Category: E-Tailing

Retail News Asia is committed to providing both local and global retailers with the latest E-Commerce & Etail news throughout the Asian market. This on a daily base.

  • ​Samsung Pay available at Korean department chain Shinsegae after delay

    ​Samsung Pay available at Korean department chain Shinsegae after delay

    Samsung Pay will now be available for franchises in South Korea owned or run by Shinsegae, which owns its own brand of department stores, Samsung Electronics has announced.

    The mobile payment service will be available in Starbucks — the coffee chain is run by Shinsegae in South Korea — and famous brands such as E-mart, Shinsegae Food, Shinsegae Dutyfree, and Every Day Retail.

    Samsung said the delay was caused by the difficulty in providing consumers with discounts, points, and membership services.

    Shinsegae has been resisting allowing Samsung Pay in its franchises to promote its own counterpart SSG Pay.

    Samsung Pay hit 2 trillion won transaction as of August and is among the most popular mobile payment services provided by a handset manufacturer. Samsung controls over 70 percent market share in South Korea, its home country.

    It supports all credit cards except Citi’s in South Korea. Support for Citi will begin in the first half of next year, Samsung said.

  • Thai univeristy opens Alibaba e-commerce training center

    Thai univeristy opens Alibaba e-commerce training center

    The University of the Thai Chamber of Commerce (UTCC) has become an authorized Alibaba e-commerce training center in Thailand.

    Both organizations said they will work to accelerate e-commerce growth in Thailand and help Thai SMEs position themselves in the global market.

    Several collaborative programs, including training the trainers, have already been implemented. A team of Alibaba personnel has coached UTCC faculty members in the School of Business and the School of Science and Technology, among others, to become certified Alibaba trainers.

    These trainers, in turn, are now ready to train Thai SMEs, entrepreneurs and UTCC students to run businesses on Alibaba.com.

    UTCC said it can train more than 5,000 individuals per year, which would help create more e-commerce-minded entrepreneurs and allow more SMEs to expand their businesses internationally.

    “Thai SMEs can potentially drive Thailand’s economy. They just need opportunities to do so. UTCC is now taking the lead to open the door of opportunities for those who aim to take their B2B businesses to another level,” said UTCC President and Associate Professor Dr. Sauwanee Thairungroj.

    Jerry Wu, Alibaba’s country manager in Thailand, said the company sees great potential in products from Thailand and hopes to train Thai SMEs to compete effectively on the global stage through e-commerce.

  • Meitu’s Hong Kong IPO to value China photo app maker at up to $4.5 billion

    Meitu’s Hong Kong IPO to value China photo app maker at up to $4.5 billion

    Chinese photo app and mobile phone maker Meitu Inc is set to launch an up to $735 million initial public offering in Hong Kong, IFR reported on Monday, citing people close to the deal. Meitu, better known for its apps that let users retouch and beautify selfies and other photos, is offering shares in an indicative range of HK$8.50 to HK$9.60 ($1.10-$1.24) each, added IFR, a Thomson Reuters publication. The IPO is slated to be priced on Dec 8.

    Meitu did not immediately reply to a Reuters request for comment on the IPO terms. The deal will value Meitu, which counts venture capital investors Qiming Venture Partners, IDG-Accel China and Tiger Global among its backers, at up to $4.5 billion, IFR said.

    The IPO will be a rare technology sector IPO in Hong Kong. Between one-quarter to one-third of the shares will be sold to cornerstone investors, IFR said. That would be much lower than some of the large new listings in the city, including the $7.6 billion IPO of Postal Savings Bank of China (PSBC) in September that had 77 percent of its deal bought by cornerstones.

    Large investments by cornerstone investors hurt liquidity for IPOs once the shares start trading, as the stock is locked up for a minimum of six months. The cornerstone money can also pressure the stock as the expiration of the lock-up period nears. China Merchants Securities, Credit Suisse and Morgan Stanley were hired as sponsors of the IPO.

  • Groupon Malaysia sold to local startup

    Groupon Malaysia sold to local startup

    Ever-shrinking deal site Groupon has exited another market – this time selling its Malaysia business to KFit Group.

