Author: Mei Ling Tan

  • Uniqlo says sales recovery varies across Asian markets

    Uniqlo says sales recovery varies across Asian markets

    Japanese fast-fashion retailer Uniqlo is seeing a significant rise in sales in Japan despite the impact of the coronavirus pandemic.

    But performances varied in different Asian markets.

    While the company is suffering abroad, a recent uptick in sales in its home territory – partly boosted by a popular face mask – is likely to see 25-per-cent sales growth for the August quarter. Even so, the firm’s net profit forecast for the entire financial year has been re-estimated downward by a steep 47.7 percent, factoring in expected upcoming impairment costs.

    The firm saw a sales decline for the first three quarters of its financial year of 15.2 percent below figures for the same period a year earlier, as well as a net profit decline of 42.9 percent. Multiple outlets were temporarily closed during part of this period due to the outbreak.

    While Uniqlo’s performance is expected to continue to improve in both Japan and China, the business is expected to undergo a significant decline of up to 40 percent in its markets in South Korea, India, Southeast Asia and Oceania during the fourth quarter.

    A bright spot is Vietnam where trading was strong after the country returned to normal, virus-free, in May.

  • Starbucks India opens first drive-thru store

    Starbucks India opens first drive-thru store

    Starbucks India has opened its first drive-thru store in Singhpura, Zirakpur. Located in Dhillon Plaza, the store spans two floors, featuring large in-store seating and ceiling-to-floor windows, offering a large dine-in space as well

    At the drive-thru window, customers can order drinks from the same menu as in-store and pick up from their car.

    “The opening of our first drive-thru store showcases our commitment to evolving our brand and business in India to provide new and meaningful experiences to our customers,” said Navin Gurnaney, CEO at Tata Starbucks, the local franchisee of the North American cafe chain.

    Tata Starbucks operates 187 stores across India.

  • Muji enters Chapter 11 owing US$65 million in USA

    Muji enters Chapter 11 owing US$65 million in USA

    Japanese homewares and lifestyle retailer Muji has placed its US business in Chapter 11 bankruptcy protection with debts of US$64 million.

    The company said the measure was the result of having to continue to pay rent in high-profile locations while stores were shuttered due to the Covid-19 pandemic. Landlords had shown little flexibility despite stores not being able to trade.

    Under bankruptcy protection, the company’s parent, Ryohin Keikaku, has six months to submit a restructuring plan.

    After launching in 2006, Muji US has opened just 19 stores there. But it chose high-profile locations like 5th Avenue and Times Square to establish brand exposure.

    In the year to February, the company achieved sales of $102.5 million but reported a loss of $16.8 million.

    Muji has no intention of closing or exiting the US. Ryohin Keikaku, president Satoru Matsuzaki, said he would personally oversee the restructuring of the US business.

    “The US is the cornerstone in building name recognition,” Matsuzaki was quoted in the Nikkei.

    Muji US has reopened 10 stores, but total sales are running at just 20 percent of the level of pre-Covid-19.

  • Maserati Ghibli Hybrid To Be Unveiled On July 16

    Maserati Ghibli Hybrid To Be Unveiled On July 16

    Maserati’s first-ever hybrid car is all set to make its global debut on July 16. It was in June 2018 that Maserati announced that it will be launching four new plug-in hybrids (PHEV) models by 2022 and last year it confirmed that the first electrified model in its line-up would be the Maserati Ghibli Hybrid whose first public appearance was slated this year. The Maserati Ghibli Hybrid will be manufactured at the Modena plant where the company is significantly upgrading its production line and is investing 800 Million Euros for a new one.

    The Maserati Ghibli on sale in India is offered with a 3.0-liter twin-turbo V6 petrol engine that is designed by Maserati Powertrain and is built at the Ferrari plant in Maranello. The engine is Euro6 compliant and promises an exciting drive while keeping the emissions in check. The petrol engine also comes with a new exhaust system controlled by pneumatic valves. Moreover, the engine features advanced valve control technology with hydraulic roller finger followers and four-cam phasers, twin-turbocharging, and direct injection technology.

