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.

  • Alibaba Hong Kong IPO postponed due to city unrest

    Alibaba Hong Kong IPO postponed due to city unrest

    The planned US$15 billion Alibaba Hong Kong IPO has been postponed due to continuing political unrest in the city.

    The firm’s stance towards the issue is being taken by observers as indicative of the general mood of both mainland businesses and the Beijing administration towards Hong Kong.

    Alibaba made the decision at a board meeting last week noting financial and political instability in the area. A new schedule for the listing has yet to be established, pending an improvement in the situation.

    “It would be very unwise to launch the deal now or anytime soon,” said an anonymous source familiar with the board’s thinking on the matter. “It would certainly annoy Beijing by offering Hong Kong such a big gift given what’s going on in the city.”

    The Alibaba Hong Kong IPO would likely be the world’s largest listing this year when it proceeds. It follows the sale of an 11-per-cent stake in Alibaba by Yahoo offshoot Altaba earlier this year.

     

  • Commune launches high-tech AR app in Singapore

    Commune launches high-tech AR app in Singapore

    Furniture-design and lifestyle-brand Commune in Singapore has unveiled a cloud-based, omni-channel furniture retail solution and mobile augmented-reality (AR) app.

    Commune: In Motion is designed to transform the shopping experience and reduce the time taken to serve customers by about 70 per cent. It is the product of a design development process underway since 2016 to discover new values and growth in the evolving digital landscape.

    “The retailers who thrive in the next decade will be those who reimagine and redefine their stores for the digital age,” said CEO Joshua Koh. “Brick-and-mortar retailers have enormous opportunity to leverage the distinct benefits of ‘old fashioned, in-person shopping’ in ways that digital sites can only dream about. The winners of tomorrow will be those who are able to transport the digital world into their stores in a manner that delights customers, builds loyalty and generates brand value,” he said.

    The app enables the integration of online and offline data across various touch points – for example, customers’ browsing behaviour and the management of purchase and delivery orders in real-time – to provide a personalised shopping experience for homeowners and furniture enthusiasts.

    “Commune: In Motion exemplifies Services 4.0 where next-generation services are end to end, frictionless and anticipatory to customers’ needs,” said development partner Infocomm Media’s executive Jane Lim. “Commune has shown us how retail businesses can meet changing customer needs quickly in the digital age by effectively harnessing emerging technology and data.”

    Some of these initiatives undertaken by Commune in Singapore include the development of a VR and 3D space planner, implementation of an e-learning portal for in-house training, and the participation in overseas business missions.

    For Commune, the system aims to further improve business operations and speed up customer-service efficiencies, as well as provide a platform whereby the company can build a better relationship with its customers.

    Commune in Singapore has a vision is to create a seamless, online-offline shopping experience that is more immersive, fun and explorative while encouraging other companies in the industry to embark on similar journeys.

  • JD may list Dada-JD Daojia in the US Store

    JD may list Dada-JD Daojia in the US Store

    Chinese e-commerce giant JD is considering a share listing in the US, according to a Reuters report.

    The firm has entered into early-stage discussions with bankers about a deal that could raise US$500 million for the firm’s joint venture in the territory, Dada-JD Daojia.

    According to Coresight Research, Dada-JD Daojia was created in 2016 through the merger of JD’s supermarket business and the crowdsourcing delivery service Dada Nexus, with a 10-per-cent stake owned by US retailer Walmart.

    Dada-JD Daojia provides a one-hour professional delivery service for more than 74 million users, working with more than 5000 retailers including Walmart, Carrefour, Vanguard, Yonghui supermarket and Watsons.

    The JV has already secured roughly the same amount in funding last year with investments from JD and Walmart.

    JD itself has just come off a solid second quarter thanks to strong online sales in recent months.

  • International retailers rethink strategy for Black Friday

    International retailers rethink strategy for Black Friday

    The growth of major sales events such as Black Friday, Cyber Monday, and Amazon Prime Day is changing the shape of peak season, according to a new survey from marketing firm Yieldify.

    In a survey of more than 400 US and UK retail marketers, Yieldify found that retailers are anticipating Black Friday revenue this year to be 25 percent higher than 2018, and revenue from the wider holiday season to be 28 percent up on last year.

    Taking a closer look, however, it is clear that attitudes towards the discount-driven event are evolving. Twenty-two percent of pureplay online businesses surveyed said they are opting out of Black Friday altogether, and those that are participating will offer smaller discounts than their omnichannel peers.