    KFit, in which Groupon is an investor, had already acquired the Groupon Indonesia business.

    “With our Indonesian business achieving nearly double growth since our acquisition, we are confident that the same growth principles will bring an exciting new local commerce offering to Malaysia,” said Joel Neoh, founder of KFit Group, announcing the deal.

    The almost terminally flawed Groupon business model was founded in the US and was floated in late 2011 in one of the dot com industry’s most over-valued business IPOs in history. Since its float, Groupon has reported a loss almost every quarter. Last year, it attempted to streamline its business model across its various international markets, another strategy which failed to recuse the brand tainted by dodgy deals, dissatisfied customers and retail partners who lost small fortunes supplying unsustainable promotions sold online. Last month it was even caught selling counterfeit products in the UK.

    As reported in September last year, the business closed its doors in Thailand, the Philippines and Taiwan. Outside Asia it had already exited Greece, Turkey, Panama, Morocco, Puerto Rico and Uruguay. Indonesia followed.

    Last year, Groupon lost US$27.6 million on revenues which continued to fall.

    In Indonesia, KFit retained the Groupon branding, but in Malaysia it will be rolled into its similar local concept Fave early next year, expanding that service into new categories such as restaurants, beauty, wellness, gyms, studios, hotels, holidays, leisure, entertainment and professional services.

    One of the underlying failures of the Groupon model is to convert consumers buying deals into long-term loyal customers for the retailers which use the platform. Ellia Pikri says Fave seems to have learned from Groupon’s failure.

    “Coded into Fave’s system are loyalty solutions and flexible offer structures utilising the tried-and-true model of offering deals to loyal customers that Groupon seemingly lacked before.

    “Fave is also a mobile-first platform. It aims to provide a seamless experience for customers to find, share and enjoy a wide variety of special offers from local businesses, all while customers are able to easily experience what the app has to offer straight from their handheld devices.”

    Pikri argues the mobile-first approach helps offer a clean and streamlined layout for users to browse on their handhelds. “Plus, reservations are made directly on the app, which cuts out the additional step of having to call a vendor (like via Groupon).”

    Face has more than 3200 businesses on its customer database across three countries.

    “While they do have some stiff competition, the combined expertise of Joel’s experience and Malaysia’s growth of online purchasing might just be the push Fave needs to see success where Groupon didn’t,” says Pikri.

    Michel Piestun, president of APAC for Groupon, said it expected KFit Group would steer Groupon Malaysia “to even greater heights”.

    “With Joel’s experience in leading Groupon Asia Pacific in the past, we are confident that KFit Group will be able to grow the business. As a strategic partner in KFit Group, we look forward to seeing the company take big strides in the coming months,” said Piestun.

  • More shoppers spend less in Black Friday

    More shoppers spend less in Black Friday

    More shoppers spent less on Black Friday in the US – and more was spent online than ever before.

    Those are the key take-outs from the three day long shopping extravaganza, which is being followed up by Cyber Monday giving Americans a second chance at scoring shopping bargains.

    But perhaps the biggest trend this year was how Black Friday was adopted internationally – even as far away from America as Vietnam, shopping centres were packed with bargain hunters, lured by billboards promising as much as 50 per cent off stock.

    According to data from the National Retail Federation, more than 154 million US consumers shopped last Friday, spending an average $289 – $11 less than last year. Gifts accounted for $214 of that spend.

    “It was a strong weekend for retailers, but an even better weekend for consumers, who took advantage of some really incredible deals,” said NRF president and CEO Matthew Shay.

    Most of the shopping occurred Friday, perhaps reflecting the limited stock of some retail deals.  The NRF said of the consumers who went to physical stores, 75 per cent shopped on Friday, 40 per cent on Saturday and 17 per cent on Sunday.

    And the data showed a continuing migration from offline to online. Last year, 103 million people shopped online and 102 million in stores. This year more than 108 million shopped online and 99 million in stores.

