Author: Mei Ling Tan

  • Chinese Regulators Call In Tesla Over Customer Complaints

    Chinese Regulators Call In Tesla Over Customer Complaints

    Chinese government officials have met representatives from U.S. electric carmaker Tesla Inc over reports from consumers about battery fires, unexpected acceleration, and failures in over-the-air software updates, a regulator said on Monday. China’s State Administration for Market Regulation said in a social media post its officials, along with those from the Ministry of Industry and Information Technology, Ministry of Emergency Management, Cyberspace Administration and Ministry of Transportation had met Tesla “recently”, without giving a date.

    The officials urged Tesla to operate according to China’s laws and protect customer rights, the regulator said. In response, Tesla said it would thoroughly investigate the problems reported by consumers and step up inspections.

    “We will strictly abide by Chinese laws and regulations and always respect consumer rights,” a company representative said in a text message, adding that Tesla accepted the guidance of the Chinese government departments.

    China is pushing the industry to make more electric vehicles as it tries to reduce air pollution.

    Tesla is building Model 3 electric sedans and Model Y sport-utility vehicles at its Shanghai factory. It sold 15,484 China-made vehicles in January.

    The industry ministry in May urged Tesla to ensure consistency in its China-made vehicles after some Chinese customers complained about less advanced computer chips in their cars.

    China, the world’s biggest auto market, is pushing the industry to make more electric vehicles as it tries to reduce air pollution.

    Sales of electric, plug-in hybrid and hydrogen-powered vehicles in China are forecast to rise to 20% of all new car sales by 2025 from just 5% now, the State Council said last year.

  • January auto imports surge 85 percent in Vietnam

    January auto imports surge 85 percent in Vietnam

    Auto imports in January rose to 8,343 completely built units worth $212.5 million, up 84.7 percent and 76.2 percent year-on-year, respectively.

    Most of car imports are from Thailand and Indonesia, at an average price range of VND350 million ($15,000) to VND 1.2 billion.

    Experts have said that the scale of manufacturing, tax exemptions and affordable auto models are elements that have allowed these nations to acquire large market shares in Vietnam.

    A Vietnam Customs report notes that auto imports had fallen 24.5 percent to 105,200 units last year as the Covid-19 pandemic slashed demand and forced dealers to stop working for weeks in April.

    Industry insiders say it is still early to forecast this year’s performance by Vietnam’s auto industry because the Covid-19 situation has become increasingly unpredictable.

  • Apple tests a new location for ads in the App Store

    Apple tests a new location for ads in the App Store

    Besides allowing mask-wearing Apple iPhone users with an Apple Watch to unlock their handset without using a Passcode or Face ID, the iOS 14.5 beta has something else new. In an attempt to make some more money from the App Store (beyond Apple’s 30% cut of in-app revenue), Apple is placing ads on the App Store’s Search tab. The advertised app is listed as a suggested one for iPhone users to install.

    Keep in mind that since this is showing up only on the iOS 14.5 beta, there is a chance that it won’t be kept for the final version of the build. In that case, things would revert to how they used to work now with ads appearing only when advertisers bid on certain keywords. If Apple does keep the new feature, the ads appear before any type of keyword to search for is typed in by the user. It could be that Apple is using the beta period to collect important stats on how often users engage with the ads in this particular slot in order to decide whether to keep the ads in that location.

    The money generated by the ads will be included as part of Apple’s Services unit, its largest division by revenue. This group includes AppleCare+, iCloud, the App Store, Apple Music, Fitness+, Apple Arcade, Apple TV+, Apple News+, Apple One, Apple Pay, and more. Last year, the Services unit grossed $53.77 billion allowing Apple to meet and beat a goal to achieve $50 billion in revenue for the division by the fiscal year 2020.

    Apple Store search ads started in 2016. And Apple has started including ads for its Services features in the Settings app. This has upset many iPhone users who point out that they are paying over $1,000 for their phones in many cases and shouldn’t be subject to receiving ads designed to make Apple more money. But Apple likes to promote how it keeps iOS users’ data private. Soon, Apple’s App Tracking Transparency feature will demand that iOS user opt-in if they want to be tracked for advertising purposes. The average mobile app has six trackers that send user data to other apps. While most iPhone users are expected not to opt-in to be tracked, there are some who like the convenience of having ads for what they are shopping for found online.