    In addition, rather than offering heavy discounts over the Black Friday period, many retailers are looking to spread discounting across the holiday quarter, with price cuts peaking in the weeks leading up to Christmas.

    Eighty-five percent of retailers surveyed said they will offer discounts in the weeks leading up to the Christmas period, and more than half (57.6 percent) will offer discounts across their entire range during the Christmas period – higher than on Black Friday (50.6 percent) or Cyber Monday (44.4 percent).

    US retailers are more likely to favor this approach to discounting, even on Black Friday, with 61.9 percent discounting across all ranges versus just 39.3 percent of their British counterparts.

    “[This] attests to the trends we’ve been seeing in recent years with our clients – what used to be a race to the bottom for discounts has evolved into a more diverse set of approaches to the traditional peak season,” Yieldify chief executive and founder Jay Radia said.

    “With competition stronger than ever, it pays to be different as much as it pays to discount.”

    Shippit joint chief executive and co-founder Rob Hango-Zada recently told Inside Retail that online discounting was beginning to have a negative effect on the industry as a whole.

    “The discounting in online retail is reaching a point of unsustainability, as it’s not triggering offline shoppers to buy online, but online shoppers to pull forward their spend,” Hango-Zada said.

    However, not participating in a broader sales event can be dangerous for retailers with underdeveloped offerings, as it becomes easy to be pushed out of the customers’ mind – if only for a few days.

    “Only those with compelling everyday low pricing and free or flat shipping rates tend to benefit from not partaking in a promotional event,” Hango-Zada said.

  • VIPShop reaps rewards from a strong apparel focus

    VIPShop reaps rewards from a strong apparel focus

    Chinese discount retailer VIPShop Holdings achieved an 11 percent boost in active customers in the second quarter and a 33-per-cent increase in orders.

    The online company now boasts 33.1 million active customers who collectively lodged 147.8 million orders in the three months to June 30.

    Net revenue for the quarter increased by 9.7 percent year on year to RMB22.7 billion (US$3.3 billion). GMV  rose by 11 percent to RMB35.1 billion and gross profit by 25.9 percent to RMB5.1 billion (US$741.3 million), with net profit attributable to shareholders up 19.3 percent to RMB813.5 million (US$118.5 million).

    Chairman and CEO Eric Shen said VIPShop’s decision to refocus on discount apparel had resulted in “substantial improvement in our financial results and key operating metrics”.

    “We remain committed to executing on our merchandising strategy and further expanding our market share in China’s discount apparel sector. We are confident that we can continue to deliver steady profitability improvement in the future,” Shen said in a statement.

    He added that the strategic acquisition of Shan Shan Outlets would further enhance VIPShop’s ecosystem and allow it to explore opportunities in online-and-offline integration.

    Donghao Yang, CFO, said the company will continue to focus on its merchandising strategy, particularly in apparel–related categories, in which the GMV grew by 19 per cent year on year.

    “The focus on the high-margin apparel category has and will enable us to deliver continuous improvement in our gross margin and overall profitability. Going forward, we will continue to closely monitor the return on investment from all our businesses, especially that of our investment in offline stores. We aim to achieve a balanced top- and bottom-line growth and are committed to delivering long-term, sustainable shareholder return,” he said.

  • Alibaba Co-Founder Buys NBA Team For Record Price

    Alibaba Co-Founder Buys NBA Team For Record Price

    Alibaba co-founder, Joseph Tsai, has concluded a deal for the controlling interests in NBA team Brooklyn Nets for $2.3 billion – an all-time record-high price for any U.S. sports franchise.

    In addition to the $2.35 billion deal for the 51 percent stake, which makes Joseph Tsai the sole owner of the team, he will also pay nearly $1 billion more in a transaction for the Barclays Center.

    According to a report which cites two anonymous sources, the transaction is expected to complete by the end of September, pending approval by the NBA’s Board of Governors. Tsai purchases both the team and the stadium from Russian billionaire Mikhail Prokhorov, from whom he also already purchased a 49 percent stake from in 2018.

    Tsai’s 2018 acquisition included the option to become the sole controlling owner in four years. The team’s recent acquisition of megastars, Kevin Durand and Kyrie Irving from free agency, likely played a role in Tsai’s decision to exercise the right early and the team will undoubtedly experience an exponential boost in popularity, if not win rate.