    Adobe released data based on anonymous tracking of 22.6 billion visits to retail websites, showing more than $5 billion was spent online over the holiday weekend – and a record $3.34 billion on Friday. Mobile devices accounted for $1.2 billion of the weekend sales.

  • Rakuten drone delivery system launched

    Rakuten drone delivery system launched

    Japanese eCommerce giant Rakuten and its two partners – Docomo and Autonomous Control Laboratory – have trialled a drone-based delivery system.

    The Rakuten drone delivery system uses Docomo’s LTE mobile network when a customer places an order via a smartphone.

    The last experiment in the National Strategic Special Zone of Chiba city saw the cargo carried from the Inage Seaside Park to the adjacent seaside area.

    The new version is upgraded with an ordering app for users and the drone dashboard for drone controlling.

    Rakuten says the new “Tenku” delivery drone features a number of performance enhancements such as water-resistant. Tenku’s base is an airframe called “PF1”, developed by Autonomous Control Laboratory. The airframe helps the drone go long-distance and over the sea as well as over populated areas. A parachute is also equipped to slow the speed in case of emergency fall.

    With its technologies, the operator also maps out flight routes with stable communication, and also monitors the connectivity of airborne cell phones with the mobile network at the ground level.

    The new Rakuten drone-based delivery system is set to be used in urban areas after talks with the Chiba City Drone Delivery Subcommittee.

  • Sa Sa profits dive

    Sa Sa profits dive

    Sa Sa profits took a hit of 37.3 per cent for the six months to September 30.

    The Hong Kong-listed beauty products retailer’s interim results show turnover easing by 4 per cent to HK$3.628 billion (US$467.7 million) for the period, with retail sales in Hong Kong/Macau decreasing by 3.6 per cent to HK$2.9032 billion.

    Profit fell from $153 million to $96 million with its gross profit margin dropping from 42.9 to 41.2 per cent.

    During the six months, the group rationalised its retail network from 291 to 283 – six fewer Sasa stores and two fewer single-brand stores/counters.

    While sales fell in Hong Kong/Macau, the number of transactions rose by 0.2 per cent for local customers and 4.4 per cent for Mainland Chinese tourists. The value of each transaction, however, fell by 6.3 and 6.6 per cent respectively.

    Retail sales in Hong Kong continued to be weak, mainly because of average transaction values being lower. The company says the underlying reasons were a change in consumer preferences, a strong Hong Kong dollar and a depreciating yuan. Also, the policy change limiting Shenzhen residents’ multiple-entry permits to one visit a week has had a “significant” impact.

    However, Sa Sa reports an uptick toward positive growth in July as the company adapted with faster product launches, shorter product cycles and cheaper trendy products.

    Korean swing

    As an indication of market change, Sa Sa’s Korean product mix grew from 16.7 per cent of total sales to 23.5 per cent, and the parallel-imported product mix increased from 29.1 to 31.7 per cent. Sales for house brands dropped from 41.5 to 38.5 per cent.

    Overall turnover for Mainland China decreased by 4.3 per cent to $135 million, while same-store sales fell 5.1 per cent. The loss for the period amounted to $13.7 million. Profitability was impacted by the relocation of warehouses.

    Turnover for Singapore at $101.3 million was a drop of 11.1 per cent. As well as weaker sales, management issues impacted performance. While turnover was high, this created difficulties in retaining the knowledge base. However, a restructuring process has drawn on the resources of the relatively strong Malaysian management team.

    Malaysia’s turnover was down 19.1 per cent to $163.4 million, though same-store sales rose 11.2 per cent. Retail sales growth exceeded other markets thanks to the group’s strong retail network and effective marketing campaigns.

    Turnover in Taiwan fell by 23.1 per cent to $98.3 million, with same-store sales tumbling 19.5 per cent because of weak consumer sentiment and ongoing restructuring of the management team.

    Logistics problem

    In eCommerce, Sasa.com turnover reached $193 million, a dip of 0.1 per cent. Sales were affected by the appointment of a new logistics provider in April with the aim of increasing scalability. However, changeover difficulties resulted in a decision to return to the original service provider.

