-60 on September 26, 2025, bringing this refresh 12 months into the lifecycle. Other Japanese carmakers are also expanding electrified lineups in China. Nissan recently updated its N7 sedan, and Toyota plans to introduce localized extended-range models in April 2027.

    Deliveries of the LiDAR-equipped EZ-60 trims begin at dealerships across China next month. The 6,000 yuan launch subsidy will run through the initial intake window.

  • Rebel Opens 3,000Sqm Flagship Store in Hobart

    Rebel Opens 3,000Sqm Flagship Store in Hobart

    Rebel opened its largest Tasmanian store on Murray Street in Hobart in September 2026, spanning 3,000 square metres across two floors. The flagship created more than 40 jobs.

    The two-level site replaces a former H&M location in the central business district. It brings the sporting goods chain to three outlets across the state alongside existing stores in Rosny Park and Launceston.

    Interactive format on Murray Street

    This Hobart flagship is the retailer’s second Rebel Customer Experience format in Tasmania. An interactive football zone lets shoppers test boots and equipment before paying. The store also stocks gear for cricket, basketball and Australian rules football.

    Shelf space leans heavily into Tasmanian Devils teamwear and guernseys ahead of the state entering the Australian Football League. Dedicated testing zones help defend physical store sales against online sports apparel retailers.

    Shifting footprints across regional centres

    Athletic specialty stores face rising occupancy costs in central business districts, yet taking over vacated department and fast-fashion spaces provides pre-built foot traffic. For landlords, experiential sporting anchors balance slowing apparel footfall in secondary city centres.

    Conversion rates must stay high to justify multi-level rents. Interactive zones increase customer dwell times, but they require higher staffing ratios on the floor to manage testing areas and equipment fittings.

    Five-year expansion targets 70 stores

    Super Retail Group appointed Jenny Child as managing director of Rebel earlier in 2026. Store portfolio expansion sits at the centre of the brand’s capital deployment.

    We know how passionate Tasmanians are about sport and with the state’s first AFL team on the horizon, there’s never been a more exciting time to open a store of this scale in Hobart.

    Hobart’s opening kicks off a five-year development cycle aimed at mid-sized and regional hubs. Rebel currently operates 39 regional locations across Australia. It plans to scale that network to 70 sites by June 2031 across RCX, foundation and compact formats.

    Next openings in the pipeline

    Rollout schedules over the next four quarters will determine how quickly Rebel opens the remaining 31 regional sites to meet its June 2031 target.

  • DBS Expands Avaloq Wealth Tech Alliance to Target SGD 1 Trillion Assets

    DBS Expands Avaloq Wealth Tech Alliance to Target SGD 1 Trillion Assets

    DBS Bank signed a memorandum of understanding with wealthtech vendor Avaloq to expand platform deployment across Asia. The lender is targeting SGD 1 trillion in retail and wealth assets.

    The agreement extends an 18-year technology alliance. It supports the Singapore-based bank’s goal of reaching S$1 trillion (USD 781 billion) in assets under management by 2030.

    Scaling Assets to One Trillion Dollars

    Under the memorandum, DBS and Avaloq will evaluate broader deployment of the Avaloq core platform across the bank’s international markets and retail lines. The work includes adapting software architecture to local regulatory requirements across the region.

    Both companies plan to jointly build digital tools, execution workflows, and operating models for advisers. DBS will also run capability exchanges and training programmes with Avaloq to teach front-line and back-office staff to use automated and artificial-intelligence-enabled tools.

    “Avaloq has been a critical enabler for our wealth management operations for the past 18 years,” said Shee Tse Koon, group executive and head of consumer banking and wealth management at DBS. “By deepening capabilities across the wealth continuum, we can give our advisers greater capacity for the judgment that matters and help more customers put their money to work.”

    Software to Bridge Adviser Shortages

    Wealth managers across Asia face a persistent shortage of licensed human advisers as private capital expands in financial hubs. Industry figures indicate that seven in 10 regional investors currently use a dedicated wealth adviser. Meanwhile, more than 40 per cent of self-directed investors want one assigned to them.

    Automating portfolio construction, compliance checks, and back-office trade processing allows relationship managers to handle larger client books without inflating headcount. DBS is betting software scalability bridges that advisory shortfall faster than direct hiring. Rival institutions continue to bid up compensation packages for experienced bankers in Singapore and Hong Kong.

