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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.

  • AS Watson says health-category sales rise 11 per cent

    AS Watson says health-category sales rise 11 per cent

    AS Watson Group saw its health-category sales increase 11 percent last year with 1 billion shoppers purchasing health products from the brand globally.

    The figures reflect a global uptick in the vitamins and supplements industry, which is growing at a rate of 12 percent year on year internationally.

    Shoppers for health products visit a Watson’s store 10 times per year on average, according to survey data released by the firm. Their spending is almost 80 percent higher than the general shoppers.

    “Vitamins and supplements have experienced the fastest growth of 12 percent,” said group COO Malina Ngai. “We care about our customers’ health, and this is the second Global Health Survey we have commissioned, with the aim to ensure we stay abreast of their needs in their lifestyle. We will look for product and service solutions worldwide for our customers who increasingly want more control of their health.”

    The firm also launched a strategic partnership with Prenetics last year to pioneer a personalized preventive digital healthcare solution through the launch of DNA home testing to focus on prevention instead of treatment, which has also boosted its health-category sales.

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  • Chow Tai Fook closes 40 stores after sales slump

    Chow Tai Fook closes 40 stores after sales slump

    Hong Kong-based jewelry group Chow Tai Fook has closed 40 stores in Hong Kong after experiencing a 60-per-cent drop in retail sales there amidst the coronavirus outbreak.

    Sales on the mainland fell 42 percent, according to an update on trading for the first two months of this year.

    “In response to the measures of local governments in containing the spread of COVID-19 virus, the majority of our point of sale in Mainland China were temporarily closed since late January, and in Hong Kong and Macau from early February,” read the update.

    “Businesses in both markets were inevitably affected during the period. As of February 29, approximately 70 percent of our points of sale in Mainland China and 64 percent in Hong Kong and Macau had resumed operations.”

    The company said the interest of public health and the safety of its staff remained of utmost importance to the group despite its heavy loss of business.

    Operations at the Chow Tai Fook’s production facilities in Shunde and Shenzhen have resumed operations gradually. Its inventory remains higher than usual in the short term due to a boost in production for the Chinese New Year period of items that now remain unsold.

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  • The virus outbreak is Asia’s call for digital business

    The virus outbreak is Asia’s call for digital business

    Coronavirus has significantly overwhelmed the world. The outbreak of Covid-19 caused the death of over 4,000 people and infected over 119,000. Some countries, including China, Italy, and Iran, have adopted restrictive measures, quarantining most of its citizens and canceling public events.

    The virus has had a negative impact on trading and markets, as most of the European markets suffered significant slumps. It also disrupted the working process, and several banks have advised its staff to work from home.

    This has become a problem for Asian countries and companies because most of their income depends on the physical presence of workers. It becomes impossible as most workers are currently in quarantine.

    China to think more about switching to digital business

    Most workers in China earn income from physical labor. They work in factories, which are the primary source of revenue for China. Yet, the emergence of Covid-19 has severely damaged the working process.

    China should probably learn from its European counterparts to focus more on digital business, as it does not require the physical presence of workers and is perfectly available for employees to work remotely.

    This trend has become very prevalent in European industries, especially online gaming. For instance, Armas Hämäläinen, who is the representative of online casino Spinia Finland has declared that the casino does not request its employees to come to work due to the fear over coronavirus. The company allows them to work from home, which helps keep employees safe and at the same time, keep the company active and functional.

    In contrast, China’s gambling industry is pretty much locked in. While Europe makes a lot of money from gambling. It has a legal framework, but in China, it is considered illegal and one of the weirdest facts about gambling in China is that they allow citizens to gamble in Macau which is technically their territory, but they cannot gamble inside mainland China.

    We can say the same about top European banks such as Credit Suisse and Deutsche Bank. Both banks strongly encouraged some of its employees to stay home and work remotely, to contain the spread of coronavirus.

    Therefore it is very convenient and useful for China if it switches to digital business more, as it will not only help to contain the virus but will create a wide range of possibilities as well.

    South Korea urges local communities to take part in social distancing

    Coronavirus took its toll in South Korea as well, killing over 50 people and infecting 7,700. South Korea is known in the world for its digital innovations and services, and unlike China, it did not have so many problems with working remotely, because a lot of people work in firms, where it is not necessary to be physically present at work. For instance, financial, insurance, IT, electronic companies – all of them are in favor of working from home.

    Conclusion

    It is hard to remember any virus, that caused so much disruption in the world, like coronavirus. No one would expect the damages to be so colossal, let alone the fact it distorted the working of companies, resulting in huge losses. As most countries in Asia, obtain revenues from the physical labor of workers, they should somehow find a way to adapt to digital services. Otherwise, it would further harm the workers and catalyze the spread of Covid-19.

