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Category: General

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

  • Covid-19 will strip US$95.4bn from Apac apparel market

    Covid-19 will strip US$95.4bn from Apac apparel market

    The coronavirus pandemic is likely to cost the apparel and footwear industries across the Asia-Pacific region US$95.4 billion in lost sales this year.

    The impact on the broader global industry will be a massive US$395.6 billion in lost sales, according to analytics firm GlobalData, which represents a 19.5-per-cent decline on last year’s figures. The sector will account for 29.1 percent of the total $1.3617 trillion impacts of lost revenues by the retail industry during the period.

    The figures are the result of an industry examination undertaken by GlobalData, which found that the apparel sector is still the worst affected by the outbreak, continuing to be hit by store closures and poor consumer demand. Rising unemployment and a possible recession is likely to worsen the situation for players in the industry.

    According to research conducted by the firm, 60 percent of consumers surveyed said that trustworthiness, risk-free and familiarity are factors currently influencing their choices of products/services.

    “Brands need to continuously engage with consumers through social media channels and personalized messages to stay in contact and engage with their customers,” said GlobalData Retail analyst Vijay Bhupathiraju.

    “They should continue to build trust by delivering messages addressing Covid-19 and social responsibility and advertise the safety and hygiene measures taken during the manufacturing process and in-stores to drive more consumers to the stores.”

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  • Vietnam Airlines loss soars to $280 mln

    Vietnam Airlines loss soars to $280 mln

    Vietnam Airlines reported a loss of over VND4 trillion ($170 million) in the second quarter and cumulative first-half losses of over VND6.64 trillion ($286 million).

    In its consolidated financial statement for the second quarter of 2020, the carrier reported revenues of just VND6 trillion ($258.6 million), a 68 percent fall from the previous quarter.

    It blamed the decline on the Covid-19 pandemic, which had forced it to suspend all international flights and, during the social distancing period in early April, limit domestic flights.

    Significantly cutting sales, financial and management costs did not enable the airline to remain in the black. Earlier this month its CEO, Duong Tri Thanh, estimated that its full-year revenues would drop by half from last year to just VND50 trillion ($2.16 billion), and the loss would be around VND13 trillion ($560.34 million).

    The airline has asked the government for an urgent VND12 trillion ($517.24 million) bailout, claiming it would otherwise be in a very difficult situation by the end of August. It will hold its annual general meeting, which has been delayed twice due to the agenda, on August 10.

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  • Seven & I confirms on-again, off-again Speedway deal

    Seven & I confirms on-again, off-again Speedway deal

    Japanese 7-Eleven convenience store chain owner Seven & I will purchase Marathon Petroleum’s American Speedway petrol stations in a US$21 billion deal that has been significantly delayed by the advent of the coronavirus pandemic.

    The firm was reported to be in talks to purchase the brand’s convenience-store network in the US last February, in a move then expected to be the largest overseas acquisition by a Japanese firm in the US so far this year. The purchase was dropped in March because the expected asking price was considered too pricey by the group’s board of directors.

    Now that the deal has been picked up, Seven & I has the opportunity to look beyond its own market and greatly extend the number of outlets it already operates in the territory, bringing its estimated total North American stores to around 14,000. The deal also comes with a 15-year fuel supply agreement with Speedway.

    7-Eleven is facing stiff competition from competitors at home in a saturated market both in terms of physical operators and online retailers.

    For Marathon, proceeds from the sale are likely to go towards reducing the company’s significant debt.

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  • Messaging app plans to challenge TikTok

    Messaging app plans to challenge TikTok

    When Snapchat first crossed our consciousness in May of 2012, its claim to fame was self-deleting photo messages that would disappear after 10 seconds. Eventually, Snapchat invented the “Stories” feature that Instagram and other social media apps copied. Today, Snapchat is known for its AR Lenses which can turn you into a sunglasses-wearing motorcycle cop, a dog sticking out his long tongue, and more.