    Cross-Border Wealth Infrastructure

    The Avaloq deal builds on recent distribution partnerships designed to capture wealth flows across East Asia. In July, DBS established a wealth management alliance with South Korea’s Samsung Securities. That tie-up linked domestic capital markets access in Seoul with the bank’s regional advisory infrastructure.

    Integrating third-party platforms with proprietary banking engines creates operational complexity, especially when synchronising risk rules and multi-currency product suites across jurisdictions. Avaloq is widely deployed among European and Asian private banks. It provides the core transactional layer DBS relies on to process high-net-worth and mass-affluent accounts.

    Operational Execution Targets

    Technical collaboration will focus on three areas: enterprise growth, co-innovation of advisory products, and talent development across technology teams.

    DBS has set 2030 as the firm deadline to reach its SGD 1 trillion asset target. The initial rollout of platform enhancements under the agreement will launch across key Asian franchises over the coming financial year.

  • HSBC Plans India Equity Broking Return After 13 Years

    HSBC Plans India Equity Broking Return After 13 Years

    HSBC is re-entering India’s equity broking business after a 13-year absence, seeking to capitalise on a robust pipeline of share sales and rising demand from wealthy clients.

    The move marks a reversal of the London-headquartered bank’s decision to exit the domestic retail brokerage and depository business in 2013.

    Rebuilding the Equities Platform

    HSBC has begun rebuilding its equities platform and is hiring senior executives for cash equities and institutional broking roles in Mumbai, using the licence held through HSBC InvestDirect Securities (India) to launch retail services over the next few months.

    Trading will focus on digital order execution for high-net-worth retail accounts. It will also handle cross-border trades routed through the Gujarat International Finance Tec-City financial free zone. HSBC walked away from its Indian retail brokerage and depository network in 2013 during a global retreat from non-core operations.

    Diverging from Foreign Peer Strategies

    This strategy sets HSBC apart from international rivals that spent the past decade shedding consumer banking in South Asia. Competitors including Citigroup, Standard Chartered and Deutsche Bank shrank their consumer footprints. They chose to concentrate capital on corporate advisory and transaction banking instead.

    By contrast, the bank retained its local consumer arm and expanded its physical reach. The Reserve Bank of India approved 20 new branch locations for the lender in January, taking its domestic network to 46 locations.

    Capturing Fee Revenue from Public Listings

    Robust public offerings and retail participation have created steady fee income for capital market intermediaries in Mumbai. Re-establishing equity distribution gives the bank direct placement power for primary offerings. It also captures secondary brokerage commissions from affluent private banking clients.

    Rival foreign institutions are attempting similar returns. London-based Barclays began preparations earlier this year to restart its Indian equity capital markets franchise, a decade after shutting the unit down during a restructuring drive.

    Branch Expansion and Earnings Trajectory

    Earnings in the group’s domestic franchise back the brokerage launch. HSBC India generated a 4 per cent year-on-year increase in net profit during the first half of 2026, lifted by higher fee volumes in corporate and institutional accounts.

    Group chief executive Georges Elhedery stated in recent broadcast remarks that the bank intends to deploy more capital across India. It will prioritise wealth management products designed for high-income domestic savers.

    What to Watch

    Next, the bank will finalise its senior equity trading hires before rolling out digital retail execution tools to wealth clients across its 46-branch Indian network.

  • Southeast Asia Savvy Online Shoppers Spend 31% More at $11.5 Billion

    Southeast Asia Savvy Online Shoppers Spend 31% More at $11.5 Billion

    Discerning online buyers in Southeast Asia spend 31 per cent more each month than general consumers. Across six regional economies, they will generate 11.5 billion dollars in annual marketplace sales in 2026.

    A joint study from Lazada and commerce analytics group Cube defines roughly 24 per cent of regional consumers as savvy shoppers. Another 18 per cent sit immediately below that threshold. These buyers demonstrate distinct commercial habits. They cross-check merchandise across channels, inspect merchant credentials, and routinely pay premiums for guaranteed authenticity and transaction safeguards.

    How purchasing behavior splits across markets

    Penetration of these higher-spending consumers varies widely by country. The Philippines leads Southeast Asia with 36 per cent of its online buyers qualifying as savvy. Indonesia follows at 28 per cent and Vietnam at 25 per cent. Thailand registers 22 per cent, while Malaysia records 20 per cent. Singapore sits at the bottom of the regional ranking at 9 per cent.