     

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  • Disposable cups transformed into photographic paper

    Disposable cups transformed into photographic paper

    The use of disposable cups and other products is on the rise as consumers are prioritizing safety from the coronavirus.

    Disposable protective masks, plastic gloves, and plastic cups are being consumed en masse across South Korea and elsewhere in Asia.

    In the meantime, a new ‘filaroid’ service that recycles disposable products into photographs is becoming popular.

    Disposable cups made from paper, are notorious for hurting the environment due to the laminated substance in the cup’s interior which makes it very difficult to be recycled.

    Filaroid replaces plastic photographic papers with an eco-friendly material recycled from paper cups.

    Paper disposable cups are usually thrown away without any particular damage, making it easier to recycle their sturdy fibre which can be used in photographic paper.

    Downloading a filaroid app on a smartphone allows users to create and edit photos that they want to be printed on the recycled photographic paper.

    “We are working on teaming up with a local paper producer to begin mass production of photo paper recycled from paper cups,” said Oh Seung-ho, CEO of Taeoa Corp, a filaroid service provider.

    Environmental value and profits raised from the recycled products are shared again with consumers. Filaroid offers free printing services every month to reduce the amount of paper cups incinerated each year.

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  • Increased digital traffic in China attracts unwanted guests

    Increased digital traffic in China attracts unwanted guests

    The past decade has ended up with leaving the New Year gift under the New Year Tree. And who said that the gifts can always be pleasant and good. The new decade took the start which is very far from the good.

    Coronavirus, also known as the Covid-19 is the virus, which was first discovered in Wuhan, China on the 31st of December 2019. The local virus, which has spread to almost every single country in the world, has already infected over 180,000 people, across the world in a matter of only three months.

    Coronavirus has killed almost 7000 people and many people have been still infected and located in quarantine. The ones who are not in the hospitals, or in any specifically designated places, are self-isolated at homes. Many countries have moved to the emergency regime and have announced massive lockdowns.

    The first country to suffer from the massive virus outbreak was China. Then several European countries followed, and now it is all over the world, across the oceans and deserts. The World Health Organisation announced the epidemic as the pandemic, meaning that the massive lockdowns in every country should be expected sooner or later.

    While being in a state of isolation and not being able to do anything with it, there is not much left you can do. When every facility is closed and you are barely able to leave the house, all you can do is spend your days in front of the TV or surf the Internet. This is perhaps the best scenario for sparing your time.

    One of the major industries in China is gambling. While gambling in the country is not legal, it is only legalized in Macau. This is the only province in the whole of China, where visitors can gamble and participate in any type of gambling-related event. The city is basically designed for gambling and there is nothing else to do rather than a gamble.

    The city of Macau generates over 80% of the revenue via casino performance. Millions of people visit the Chinese gambling paradise annually and spend a lot of money on gambling. This is one of the reasons why the city is very lucrative and attracts many people. Not only international visitors but also Chinese people from the mainlands of China visit the city monthly. Macau is the Asian capital of the gambling industry.

    The most lucrative period for Macau and gambling in China was supposed to be the Chinese New Year, by the end of January month. The best period for casinos to operate was literally nothing else but the great disappointment. Due to the virus and the massive outbreak, many cities in China were isolated by that period. People were limited to transportation and were not recommended to move anywhere, but the rooms in their houses.

    Once Chinese New Year passed, and Macau had already experienced almost $300 million loss, while it was supposed to generate over $700 million, the authorities decided to shut down all 42 casinos. The shut down was an extremely difficult decision to make. 42 casinos have been closed for a two week period. This was the longest casino shut down period in the whole history of Macau.

    The closure of the casinos caused a massive loss in revenue. The employers are no longer able to maintain the employees and to pay the salaries. The Asian capital of gambling is not left with many options for this period. Considering the fact that online gambling is prohibited in China, there is no industry, which can compensate for the losses.

    According to gambling experts and some of the authorities in the field, this would be the perfect moment for China to reconsider online gambling. The online gambling industry is one of the most efficient industries and people all over the world are involved in online gambling. While the classic brick and mortar casinos are on the shutdown mode, online gambling could reduce the loss and somehow compensate for the closure period.