    Chinese exposure to global assets through major acquisitions continues to increase and sports teams, specifical football in Europe, have been trending for years. Examples of stakes purchased include in Aston Villa, West Bromwich Albion, Wolverhampton Wanderers and Southampton in England; Italy’s A.C. Milan and Inter Milan; Spain’s Atletico Madrid; and Slavia Prague in the Czech Republic.

    And Tsai’s links with China through the gargantuan tech firm – in a nation where the NBA estimates one-fifth (300 million) of the population plays basketball – is likely to create synergies.

    The team is in a better place today than ever before and I know that Joe will build on that success, Prokhorov said.

  • Alibaba may buy Kaola from Netease

    Alibaba may buy Kaola from Netease

    Alibaba and Chinese tech firm Netease are in talks on the internet giant’s potential acquisition of its cross-border e-commerce platform Kaola, which would be merged with Tmall.

    According to sources from the mainland, Alibaba may offer as much as US$2 billion for the business.

    “The deal would represent a step toward market consolidation in China’s e-commerce sector,” wrote Tech Node’s Emma Lee. “A merger between the country’s top cross-border players would create a single market behemoth.”

    She said Alibaba could also use the deal to fend off rival Pinduoduo, which has also taken an interest in Kaola to expand its cross-border presence.

    Tmall was responsible for 32.3 per cent of China’s entire cross-border e-commerce takings in the first quarter, with Netease Kaola in second place with 24.8 per cent of the business.

    Alibaba rival Pinduoduo has also expressed interest in the Kaola business.

    “Netease has always been open-minded in seeking business development opportunities and strategic business partners to bring more vitality to Netease’s cross-border e-commerce and other business units,” said Netease CFO Yang Zhaoxuan.

  • Alibaba adds 20 million users but sales down

    Alibaba adds 20 million users but sales down

    Alibaba Group boosted second-quarter revenues by 42 per cent, as the number of active users on its e-commerce sites grew by 20 million.

    “Alibaba had a great quarter, expanding our user base to 674 million annual active consumers, demonstrating our superior user experience,” said Daniel Zhang, CEO.

    “We will continue to expand our customer base, increase operating efficiency and deliver robust growth. With strong cash flow from our core commerce business, we will continue to invest in technology and bring digital transformation to millions of businesses globally,” he said.

    CFO Maggie Wu said the company was pleased to see sustained user engagement and consumer spending across its platforms. “We continue to invest for long-term growth while at the same time gaining cost efficiencies in our investment areas,” she said.

    The group reported net income attributable to shareholders of RMB21.252 billion (US$3.096 billion), on total revenue of RMB114.924 billion (US$16.741 billion). The annual active consumers on the group’s Mainland China retail marketplaces reached 674 million in the year to June 30.

    The company said its Taobao marketplace was the fast-growing consumer community, adding users and strengthening engagement in less-developed areas of the mainland. “The increase in annual active consumers reflects strong user acquisition programs, such as referrals through the Alipay app and another record-breaking 6.18 Mid-Year Shopping Festival, which deepened our penetration into less-developed areas,” the company said.

    “During the quarter, more than 70 per cent of the increase in annual active consumers was from less-developed areas, demonstrating the success of our initiatives to cater to a broader base of users, such as using simpler interfaces for first-time or less-frequent users.”

    Sales on grew at 34 per cent year on year, driven by increases in the number of users and their average spend, reflecting strength in fast-moving consumer goods, apparel, consumer electronics and home furnishings.

    Alibaba’s self-owned-and-operated grocery-retail chain Freshippo (Hema) continued to achieve robust same-store sales growth, expand its footprint, optimising its stores and introducing new initiatives to improve the customer experience, the company said. As at June 30, there were 150 self-operated Freshippo stores in 17 mainland cities.

    The group’s international business also showed growth, especially in Southeast Asia where Lazada showed “solid operational improvement” after strengthening its third-party marketplace business, management team and technology infrastructure. For the third consecutive quarter, Lazada achieved more than 100-per-cent year-on-year order growth.

  • Shopee signs Cristiano Ronaldo

    Shopee signs Cristiano Ronaldo

    Southeast Asian/Taiwanese e-commerce platform Shopee has appointed global football icon Cristiano Ronaldo as its newest brand ambassador.

    Ronaldo will work with Shopee on a wide range of initiatives to engage and inspire customers in the region, starting with Shopee’s annual shopping event, 9.9 Super Shopping Day.