    Friction points also differ across borders. Shoppers in Malaysia and Vietnam report product verification as their primary hurdle during online purchases. Buyers in Singapore, Indonesia, and the Philippines cite buyer protection and seller confidence as their main challenges. Thai consumers report an even split between verification and security concerns.

    Value replaces pure price discounts

    Shoppers across Southeast Asia show an increased willingness to invest time to secure better transactions. About 43 per cent of surveyed consumers spend extra time searching for improved offers. Another 41 per cent delay purchases to find better timing. Meanwhile, 36 per cent conduct detailed price comparisons before checking out.

    Price concessions lose traction when they compromise trust. Only 14 per cent of consumers say they would sacrifice authenticity indicators for a lower price. Just 13 per cent would forfeit purchase protections to obtain a steeper discount. Among savvy buyers, 47 per cent state they will pay extra fees for certified order protection, compared to 30 per cent among general consumers.

    Discovery moves outside marketplace walls

    Transaction journeys now start well before buyers enter marketplace apps. The study finds that 83 per cent of savvy consumers discover products outside primary marketplace catalogs, compared to 42 per cent of general buyers. 86 per cent consult third-party information channels during purchase evaluation. A full 91 per cent verify seller track records across external web sources.

    Savvy consumers also buy more frequently and spread their spending across competing channels. Some 58 per cent shop online several times each week, compared to 35 per cent of baseline consumers. Mall environments capture 53 per cent of this cohort, compared to 40 per cent for general shoppers. Multi-homing is standard practice. About 82 per cent of savvy shoppers actively use all three major marketplace platforms across the region, against 61 per cent among the general shopper base.

    Commercial demands on digital merchants

    For marketplace merchants and brand principals, the findings demand a recalibration of promotional spending. Pure discounting drives immediate volume. However, higher-value shoppers demand verified supply chains, fast dispute resolution, and consistent branding across external touchpoints before committing their baskets.

    “Southeast Asia’s eCommerce market is no longer defined by whether consumers shop online, but by how confidently and effectively they do so,” said Simon Torring, Co-Founder of Cube.

    Platform operators now face the operational task of retaining these multi-homing consumers as growth shifts from user acquisition to basket optimization. Marketplaces that fail to guarantee authenticity will see the most profitable quartile of regional demand migrate to rival platforms offering tighter brand verification standards.

  • Gucci Shifts Sneaker Manufacturing to China in Break with Tradition

    Gucci Shifts Sneaker Manufacturing to China in Break with Tradition

    Gucci has begun manufacturing new sneaker models in China this season, departing from its longstanding practice of producing all footwear within Italy.

    The move by parent group Kering marks the first time the luxury house has placed assembly of select athletic footwear lines directly into Chinese manufacturing hubs, targeting supply chain efficiency and regional technical capabilities.

    Shifting the European Production Model

    European luxury houses have historically defended the ‘Made in Italy’ label as a core pricing pillar. Gucci’s pivot to Chinese production lines reflects the technical dominance Asian facilities hold over complex athletic shoe construction. Technical footwear demands specialised tooling, bonding agents, and synthetic mesh engineering that Italian artisan workshops rarely handle at volume.

    Kering, Gucci’s parent group, faces pressure to improve margins while defending market share in mainland China. Producing sneakers closer to Asian supply networks cuts shipping times and lowers unit assembly costs on high-turnover casual lines.

    Brand Equity and Consumer Perception

    Consumer reaction across Asia will test how rigid luxury buyers remain regarding country-of-origin labels. Chinese luxury consumers increasingly prioritise product quality, technical execution, and brand relevance over traditional European manufacturing stamps. Younger buyers who purchase luxury streetwear sneakers evaluate comfort and silhouette ahead of heritage claims.

    Other luxury competitors will watch the rollout closely. If Gucci maintains its retail price points without consumer backlash, rival houses will accelerate their own offshore manufacturing plans for technical categories. If shoppers resist, Gucci risks diluting the prestige that supports its footwear margins.

    Supply Chain Realignment

    Sourcing sneaker production in China shortens logistics cycles between Asian factories and regional flagship stores. Direct domestic distribution lowers tariffs and inventory lead times across key East Asian markets.