    Many online casinos have been targeting the Asian market for quite some time already. It is evident that online casinos find the necessity of expanding to previously unknown markets. One of the leading casinos, such as Playamo, has made certain steps forward. It has been announced recently that the games from one of the leading developers, Red Tiger, have been added to the online casino website and the Playmo bonuses are available for the Asian customers as well. The international gambling brand will soon be marking the new standards and the countries, such as China will be the main target for the 2020 market. Especially considering the facilitating circumstances all across the world. Some

    While the experts say that China should change the approach and think of the possible alternatives in order to maintain the leading position in the market, the authorities and the government are not making any sudden moves for now. On the other hand, the ignorance of the problem and possible alternatives can soon face the country with additional problems.

    People who love to gamble and are having a hard time sitting at home in the isolations will sooner or later address some methods which will grant them the ability to gamble online. The activity might be considered illegal and most probably China will need to fight illicit activities. The worst scenarios are that the government could avoid the illegal issues if reconsidering their approach.

    One way or another, according to some experts’ predictions, China might soon experience the second wave of the virus outbreak. As bad as it may sound, people might be balanced in quarantine all over again and the facilities once again. And there it is, the second chance for China should be given, but will they use it? That is the question.

  • TikTok opens doors of LA facility to show transparency in privacy policies

    TikTok opens doors of LA facility to show transparency in privacy policies

    The Trump administration, as we are all well aware, has recently been suspecting China-owned companies, such as Huawei or ZTE, of espionage and unlawful conduct. Some US officials are also having a problem with the popular video-sharing platform TikTok and its Chinese owner company, ByteDance, and have therefore accused it of being a national security threat. The mentioned above actions resulted in some governmental entities banning the use of TikTok by their staff.

    In response to all the critics and accusations, TikTok is preparing to open the doors of a new LA facility to outside visitors, in particular lawmakers and industry experts, The Wall Street Journal reports. Invited people can visit TikTok’s LA facility in order to observe how platform moderators work, how user-reported content is handled, and review the company’s privacy and security practices.

    The facility is called the “transparency center” and is scheduled to open its doors in May. Additionally, it is said that the building will have different levels of authorization access.

    TikTok has been working hard to address the government officials’ concerns for quite some time already, expressing the fact that the company would never share its users’ information to the Chinese government, nor has it done so before. TikTok has even hired an executive from the US as a cybersecurity officer.

    “Our landscape and industry is rapidly evolving, and we are aware that our systems, policies and practices are not flawless, which is why we are committed to constant improvement,” a TikTok representative stated.

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  • Google uploaded some of its apps in the Samsung Galaxy Store

    Google uploaded some of its apps in the Samsung Galaxy Store

    In a seemingly strange move, Google has uploaded two of its apps – Google Translate and WearOS – to Samsung’s own Galaxy Store. This collaboration will probably continue in the future with more applications added to the Galaxy Store.

    Looking at this reciprocally, Samsung’s own software has been available in the Google Play Store for quite some time now including apps like Samsung Health, SmartThings, Galaxy Wearable and more. This makes sense, as Samsung wants consumers outside their ecosystem to still be able to use the company’s wearables with phones from other brands.

    One possible explanation of why Google apps appeared in the Galaxy Store may lay in the screenshots of the aforementioned apps – WearOS’ in particular. The interface in the images seems to be in Chinese, suggesting that Google is trying to reach Chinese consumers.

    On the other hand, WearOS and Google Translate won’t work at all without Google Play Services installed on the device, and the latter is still inaccessible from China. It all might seem like a futile exercise but the only other explanation is that Google wants its software to be more easily available/accessible on Samsung phones – If people prefer to use the Galaxy Store more often, they’ll now find some Google stuff there too.

    We might have to wait a little longer before the reasoning behind all this becomes clearer, but there’s no harm in Google apps showing in as many places as possible.

  • Eslite to close famous Dunnan store in Taiwan

    Eslite to close famous Dunnan store in Taiwan

    Taiwanese bookstore chain Eslite will shutter its 24-hour Dunnan shop in Taipei when the store’s lease expires at the close of May.

    The bookstore, which has remained popular with backpackers visiting the city since its opening in 1999, was slated for closure after the operators failed to agree on a lease extension with the landlord.

    Given the popularity of the venue, Eslite has committed to continue its 24-hour trading at an alternative location.

    The closure will follow that of another outlet in Tainan’s Anping District at the end of this month, also due to an expired lease that will not be renewed.

    The 30-year-old chain is well known for its unique fusion retail business model as a bookstore, mall and cultural creative platform. It has overseas outlets in Hong Kong, Mainland China and Japan and is reportedly considering expansion into Malaysia if it can find a local partner.