    Maserati in its five-year plan had also announced that it will bring refreshed versions of the Ghibli and Quattroporte sedans before it gets built on a completely new platform by 2022. Moreover, the Levante SUV will also be updated, and we’ll also see a new smaller SUV joining the Maserati portfolio before 2022. Based on a completely new platform, the new Levante along with the Ghibli and Quattroporte will also be offered with an electrified (hybrid) powertrain for the very first time.

  • Sales growth disappoints South Korean department store operators

    Sales growth disappoints South Korean department store operators

    A South Korean government-led retail sale festival designed to boost spending amid the coronavirus outbreak ended yesterday, with major department stores posting an increase in revenue on high demand for luxury goods.

    But discount store chains and traditional markets did not see sales rise as much as expected, due mainly to the compulsory closure of outlets and lack of promotion strategy.

    South Korea kicked off the 17-day sales festival, called the “Korea Donghaeng Sale” campaign, on June 26 in an effort to boost faltering domestic demand amid the coronavirus outbreak. “Donghaeng” means ‘going along together’ in Korean.

    Major department stores, the sector hit hard by the virus outbreak, posted an increase in sales as people bought luxury items as part of “revenge spending” amid the Covid-19 pandemic, according to industry watchers.

    Lotte Department Store saw sales rise 4 percent year on year between June 26 and July 9.

    Number two player Shinsegae Department Store, and smaller rival Hyundai Department Store, posted increases of 11.3 percent and 6.3 percent, respectively.

    But discount-store chains posted a similar level of sales or a marginal decline despite big discount events targeting the sales festival.

    The operators of discount-store chains are obligated to close outlets on the second and fourth Sunday of every month under regulations designed to help smaller neighborhood shops. That meant they had to shut down outlets yesterday, the last day of the sales fest.

    Traditional markets posted a letup in their sales declines last week, but merchants said they did not directly feel the impact of the sales festival.

  • Britain close to final decision on whether to ban Huawei from its 5G networks

    Britain close to final decision on whether to ban Huawei from its 5G networks

    Despite constant pressure applied by the U.S. not to allow Huawei’s networking equipment inside Britain’s 5G networks, in January the British announced that it would not heed the warning. Gear from the world’s largest networking equipment supplier would be used on the country’s 5G networks although the parts would be placed away from sensitive areas. At the time, a spokesman said, “The United States is disappointed by the U.K.’s decision.” British Prime Minister Boris Johnson felt that there was no other decision he could make because of Huawei’s technological and financial advantages over the competition.

    But according to the U.S. government, Huawei is a national security threat because of its rumored ties to the communist Chinese government. Huawei, of course, has denied this repeatedly. The U.S tried to convince Britain that it wouldn’t be able to pass along the intelligence to its allies if Huawei was involved in the country’s 5G network. And finally, there were some cracks in the prime minister’s resolve. Johnson could announce as soon as this coming Tuesday’s National Security Council meeting that Huawei equipment will be banned from British networks before the end of next year.

    In the U.S. Huawei products, including both phones and networking gear, are banned from use by the military and by telecom firms. Some rural wireless providers have Huawei equipment in their older networks which the current administration would like to see removed.

    While the U.S. did apply enough pressure to get the ball rolling in Britain, what really convinced the Brits to think twice about Huawei’s presence in its 5G networks was the recent export rule change by the U.S. Under the new rules, a foundry using American technology to produce chips cannot ship any product to Huawei without a license from the U.S. As a result, Huawei could be forced to use “untrusted” chips which greatly lessens the security of any 5G network that employs Huawei’s gear. A review in Britain concluded that under these conditions, the country will not be able to control the security of its 5G networks.