    Facebook and Snapchat are believed to be the two apps most affected by Apple’s App Tracking Transparency (ATT) feature. Months ago, Facebook said that Apple’s moves could lead to a 50% drop in ad revenue for the year which would be an annual hit of more than $40 billion. A more recent analysis calls for quarterly declines of 2.11% to 13.59% for the second quarter of this year, when Apple’s ATT is expected to debut to all iOS 14 users. Worldwide, in the best-case scenario, this analysis sees 30% of Facebook users on iOS opting-in to be tracked, and only 10% in the worst-case scenario.

  • Mastercard partners with SAP Concur to deliver automated expense and invoice management for businesses in APAC

    Mastercard partners with SAP Concur to deliver automated expense and invoice management for businesses in APAC

    Mastercard has partnered with SAP Concur to deliver a faster and more efficient expense and invoice management process to banks, companies and government agencies in Asia Pacific for transactions with corporate cards.

    As businesses and governments seek to increase visibility across payments, optimize credit lines and leverage data to strengthen supplier relationships, the partnership offers best-in-class transaction solutions along with closer alignment between commercial card providers and their clients.

    “This powerful pairing offers the best of both worlds by combining SAP Concur’s expense management expertise with Mastercard’s global payments network, extensive partnerships, industry-leading security and comprehensive solutions and services,” said Mostafa Sabet, Vice President, Product Management, Asia Pacific, Mastercard.

    “In today’s competitive environment and rapidly evolving digital economy, Mastercard’s integration with SAP Concur solutions will deliver the tools and insights that businesses and governments need to control costs and manage expenses tightly, transparently and efficiently.”

    Using commercial cards in conjunction with SAP Concur solutions for corporate travel booking, expense management and invoice processing will help to speed up reconciliation and payments while strengthening cost controls and improving compliance.

    For Mastercard’s issuing customers, the partnership improves the processing of corporate payments and supports the extension of SAP Concur solutions to business and government clients of all sizes.

  • L Brands appoints new Victoria’s Secret CEO

    L Brands appoints new Victoria’s Secret CEO

    Martin Waters, who currently leads the troubled brand’s lingerie division, has been promoted to CEO of business as a whole. He will take over from L Brand CFO Stuart Burgdoerfer who has served as interim chief executive at Victoria’s Secret for the past nine months.

    Burgdoerfer will retire this summer, the retailer announced Thursday, February 4. Waters, who joined the company in 2008 as head of the international division, will assume his new role effective immediately.

    L Brands said it expects the separation of Victoria’s Secret from Bath & Body Works to be completed in August. “All options, including a spin-off of the Victoria’s Secret business into a public company or a private sale of the business, are being evaluated,” L Brands said in a statement.

    L Brands had agreed to sell Victoria’s Secret to private equity firm Sycamore Partners in early 2020, but the deal fell through in the wake of the pandemic. With Sycamore out of the picture, the company said last May that it would still go forward with plans to separate its two entities and establish Bath & Body Works as a stand-alone public company.

    As part of the announcement Thursday, L Brands also raised its fourth-quarter earnings guidance and forecasted a comparable sales increase of 10 percent — a 22 percent increase at Bath & Body Works and a 3 percent decrease at Victoria’s Secret.

  • China fines Vipshop almost $500,000 for unfair competition acts

    China fines Vipshop almost $500,000 for unfair competition acts

    Chinese regulators have hit online discount retailer Vipshop Holdings Ltd with a 3 million yuan ($464,000) fine, the biggest to date in a recent clampdown on anti-competitive behavior among internet firms.

    In a sign that regulators are increasingly willing to use more tools in a newfound zeal to rein in monopolistic behavior in the tech sector, Vipshop was punished for violations of a law prohibiting unfair competition, which allows for fines of up to 5 million yuan.

    By comparison, other firms that have been hit with penalties since late last year was fined under China’s 2008 anti-monopoly law, which allows for a much lower maximum fine of 500,000 yuan.

    The Vipshop fine comes on the heels of State Administration for Market Regulation (SAMR) publishing updated guidelines on how the anti-monopoly law affects internet firms, which said regulators were keen to prevent price fixing as well as the use of data and algorithms to manipulate the market.