    Italy will retain production for Gucci’s formal leather shoes, handbags, and core ready-to-wear collections. Segmenting technical streetwear from traditional leather goods allows the brand to split its manufacturing strategy without abandoning its Tuscan heritage entirely.

    The Road Ahead for Footwear Lines

    Gucci plans to distribute the first Chinese-assembled sneaker models across global wholesale and retail channels over the coming season. Sell-through rates across department stores and flagship boutiques will dictate whether Kering expands Asian production into additional accessory categories.

  • 85 Percent of Consumers Cut Spending After Poor Service, Genesys Finds

    85 Percent of Consumers Cut Spending After Poor Service, Genesys Finds

    A survey by software company Genesys found that 85 percent of consumers globally have either spent less with a brand or stopped buying from it after experiencing poor customer service.

    In the Philippines, a 2025 study by market research and analytics firm Milieu Insight revealed that 55 percent of online shoppers are more likely to buy from sellers who communicate responsively and provide timely updates.

    Top service rankings across retail and hospitality

    Okada Manila, Grand Hyatt Manila and Dior led the overall rankings in the Philippine Daily Inquirer and Statista Philippines’ Best Customer Service 2027 study, which evaluated 306 companies across 78 categories based on more than 90,000 customer assessments.

    Customer recommendation rates drove half of each brand’s overall score. The remaining weight evaluated five touchpoints: system accessibility, customer focus, clear communication, professional competence, and the range of services at checkout and post-purchase resolution.

    The cost of automated service breakdowns

    Automated support systems create retention risks when software fails to track customer history across channels. Twilio research shows 73 percent of Filipino consumers encounter automated systems that lose earlier context.

    Losing that thread carries a direct cost. When bots drop conversational history, 73 percent of affected local shoppers abandon them to find human staff or cancel the purchase. For 4 percent, repeated technical friction prompted an immediate, permanent exit from the brand.

    Operational shifts for Southeast Asian merchants

    Philippine store operators and e-commerce platforms must treat support infrastructure as core merchandise rather than back-office overhead. Merchants who replaced floor staff and help desks with uncalibrated bots face rising cart abandonment.

    Most friction occurs during the handoff between automated triage and live resolution. Front-line human agents remain essential for complex order disputes, returns, and luxury transactions where automated workflows fail.

    Tracking service metrics into 2027

    A divide is widening between premium operators with dedicated channels and discount platforms relying on automated scripts. Tracking retention rates and first-contact resolution speeds will determine which Philippine retail chains hold market share through 2027.

  • Indonesian Court Cuts Gojek Founder Nadiem Makarim’s Prison Sentence to Nine Years

    Indonesian Court Cuts Gojek Founder Nadiem Makarim’s Prison Sentence to Nine Years

    An Indonesian appeals court cut the prison sentence of Gojek co-founder and former education minister Nadiem Makarim to nine years on Thursday. The decision reduces a 10-year term handed down in June.

    Judges also reduced his restitution payment from 809 billion rupiah ($45.23 million) to 548 billion rupiah. However, they upheld his graft conviction over a nationwide school laptop procurement programme that cost the state $125 million.

    The former minister had asked the Jakarta high court to dismiss all charges. Judge Catur Iriantoro said the bench rejected the appeal because the original ruling aligned with trial evidence, witness testimony, and established facts.

    Laptop procurement and tender terms

    State contracts to supply Google Chromebooks to primary and secondary schools across Indonesia during Makarim’s tenure form the core of the case. Prosecutors established that tender requirements favored Google’s Chrome operating system. This restricted open commercial competition and blocked rival hardware specifications.

    Judge Subachran Hardi Mulyana confirmed the revised financial penalties during Thursday’s hearing. The court determined that the lower 548 billion rupiah figure reflected Makarim’s direct liability in the allocations.

    “The victim now is not just me, but the credibility of the law enforcement system in Indonesia.”

    Repercussions across the tech and vendor market

    Thursday’s ruling sets a precedent for hardware manufacturers, consumer software distributors, and enterprise technology suppliers chasing public contracts in Southeast Asia. Regional procurement routinely drives sales volume for tech vendors. However, tailored operating system specs now carry severe criminal risks for officials and corporate partners.

    Tech conglomerates in Jakarta face scrutiny over how enterprise and education software bundles enter distribution pipelines. Device makers must now navigate tighter audits and multi-vendor rules when bidding for institutional tenders.

