Retail News CRM

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.

  • AirAsia’s burden adds on with asset-light strategy

    AirAsia’s burden adds on with asset-light strategy

    AirAsia has quite a bit going for it. It has cash, RM2.59bil of it, a strong business model and a brand-name that naturally is a crowd-puller in any markets it ventures.

    However, the low-cost carrier knows it is not in a comfortable position in its course of navigating out of the economic maelstrom in the aviation industry caused by the coronavirus disease (Covid-19) pandemic. Firstly, the airline has high commitments to begin with by moving to an asset-light business model.

    It may be a good way of doing away with the residual risk of owning aircraft but in times of downturns, it is the airlines that will incur additional cost for leases.

    And this is proven with AirAsia’s fourth-quarter results for the financial year ended December 2019, where it dipped further into the red by 35.9% to record a net operating loss of RM373.95mil.

    Based on the 2019 unaudited results, leasing charges comes up to RM505.87mil while staff cost is another RM1.78bil.

    Coupled with other fixed overheads such as rentals and finance cost, the burn rate a month can come up to RM200mil, even with none of AirAsia’s flights in operation.

    The group has temporarily suspended all its international and domestic flights in its Malaysia operations for about a month and also in the region, including the Philippines, Thailand and India.

    In Indonesia, it is significantly reducing the frequency of its international and domestic flights.Assuming that everything is back on track with flights operating at their usual frequencies, AirAsia would be incurring additional expenses such as fuel cost, maintenance and overhaul and user charges.

    Based on the 2019 accounts, this would easily add RM300mil more per month to its cost.

    However, the low-cost carrier would generate some amount of cash flow to mitigate its cost.

    “The drawback is the operating cash inflow would not pick up quickly unless a vaccine is found for Covid-19, ” says an analyst.

    And the RM2.59bil, or whatever that is left now after the first quarter, is the only buffer the airline has when it resumes business operations.

    The group knows it cannot be taking any chances and it needs to raise as much cash as it can, which is why it is seeking out a loan from the government.

    This is also why group chief executive officer Tan Sri Tony Fernandes told Bloomberg Markets that it is going to be an uphill slog, even with his team having a lot of ideas to get going again.

    “No bailout. You don’t need a bailout. Obviously many airlines are looking at loans and we think the cash will last us for the most part of this year.

    “And when the sales return, then we’re okay. It’ll be great to get a loan as well and we’re working on that with our government, ” he told Bloomberg.

    The budget airline knows there is no way it is going to get easy money or cheap loans so the best bet is still the government and Fernandes is confident something will transpire out of the airline’s recent meeting with it.

    After all, AirAsia has a high bargaining power with it ferrying the bulk of passengers into Malaysia and domestic flights, which allows it to boast of accounting for 1.8% of the tourism industry’s contribution to the gross domestic product (GDP).

    The question now is, how much cash does it need and at what price would it come?

    Or will it be easier for shareholders to fork out money for a rights issue considering they have been amply-rewarded in the past two years?

    Shareholders of AirAsia have made a pile of cash over the last 18 months from dividends that the group has been giving out, largely from its strategy to go asset-light.

    The airline declared a record special dividend of 90 sen a share in May last year after it sold its 25 aircraft to US-based private investment firm Castlelake LP for US$768mil (RM3.22bil).

    Back in March 2018, it entered into a sales and leaseback arrangement with BBAM Ltd Partnership involving 79 aircraft and 14 aircraft engines, of which AirAsia received US$1.19bil (RM4.62bil).

    There was another special dividend of 40 sen declared for the third quarter of 2018, on top of the interim dividends of 12 sen each for the first and fourth quarters.

    Just from the two years, shareholders have pocketed RM5.15bil in dividends.

    The sales and leasebacks of the aircraft may have made the group asset-light but the commitments of the lease itself has become a huge burden to the airline.

    On the rumors of a merger between AirAsia and Malaysia Airlines, sources say it is unlikely to happen.

    “Malaysia Airlines’ burn rate is not likely to be as high as AirAsia. AirAsia employs 29,000 people while MAS has far fewer workes.

    “Moreover, AirAsia has commitments to take up new planes while MAS does not. So there really is no push for a merger, ” says an executive familiar with the airline industry.

    Instead, Khazanah Nasional Bhd, which owns 100% of Malaysia Airlines, might want to take a stake in AirAsia if the offer is cheap.

    “But there won’t be any merger. It is during a crisis like this that shows that you truly need a national airline on a standalone basis.