    “Significant numbers of orders had to be cancelled, and further costs were incurred by moving inventory back and forth as well as the running of two warehouses in parallel during the period,” says the company.

    Building on the growth of mobile internet use, the company launched a mobile app and started a collaboration with eCommerce platform Kaola in addition to its partnership with JD.com, Suning.com and T-Mall.

    On the mainland, the dynamics of the cosmetics market are changing with internet retailing growing at a rapid pace, says the company. Because of these challenges, it is continuing to strengthen management and recruit staff.

    “We are also seconding experienced staff from Hong Kong to improve the attractiveness of our product offerings and strengthen inventory management.”

  • Cybercrime rising Asia as cashless payments rise

    Cybercrime rising Asia as cashless payments rise

    Cashless payments are growing rapidly in Asia-Pacific and so is cybercrime, costing the region an estimated $US 81 billion.

    With new combinations of malware customised for local markets, phishing and social engineering attacks as well increasing e-commerce and ATM fraud, businesses are increasingly at risk for payment data theft, according to the PCI Security Standards Council.

    Singapore’s cards and payments market is one of the most competitive and attractive in the Asia-Pacific region. Already, 69 per cent of consumer spending in Singapore is made through electronic payments.

    It’s against this backdrop that global payment and cybersecurity experts met at the PCI Asia-Pacific Community Meeting in Singapore to collaborate on helping businesses prevent, detect and respond to cyberattacks that can lead to payment data breaches and fraud.

    “We simply must work together to advance payment security,” PCI Security Standards Council (PCI SSC) international director Jeremy King told attendees.

    “New technologies are driving adoption of cashless, mobile and digital commerce in Singapore and the Asia-Pacific region, and it’s critical that we ensure consumers remain confident in the security of their financial information with every payment transaction. As payments evolve, businesses must prioritise data protection with robust security standards and practices.”

    The PCI SSC has reinforced its mission to foster secure transactions globally and emphasised that as new cyber threats emerge, and advances in technology change the way payments are conducted, PCI Standards will evolve to protect the next generation of payments. Regional and industry experts speaking at the event included representatives from the PCI Security Standards Council, Interpol, Verizon, Diners Club Singapore, Foregenix, Beijing Information Technology and Pen Test Partners.

    Presentations and discussions addressed a mix of regional and global topics ranging from new threats via the Internet of Things; cybersecurity trends in Asia-Pacific; Point-to-Point Encryption for protecting payment data throughout the entire processing environment; preventing skimming at ATMs and the future of mobile and digital commerce.

    PCI SSC GM Stephen Orfei said the Asia-Pacific region has made tremendous advances in payment security in the past decade.

    “More and more companies in the region are making cybersecurity a top priority.  With the rapid growth in mobile payments, now, more than ever, we must join forces to devalue payment data and make it useless to criminals.  It is very encouraging to see industry and public-private partnerships in Asia-Pacific working together to address the ever expanding cyber threats from around the world.”

    The PCI Security Standards Council is a global forum that is responsible for the development, management, education, and awareness of the PCI Data Security Standard (PCI DSS) and other standards that increase payment data security.

    Key focus areas at the PCI Asia Pacific Community Meeting included:

    • Devaluing data with point-to-point encryption: More and more solution providers in Asia-Pacific are encouraged to adopt the PCI Point-to-Point Encryption (P2PE) Standard to provide solutions that devalue data and simplify security and PCI DSS compliance efforts for businesses.
    • Simplifying security for small merchants: The PCI SSC Small Merchant Task Force urged banks, technology providers and security assessors with small business customers to adopt and disseminate newly published PCI Payment Protection Resources for Small Merchants.
    • Improving security of online and mobile payments with stronger authentication: PCI SSC chief technology officer Troy Leach discussed the newly released device standards (PTS POI v5 and HSM v3) that support online and mobile payment security. PCI SSC is collaborating with EMVCo to support 3-D Secure 2.0 (3DS 2.0), which provides a way for consumers to directly authenticate their card with the card issuer when shopping online.
  • Meet China’s online super-consumers

    Meet China’s online super-consumers

    Like many college students in China, Song Yang buys most of the things she needs for daily life by shopping on the internet. But while her peers have to satisfy the urge to splurge with the occasional new smartphone or pair of branded sneakers, Song doesn’t worry much about living on a student’s budget.