    And now Snapchat is planning on going head-to-head against TikTok. The latter, with over 2 billion installs from the App Store and the Google Play Store, is one of the most popular apps in the U.S. as it allows users (mostly teens, pre-teens, and a smattering of adults) to create short-form videos of 15 and 60 seconds in length. Content includes lip-syncing, dancing, comedy bits and more. Snapchat announced today that it will be testing a new feature that will allow users to have their Snaps play with music in the background. Sound familiar?

    This is the perfect time for Snapchat to explore adding TikTok-esque features to the app. President Donald Trump has made it clear that the U.S. will not allow companies with possible ties to the communist Chinese government to operate in the states, and while he is allowing Microsoft to negotiate with TikTok parent ByteDance (a company based in China) to acquire the app in the U.S. and several other countries, such a transaction comes with a pretty high price tag which means that there is no guarantee that it will get done. If a deal isn’t agreed to, TikTok could get banned in the states and its 800 million global active users (100 million in the U.S.) will be searching for an alternative to the app, something that we’re sure that Snapchat understands.

    Snapchat parent SNAP has licensing deals with a number of music publishers including Warner Music. The music will be available for Snapchat users to add before recording a video, or afterward. When one of the new Snaps with music is shared, the person on the receiving end will swipe up to see album art, the title of the song being played, and the name of the artist. A “Play this song link” will send the user to Linkfire’s website or to the user’s preferred streaming music platform where the entire song can be played. That could be considered an improvement over what TikTok offers; tap the “sound” link on the latter app and you’ll see other clips that use the same song. Snapchat says that the new feature is designed for sharing music with your “real friends.”

    “We’re always looking for new ways to give Snapchatters creative tools to express themselves,” said a SNAP spokesman. “Music is a new dimension they can add to their Snaps that helps capture feelings and moments they want to share with their real friends.”

    While Snapchat seems to be overlooked in the messaging apps category, as of last quarter it counted 238 million daily active users worldwide. It also reaches more 13-to-24-year olds in the U.S. (90%) than Instagram, Facebook, and Messenger. Even more impressive, Snapchat says that it reaches more users in the U.S. than Twitter and TikTok combined.

    A Snapchat spokesman said, “We’re constantly building on our relationships within the music industry, and making sure the entire music ecosystem — artists, labels, songwriters, publishers and streaming service — are seeing the value in our partnerships.” Snapchat plans on rolling out this feature in English-speaking markets starting this fall, although it is being tested starting today in New Zealand and Australia.

    Meanwhile, Instagram is about to roll out its own short-form video feature called “Reels” which is making TikTok parent ByteDancer very unhappy. In a statement late Sunday, ByteDancer accused Instagram owner Facebook of “plagiarism.” The whole statement read, “ByteDance has always been committed to becoming a global company. During this process, we have faced all kinds of complex and unimaginable difficulties, including the tense international political environment, collision and conflict of different cultures and plagiarism and smears from competitor Facebook.”

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  • Hong Kong beauty chain Bonjour warns of another loss

    Hong Kong beauty chain Bonjour warns of another loss

    Bonjour Holdings has warned of a loss as high as US$12 million for the half-year to June as it weighs the impact of protest activity and the Covid-19-driven lockdown of the border with Mainland China.

    In a profit warning, the health & beauty retail group said a preliminary, unaudited review of its results suggests a loss “not less than 300 percent” of that of the same period last year when it finished the period $3.8 million in the red.

    Besides the decline in inbound tourists to the territory, local consumer sentiment weakened during the six months.

    The company has also booked impairment provisions related to assets and property, and inventories resulting from losses at its retail stores, but such provisions are by nature noncash and have no impact on the group’s cash flow or liquidity.

    Confirmed results will be released at the end of this month.

    In April, Bonjour said it was delisting slow-moving products and had trimmed its store network to compensate for falling sales after reporting a full-year loss of $16.7 million.

    In May, the husband-and-wife founders of the company stepped back from their senior leadership roles, with Dr Wilson Ip Chun Heng resigning as chairman and CEO, and his wife, Chung Pui Wan, stepping down as vice-chairman. Both remained on the board.