    From ride-hailing pioneer to public office

    Gojek began in 2010 when Makarim built the business from a motorcycle call centre into Indonesia’s top on-demand platform for transport, food delivery, and digital payments. He stepped down from his corporate post in October 2019. Former president Joko Widodo then appointed him to lead the Ministry of Education, Culture, Research, and Technology.

    Widodo’s appointment of Makarim served as a test case for tapping tech entrepreneurs to modernize state systems. That 2021 digitisation push led directly to the Chromebook initiative. The project triggered his arrest, a 10-year sentence in June, and an appeal on July 1.

    The next step at the Supreme Court

    Makarim told reporters outside the courtroom that he rejects the verdict and will take his case to Indonesia’s Supreme Court. His legal team must now file the cassation brief contesting the high court’s reasoning before the statutory deadline expires.

  • Thailand Resale Condo Transfers Surge 39 Percent in Second Quarter

    Thailand Resale Condo Transfers Surge 39 Percent in Second Quarter

    Thailand recorded a 39.4 percent year-on-year surge in second-hand condominium transfers in the second quarter of 2026, driven by buyers seeking affordable alternatives to costly new builds.

    Total transfer value for resale condos climbed 41 percent over the same period, making apartments the fastest-expanding segment in the country’s housing market, according to the Real Estate Information Center.

    Supply expanded in tandem with buyer activity. Listed resale condo inventory rose 25.2 percent year-on-year to 49,199 units during the quarter, while total listed value climbed 67.8 percent to 285 billion baht.

    Bangkok Captures Bulk of Secondary Trading

    Activity remained heavily concentrated in Greater Bangkok, which accounted for 42.3 percent of all secondary housing transfers and 47.4 percent of transaction value nationwide. Greater Bangkok saw 26,388 second-hand residential transfers, a 35 percent increase from a year earlier, with total value rising 29.4 percent to 59 billion baht. Bangkok proper alone recorded 13,910 transfers, up 38.7 percent, generating 38.3 billion baht in value.

    Condos outpaced all landed residential formats. Single detached house transfers rose 16.8 percent across the country, townhouses gained 24 percent, and semi-detached homes grew 22 percent. Resale condo volume expanded at more than double the pace of detached houses.

    Wage Lag Diverts Demand from Primary Projects

    The pivot to secondary properties reflects structural household constraints rather than a deficit of new construction. New home prices in Bangkok rose at a compound annual rate of 4.3 percent between 2012 and 2025, while labour wages grew just 2.8 percent over the same span, according to research by Krungthai Compass.

    That divergence is pricing first-time buyers out of newly launched developments in central locations. Resale properties offer established transit links and larger floor plans at discounts to primary launches, drawing cost-conscious buyers into older buildings.

    Mid-Priced Units Dominate Buyer Takeup

    Transaction growth clustered tightly around middle-tier price brackets. Units selling between 1.51 million baht and 5 million baht saw transfer volumes jump between 25 percent and 30 percent during the quarter. Condos priced between 2.01 million baht and 3 million baht captured 24 percent of total second-hand transaction value, the largest single share.

    Sub-1-million-baht properties generated 34.8 percent of all secondary unit transfers but represented only 10.2 percent of total market value. While entry-level transactions remain numerous, available stock in that bottom tier is shrinking. Secondary listings priced below 1 million baht fell 9.9 percent in unit count and 7 percent in total value during the period.

    Luxury Listings Expand as Primary Developers Pivot

    Upper-tier supply moved in the opposite direction. Secondary listings priced above 10 million baht jumped 32.4 percent by unit count and 39.6 percent in value, pushing total nationwide resale listing value up 24.9 percent despite a modest 6.1 percent gain in overall listed unit volume. Actual buyers, however, stayed concentrated in the affordable mid-market.

    Primary developers now face direct competition from older inventory in established corridors. With household debt high and borrowing capacity squeezed, builders can no longer rely on broad market expansion to absorb newly launched supply. They face sharper pressure to discount inventory and redesign upcoming pipelines around entry-level price thresholds.

    Krungthai Compass projects total secondary residential transfers in Bangkok will hit 195 billion baht by the end of 2026, accounting for roughly 40 percent of all residential property transfers in the capital.

  • Coupang Reaches 34.5 Billion Dollars in Sales as Margin Squeeze Drags Valuation

    Coupang Reaches 34.5 Billion Dollars in Sales as Margin Squeeze Drags Valuation

    Coupang generated 34.5 billion dollars in revenue across South Korea and regional markets in fiscal 2025. Growth followed expansion in Taiwan and luxury retail.