    The Conservative Party that Prime Minister Johnson belongs to has been pushing for a reversal of the decision to allow Huawei equipment to be used. Bob Seely, a member of the Conservative Party, praised the U.S. sanctions for getting Britain to revisit its initial decision. “The sanctions have changed the dynamic, he said. “The government is listening, and it’s important to give them credit for trying to do the right thing.” Seely said that Members of Parliament want a “no new kit date” and a “rip out date.” After the former date, no company would be able to install Huawei equipment in Britain. By the latter date, all Huawei equipment would have to be removed in the country. The politician would like to see the “no new kit date” set for late 2021 while there is a debate over where the “rip out date” should fall on the calendar. The range under consideration is a date between 2023 and 2025.

    Some Conservatives aren’t pushing for such draconian terms. Neil O’Brien said he wasn’t so concerned about the timing of the removal of Huawei gear and is also not terribly worried about the removal of equipment from older networks. That’s because the latter “will come to the end of its life over a couple of years.” That mirrors the comments made by Damian Green who also isn’t worried about older equipment. He simply wants to see a new equipment ban “in this parliament by 2024.

    The next generation of wireless connectivity, 5G will deliver download data speeds up to ten times faster than 4G LTE. Not only will it allow users to download movies in seconds instead of minutes, but it should also help to create new technologies and businesses.

  • Muji starting with a monthly subscription service with Idee

    Muji starting with a monthly subscription service with Idee

    Muji is to launch a subscription service for furniture and interior goods with its design brand Idee.

    The rental service will feature three basic sets – “sleep”, “learn/work,” and “relax” – starting from US$7.50 per month. The company also offers annual subscriptions for one to four-year plans.

    The Muji and Idee service offers a solution for furniture waste problems, following the brand’s new philosophy – “use rather than possession”.

    “Muji aims to solve various problems … occurring in society by paying close attention to the earth and the times, and by preparing our lives through products and services that are the basis of our lives,” the company said in a statement.

    Muji also offers two renovation plans for compact home offices across 23 wards of Tokyo. In addition, customers can receive free online home consultations from 115 interior advisors at 45 Muji stores across the country.

    Furniture subscription services are not a new concept but are beginning to gain momentum in large cities with small apartments. Ikea launched a similar service in some European countries saying last year it planned a roll out in 30 markets this year.

    The Muji subscription service will start from July 17 at selected stores in Japan including Muji Ginza and Muji Grand Front Osaka.

  • Massive fake luxury goods ring shut down in Vietnam

    Massive fake luxury goods ring shut down in Vietnam

    Government authorities have raided a warehouse storing thousands of fake luxury goods in Lao Cai City, northern Vietnam, which were being sold online.

    The 10,000sqm warehouse was divided into several areas including rooms for selling fake luxury goods via live-streaming on Facebook. Most of the items are copies of major brands including Gucci, Chanel, Nike and Adidas.

    One of the employees from the warehouse admitted that there were more than 40 people processing orders during the live-streaming and some 1000 packages being shipped each day.

    Although the exact number of fake goods smuggled from China has yet to be confirmed, authorities discovered the ring sold more than 90,000 products each month at a profit of around US$432,000.

    An official said the ring was professionally organised and took advantage of online platforms for both wholesale and retail as online shopping has become increasingly popular in Vietnam.

  • Thai Vietjet offers super-saver fares from THB50 for all 13 routes in Thailand

    Thai Vietjet offers super-saver fares from THB50 for all 13 routes in Thailand

    In celebration of its new routes in Thailand, Vietjet has kicked off a special promotion offering 500,00 air tickets priced from THB 50 (*) (USD 1.5) starting from now to 17 July 2020 during the golden hours of 1.00pm to 3.00pm (Malaysian time).

    Here’s your chance to plan ahead for a perfect Thailand trip! The promotional tickets are applicable on all of its 13 domestic routes in Thailand and valid for travel between 1 September 2020 to 30 June 2021 (**). Tickets can be booked via Vietjet’s website and mobile application Vietjet Air.