    “Cristiano Ronaldo is one of the greatest athletes of our time,” said Shopee CEO Chris Feng. “He is an inspiration to many, and his dedication to football matches the deep commitment we have towards our users. Together with Cristiano Ronaldo, we look forward to creating a lasting positive impact on our region.”

    “I am proud to be Shopee’s brand ambassador as we share the same ambition to be the best in our fields,” said Ronaldo. “I am always improving my game for my fans and my team, just as Shopee innovates to benefit their users in this region. I am excited by this partnership, and I look forward to creating more special moments for my fans together with Shopee.”

    Cristiano Ronaldo stars in Shopee’s newest 9.9 TVC, which will air in all seven Shopee markets in the region.

  • JD exceeds Show Fantastic Growth Numbers

    JD exceeds Show Fantastic Growth Numbers

    Chinese e-commerce giant JD exceeded revenue expectations in the June quarter, net sales up by 23 per cent to 50.28 billion yuan (US$21.28 billion).

    The company has cited forays into the convenience-store sector and supermarkets, as well as the harnessing of artificial intelligence in its advertising and logistics operations for the improved result, as it tries to be less reliant on its core online retail platform for growth.

    Net income for JD reached 618.8 million yuan ($90.1 million), a significant turnaround from the 212.4 million yuan net loss of the same period last year.

    Significantly, the company’s logistics business broke even during the quarter.

    Discussing the results during an analyst briefing, a senior executive said the company was now turning its attention to lower tier Mainland China cities for growth, hoping to broaden its customer base. That strategy has been working for JD’s archrival Alibaba to date.

    Other plans afoot include developing more private-label products and improving its WeChat interface to increase customer engagement there.

  • Reebonz starts selling on Ebay

    Reebonz starts selling on Ebay

    Online luxury marketplace and Asia-Pacific platform Reebonz has launched a store on Ebay.

    The new store stocks more than 5000 new and pre-owned products, including bags, shoes, accessories, and apparel. Customers from the US, Canada, Mexico, the UK, Australia, and the European Union can purchase products and receive free shipping from the store.

    The firm has built back-end infrastructure to localise services in each country it operates to make it easy for customers to shop. The listings are localised for currency and language in their respective countries.

    To date, Reebonz has sold products from brands such as Burberry, Fendi, and Prada through its Ebay store, amongst others, and the highest-valued item sold is a pre-owned Hermes handbag worth more than US$15,000.

    “While we continue to focus primarily on Asia, it is very encouraging to be able to partner with Ebay to provide a unique collection of products to their users, and expand our customer base globally,” said Reebonz co-founder and chief marketing officer Benjamin Han.

    “They are focused on providing authentic luxury products, which complements well with our core business. Expansion into regions such as North America and other non-Asian regions will allow us to better understand user buying preferences in other parts of the world, which will allow us to create a robust database of trends globally. Insights from this data will help in many ways, including driving our pricing and margin optimisation strategy, merchandising, and others.”

  • Amazon country manager Rocco Braeuniger leaving the office

    Amazon country manager Rocco Braeuniger leaving the office

    Amazon Australia’s country manager Rocco Braeuniger is leaving after just two years in the job to take a “senior international role within Amazon”, a spokesperson for the e-commerce company said.

    Braeuniger arrived in Australia in 2017 to oversee the launch of Amazon’s marketplace and retail offering Down Under.

    Since flipping the switch in December 2017, Amazon’s offering has grown to include more than 125 million products across 29 categories, as well as key services such as Fulfilment by Amazon and Prime. The company recently brought its startup incubator program, Launchpad, to Australia.

    In April, Amazon Australia reported $106.26 million in revenue from retail sales in 2018, and an additional $4.32 million in revenue from subscriptions services, that is, Prime.

    But Braueniger disputed the comments and reiterated to the AFR Amazon’s previous statement that its launch in Australia was its most successful launch to date.

    Braeuniger will be replaced by Matt Furlong, from October 1, 2019, who has held a range of roles at Amazon in North America over the past seven years.

    Furlong’s current title, according to LinkedIn, is director and technical adviser of Amazon North America. Previously, he was director and general manager of the home improvement, tools, major appliances and smart home category, and before that, category leader of musical instruments.

    “In his new role, Matt will bring invaluable experience from his time in US retail leadership roles and we look forward to him continuing to lead the team in bringing great selection, every day brilliant value, convenience and fast delivery to customers across Australia,” the Amazon spokesperson said.

  • Alibaba expands 88 VIP prestige loyalty program

    Alibaba expands 88 VIP prestige loyalty program

    Alibaba Group has rolled out an upgraded 88 VIP membership program, adding new perks and privileges to its prestige loyalty program.