    A finance major at Beijing’s prestigious Peking University who says she made a “pot of gold” in the stock market after being staked by her parents, Song, 21, spends upwards of $15,000 a year shopping on Alibaba Group’s Taobao e-commerce website. Her purchases range from high-end imported cosmetics, fashion apparel and consumer electronics, to Japanese snacks and organic produce, to furnishings for her family’s new apartment, to parts and gadgets for her father’s car.

    “As long as I have free time, I am on Taobao,” says Song, adding that her binge-shopping habit has resulted in up to 30 packages delivered to her home in a single day. “Whenever I have a new idea, I will search on Taobao,” she said.

    Song is the kind of China super-consumer that retailers dream of connecting with—and Alibaba Group is happy to oblige. In 2014, Alibaba recognized that out of the millions of consumers that shop in the company’s China retail marketplaces, a small percentage had adopted online shopping as a significant part of their daily lives. The company created a membership program called APASS (Alibaba Passport) to cater to their needs by assigning them personal account managers and organizing special events like wine tastings and automobile test drives.

    Alibaba top shoppers

    APASS shoppers are mostly young, internet-savvy and increasingly affluent members of China’s rising middle class. To qualify for the program, consumers must spend a minimum of nearly $15,000 a year online. That’s just the minimum. In fact, the average annual spend among current APASS members is about $45,000. In contrast, American’s millennials—defined as aged 18 to 34 with higher consumption than other demographic groups—spend about $2,000 a year online, according to a recent study conducted by BI Intelligence. During Alibaba’s recent 11.11 Global Shopping Festival, a 24-hour online sale, APASS members spent nearly eight times as much as the average consumer shopping on Alibaba’s platforms.

    Alibaba identifies candidates based on an algorithm that takes into account not only how much e-shoppers spend, but how often they shop online, the range of products purchased, credit record, and engagement in online communities.  If you think this screening limits membership to a very exclusive few, think again: There are about 100,000 APASS members.

    Fostering relationships with top customers is a time-honored marketing tactic. To Alibaba, APASS members are vanguards of an emerging consumer lifestyle in China. “They are opinion leaders who drive the consumption trend among China’s middle class,” said Zheng Dongyang, senior manager of the APASS program. To stay on their radar and cultivate loyalty, Alibaba recently upgraded APASS to foster online communities and to offer members exclusive daily deals from more than 100 top brands including Maserati, Burberry, Fissler and Estee Lauder.

    An APASS member who has recently enjoyed the perks of belonging is Hong Degang, a self-described “consumer electronics geek” who runs a wedding photography studio in the city of Wuhan. Hong, 27, was selected as one of 10 APASS members for a nine-day, all-expenses-paid trip to Italy. The mini-holiday included visits to the venues of eight top Italian brands including wine producer Mezzacorona and luxury carmaker Maserati.

    Alibaba livestreamed parts of these visits on the company’s Tmall app and video site Youku over a nine-day period. A trip to a Mezzacorona vineyard generated 400,000 views, 200,000 likes and 120,000 comments, but it wasn’t just social sharing that was inspired. According to Tmall, total sales of the online shops of the eight featured brands jumped more than fivefold over the livestreaming period compared with sales during the nine days preceding the event.

    Despite his recent exposure to Italian brands, Hong says he’ll likely remain enamored mainly with electronics gear. He says that he owns up to 20 computers and tablets at any given time, and stays immersed in his passion by reading electronics blogs on Mobile Taobao’s news channel every day while spending more than $3,000 a pop to acquire the latest cameras from Sony and Canon. He trades his used cameras and computers in Alibaba’s flea market app, Xianyu.

    “I celebrate 11.11 every day,” Hong jokes, referring to Alibaba’s giant annual online sale.