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  • I.T Limited sales, margins eroded due to Covid-19 lockdowns

    I.T Limited sales, margins eroded due to Covid-19 lockdowns

    Hong Kong-headquartered fashion retailer I.T Limited says its sales have fallen in all of its markets, with the US and Japan the worst affected. Same-store sales of its Hong Kong and Macau stores fell by 49.1 percent in the three months to May 31, while US and Japan store sales plunged 66.1 percent. In Mainland China, the sales decline was a less dramatic 11.8 percent.

    I.T Group operates its own brands, including Chocolate and 5cm, concept stores Izzue and Double-Park; international brands it has local licenses for including Kurt Geiger and Camper; and A Bathing Ape, which the company rescued from Japanese owners in 2011.

    Chairman Sham Kar Wai has warned that the company will post a loss for the first quarter compared to a profit for the same period last year.

    “It remains difficult for the group to precisely predict and quantify the negative impact that will result from the Covid-19 pandemic and social unrest around the world, but we expect our business will continue to face strong headwinds for the remainder of the year,” he said in a stock-exchange filing.

    Stores were closed or forced to trade for reduced hours, in most markets due to the Covid-19 crisis.

    “Although our initial strategy was to focus on full-price sales and reduce discount related activities in order to secure gross margin, we eventually had to increase mark-downs to boost sales volume amidst an incredibly difficult trading environment,” he said.

    Gross profit margin fell by 8.8 percent globally, with a 9.5-per-cent decline in Hong Kong and Macau resulting in a final margin of 49.9 percent. Despite the size of the sales decline in Japan and the US, gross margin remained higher than in any other market at 64.5 percent, down 7.8 percent in the quarter. In Mainland China it fell 8.7 percent to 55.3 percent.
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  • Trump gives Microsoft the green light to bid for TikTok

    Trump gives Microsoft the green light to bid for TikTok

    No, we don’t think that the TikTok story is the only game in town. However, it isn’t every day when an app with over two billion installations becomes the subject of a takeover battle involving a huge U.S. company and the President of the United States. This afternoon, Microsoft’s official blog reported that following a conversation between Microsoft CEO Satya Nadella and President Donald Trump, Microsoft has decided to continue talks with TikTok’s corporate parent ByteDance in an attempt to purchase the short-form video app. Microsoft says that it would like to complete discussions with ByteDance by September 15, 2020.

    There are several possible reasons why the Trump administration has been seeking to ban TikTok in the U.S. In the states, several Chinese companies are considered national security threats with fears that they will collect personal data and send it to Beijing. Earlier this month Secretary of State Mike Pompeo compared the attempt to ban TikTok with other bans placed against Chinese manufacturers Huawei and ZTE. “Whether it was the problems of having Huawei technology in your infrastructure we’ve gone all over the world and we’re making real progress getting that out. We declared ZTE a danger to American national security. With respect to Chinese apps on peoples’ cellphones, the United States will get this one right too.”

    Microsoft said on Sunday that it “fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury.” Some of those economic benefits include the addition of 10,000 new jobs that TikTok intends to bring into the U.S. over the next three years, according to a TikTok video posted on the app this morning by U.S. General Manager Vanessa Pappas.

    TikTok allows users to create 15-second or 60-second videos with comedic content, singing, dancing, and protesting. It is used by teens, pre-teens, and yes, even older folk. With many people stuck inside during the pandemic, TikTok became a popular app for those seeking a way to pass the time of day. If the deal is allowed, Microsoft will own and operate TikTok in the United States, Canada, Australia, and New Zealand. The software giant could also ask some other firms to be minority investors. Microsoft also said, “This new structure would build on the experience TikTok users currently love while adding world-class security, privacy, and digital safety protections. The operating model for the service would be built to ensure transparency to users as well as appropriate security oversight by governments in these countries.”