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  • Apple cuts seating for customers in half in US retail stores to battle coronavirus spread

    Apple cuts seating for customers in half in US retail stores to battle coronavirus spread

    After the first COVID-19 positive test of an Apple employee in Cork, Ireland, yesterday, the company is implementing extra measures in US retail stores in order to battle the spread of the virus. Last week, Apple employees were encouraged to stay at home if possible, and two days ago, Apple gave the green light for unlimited sick leave to any worker with coronavirus-like symptoms. Extra sanitization units are in place, and demo devices are disinfected more frequently.

    You won’t be able to loiter much in Apple retail stores now, as new measures include cutting seating places for customers by half. The company also advised its employees to keep a distance of at least one meter (3 feet) from each other as well as from clients. As of now, there’s no information on working hours of US Apple stores being reduced, but the situation is evolving constantly.

    Apple closed temporarily all 49 stores in China and reopened 29 of them with additional crowd-control measures like temperature checks for the customers and reduced working hours. Some of the company’s stores in Italy have also been closed for the weekends after a government order from the President of the Council of Ministers of the country.

    There are a total of 1,050 confirmed cases of coronavirus in the US at the moment with 29 deaths. If the situation deteriorates, Apple could start bringing some of the more drastic measures to its local stores – including limiting working hours and more thorough customer checks.

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  • Google is fined $8 million in Sweden over data protection laws

    Google is fined $8 million in Sweden over data protection laws

    Since the General Data Protection Regulation (GDPR) went into effect in the European Union back in 2016, companies and organizations have had larger responsibilities in order to protect the privacy rights of individuals. Sweden has evidently determined that Google has not fully complied with these regulations, leading to a hefty fine.

    Under the GDPR, an individual has the right to privacy of personal data, including the right to request that their personal search results, such as their name, be delisted from search engines. Since 2017, the Swedish Data Protection Authority (DPA) has identified search listings that Google is required to delete.

    Based on two audits administered over four years, the Swedish DPA has concluded that Google has not complied to these regulations. Currently, Google informs websites before delisting, allowing them time to move their sites to different URLs to bypass the delisting. The Swedish DPA argues that this practice negates the point of delisting and the overall principles of the GDPR.

    Based on these conclusions, the Swedish DPA has issued a fine of 75 million Swedish kronor, or about 8 million dollars. Based on local laws, Google has three weeks to take action before it becomes final. The internet giant is expected to appeal the decision.

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  • Samsonite marks 110th anniversary with sustainability pledge

    Samsonite marks 110th anniversary with sustainability pledge

    Luggage retailer Samsonite is marking its 110th anniversary with a sustainability pledge.

    The new “Our Responsible Journey” strategy “focuses on Samsonite’s legacy of designing products that last; its commitment to reducing its impact on the planet; and how it engages its people, partners and communities in this progress,” the company said in a statement.

    The strategy – which includes commitments by Samsonite brands Tumi, American Tourister and Gregory – aims to increase the use of sustainable materials and packaging; continue to develop solutions towards product durability, improve access to repairs and end-of-life solutions; and use 100-per-cent renewable energy while becoming carbon neutral within five years.

    “While we’ve been focused on sustainability for several years, ‘Our Responsible Journey’ is how we will accelerate the implementation of sustainable business practices globally to meet our goals,” said Samsonite International CEO Kyle Gendreau. “This strategy will touch every aspect of our business to help us further our long-standing leadership in the industry.”

    The brand has launched more than 50 collections including sustainable materials to reduce waste. It has reportedly diverted roughly 52 million 500 ml PET bottles from landfills.

  • Google adds support for multiple signatures in Gmail

    Google adds support for multiple signatures in Gmail

    Google revealed earlier today that a new feature is coming to Gmail that allows users to create and use multiple signatures. It’s a nifty feature that makes it easier for Gmail users to adapt to any situation when it comes to sending emails that require different signatures.

    To make use of the new feature, which Google says will be available by default, simply create multiple signatures by heading to Gmail’s Settings / General. From there, choose Signature / Create New, and you should be able to create multiple signatures.

    Creating multiple signatures is easy, but let’s see how you can put them to good use. After you create at least two signatures, you’ll be able to switch between them by opening the signature menu in the compose action toolbar.

    Google announced the support for multiple signatures in Gmail will be rolled out starting today and may take up to two weeks to reach all devices. The new feature is available for all G Suite users, as well as Gmail users with personal Google Accounts.

  • Convenience Retail Asia sales, profit rise despite Hong Kong unrest

    Convenience Retail Asia sales, profit rise despite Hong Kong unrest

    Circle K Hong Kong parent Convenience Retail Asia has recorded a 5.9 percent increase in sales last year to HK$5.632 billion (US$724.7 million), despite the onset of social unrest disrupting its core Hong Kong retail market.