    “We are happy to bring in more flying opportunities for the people to discover the “Smiling Land” with amazing experiences. This is a perfect chance for Thai people to go on a tour within Thailand with their families and friends. We are committed to expanding flight network in domestic Thailand and continuously provide exciting experiences to our passengers with daily promotion program”, said Vietjet Vice President, Nguyen Thi Thuy Binh.

    The recently announced six new Thailand routes expand Thai Vietjet’s domestic routes to 13, allowing tourists to travel conveniently around the country. This super promotion is applicable to all Thai Vietjet’s domestic routes in Thailand from Bangkok (Suvarnabhumi) to Chiang Mai, Chiang Rai, Phuket, Krabi, Udon Thani, Phuket – Chiang Rai, and Udon Thani – Chiang Rai, including new routes from Bangkok (Suvarnabhumi) to Hat Yai, Khon Kaen, Nakhon Si Thammarat, Ubon Ratchathani (starting from 6 October 2020),  Surat Thani (starting from 4 November 2020), Chiang Rai – Hat Yai  (starting from 1 November 2020).

    Currently, Vietjet is operating a stable domestic network in Vietnam and Thailand. All Vietjet’s flights are in alignment with all global standards and guidelines from the local authorities, including aircraft disinfection.

  • Centara offers sneak preview of Centra by Centara Cha Am Beach Resort Hua Hin

    Centara offers sneak preview of Centra by Centara Cha Am Beach Resort Hua Hin

    Centara Hotels & Resorts, Thailand’s leading hotel operator, releases first details of its debut hotel in Cha-Am – Centra by Centara Cha Am Beach Resort Hua Hin.

    Opening on 24 July 2020, one week before schedule, the 190-key beachfront resort is poised to become a sought-after choice for travellers seeking a contemporary beachfront escape just two hours from Bangkok.

    The former Beach Garden Hotel was completely reimagined and underwent a full floor-to-ceiling renovation and now features brand new room types including pool access rooms and spacious seaview suites.

    Families, groups of friends, and couples have a choice of activities at their fingertips, with facilities including two swimming pools complete with fun water slides, children’s pool with water play area, a kids’ club, fitness centre and full-service spa.

    To celebrate its opening, Centra by Centara Cha Am Beach Resort Hua Hin is offering an introductory offer with rates starting at THB 1,120 net per night, plus 20% off F&B at the resort’s three restaurants and bars. 

  • Deliveroo Partners with the 1st Virtual Insurer to Provide Special Medical Benefits to Deliveroo Riders and Their Families

    Deliveroo Partners with the 1st Virtual Insurer to Provide Special Medical Benefits to Deliveroo Riders and Their Families

    Committed to always finding new ways to support riders, who are at the heart of the business, Deliveroo announces today a partnership with Hong Kong’s first virtual insurer  Bowtie who will offer BowtieGo healthcare membership plans to 6,000 Deliveroo riders and their families, starting at zero cost. As rider health and safety are among Deliveroo’s highest priorities, the move follows recent efforts to provide riders with free COVID-19 testing, education opportunities and accident and injury insurance coverage which has been arranged and administered by Marsh since 2018.

    All Deliveroo riders and their families can now enjoy medical benefits  designed with three unique healthcare plans with basic coverage starting at $0. Supported by Bowtie, the entry-level healthcare programme is free of cost to riders and offers  member’s exclusive rate on unlimited GP consultations and Chinese Medicine doctor visits (medicine, acupuncture and bone setting). For an additional monthly fee, riders can also select an insurance plan which will allow them to access outpatient and dental treatments at discounted rates with the option to also receive a free annual body check.

    Brian Lo, General Manager, Deliveroo Hong Kong, said: “Having spoken to our riders and listened to their feedback, we know healthcare matters to them and so it matters to us. We knew it was the right time for us to further our efforts in helping our riders to access more health benefits. Bowtie will offer comprehensive and unique benefit packages that will keep our riders and their beloved ones healthy and protected.”