    Not every APASS member shops purely for the joy of it. Wu Xiaofang, a 41-year-old interior designer who lives in Lishui, a small city located in southern Zhejiang Province, says she is a big online spender and APASS member because she sources products for clients on Taobao.

    Wu designs exclusively for themed country inns and guesthouses that are popular in her mountainous province, so before she shops she determines whether customers want rooms done up in Chinese ancient style, American country style, French classic style or other themes. Everything is purchased online: toilets, shower kits, bathroom faucets, customized beds and wardrobes, curtains, lamps and other furnishings.

    “Taobao can always fill my specific demands,” Wu says. “I can buy second-hand antique French or German furniture on Taobao, and classic, floral-pattern tiles from ancient Chinese buildings. You won’t be able to find this unique stuff elsewhere.”

    She says she has so far finished five “Taobao inns” at a total cost of about $270,000 on all the furnishing—but admits that APASS perks encourage her to shop not just for business but for herself and her family.

    “I think everyone goes through the same journey,” she said. “When you first start online shopping, you are just curious. Later on, you kind of get addicted to it.”

  • Tmall flagship store for Cosmax

    Tmall flagship store for Cosmax

    South Korean cosmetics developer/manufacturer Cosmax Inc is to run an online flagship store on China’s Tmall.com.

    It has signed an agreement with online retail giant Alibaba Group Holding to establish the eCommerce platform to distribute Korean beauty products across China.

    cosmax-tmall

    Under the contract, Cosmax will be Korea’s first multi-shop dealer for various cosmetics brands on Tmall.com, China’s largest third-party platform for brands and retailers.

    The launch of the Cosmax platform is expected to help expedite the China Food and Drug Administration (CFDA) hygiene approval process for Korean cosmetics companies.

    Cosmax, which entered China in 2003, has cosmetics factories in Guangzhou and Shanghai. It earned more than 200 billion won (US$181.1 million) in China alone last year.

  • Vipshop adds customers, but margin narrow

    Vipshop adds customers, but margin narrow

    Chinese online discount business Vipshop reports rising revenues but narrower margins during the third quarter.

    The New York-listed eCommerce player says its total net revenue increased by 38.4 per cent to RMB12 billion (US$1.8 billion), primarily attributable to a 43 per cent year-on-year increase in the number of active customers to 20.8 million and a 34 per cent year-on-year increase in total orders to 60.1 million.

    Gross profit increased by 36 per cent to RMB2.93 billion (US$439.7 million) from RMB2.16 billion in the prior year period.

    Income from operations increased by 21.3 per cent to RMB528.8 million (US$79.3 million) from RMB436.1 million in the prior year period, but the company’s operating margin fell from 5 per cent last year to 4.4 per cent.

    Vipshop’s net income attributable to shareholders increased by 8.3 per cent to RMB342.9 million (US$51.4 million).

    “We are pleased to have delivered solid financial results and healthy customer growth despite a seasonally soft quarter for retail,” said Eric Shen, chairman and CEO.

    “As a leading online discount retailer for brands in China, we are committed to advancing the end-to-end shopping experience on our platform by providing our customers with diverse products and more personalised merchandising. The superior user experience across our platform led to improved user stickiness, as demonstrated by the strong 49 per cent year-on-year increase in repeat customers to 16.7 million. Despite macro weakness, our robust customer growth and retention is a testament to the resilience of our business model. We are confident that our strong foundation will continue to drive our overall secular business growth and enable us to maintain our market leadership regardless of macro environment changes,” said Shen.

    For the fourth quarter of 2016, the company expects its total net revenue to be between RMB18 billion and RMB18.5 billion, representing a year-on-year growth rate of 30 per cent to 33 per cent.

  • China’s Ctrip is buying flight search company SkyScanner

    China’s Ctrip is buying flight search company SkyScanner

    Skyscanner, the Scotland-based flight search company, has been acquired by Chinese online travel giant Ctrip for £1.4 billion, or approximately $1.74 billion.

    The deal is predominantly cash and is expected to close before the end of this year. Once completed, SkyScanner will operate independently of Ctrip, both parties confirmed.