    “With AirAsia temporarily hibernating its planes, Malaysia Airlines is the only one prepared to fly, ” the source says.

    Year-to-date, AirAsia’s share price has declined 50.89% from RM1.69 to 83 sen as of yesterday’s close.

    Lees ook:

    Lees ook:

  • Sustainability concerns on hold as Covit 19 virus wreaks havoc

    Sustainability concerns on hold as Covit 19 virus wreaks havoc

    The coronavirus pandemic has slowed progress on sustainability issues in the retail industry, says GlobalData analyst Emily Salter.

    While sustainability was a buzz word last year and set to be a key focus of retailers through 2020, progress has now all but halted, says Salter.

    “Making changes to materials, logistics and production processes to improve the sustainability of products and operations will slow, as sustainability is no longer top of retailers’ and consumers’ agendas. This is due to long-term adjustments being costly and many non-food retailers will be financially unstable as they emerge from this crisis after a significant period of low or no sales,” she explains.

    Before the coronavirus pandemic brought retail to a standstill in most countries around the world, there were clear signs shopping habits were changing. For example, a survey undertaken in the UK last year showed 74 percent of consumers would prefer to shop at a supermarket that had more loose fruit and vegetables than packed. However, nowadays, people are seeking security and safety and there are signs shoppers prefer produce to be wrapped.

    There has also been a dramatic increase in sales of hand sanitizers and anti-bacterial gel in plastic bottles. Salter says consumers are showing little regard for plastic-free alternatives or refills.

    “Sustainability and single-use plastic will be less important to many consumers in the short term where hygiene and cleanliness is more of a priority to prevent the spread of the virus.

    “Another issue is the problem of unsold stock that retailers will be stuck with, as all non-essential stores and some websites have ceased trading temporarily,” she says.

    “Some items and ranges may be able to be sold at a later date, but this may not be the case for highly seasonal and trend-led pieces, raising questions about how these items will be disposed of.

    “Given Burberry came under fire for burning stock in 2018, retailers must be careful how they deal with this issue.”

    Accessories label Kurt Geiger took the initiative to donate some of its surplus stock to National Health Service staff excess, which reduced inventory and generated positive media exposure.

    “Although sustainability will slowly become more important again once the spread of Covid-19 has ceased, the increased awareness of cleanliness and germs is likely to remain at the forefront of shoppers’ minds and will continue to hinder the growth of sustainability initiatives, such as refill stores,” Salter concludes.

    Lees ook:

    Lees ook:

  • South Korean duty-free stores cut hours since travel restrictions

    South Korean duty-free stores cut hours since travel restrictions

    South Korean duty-free stores are electing to temporarily close for business as the coronavirus pandemic continues.

    With the continued idling of airport gateways, the industry has been hit particularly severely, with operators making tough decisions on opening hours that usually run 24/7/365.

    Shilla Duty-Free will shutter its store on the popular Jeju Island on weekends and holidays for the month, while Shinsegae Duty-Free closed yet its fifth outlet out of 19 stores at Incheon International Airport. Shinsegae has also agreed with the airport to stop midnight sales at the remaining stores in operation.

    Lotte Duty-Free and Shilla have also reduced hours at their Incheon Terminal 2 stores, closing at 9.30 pm. Shilla is also expected to shutter its Yongsan downtown store in Seoul.

  • Singapore retail sales down with 10 percent in February

    Singapore retail sales down with 10 percent in February

    Singapore retail sales in February fell by 10.2 percent, excluding motor vehicles.  Including motor vehicles, sales were down by 8.6 percent year on year. In releasing the data, Statistics Singapore attributed the decline to falling sales of discretionary items due to fewer inbound tourists and lower domestic consumption in the wake of the coronavirus pandemic.

    The month-on-month decline in Singapore retail sales in February was 11.2 percent, excluding motor vehicles.

    The two worst-affected categories in February were apparel and footwear, down 41 percent year on year, and food and alcohol, down by 40.5 percent.

    Sales in department stores dropped by 36.3 percent, while sales of watches and jewelry fell by 23.8 percent.

    On the plus side, sales by supermarkets and hypermarkets surged by 15.3 percent and of furniture and household equipment by 5.9 percent.

    Statistics Singapore estimated total Singapore retail sales in February at $3.1 billion. Of that figure, online retail sales accounted for 7.4 percent, with the computer & telecommunications equipment the largest contributor, accounting for 30.4 percent.

    Meanwhile, year-on-year sales of food & beverage services fell by 16.6 percent in February, on the back of declining consumption related to the coronavirus pandemic. On a seasonally adjusted basis, sales of food & beverage services decreased by 18.3 percent month on month.