    Microsoft said that it would make sure that any American TikTok user’s personal data would remain in the U.S. Any data backed up or stored on servers outside of the states would be deleted by Microsoft. The software giant also made sure to let the president know how much it appreciated his efforts in allowing the company to make a bid for TikTok. The company wrote, “Microsoft appreciates the U.S. Government’s and President Trump’s personal involvement as it continues to develop strong security protections for the country.”

    There is no guarantee that a deal will be completed. Microsoft says that it does not plan to comment further on a possible deal with ByteDance for TikTok until a definitive agreement has been made. While it is in negotiations with TikTok parent ByteDance, Microsoft says that “during this process, Microsoft looks forward to continuing dialogue with the United States Government, including with the President.”

    TikTok is estimated to be valued at $50 billion-$100 billion. Microsoft’s market capitalization is approximately $1.55 trillion.<

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  • Li & Fung, JD to invest $100 million in developing a future digital supply chain strategy

    Li & Fung, JD to invest $100 million in developing a future digital supply chain strategy

    Chinese e-commerce giant JD has invested US$100 million in Li & Fung via newly issued capital as a move to further develop its digital supply chain.

    The move is expected to assist Li & Fung expands its own business within the Chinese mainland via private-label initiatives, using the JD relationship and its partnership with Singapore-based logistics solutions provider GLP to further develop its end-to-end digital supply chain. JD’s own proprietary supply-chain technologies have already contributed to fully integrated digital retail and supply-chain platforms designed to serve its omnichannel strategies.

    “Amidst the continuing digital disruption to retail and the ongoing global trade tensions, compounded by the dramatic impact of Covid-19, the global retail supply chain has become more and more complex,” read a statement by the firm. “With the breadth and depth of its global sourcing and production ecosystem, pan-Asia logistics network, and industry-leading digital product development capabilities, Li & Fung is helping global retailers and brands navigate a highly uncertain and ever-changing macro environment.”

    “Our goal to create the supply chain of the future and to improve the lives of 1 billion people in our global supply chain remains more relevant than ever in this turbulent world,” said Li & Fung CEO Spencer Fung. “The partnership with GLP and the addition of JD will be instrumental in further strengthening Li & Fung.”

    The firm will remain under the control of the Fung family who are retaining 60 percent of voting shares.

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  • Japan retail sales tumble during June

    Japan retail sales tumble during June

    Japanese retail sales have fallen by 1.2 percent during the month of June over the same month last year. It was the fourth consecutive month of a decline in retail trade, largely brought about by the impact of the coronavirus pandemic.

    The drop stands in contrast with earlier median market projections that forecasted a 6.5-per-cent decrease.

    The information was revealed yesterday in government data released by the Ministry of Economy, Trade, and Industry.

    Sales continued to plummet in categories such as general merchandise, fabrics apparel & accessories, motor vehicles, and fuel – although not as sharply as in the month previous. By contrast, sales rebounded for machinery & equipment

    A bright spot in the figures showed food & beverage sales continuing to increase by 3 percent following a 1.9-per-cent rise in May.

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  • AS Watson opens MoneyBack online venture for all retailers and restaurants

    AS Watson opens MoneyBack online venture for all retailers and restaurants

    Health and beauty retailer AS Watson has opened up its Moneyback loyalty program to help retailers in Hong Kong promote their businesses for free in preparation for an easing in the coronavirus pandemic.

    “The pandemic has hit every community hard in many aspects, and it is extremely challenging for retailers,” said AS Watson (Asia & Europe) CEO Malina Ngai. “AS Watson is deeply rooted in Hong Kong for 180 years, we have been through many crises of different nature with the community. We know difficult days will pass, hence we should proactively plan ahead.”

    The group’s loyalty program, which partners with 130 offline and online retailers, has an active member base of 3.7 million people, roughly half of Hong Kong’s population.

    Small and large retailers are now being encouraged by the firm to register for the program free of charge. Participating merchants will receive free promotional opportunities, including the provision of free Watson face masks as shopping rewards.

  • Hong Kong retail sales in June slip

    Hong Kong retail sales in June slip

    Hong Kong retail sales in June slumped by 24.8 percent to US$3.42 billion as the territory’s borders remained all but closed to tourists due to the Covid-19 pandemic.