    SAMR said on Monday that from August through December last year, Vipshop had developed a system to obtain information on brands that gave Vipshop a competitive advantage. It added that Vipshop used its system to influence user choices, transaction opportunities and to block sales of particular brands.

    New York-listed Vipshop, which has a market value of about $22 billion, said on Monday that it accepted SAMR’s findings and would strengthen compliance.

    The heightened scrutiny by Chinese regulators since December has included the announcement of a probe into e-commerce giant Alibaba, penalizing Alibaba-backed and Tencent-backed firms for not seeking anti-trust reviews for deals, while other firms have also been fined for irregular pricing.

  • Pork imports surge 382 percent

    Pork imports surge 382 percent

    Vietnam has imported 141,140 tons of pork and related products in 2020, up 382 percent year-on-year, the General Department of Vietnam Customs has reported.

    The import value in 2020 increased 503 percent to $334.44 million, it said.

    The rising pork imports are attributed to the low domestic supply caused by the Covid-19 pandemic, African swine fever, and the central Vietnam floods, according to the Ministry of Industry and Trade.

    Brazil is the largest pork supplier with 24.5 percent of the total pork import value, followed by Russia with 24.1 percent and the U.S. with 13.7 percent.

    Over 800 enterprises from 19 markets have been allowed to export pork to Vietnam, according to the Ministry of Agriculture and Rural Development.

  • Muji ready to open largest Philippines retail store yet

    Muji ready to open largest Philippines retail store yet

    Fans of Japanese minimalist brand Muji will be delighted to know that the retailer is planning to open its “largest” store in the Philippines — soon.

    Muji announced this last night in a social media post, where it told followers to “stay tuned for more info.” It did not divulge where the new store will be located.

    The pandemic has hit the retail sector in the Philippines severely, with countless brick-and-mortar stores closing inside now-empty malls. Rents in malls are expected to fall by 2%, while registered online businesses have increased to 75,876 in September from 1,753 in March. Many Filipinos now prefer to buy from e-commerce platforms Lazada and Shopee, mainly because they fear that they will get infected with the coronavirus if they venture outside their homes.

    The changes taking place have prompted Muji Philippines to launch its own pick-up and delivery service in August.

  • Singapore retail sales slide overall while E-commerce goes up

    Singapore retail sales slide overall while E-commerce goes up

    Singapore retail sales – excluding motor vehicles – fell 4.5 percent y-o-y last Dec, a slightly higher decline than Nov’s 2.8 percent. M-o-m sales were down 0.7 percent. DOS estimates total retail sales value at SGD3.5 billion (US$2.62 billion) and that online retail sales accounted for 12.6 percent of that. The strongest categories online were computer and telecommunications equipment, accounting for 35.2 percent of the category’s overall turnover, furniture and homewares (23.4 percent) and supermarkets (11.8 percent).

    Most retail industry categories posted declines in sales in Dec on a y-o-y basis. However, supermarkets and hypermarkets, computer and telecommunications equipment, and furniture and homewares recorded growth rates of between 20.8 percent and 25.3 percent, due mainly to higher sales of groceries, mobile phones and household appliances respectively.

    Sales of recreational goods rose 10.3 percent, largely driven by strong demand for sporting goods. Sales of F&B services fell 16.5 percent in Dec, y-o-y, which was a lesser rate than Nov’s 22.4 percent decline. Online orders made up 19.9 percent of the estimated total spend of $800 million.

  • Malaysians get a taste for in-car dining during lockdowns

    Malaysians get a taste for in-car dining during lockdowns

    Diners in Malaysia can now enjoy restaurant meals from the safety and comfort of their vehicles after an eatery started a drive-in service for people eager to eat out during a COVID-19 lockdown.

    The Southeast Asian nation is in its fourth week of nationwide restrictions imposed as it grapples with a surge in coronavirus infections that has pushed the cumulative total to more than 230,000 cases, with more than 800 deaths.

    In Cyberjaya, a satellite city on the outskirts of the capital Kuala Lumpur, customers drive into the parking lot of Padi House restaurant and order from laminated menus through the vehicle windows.

    Each set meal comes on a customized tray that fits in the narrow space between the driver seat and steering wheel.

    “I work at the bank so its not a suitable environment for me to eat. I prefer to go out and sometimes we need a change in scenery so that I can enjoy my food, even in a car,” said Nor Shekin Nor Razali, who had lunch with a colleague on Thursday (Feb 4).