    Statistics Singapore estimated sales of food & beverage services in February totaling $732 million, of which online sales accounted for 12.5 percent.

    The turnover of food caterers and restaurants decreased by 31.5 percent and 29.1 percent respectively, while sales by cafes, food courts and other eating places decreased by 2.3 percent. Sales by fast-food outlets rose 5.8 percent during the month.

    Lees ook:

  • Nervous Chinese consumers hesitating to return to retailers

    Nervous Chinese consumers hesitating to return to retailers

    Mainland Chinese retailers are discovering that a return to normal business after the coronavirus will take longer than expected.

    Shopping malls and high-street shops have begun to reopen across the country as the worst of the pandemic which paralyzed the nation in February appeared to be over.

    According to figures from China’s Ministry of Commerce, about four in five restaurants and cafes and 90 percent of commercial facilities have now reopened.

    But retailers are reporting footfall is well down on pre-coronavirus levels. One worker at a Walmart store in Shanghai told a reporter that customer numbers were running at about half the usual level. “Sales are not growing at all.”

    Data from the China Chain Store & Franchise Association shows that more than half of companies operating shopping malls expect a decline in sales of between 30 percent and 70 percent during the first quarter of this year. None expect growth.

    Fast-food operator Yum! China had earlier reported in a shareholder update that customer numbers were down by about 20 percent late last month, but it expected turnover to steadily recover. Store closures peaked in mid-February when about 35 percent of the company’s network of KFC, Pizza Hut and Little Sheep chains were closed, the balance offering delivery only. Almost all stores are now trading again.

    But the problem for retailers – ranging from food to fashion – is that consumers remain nervous about the potential to contract the virus and are continuing to practice social distancing. This has led to many who may have routinely dined out after work, eating at home instead.

    Other consumers are practicing frugality due to lost earnings or concerns about their ongoing job security, while many Mainland Chinese consumers are shopping online.

    While shops in major cities have been given the official green light to resume trading, many luxury stores remain closed.

    Electrical goods retailer Suning says some of its stores are experiencing only about half the pre-coronavirus footfall.

    Lees ook:

    Lees ook:

  • Indonesia AirAsia’s growth halted due to coronavirus and economy

    Indonesia AirAsia’s growth halted due to coronavirus and economy

    Indonesia AirAsia has been forced to halt its growth plan for this year, as a result of the coronavirus pandemic and economic challenges faced by Indonesia.

    The plan for 2020 was for the low-cost carrier to increase its market share by adding three new aircraft and launching new services, having recorded a 28% growth in revenue for 2019 as compared to 2018, says parent company AirAsia Indonesia.

    The viral outbreak has led to travel restrictions imposed by neighboring countries and is affecting the demand for domestic and international air travel. AirAsia Indonesia says that Indonesia’s “economic situation has become more challenging”, noting that the exchange rate for rupiah against the dollar is now at more than Rp16,000 ($0.97), and it continues to fluctuate.

    “By considering these factors carefully and deeply, the company is forced to suspend international and domestic flights until the situation improves, and demand for air travel picks up. The measure will certainly have a significant influence on the company’s operating and financial performance in the first half of 2020,” says AirAsia Indonesia.

    Indonesia AirAsia suspended operations on 1 April. Domestic flights are suspended until 21 April and international flights until 17 May.

    Meanwhile, AirAsia Indonesia’s plan to resume trading on Indonesia Stock Exchange (BEI) by offering new shares to the public was also affected, although it did not offer any other details.

    It was suspended from trading in August 2019 for not complying with BEI’s requirement for a company to have at least 7.5% of its paid-in capital available as free float in order to remain listed. As of 29 February, it only had 1.6% of shares available for trade.

    AirAsia Indonesia’s priority for the group over the next six months is to reduce its operating cost base by renegotiating with suppliers and key stakeholders, and to ensure that it can continue to operate during this period, it says. This will then be followed by working to “restore” its finances after the outbreak is declared over.

    Lees ook:

    Lees ook:

  • Harvey Norman executives take pay cut as crisis worsens

    Harvey Norman executives take pay cut as crisis worsens

    Harvey Norman has told shareholders the business will not pay an interim dividend and that its executive team and non-directors will forgo 20 percent of their salaries and director’s fees for three months.

    “In the present environment, the board believes that preserving cash is the most prudent course of action to protect shareholder value,” company secretary Chris Mentis wrote in a letter to shareholders.