    The new offerings range from discounts at more online flagship stores, memberships for Alibaba’s various services, and wider access to other platforms within the Alibaba ecosystem.

    This year’s package extends the 5-per-cent 88 VIP member discount to 300 brands on Tmall, adding to the 88 brands introduced when the club launched last year. Each 88 VIP member will also be automatically entitled to global travel membership with Alibaba’s travel service platform Fliggy, giving them additional benefits when booking international hotels and flights throughout the year.

    “The upgraded membership program demonstrates we are committed to enhancing the customer experience and delivering benefits that cover all aspects of our customers’ lives,” said Alibaba Group chief marketing officer Chris Tung.

    “Discounts on a wider range of brands and products and deeper engagement with the Alibaba ecosystem have helped us enhance customer loyalty, as well as strengthen our capabilities in cross-selling and generating consumer insights, benefiting customers and brands alike.”

    An 88 VIP member spends an average of RMB100,000 annually on services within the Alibaba ecosystem. These VIP members are often the first to discover what later become best-selling items on Alibaba’s platforms. Their purchases usually cover a wider range of categories than typical members. Moreover, these VIP members are more likely to have memberships on multiple services on Alibaba’s platforms.

    Launched in 2018, the 88 VIP program has created immense growth opportunities for both brands and merchants, according to Alibaba. For example, Marriott International, the global hospitality group that joined the 88 VIP program last December, has received twice as many hotel room bookings from 88 VIP members than from non-members. The land, a New Zealand dairy brand, has generated around 90 per cent of its sales on its Tmall flagship store from 88 VIP members.

  • Amazon targets SMEs with Launchpad

    Amazon targets SMEs with Launchpad

    Amazon has brought its small business-focused Launchpad initiative to Australia.

    Launching on Tuesday, the program aims to help startups and entrepreneurs sell in a wider market. Over 150 local and international brands are already on board.

    As part of the program, brands will be featured on customized product pages, receive marketing support and gain access to Amazon’s fulfillment services including unlimited deliveries through Amazon Prime.

    “Australian investors and entrepreneurs are responsible for some of the most innovative consumer products in the world, from the electric drill right through to Vegemite,” Amazon Australia country manager Rocco Braeuniger said.

    “We know that product creation is only one part of the equation in launching a product and that marketing, logistics and finding an audience can be just as challenging.

    “With Amazon Launchpad, we have a program that will help ease some of these challenges for startups and entrepreneurs alike, allowing them to focus on growing their business and freeing up time for future innovation.”

    Sugar-free drink business Nexba, Beach House Group’s skincare brand Marlowe and sunglasses retailer Soda Shades are some of the local brands participating in the program at launch.

    According to Josh Miller, co-founder of Soda Shades, being featured in the program allows the brand to reach a wider audience.

    The program was initially launched in the US in 2015 and has resulted in thousands of products being launched across several categories. It is now available in eight countries: the US, the UK, Germany, France, Italy, Spain, India and Australia.

  • Online fashion retailer Boohoo ready to buy Karen Millen and Coast

    Online fashion retailer Boohoo ready to buy Karen Millen and Coast

    Fast-growing pure-play online fashion retailer Boohoo is preparing to acquire the Karen Millan and Coast brands.

    According to sources quoted by Sky News, Karen Millen will be placed in administration as early as today, UK time, in what is termed a “pre-pack administration” where the new buyer acquires the assets relatively unencumbered.

    The deal – assuming it proceeds – is remarkable in that it reflects the power of new-generation online retailers being in a place to pounce on struggling brands like Karen Millen, itself an icon of the high-street fashion scene.

    Boohoo Group, listed on AIM, a subsidiary of the London Stock Exchange, owns a controlling share in PrettyLittleThing. Last month, thanks to an association with reality TV series Love Island and high-profile celebrity endorsements, Boohoo overtook Asos as the most valuable online fashion retailer in the UK, its valuation touching £2.35 billion. Its share price has surged 29 percent this calendar year.

    According to Sky News’ sources, Karen Millen is about to appoint Deloitte as administrator of the business, preparing the way for Boohoo to proceed with the purchase.

    The two fashion labels have been on the market for six weeks during which management attempted to secure a sale of the business while it remained solvent. Karen Millen bought Coast out of administration last October. Karen Millen and Coast were both previously owned by Icelandic bank Kaupthing.