    The restaurant has closed its dine-in service and, like most eateries in Malaysia, had been offering takeaways only.

    Owner Leow Kim Ngan said the inspiration came from airline meals after business dropped 80per cent due to the pandemic.

    “It’s very challenging, we have to think of a new way to find more income,” said Leow.

    Malaysia is currently at its peak of infections, averaging more than 4,600 new cases per day.

    Infection numbers have been climbing steadily since the end of September. A second nationwide lockdown, which bans social activities and inter-state travel, is due to end on Feb 18.

  • Hyundai No Longer In Talks With Apple On Autonomous Electric Cars

    Hyundai No Longer In Talks With Apple On Autonomous Electric Cars

    South Korea’s Hyundai Motor Co said on Monday it is not now in talks with Apple Inc on autonomous electric cars, just a month after it confirmed early-stage talks with the tech giant, sending the automaker’s shares skidding. Wiping $2.1 billion off its market value, Hyundai’s stock slumped 4.2% by 0330 GMT. Shares in its affiliate Kia Corp, which had been tipped in local media reports as the likely operational partner for Apple, tumbled 12% – a $4.3 billion hit.

    The announcement brings the curtain down on weeks of internal divisions within Hyundai Motor Co Group – parent to both automakers – about the potential tie-up, with some executives raising concerns about becoming a contract manufacturer for the U.S. tech giant.

    “We are receiving requests for cooperation in the joint development of autonomous electric vehicles from various companies, but they are at an early stage and nothing has been decided,” the automakers said on Monday, in compliance with stock market rules requiring regular updates to investors regarding market rumors.

    Apple, known to keep product plans under tight wraps, has never acknowledged talks with the automaker about building vehicles
    “We are not having talks with Apple on developing autonomous vehicles.”

    Kia shares had jumped 61% after Hyundai appeared to confirm a local media report early in January that Apple and Hyundai were in discussions to develop self-driving electric vehicles by 2027 and develop batteries at U.S. factories operated by either Hyundai or Kia.

    “Apple and Hyundai are in discussion, but as it is at an early stage, nothing has been decided,” Hyundai said, before releasing subsequent statements that removed all mentions of Apple but said Hyundai was receiving electric car cooperation requests from parties it didn’t identify.

    Reuters reported in December that Apple was moving forward with autonomous car technology and aimed to produce a passenger vehicle that could include its own breakthrough battery technology as early as 2024.

    Apple, known to keep product plans under tight wraps, has never acknowledged talks with the automaker about building vehicles and wasn’t immediately available for comment outside business hours in the United States.

    Analysts said talks might have collapsed over leaks of the partnership plan to media, or over possible insistence by Apple that Hyundai’s role in any tieup would be that of an equipment manufacturer, rather than a strategic partner.

    “With numerous news reports over discussions between the two companies, which should have been held to non-disclosure agreements, it would have been uncomfortable,” said Kwon Soon-woo, an analyst at SK Securities.

    Kevin Yoo, an analyst at eBEST Investment & Securities, said, “It seems clear that Hyundai Motor Group has not been too happy with dealing with Apple. They made it clear that they do not want to be treated just as Apple’s supplier or manufacturer.”

  • Apple returns to 4th place in Vietnam smartphone market

    Apple returns to 4th place in Vietnam smartphone market

    Apple surpassed VinSmart to become the fourth-largest smartphone brand in Q4 of 2020 as sales of iPhone 12 surged.

    With a market share of 11 percent, it was behind China’s Vivo (13 percent), which climbed two places from the previous quarter, Singaporean technology market analysis firm Canalys said in a recent note.

    South Korea’s Samsung stayed on top with a 24 percent market share followed by China’s Oppo (16 percent), but their sales plummeted by 19 percent and 28 percent year-on-year.

    Hundreds of people queued up in front of Apple stores to become the earliest owners of iPhone 12 late last year.

    Almost 10 smartphone brands have been vying for third place in recent years, with Apple, Xiaomi, and Vivo the most notable names. None has remained in that position for more than six months.

    Around 75 million people, or almost 80 percent of the population, use smartphones, according to We Are Social, a social media marketing and advertising agency.