    Australian-based Harvey Norman operates stores in Singapore and Malaysia, selling electronic and electrical goods and furniture.

    The decision will keep A$149.5 million of cash in the business and comes two weeks after Harvey Norman revealed a 9.4-per-cent increase in comparable sales in its Australian stores for the period of March 1 to 17.

    At the time, chairman Gerry Harvey told television program 60 Minutes that coronavirus could be an ‘opportunity’ for retailers in certain categories, noting that sales of freezers had quadrupled and air purifiers had doubled.

    Public backlash was swift, and two days later Harvey admitted he was “mortified” that he had come off as a “heartless, greedy old bastard”.

    “Now everyone thinks I’m this callous old bastard out making a profit on other people’s misery… but believe me, that was not my intention,” Harvey said.

    “I was trying to give a positive view of the Covid-19 crisis.”

    Harvey Norman was contacted but had not provided comment by publication.

    The Harvey Norman board’s decision is made in the context of dozens of retailers entering a hibernation state amid a collapsed bricks-and-mortar retail sector, with customer confidence hitting an almost-50-year low.

    ANZ head of Australian economics David Plank said confidence on current economic conditions had fallen almost 50 percent over the last two weeks to its lowest ever level.

    “And many other aspects of the survey are exceptionally weak. The announcement of the largest fiscal package yet may stabilize confidence, but much will depend on how the pandemic evolves,” Plank said.

    Lees ook:

    Lees ook:

  • AirAsia seeking govt loan

    AirAsia seeking govt loan

    Airasia may have enough cash to last them for most of 2020 but it is currently seeking out a loan from the Malaysian government to cushion the impact from the challenging economic environment.

    The low-cost carrier’s chief executive officer Tan Sri Tony Fernandes(pic) said there was no need for bailouts and what most airlines were looking for were loans.

    “We think the cash will last us for the most part of this year and when the sales return, then we’re okay.

    “It’ll be great to get a loan as well and we’re working on that with our government. We think liquidity is available in Malaysia and Thailand, ” he told Bloomberg Markets in an interview.

    And amidst the tough environment that airlines are operating in, Fernandes remained optimistic, adding that AirAsia was lucky to have restructured its business a lot and moved towards the digital end.

    He also said the airline’s cost structure is robust enough and the group is restructuring further.

    He admitted that the coronavirus disease (Covid-19) pandemic was currently the worst crisis he has ever been through.

    “We have a lot of ideas to get going again.

    “It’s going to be an uphill slog but we remain optimistic. It’s always better to have more cash.

    “We have enough at the moment but we’ll be very happy to raise some.

    “And it’s about getting our planes flying again, that’s the most important thing right now.

    “Growth will come later, ” he said.

    Fernandes also said that AirAsia had made its representations to the government and he was sure that something would come out.

    “Tourism is 15.8% of the gross domestic product (GDP) and AirAsia itself is 1.8% of that GDP.

    “So we’re sure our suggestions will be listened to, ” he said.

    On its non-airline businesses such as e-wallet, F&B and cargo, Fernandes said the businesses were doing very well and the beauty was, they did not burn a lot of cash on that side.

    He added that they were far from others but the challenging environment currently might give them the chance to catch up.

    Asked about the talks of a merger between AirAsia and Malaysia Airlines, Fernandes said he was not aware of it as AirAsia was just focussed on getting themselves in order as he had never looked at mergers and acquisitions as a solution.

    “But at this point, we’ll keep all options open, but it’s not being discussed at the moment.

    “I think it will be very silly of me and the board to close all options, ” he said.

    On the long haul carrier AirAsia X Bhd, Fernandes said it was doing very well over the last fourth quarter and the beginning of January prior to Covid-19.

    He said it was rationalizing its fleet and most of AirAsia X’s flights have become medium-haul.

    “We’re changing the fleet, we’re bringing down routes to shorter distances and we think we’ll be beneficiaries in some ways because people want to save some money.

    “When we return, a low-cost product would be more viable and we think in the immediate future, travel will be very regional and won’t be cross-continental so we think we’re in a good spot, both AirAsia and AirAsia X, ” he said. Asked if there were any considerations for AirAsia to switch from Airbus’ A330 to Boeing’s 787, Fernandes replied no, stressing that AirAsia has an “interesting relationship” with Airbus and it has a large order book with them.

    “Whether its Boeing or Airbus, I can’t see anyone taking new planes at least for a while. I don’t think any airline is looking at growth right now.