    The decline was lower than in May when sales were down 32.9 percent year on year and the 33.3-per-cent rate for the six months to June.

    A Hong Kong government spokesman said the slowing rate of the decline reflected the pandemic’s abatement during the month, resulting in more locals returning to the shop.

    However, with inbound tourism remaining at a standstill in July and local consumption hit by the surge in local Covid-19 cases resulting in a tightening of social-distancing measures, the retail trading environment “has turned more austere again” since June, they said.

    June last year was when the social unrest began to impact Hong Kong retail, so the year-on-year declines each month for the rest of this year will likely be less dramatic than in recent months, due to the lower base.

    In order of the category’s impact on the overall figures, the biggest declines were in department-store sales down 7 percent; miscellaneous consumer goods by 10 percent, food, alcohol and tobacco down 13.2 percent; jewelry and watches by 56.5 percent; electrical goods by 8.8 percent; and apparel by 38.8 percent.

    The medicines and cosmetics category was down by 57.4 percent; motor vehicles and parts by 17.9 percent; footwear and accessories by 39.7 percent; Chinese drugs and herbs by 29 percent; books, newspapers, stationery, and gifts by 41.3 percent; and sales at optical shops fell by 32.5 percent.

    The only categories showing growth in Hong Kong retail sales in June were supermarkets up by 4.5 percent, fuels by 8.4 percent, and furniture and fixtures by 0.3 percent.

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  • Thai super-star singer Ying Lee’s concert in the sky spices up Thai Vietjet’s inaugural Bangkok – Khon Kaen flight

    Thai super-star singer Ying Lee’s concert in the sky spices up Thai Vietjet’s inaugural Bangkok – Khon Kaen flight

    Thai Vietjet today inaugurated its maiden flight VZ210 from Thailand’s capital airport of Suvarnabhumi to Khon Kaen, the country’s commercial and political centre in the Northeastern region. Celebrating the new service, Thai Vietjet gave passengers a memorable surprise with a ‘Ying Lee’ concert in the sky, complete with a full team of dancers and cabin crew, along with nice corporate souvenirs.

    In celebration of the new route, the airline also launched a mega promotion from just THB 5 for a one-way ticket (approx. US16 cents) (*) for booking throughout the five golden days of 1st – 5th August 2020 at their website or Vietjet Air mobile app. The special promotion tickets are applied for all Thailand domestic flights of Thai Vietjet traveling during 1st August – 30th September, 2020.

    Aiming to facilitate domestic travel in Thailand, Thai Vietjet has constantly increased its flight frequency and destinations from Bangkok Suvarnabhumi Airport. Currently, the carrier serves 8 flights/day to Phuket/Chiang Mai, 3 flights/day to Chiang Rai, 2 flights/day to Udon Thani/ Krabi/ Hat Yai/ Khon Kaen in which the flight frequency for Suvarnabhumi – Hat Yai service will be increased to 3 flights/day from 15th August 2020. The airline will also inaugurate the Suvarnabhumi-Nakhon Si Thammarat flight on 6th August 2020. It has also introduced on-line check-in service for domestic passengers traveling out of Suvarnabhumi airport for more convenience.

    The new route Bangkok- Khon Kaen marks the airline’s 7th route from its Suvarnabhumi hub and is operated 2 flights daily, with a flight duration of around 1 hour 5 minutes per leg as per the schedule below:

    Flight No. Departure from Suvarnabhumi Arrival at Khon Kaen Flight No. Departure from Khon Kaen Arrival at Suvarnabhumi
    (Local time) (Local time)
    VZ210 07.30 08.35 VZ211 09.05 10.15
    VZ212 15.45 16.50 VZ213 17.20 18.30
  • AirAsia aiming to launch Muslim-friendly services including packages to perform Haj and Umrah

    AirAsia aiming to launch Muslim-friendly services including packages to perform Haj and Umrah

    AirAsia Group Bhd is aiming to launch Muslim-friendly services including packages to perform the Haj and Umrah.