    In Hong Kong, all Deliveroo riders are already automatically enrolled into a completely free insurance package covering accident and injury which is arranged and administered by Marsh. To add on that, this additional medical benefits to Deliveroo Riders, follows a number of recent initiatives from Deliveroo to better riders’ on-the-job experience, earning potential and wellbeing. This April, Deliveroo introduced the Rider Academy in Hong Kong to offer over 700+ free online courses for riders and their families, as well as free COVID-19 testing with Project Screen by Circle. Additionally, Deliveroo provided free masks and hand-sanitisers to riders in Hong Kong earlier this year.

     

  • Calvin Klein Announces Decision to Bring In-House Footwear Collections in Europe and Asia

    Calvin Klein Announces Decision to Bring In-House Footwear Collections in Europe and Asia

    Calvin Klein, a wholly-owned subsidiary of PVH, announced today that it will be bringing in-house its footwear collections offered in Europe and Asia.

    This development comes after a successful and fruitful partnership with Jimlar Corporation, a division of Global Brands Group. Jimlar Corporation currently holds the footwear license agreements for the CALVIN KLEIN JEANS, Calvin Klein and CK Calvin Klein lines, which will expire at the end of 2020. Beginning in 2021, Calvin Klein Europe and Calvin Klein Asia will operate the footwear category internally, allowing for more control over product design and development. This strategic initiative will create an opportunity to build on the existing footwear business by leveraging the Calvin Klein businesses’ established infrastructure and distribution networks in each region.

    “Jimlar has been a best-in-class licensee for over ten years and we’d like to thank them for contributing to the successful development of our footwear business,” said John Van Glahn, President of Global Licensing at Calvin Klein, Inc.  “We are excited to continue the momentum by bringing the category in-house in Europe and Asia, leveraging PVH’s operations and expertise to take the business to the next level.”

    Calvin Klein Europe and Calvin Klein Asia will establish dedicated teams that will be responsible for design, production, and distribution of Calvin Klein footwear in the regions.

  • Ooredoo Group Extends Working from Home until End of Year, Supports a More Agile Operational Culture

    Ooredoo Group Extends Working from Home until End of Year, Supports a More Agile Operational Culture

    In a pilot initiative aiming to adopt and support a more agile digital culture, Ooredoo Group has extended its Work-From-Home procedures, allowing employees whose work doesn’t require them to physically be in the office to continue working remotely until the end of 2020

    The company is one of the first in the region to make such a decision, paving the way to an innovative working environment that could reshape the contemporary workplace.

    Ooredoo Group employees and contractors will have the option to agree more flexible working arrangements from home or the office, subject to individual agreement and at management discretion. As for the Group’s operating companies around the world, each will have the flexibility to test more localized working arrangements in a way that works best for them and in line with the regulations and directions of the countries in which they operate.

    Based on key lessons learned in the recent period, the Group management team believes that this “experiment” will foster the creation of more agile and modern work culture. As a leader in technology and telecommunications, the Group aims to leverage the insights of the recent period into a competitive advantage.

    Sheikh Saud Bin Nasser Al Thani, Group Chief Executive Officer, Ooredoo, said: “Amid the COVID-19 situation, we are presented with a real opportunity for taking our digital transformation journey to a whole new level, which will see our company leverage digital solutions to ultimately adopt a more holistic digital culture. This will transform the organization and how we work. If colleagues found the combination of working off-site and socially distancing a challenge at first, we have emerged from this disruption empowered, able to get things done as a team – even when not sharing the same physical space, and even more dynamic. I’m both very excited and optimistic about the coming period.”

    Ooredoo Group has led the way among regional tech companies by providing a supportive environment for colleagues working from home. As business returns to normal, these new workplace relationships can be repurposed to strengthen the enterprise in its ability to meet the needs of its customers and the societies they live in.