    “The airline industry has to recover, numbers have to come down and business models will have to change. The world is changing but we’re prepared. You can put your head in the sand and cry or you can get up there and do something, ” Fernandes said

  • Aeon to open mall in Myanmar by 2023

    Aeon to open mall in Myanmar by 2023

    Japan’s largest retailer Aeon is to open a shopping mall in Yangon, Myanmar’s largest city, in 2023. The Japanese retailer will partner with Myanmar conglomerate Shwe Taung Group to set up a joint venture in the country this year.

    The new Aeon shopping mall will target Myanmar’s middle class, which is predicted to increase significantly during the next few years.

    The opening plan is part of the group’s strategy to strengthen its position in the Southeast Asian market. Aeon Group generated US$315 million profit from the region’s operations in the fiscal year to February last year.

    “We will continue our targeted investment in Asia,” said Akio Yoshida, president of Aeon. “I think [Myanmar] will trace the same trajectory Japan once traveled toward a ‘100 million middle class.’”

    Yangon has a population of 5.2 million and was the nation’s capital until 2006.

    Lees ook:

  • Philippine Airlines to operate Manila-London roundtrip for stranded travellers

    Philippine Airlines to operate Manila-London roundtrip for stranded travellers

    Philippine Airlines will fly a single round-trip flight between Manila and London Heathrow on April 4 “in response to an urgent public need amid Covid-19 quarantine situation,” the airline said in a notice posted on its website.

    While the airline initially announced that it would pause all remaining international flights from March 26 until April 14 last week, it will now operate this one-off service to the UK to help stranded travelers return home.

    The Manila-London Heathrow flight (PR720) will be allowed to carry only UK nationals to comply with “current Covid-related UK immigration restrictions”, the airline said.

    The return leg (PR721), on the other hand, will be allowed to carry only Filipinos, their foreign spouse and children, and officials from governments and international organizations.

    The service will be operated with an Airbus A350-900, which has seats for 295 passengers.

    Hundreds of thousands of British citizens are thought to be struggling to get home from overseas after the UK government advised all British travelers to come home as soon as possible on March 23. Many airlines are operating a small number of flights to help stranded passengers return home after countries around the world closed their borders to help stop the spread of the coronavirus.

    Lees ook:

  • South Korean department stores restore sales campaigns

    South Korean department stores restore sales campaigns

    South Korean department stores will no longer postpone their sales programs due to the coronavirus pandemic.

    In a move analysts say is aimed at restoring turnover as the coronavirus essentially comes under control in the country, stores are looking to restore volumes which plunged last month.

    Top department stores are under pressure to clear seasonal stock after drops of 10 and 20 percent in year-on-year sales in February and March respectively.

    “The most important thing is when the new coronavirus will die out here,” Eugene Investment analyst Joo Young-hoon told the Korea Times. “As soon as Korea overcomes it, the sales of department stores here will rebound faster than that of any other sectors,” he said.

    South Korean department stores are expected to resume their expected sales events over the coming fortnight, after delays in the midst of the coronavirus outbreak and called to implement social distancing.

    The stores are running various promotional programs to attract customers while at the same time attempting to spread out visits to prevent crowds and the risk of viral transmission.

    Industry analysts have predicted a strong bounce-back in the region’s retail sector once the pandemic recedes.

    Meanwhile, in Japan, department store operators have reported their worst year-on-year sales declines on record.

    J.Front Retailing said sales at its Daimaru Matsuzakaya department store chain fell by 43 percent last month, while rival Takashimaya reported a 36-per-cent fall.

    Lees ook:

  • Don Don Donki opens second store in Thailand

    Don Don Donki opens second store in Thailand

    Amidst the Covid-19 outbreak, Japanese discount-variety store Don Don Donki has continued ahead with the opening of its latest branch in Bangkok, Thailand as part of its international expansion.

    The Japanese retailer, known at home as Don Quixote, entered Thailand in February last year, opening a Donki Mall in the expatriate haven of Thonglor.

    The new store, located at The Market mall, will retail more than 130,000 items including fresh groceries and daily necessities.

    The new branch also features its private-label Jonetsu Kakaku with an in-store dining space. However, in the short term, the branch will provide only take-away services for cooked food due to the coronavirus pandemic and government limits on cafe operations. To further adjust to the current situation, the retailer will limit the number of store entrances and exits and will control the flow of customers into the store. The temperatures of staff and customers will be checked at numerous touchpoints around the store and baskets and cashier counters will be sterilized frequently.