  • How the online sporting industry has influenced fashion retail

    How the online sporting industry has influenced fashion retail

    Sport can simply be recognized as a physical activity that involves competition between individuals or teams. That being said, it doesn’t seem clear where fashion fits into this notion, apart from the sportswear used to play such games. Though, traditionally, sports like football have always carried an aspect of fashion design in order to create sportswear that represents a team and allows them to stand out from their competition, fashion in sport has since come a long way.

    Now, with access to sport in person, on television, and online, such sports have influenced fashion trends and have diversified the fashion retail industry as a result of its accessibility. Sportswear has now become a part of everyday life, whether playing sport or not. That’s why big sports apparel brands like Nike and Adidas dominate the retail industry in China. It’s therefore not surprising that jeans have been exchanged for joggers and boots for trainers. We’ll take a look at this shift in the fashion retail industry below.

    Influencers

    First and foremost, while sport itself has of course influenced the fashion retail market through the exploration of clothing for active people, key figures in society have a lot to answer for this. In our modern society, a lot more people are aware of their health and fitness so are engaging in more physical activities. Naturally, this means a bigger sportswear wardrobe. This shift in wardrobe doesn’t stop there. Now, people are quick to share their sporting apparel across social media to engage with other like-minded fitness people.

    One Asian influencer in particular, Hana Giang Anh, has her very own fitness social media platform and can often be seen sharing her sportswear looks on Instagram. Since Instagram is a visual platform that creates aspiration amongst users, particularly since products can be tagged, those that follow influencers often get on board with fashion trends and can be seen flaunting sportswear themselves. For that reason, online sport has influenced the fashion retail market as it has exposed social media users to the benefits of sportswear.

    Online events and games

    With the online space so widespread, access to online sporting events and games is all the easier. Sites like William Hill offer access to sport via online betting across the world, allowing the sporting market to draw further attention to itself. This has led to the sporting audience has grown and interest in sport has increased: even those that don’t play sports themselves or take a keen interest in a particular sport or team are presented with the opportunity to participate in some way, whether it’s through betting on a game or playing an online sports game.

    Since fashion is a way of displaying your identity, more people are taking to sportswear to show that they belong to the sporting industry. For that reason, since sport has been introduced to the online sphere, it has capably influenced the fashion retail market through the increased accessibility to online users. This has had both a cause and effect – it has caused more people to directly or indirectly get involved with sport, and it has consequently had an effect on their lifestyle choices, including the clothes they choose to wear.

    This goes to show that with the idealization of and accessibility to sport online, more people are aware, not only of its health benefits and entertainment value but of its fashion value too. That’s why more retail brands are creating sportswear that pushes boundaries and makes a statement, all while being fashionable, comfortable, and ideal for physical activity. Hence, the fashion retail market is more sport orientated than ever.

  • KBank to open a Ho Chi Minh City branch

    KBank to open a Ho Chi Minh City branch

    KASIKORNBANK (KBank) is gearing up to become The Bank of AEC+3 after the State Bank of Vietnam granted approval for the opening of a branch in Ho Chi Minh City, Vietnam. The Bank aims to serve Thai business customers, including large corporate and SME clients who have invested in Vietnam, as well as local retail customers. It targets lending of 10,000 million Baht in its first year of operation while also investing in start-up firms with the aim of scouting advanced digital technologies for increased business opportunities.

    Mr. Pattarapong Kanhasuwan, KBank Executive Vice President, said that KBank was granted a license to open a branch in Ho Chi Minh City on January 19, 2021, and the Bank is now preparing for its inauguration. The branch is scheduled to open its doors within the third quarter of this year in order to provide services to local customers, including Thai and foreign businesses investing in Vietnam. Attention is now focused on Vietnam as a regional investment hub that has attracted the world’s leading companies – including those from Thailand – thanks to its strong economy. As evidenced, Vietnam is the only ASEAN country that is presently enjoying positive growth. In spite of the COVID-19 pandemic, it is among the world’s top four countries in terms of GDP growth. The International Monetary Fund (IMF) has assessed that the Vietnamese economy will recover at a fast rate in 2021, with growth projected at 6.5 percent. This will likely attract international investors, both in Asia and the West, to steadily invest in Vietnam going forward.