    Sales climbed 14.1 percent year on year. Net income finished at roughly 208 million dollars, leaving the group operating on a net margin of 0.6 percent.

    The Seoul-based e-commerce operator relies heavily on its WOW subscription program. It pairs proprietary logistics with midnight-to-morning dawn delivery across densely populated South Korean metro districts. The company also runs its own fintech payment rail and operates luxury marketplace Farfetch, acquired to seed a cross-border fashion offensive.

    Cash flow and margin pressure

    Balance sheet disclosures for December 2025 show a current ratio of 1.0x, leaving short-term assets equal to short-term obligations. Debt-to-equity stood at roughly 1.0x at year-end. Free cash flow reached 522 million dollars for the fiscal period. Stock-based compensation accounted for 26.8 percent of operating cash flow, reflecting non-cash add-backs rather than cash conversion from retail sales.

    Gross margin held at 28.35 percent. Logistics expenditures, customer acquisition costs, and Farfetch integration costs continue to compress bottom-line profit. The stock dropped to 13.88 dollars, sitting at the bottom of its 52-week trading band between 13.88 dollars and 32.96 dollars. Market capitalisation now stands at 26 billion dollars.

    Regulatory exposure and security fallout

    Domestic operating risk escalated after a November 2025 data breach affected 33 million user accounts. The incident triggered regulatory reviews in Seoul. The Fair Trade Commission and labor authorities already maintain scrutiny over marketplace practices and courier working conditions.

    Legal exposure for corporate leadership remains an active concern under South Korean commercial codes. Foreign exchange fluctuations also shaved earnings value as the South Korean won weakened against the dollar. That compounded price competition from domestic rivals and global platforms such as Amazon.

    The Taiwan expansion and luxury play

    South Korea’s high digital retail penetration leaves limited runway for volume expansion at home. Geographic diversification has become essential for Coupang’s capital spending. Management has directed fulfillment investment into Taiwan, deploying its automated logistics blueprint in Taipei to test whether delivery speed can outmuscle incumbent Southeast Asian platforms.

    Buying Farfetch gave the group direct access to European luxury supply channels. Turning around the loss-making fashion portal while funding warehouse construction in Taiwan absorbs capital that could otherwise bolster operating cash.

    Valuation gap against regional peers

    Investors price Coupang at a forward price-to-earnings multiple of 71.4x. This reflects high expectations for earnings recovery despite a trailing price-to-sales multiple of 0.7x. By comparison, Latin American peer MercadoLibre trades at a forward price-to-earnings multiple of 32.8x. It generated 2.0 billion dollars in net income on 39.1 percent revenue growth to 28.9 billion dollars.

    Public equity markets place a clear premium on embedded fintech profitability over asset-heavy logistics networks that operate with sub-one-percent net margins. Coupang’s revenue expanded from 24.4 billion dollars in 2023 to nearly 34.5 billion dollars in 2025. Its next filing must demonstrate that overseas volume in Taiwan can generate operating use without further diluting returns.

  • HSBC Targets Thailand-Japan Corridor as FDI Stock Hits $104 Billion

    HSBC Targets Thailand-Japan Corridor as FDI Stock Hits $104 Billion

    HSBC expanded banking services across the Thailand-Japan corridor as Japanese foreign direct investment stock in the Southeast Asian economy reached $104 billion.

    Japanese capital represents more than a quarter of Thailand’s total foreign direct investment base, backed by more than 6,000 Japanese companies operating across the country.

    The push comes as Japanese corporations allocate fresh capital to Southeast Asian supply chains. Japanese firms invested $1.2 billion in Thailand in 2025 and committed another $1.1 billion through June 2026, targeting operations that serve both regional and global supply chains. Takeo Kaneko, chief executive and head of banking at HSBC Group Japan, visited Bangkok to meet commercial clients alongside Giorgio Gamba, chief executive and head of banking at HSBC Thailand.

    Shifting Capital Beyond Traditional Manufacturing

    Bilateral commerce between the two nations reached substantial volumes in 2025. Japan took $23.6 billion of Thai exports as Bangkok’s third-largest export destination and delivered $29.7 billion in goods as its second-largest source of imports. Trade between the two countries has more than tripled since 1998.