    Chairman Shimanuki Yosuke says the company had imported large stocks of products in advance of the opening, and before the coronavirus pandemic broke out.

    Meanwhile, in Hong Kong, the daily customer count of the company’s stores there tripled during recent weeks as locals stocked up on imported goods, unable to travel abroad.

    There are widespread rumors that Don Don Donki is about to open its fifth outlet in the territory, at Central. The news leaked out during rental leasing negotiations for nearby properties.

    Local media is reporting that the retailer has its eye on two-storey premises at 100 Queen’s Road Central, spanning 17,800sqft. Earlier reports had the company opening more stores at Tseung Kwan O and Causeway Bay, to complement its flagships in Tsim Tsa Tsui and Tsuen Wan.

    Lees ook:

  • Gome Retail boosts GMV, cuts losses as restructure continues

    Gome Retail boosts GMV, cuts losses as restructure continues

    Gome Retail says its revenue last year fell, but it nearly halved its annual loss as its restructuring program continued to pay dividends.

    Gome Retail is in the midst of a major transition and restructure from a brick-and-mortar-dominated format into a multichannel digital business anchored around its online platform. It is also expanding its physical store network into low tier cities and rural locations across China.

    The company says its gross merchandise volume (GMV) doubled last year. GMV from stores in rural parts of China soared by 61 percent and from new businesses such as home solutions and kitchen cabinets integrating electrical appliances, increased by 86 percent. GMV from smart products increased by 43 percent and from services by 61 percent, the company said.

    Despite a 7.57-per-cent decline in total sales to RMB 59.48 billion (US$8.376 billion), the company’s loss attributable to shareholders fell from RMB4.887 billion ($688 million) in 2018 to RMB2.590 billion ($365 million) last year.

    “The booming new business indicates that the group’s strategic transformation is progressing well,” the company said in an earnings statement.

    During the year ahead, it plans to accelerate its strategy to penetrate into lower-tier markets, using a franchising model.

    “This will enable Gome to seize market share with low operating costs.”

    The company plans to build 100 franchise stores this year, with a target turnover of RMB100 million ($14 million) for each.

    Lees ook:

  • Siam Piwat uses online media to connect shoppers and retailers

    Siam Piwat uses online media to connect shoppers and retailers

    Bangkok shopping mall operator Siam Piwat has launched new retail services to engage and support customers and retail tenants during social distancing.

    The new services include Call & Pick up, Eat at home and OneSiam Chat & Shop, which allow customers to shop online via live chat at OneSiam Line official accounts, shopping centers’ social media and OneSiam mobile application.

    “Amid the current situation, OneSiam has worked in line with the government’s attempts to cease the spread of Covid-19,” said Chanisa Kaewruen, senior deputy MD of Siam Piwat.

    With Call & Pick up service, loyalty program members can place orders for grocery shopping via phone and collect their groceries at the pick-up point. Meanwhile, the Eat at Home service allows customers to order food from more than 50 restaurants at Siam Paragon, Gourmet Garden, Paragon Food Hall and IconSiam.

    OneSiam Chat & Shop is the company’s new omnichannel service, providing live chat that connects customers with shopping advocates to make purchases on OneSiam’s Line account and its other social media channels.

    “Social media has been our major platform to communicate and keep our customers updated with interesting and relevant information,” said Suthida Maleipan, deputy MD at Siam Piwat. “This is in tune with our social commerce strategy and the Chat & Shop service is expected to increase customer engagement to over 25 million followers next year.”

    Lees ook:

  • Cebu Pacific net income doubled in 2019

    Cebu Pacific net income doubled in 2019

    Cebu Pacific on Wednesday reported a 132.6-percent jump in net income for 2019, before the coronavirus pandemic grounded world travel and plunged airlines into financial turmoil.

    The Philippines’ largest airline posted net income of P9.123 billion last year from nearly P4 billion in the previous year, according to a stock exchange filing. Passenger revenue grew 8.7 percent to P4.3 billion while cargo revenue rose 19.3 percent to P887.8 million.

    Gokongwei-led Cebu Pacific, Philippine Airlines and AirAsia Philippines on Tuesday sought credit relief from Manila, saying their survival was at stake. Flight were suspended throughout the 1-month Luzon lockdown, scheduled to end on April 12.

    “While it is difficult to predict when operating conditions will improve, the Group believes that it remains a going concern, given the measures undertaken, its liquidity position, its access to short and long term funding, and the strong relationships it has with major suppliers,” Cebu Pacific said.

    Cebu Pacific earlier said its senior management took pay cuts to avoid layoffs.