    While the company will seek to incorporate and build upon the potential for improved work practices discerned in recent months, it will continue to operate within official public health guidelines, against a backdrop of rigorous emergency and business continuity planning. This will allow for changes of direction should the medical situation change.

    “All this requires commitment, responsibility, and accountability — but given the positive experience of the past few months, I’m convinced that together we can further transform the Ooredoo culture,” reflected Sheikh Saud Bin Nasser Al Thani.

    Enforced changes saw hundreds of staff members working from home since March — an unprecedented scenario that can now be built upon leading to a positive outcome. Ooredoo is now testing these exciting new ways of working going forward, amid the economic and medical uncertainties accompanying the novel coronavirus COVID-19 pandemic.

  • Kraft Heinz and DKSH expand their strategic partnership to Malaysia

    Kraft Heinz and DKSH expand their strategic partnership to Malaysia

    DKSH Business Unit Consumer Goods, the leading partner for FMCG companies seeking to grow their business in Asia, is expanding its partnership with The Kraft Heinz Company, the fifth-largest food and beverage company in the world, to Malaysia.

    DKSH had a long-lasting relationship with Kraft Foods, dating back to 2001. Since Kraft Foods and Heinz joined forces, DKSH has been supporting the company in Singapore and Hong Kong, which are both key markets in the region.

    The expansion of the partnership to Malaysia is an example of DKSH’s track record and capabilities as pan-Asian services provider for multinational FMCG companies. The strategic decision of Kraft Heinz to appoint DKSH as partner in Malaysia aims at simplifying its operation in the region, by decreasing time spent on distributor management and by moving from a multi-distributor model to one service provider.

    DKSH will provide a full-service solution for Kraft Heinz to accelerate growth for household brands, such as Heinz, ABC, HP Sauce, Lea & Perrin’s and Wattie’s in Malaysia. DKSH’s approach to drive growth is fourfold: First, DKSH will be decreasing Kraft Heinz’s operational complexity in Malaysia, including East Malaysia. Second, it will also improve accessibility by closing distribution gaps in Modern Trade and expanding coverage in General Trade and Food Services. Third, the company will strongly focus on operational excellence and on raising on-shelf availability. Lastly, DKSH will enable effective analysis through data sharing and business intelligence.

    Joao Leitao, Managing Director, SEA, NWA, India and APAC Exports at Kraft Heinz, commented: “We believe the partnership with DKSH will simplify our operation and open new doors for us. Having one partner that provides a full-service solution in multiple markets in the region is a key strategic reason for us the expand our partnership to Malaysia.”

    Terry Seremetis, Global Head, Business Unit Consumer Goods at DKSH, commented: “We are excited to expand our relationship with a leading company like Kraft Heinz, as this is a testament to the strength of our growth platform and will further strengthen our position in the market. We are fully committed to driving the availability and visibility of globally renowned brands like Heinz and regional hero’s like ABC.”

  • Indian retail sales tumble

    Indian retail sales tumble

    Indian retail sales fell by 67 percent year on year in the last two weeks of June, according to a Retailers Association of India (RAI) survey reported.

    Mall retailers recorded an even sharper drop of 77 percent over the same fortnight, largely due to some remaining closed throughout the territory. High street retail, currently reopened for business throughout the country declined by 62 percent.

    While the scale of the decline reduced marginally in June, for the full June quarter, the fall was 74 percent.

    RAI CEO Kumar Rajagopalan aid the figures depict a grim situation for not just retailers but the entire economy, as retail is the backbone of consumption.

    “The need of the hour is concerted efforts by all stakeholders – while retailers are doing their bit by following stringent hygiene practices, the policymakers too need to ensure uniform opening of all kinds of retail across the country.”

    A previous RAI survey revealed that more than 60 percent of customers are waiting up to 90 days after lockdown restrictions are lifted before going shopping, for both financial and safety reasons.