    With these factors in mind, KBank has used the knowledge gained from services offered at its two representative offices in Hanoi and Ho Chi Minh City in order to upgrade the representative office in Ho Chi Minh City to a Bank branch. It will focus on offering services to Thai, Chinese, Japanese and South Korean companies wishing to expand their businesses in Vietnam for international trade and investment, as well as local entrepreneurs, especially those conducting business with Thai corporate customers of KBank.

    KBank has set operational targets for the Bank branch in Ho Chi Minh City once it

    is fully established in 3Q21. These include services primarily for business sectors related to Thai customers of KBank, in particular SMEs, trading, service, infrastructure and industrial businesses. Its services will then be expanded to retail banking, including deposit and personal loan, based on KBank’s digital banking expertise in collaboration with local tech start-ups through investment by KVision to ensure that such services meet the needs of local retail customers. In 2020, the number of internet users in Vietnam had reached up to 70 percent of the total 90 million population, and Vietnam’smarket was valued at USD13 billion. KBank’s investment in Vietnam differs from that in other AEC+3 nations, where the priority is on international business. KBank’s 4Q21 operational targets for the AEC+3 include deposits of 1.2 billion Baht and loans of 10 billion Baht.

    KBank will continue to operate through the Hanoi representative office to provide service and act as an intermediary between the KASIKORNBANK Head Office and Thai customers who are expanding their businesses to northern Vietnam. At the same time, the Hanoi representative office supervises investment projects that have received financial support from KBank, compiles market data to support customers’ business plans, and promotes trading activity and investment between Thailand and Vietnam. Thai exporters who ship goods to Vietnam will also be given more access to the ASEAN market through this international network.

    KBank’s approval from the State Bank of Vietnam to set up operations in Vietnam is a highlight of the Bank’s strategy in becoming The Bank of AEC+3 that will connect all of its services via an extensive banking network in various forms including locally incorporated institutions (LIIs), branches, representative offices and partner banks. At present, KBank has an overseas service network across the AEC+3 countries and several others, in 16 countries and with more than 84 partners worldwide.

  • Tumi select APAC to launch first experimental virtual store

    Tumi select APAC to launch first experimental virtual store

    TUMI, the leading international travel, lifestyle, and performance luxury brand, launches the breakthrough TUMI Virtual Store to debut its Spring 2021 collection, delivering an immersive and enhanced omnichannel experience to customers in Asia Pacific and the Middle East.

    Ushering in a creative new age of digital retail that connects fans with the brand like never before, the TUMI Virtual Store inspires customers to embark on a journey through thoughtfully designed interactive touchpoints. Guests can explore the Virtual Store’s life-like visual presentation to discover TUMI products via 360° 3D and AR implementations and shop the Spring 2021 collection. They can engage with shareable social photo moments at TUMI’s Magic Mirror and play Instagram and WeChat mini-games.

    Further enhancing the overall TUMI O2O (“Online to Offline” also “Offline to Online”) shopping experience, the Virtual Store is connected to other TUMI shopping channels via its Chat & Shop function allowing for seamless customer movement to the point of purchase. Customers exploring the Virtual Store can easily connect with sales associates to ask questions and place orders, or via the connected local e-commerce websites. Furthermore, those visiting the TUMI physical stores in the region can explore the TUMI digital landscape via in-store kiosks, for an enhanced offline experience.

    With the goal of being everywhere, the customer is, the Virtual Store adds another dimension to TUMI’s evolving omnichannel retailing approach. As another pioneering landmark, the launch of the TUMI Virtual Store sees TUMI rollout its first-ever Regional Livestream Event, bringing all APAC and Middle East customers together digitally to unveil Spring 2021, 7pm GMT+8, Thursday, 4th February 2021: https://virtualstore.tumi-asia.com/

    “The TUMI Virtual Store is an incredible milestone for the brand. For the last few years, we have been pioneering new digital experiences and looking to enhance and elevate the customer journey. Our new Virtual Store is part of this holistic approach to connect with customers wherever they are. Accelerated digitization and shifting customer habits brought on by 2020 have reinforced this direction and shown that we must continue to create exciting, meaningful interactions both in the physical and digital worlds.

    Through the TUMI Virtual Store and our Regional Livestream Event, we are excited to welcome fans to experience the latest innovation from TUMI and our new Spring 2021 collection,” says Adam Hershman, Vice President of TUMI, Asia Pacific and Middle East.