    Ctrip was founded in 1999, and it is China’s largest online travel firm. Its revenue for Q3 2016, which was announced today, came in at RMB 5.6 billion ($810 million), that’s up 75 percent year-on-year, with a slim $4 million net profit. Ctrip recently raised close to $1 billion from the sale of convertible notes, a raise that looks to have be coordinated with the Skyscanner deal.

    This news comes less than a year after Skyscanner, which has over 700 staff across 10 offices, raised $192 million in funding in January 2016 to expand its reach worldwide. That was the company’s first financing in more than two years, and investors included Khazanah Nasional Berhad, the Malaysian government’s strategic investment fund, Yahoo Japan, fund manager Artemis, investment firm Baillie Gifford, and PE firm Vitruvian Partners. Sequoia is an existing backer.

    The round valued SkyScanner at a reported $1.6 billion. The company was widely-expected to pursue an IPO in 2017, which made its acquisition somewhat surprisingly while the price isn’t a huge leap on that previous valuation. SkyScanner had seen its revenue growth slow, as Skift reported, but the company put that down to increased investment in product rather than marketing.

    Regardless, this is the largest travel tech acquisition in Europe to date. SkyScanner placed much emphasis on Asia — partnering with Yahoo Japan and acquiring China-based travel search startup Youbibi — but the deal promises to help Ctrip expand its business into international markets.

    “Skyscanner will complement our positioning at a global scale and Ctrip will leverage our experience, technology and booking capabilities to Skyscanner’s,” Ctrip co-founder and executive chairman James Jianzhang Liang said in a statement.

    In a video statement, Skycanner CEO and co-founder Gareth Williams said that the deal would enable his company to gain access to greater resources to make travel “simpler:”

    It’s been a busy past year or so for Ctrip, which has pursued M&A activity to expand. More than a year has passed since it agreed to a share swap with arch rival Qunar which saw it gain a 45 percent voting interest in Qunar in exchange for 25 percent of the Ctrip business.

    In January of this year, Ctrip spent $180 million to buy around one-quarter of India’s MakeMyTrip, while it splurged $463 million this summer to get a slice of China Eastern Airlines, a state-run airline that claims 94 million passengers.

  • Online retailer Ymatou expects huge Black Friday sales

    Online retailer Ymatou expects huge Black Friday sales

    Jia Yi, a white-collar employee from Chengdu, the capital city of Sichuan province is passionate about overseas brands and products. She is now considering buying a Coach handbag on the upcoming Black Friday shopping event.

    “The price in the domestic market could reach more than 2,000 yuan ($290), but it is just 848 yuan on the e-commerce platform during Black Friday. It is very cost-effective and I am prepared to buy one,” said Jia.

    China’s cross-border e-commerce has been growing over the past few years. The Shanghai-based cross-border e-commerce site ymatou.com expects the scale of the Black Friday event this year to be 10 times over last year by hiring more than 30,000 overseas buyers.

    The company, which has participated in the biggest retail sales day of the year since 2014, said customers could buy more than 600,000 imported goods from 83 countries, including discounted clothes, shoes, bags, cosmetics, fine jewelry and health care products without leaving the house.

    “There is a trend that consumers from second- and third-tier cities are more willing to buy overseas products. Chinese consumers’ demands have been upgraded as they have diversified and personalized requirements for products and services,” said Zeng Bibo, chief executive officer of Ymatou.

    Zeng added they prefer to buy niche brands from European designers than the mass-market brands in America.

    Black Friday, the day following Thanksgiving Day in the United States, is a busy shopping day with the highest discounts of the year and a major impact on brick-and-mortar retailers, e-commerce players and consumers around the world.

    Ymatou said it is set to ensure that Chinese online shoppers can get the same deals that their Western counterparts enjoy during Black Friday. Buyers can broadcast their shopping process at the online shopping platforms.

    It continues to increase investment in the access threshold of buyers to ensure the authenticity of the goods’ sources. Zeng said they will check the credit status of buyers from time to time, requiring them to offer credentials for long-term living overseas and identifications.

    Furthermore, Ymatou has established an independent logistics company, XLobo, to develop overseas direct mail business.