    In the low-cost carrier’s management discussion and analysis in its Annual & Corporate Governance Report 2019 released July 29, AirAsia co-founder and group CEO Tan Sri Tony Fernandes said the airline was actively assessing the prospects of a number of products that cater to niche travel.

    “For example, we aim to launch Muslim-friendly services including packages to perform the Haj and Umrah.

    “We are also looking to enter the medical tourism space, a rapidly growing segment where we would be able to provide the full complement of visas, travel, accommodation, and insurance,” he said.

    He said the idea was to provide complete end-to-end services and experiences for travelers, who only need to search and click for what they want on their mobiles or laptops.

    Fernandes said while AirAsia adhered to its low-cost model to be able to grow our network and offer an ever-increasing range of exciting destinations for guests, it was not able to fully cushion itself from the vagaries of the operating environment.

    “Natural disasters, viral outbreaks, economic downturns, geopolitical upheavals – all of these can, and do impact travel,” he said.

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  • Loft launches in Shanghai

    Loft launches in Shanghai

    Japanese lifestyle specialty store Loft has opened its first directly owned overseas store, ‘Xujiahui Loft’ in Shanghai.

    Located at Metro City, the Xujiahui Loft Shanghai occupies a 1046sqm area. It features more than 12,000 products including Loft’s exclusive lines as well as limited-edition items commemorating the store’s grand opening and pre-sale goods.

    The Xujiahui Loft features ‘Loft Apartment’ where 18 Chinese independent designers will offer their originality in items such as stationary, mobile phone cases, and bags. Participating creators include Caro.Ni, eve.yin, Zengxiaoe, SummerBee and Square Studio.

    Moreover, there will be exclusive collaborative products based on Chinese cheese-tea brand Heytea’s popular drink “Mango Cheezo (mango cheese tea)” and Loft’s image colors, as well as a photo spot, according to the company.

    Loft in Shanghai will also house a pop-up pottery market “Hasami Porcelain Market,” displaying a wide selection of pottery items centering on Hasami porcelain from Nagasaki Prefecture, and “I’be one” pop-up store featuring Japanese characters themed products.

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  • Hidden code reveals Chat Heads for Google Assistant

    Hidden code reveals Chat Heads for Google Assistant

    One of the new features coming to Android 11 is “Bubbles.” This feature allows you to multitask from anywhere on the phone. Similar to the Chat Heads feature found in the Facebook Messenger app, with “Bubbles” you can continue to engage in a chat while looking at another app without having to switch back and forth between the Messages app and, for argument’s sake, a sports app.

    For example, let’s say that you are texting your girlfriend but at the same time you’re following your favorite team on ESPN. Instead of having to move from app to app, a floating avatar will appear on ESPN. It shows the image of your girlfriend, the icon of the Messages app, and a preview of her message. The message turns into a blue dot on the “Bubble.” Tap on it and it expands to give the user the full capabilities of the Messages app. That means that the user can access video, photos, emoji, Assistant suggestions, and other Messages feature.

    Version 11.21 of the Google app includes two new strings of code. One string name that cites a “Chat Head” tutorial goes on to say, “Tap to talk to your Assistant.\nDrag to move or dismiss.” The second string of code says, “Assistant Chat Head dismissal area.” 9to5Google enabled the Assistant Chat Head on the aforementioned version of the Google beta app. It is the current Assistant logo against a white background.

    Now you might be curious as to why on earth would you need a Chat Head for Google Assistant. Messages, you can understand, but a digital assistant, well that’s another story. But if you are using Google Assistant, the conversation that you’re having is with the digital assistant and you might want to ask a follow-up question to a response you’ve received from it. Instead of switching from another app to do so, with Chat Heads, you can remain on the other app while Google Assistant’s Chat Head responds to your inquiry.

    Right now, tapping on the Assistant’s Chat Head merely reveals the current Google Assistant panel at the bottom of the screen. When the final version of Android 11 drops, we’d expect to see the Chat Head expand as it does for Messages with a full-sized page sporting an optimized UI.