    Corporate investments are shifting away from basic assembly lines toward higher-value manufacturing and technology. Capital flows increasingly target electric vehicles, advanced electronics, smart appliances, digital infrastructure, and renewable energy transition projects. Both markets are pushing domestic industrial bases up the value chain to protect margins against rising labour costs elsewhere in Asia.

    For consumer brands and component suppliers, this migration changes factory floor requirements and vendor networks. Japanese automotive and electronics manufacturers in Thailand are retooling facilities for battery electric platforms and energy-efficient appliances, forcing local component vendors to meet stricter technological standards or risk displacement by regional competitors.

    Regional Networks and Multi-Market Expansion

    Kaneko’s Bangkok stop formed part of a regional tour covering Indonesia, Malaysia, Singapore, and Thailand. Japanese multinationals are no longer treating Thailand as a single standalone production outpost. Instead, corporate treasurers are linking Thai manufacturing hubs with logistics networks in Malaysia and regional treasury headquarters in Singapore.

    Managing operations across multiple Southeast Asian jurisdictions creates specific balance-sheet demands for corporate treasurers. Companies require cross-border cash pooling, trade finance, foreign exchange risk mitigation, and supply chain liquidity that function across multiple regulatory regimes simultaneously.

    What we are seeing now is a more complex expansion agenda: regional supply chains are being redesigned, technology and sustainability are reshaping production models, and companies are looking for partners who can support them across multiple markets, not just one.

    Long-Standing Ties and Industrial Reorganisation

    Decades of bilateral industrial integration laid the groundwork for the current investment volumes. Japanese automotive assemblers and consumer electronics groups began establishing Thai production clusters in the 1980s, turning the country into an export base for the broader Association of Southeast Asian Nations. HSBC has operated in both Japan and Thailand for more than 135 years.

    Commercial ties are expanding ahead of the 140th anniversary of formal Thailand-Japan diplomatic relations in 2027. Corporate treasurers and lenders are now tracking whether the $1.1 billion in commitments recorded in the first half of 2026 converts into completed factory retooling projects before year-end.

  • Suzuki Aims to Halve Vehicle Development Time by 2030

    Suzuki Aims to Halve Vehicle Development Time by 2030

    Suzuki Motor will cut its new vehicle development time in half by around 2030 from fiscal 2020 levels, speeding up model rollouts across Asian markets.

    The Japanese carmaker is targeting a 30 per cent improvement in development efficiency alongside a 50 per cent boost to production efficiency over the same period.

    Faster turnaround for key markets

    Shrinking development cycles will allow the manufacturer to refresh its compact passenger car lineup faster. Shorter lead times reduce capital tied up in vehicle design programs while giving engineering teams quicker responses to shifting regional safety standards, emissions regulations, and consumer preferences.

    Automakers across the region face sharper competition from domestic and regional rivals capable of bringing new platforms to market on compressed schedules. By targeting a 30 per cent gain in engineering efficiency, Suzuki intends to defend its volume positions in key Asian passenger car segments without inflating research overhead.

    Expanding Indian manufacturing capacity

    India serves as the central pillar of the group’s manufacturing footprint and retail sales volume. Suzuki confirmed plans to expand its annual production capacity in the country to between 4 million and 4.99 million vehicles by the 2030 financial year or later.

    Scaling output in India to nearly 5 million units yearly requires severe factory floor optimization. The targeted 50 per cent increase in production efficiency is designed to extract higher unit volume from existing and planned assembly lines, controlling per-unit manufacturing costs as output scales.

    Operational shifts across assembly plants

    Reaching these targets requires overhaul across tooling, component sourcing, and plant automation. Improving assembly efficiency by half within the decade means standardizing modular architectures and trimming build hours per chassis across global sites.

    Suppliers in Suzuki’s tier-one network will need to align with tighter delivery cycles and faster part validation schedules. Compressing vehicle gestation from fiscal 2020 baselines transfers operational pressure directly down the supply chain, requiring parts vendors to validate components on shorter development tracks.

    Market response in Tokyo

    Shares in Suzuki Motor rose 0.9 per cent on Friday following the announcement in Tokyo. The benchmark Nikkei index finished the session 1.1 per cent higher.

    Investor attention now turns to the capital expenditure plan required to lift Indian capacity to the 4.99 million vehicle threshold by fiscal 2030.