    XLobo collects and bundles individual parcels at overseas locations and ships them to China as a single consignment. It now owns 15 international logistics centers around the world to ensure the period of direct mail within five days, on average.

    “The number of professional logistics service staff has been doubled. We have expanded the space of warehouses in New York, San Francisco and Osaka, and the investment in equipment and logistics this year has surpassed the total input of last year,” said Zeng.

    It arranges over 90 chartered airplanes each week to transport the goods and other airlines that have cooperative relations with Ymatou will reserve shipping space for XLobo in advance.

    Chinese e-commerce companies, such as Alibaba Group Holdings and JD.com Inc have developed their own cross-border e-commerce businesses.

    Statistics from the China E-Commerce Research Center show that China’s cross-border e-commerce transactions totaled 5.4 trillion yuan ($783 billion) last year, a year-on-year increase of 28.6 percent.

    The generation aged between 20 and 35 old is the major force of cross-border shopping, experts said.

    Cao Lei, director of the China E-Commerce Research Center, said customers need to choose an excellent cross-border e-commerce platform, pay attention to sellers’ reputations or ranking level and customers’ comments, adding they should choose a platform that owns and operates its logistics system.

  • Dah Makan hoping venture capitalists delive

    Dah Makan hoping venture capitalists delive

    Seeking to upgrade technology and improve the user experience, Malaysian food-delivery startup Dah Makan is working on a larger funding round with global venture-capital firms.

    Dah Makan raised $320,000 from two angel investors in a seed round more than a year ago and has since grown to cover about 80 per cent of the Klang Valley region and has also crossed its 100,000th delivery.

    “We are now finalising a larger round with several global VCs with extensive experience in eCommerce and consumer brands,” says founder/CEO Jonathan Weins. “It’s very important to have the right investors on board as they can have significant influence on the future of a company.”

    He says an announcement on the funding may come in a few months, but meanwhile the company is investing into its team and technology. It released a new version of its apps last months and implemented a new backend system to manage the delivery fleet.

    Before Dah Makan, which is Malay for “Have you eaten?”, Weins had helped launch Foodpanda in Hong Kong.

    For Dah Makan, he and his co-founders did most everything from sourcing and cooking to delivering with the goal of understanding the customer experience as well as the business model.

    From less than half a dozen orders a day, a few months later the rate was 100 orders a day. Since then, the group has had to move kitchens three times to expand capacity and has grown its team with culinary and tech talent.

  • Isetan Mitsukoshi launching online store

    Isetan Mitsukoshi launching online store

    As part of its aim to have digital strategy as the core of its business, Japanese department store company Isetan Mitsukoshi Holdings is preparing to launch an online store.

    It has started tests leading up to its launch this month of its first online store on Alibaba Group Holding’s Tmall Global.

    In the first half of this year, Isetan Mitsukoshi saw sales of duty-free items rise about 3.7 times compared with the same period in 2013. It says Chinese customers account for about 70 per cent of duty-free sales, and are interested in Japanese products that are popular in Japan. This has led to it seeking to develop a following in China through its strategic partnership with Tmall Global.

    It will offer safe, high-quality products, mainly Japanese, on Tmall Global; form an alliance between its Chinese and Japanese stores; and accumulate know-how on marketing in China.

    Isetan Mitsukoshi will initially offer hundreds of types of products on the platform ranging from fashion and cosmetics to foodstuffs and daily necessities, with plans to subsequently expand the scope of ifs offering.

    It will focus on its own brands and seasonal products, and gradually add other Japanese brands. From next year it will stage special campaigns in collaboration with designers.

    There will also be after-sale services, including repairs, as well as pop-up stores through its network in China.

    Alibaba Group, which runs Tmall – China’s largest B2C online shopping mall – and other eCommerce portals, had 434 million active users on China’s retail market as of June.

    Isetan Mitsukoshi was formed in 2008 by merging Mitsukoshi and Isetan, originally inaugurated in 1673 and 1886 respectively as kimono shops. It runs Japan’s largest department store network with 27 outlets in Japan and 31 overseas.