    Net profit for the year rose 13.3 percent to HK$208 million on the back of higher sales, operational efficiencies, and reduced production costs resulting from the depreciating renminbi.

    Chairman Victor Fung said that if there was a silver lining to the second half-year “it was how the group responded to these challenges”.

    Convenience Retail Asia ended the year with 383 Circle K stores in Hong Kong one fewer than a year earlier, 99 Saint Honore bakery stores and nine Zoff eyewear stores. A 10th Zoff store has opened this year at Lee Theatre Plaza.

    Turnover for the convenience store business increased 7.5 percent to HK$4.524 billion with comparable-store sales growing 6.1 percent against the same period in 2018. Turnover for the bakery business decreased by 2.5 percent to HK$1.092 million due to reduced sales of festive products. And turnover for developing business increased 36 percent to HK$105 million due to the expansion of the Zoff store network.

  • AirAsia shares drop further, salary cut for top management

    AirAsia shares drop further, salary cut for top management

    AIRASIA Group Bhd’s share price dropped to the lowest level in 48 months despite the low-cost carrier’s move to cut operational costs and shield the company from being battered by the coronavirus outbreak.

    Carriers across the globe are in panic mode as millions of people cancel their flights as the virus wreaks havoc around the world.

    AirAsia’s shares closed yesterday’s trading at 97 sen, down 2 sen from the 99 sen recorded on Monday — compared to around RM4.41 in February 2018. The company’s market capitalization plummeted to RM3.42 billion.

    Shares of AirAsia’s long-haul unit AirAsia X Bhd declined to 7.5 sen.

    AirAsia’s acting CEO Tharumalingam Kanagalingam in an internal memo to the carrier’s staff warned of the need to cut expenditures.

    The carrier had reduced wage costs, suspended Free Munch for all non-operations managers and above; restricted unnecessary duty travel canceled big social events for the year and suspended external training unless required by law or regulation.

    He said the company’s highest earners have agreed to take a pay cut, but did not provide any quantum. In the replacement of traveling, employees should use voice or video conferencing.

    Kanagalingam, who is popularly known as Bo Lingam, said the measures are put in place to reduce costs, conserve funds and protect the future of the business.

    He said the company has reviewed every option to minimize the impact on its employees.

    “These measures are not permanent. Senior management and I will review them periodically until the situation normalizes.

    “But we may need to announce additional measures if things continue for longer or get worse. Your manager or HoD (head of department) will explain this exercise to you in more detail,” Kanagalingam said in.

    In a press statement on Monday, the acting CEO said the cost-containment measures would have zero or minimal impact on most AirAsia employees, especially those in the lower-income bracket.

    He said AirAsia continues to monitor the developments and employ aggressive marketing and education strategies to instill the confidence of flying back in the traveling community.

    “To further spur local and regional tourism, capacity is now being redeployed to domestic and intra-Asean flights. We are also continuously engaging industry stakeholders and tourism authorities for incentives, as well as marketing and promotional collaborations,” he said.

    AirAsia is expected to register a core net loss of RM1.1 billion following lower demand and yields in Malaysia, Thailand and the Philippines on significant exposures to flights to China, Hong Kong and Macau, CGS-CIMB Research said in a note last month.

    An analyst said the market outlook for AirAsia is “definitely grim for 2020”. “This year will be a watershed year. It is a matter of mitigating from deeper losses,” the analyst said.

    Its competitor Malaysia Airlines Bhd has also slashed the salary of the senior management staff by 10% and removed all allowances effective this month.

    The national flag carrier canceled more than 1,600 flights and the figure is expected to rise further.

    Group CEO Captain Izham Ismail said in a video message to the carrier’s staff that MAB has reduced 7.1% of its capacity in the first quarter this year, including 53% of the capacity to China and 23% for North Asia, namely Korea and Japan.

    Malindo Airways Sdn Bhd was reported to have asked its staff to take up to a 50% pay cut and two weeks’ unpaid leave.

    As part of the pay cut, Malindo employees were asked to reduce their number of working days by up to 15 days a month, Reuters reported.

    The International Air Transport Association has projected a total global lost revenue of between US$63 billion (RM265.6 billion) and US$113 billion in the passenger business, more than double than its previous assessment of US$29.3 billion revenue loss.

    Markets in Australia, China, Japan, Malaysia, Singapore, South Korea, Thailand and Vietnam are estimated to see a 23% reduction in passenger numbers that translates to a loss of US$49.7 billion in revenue.

    Last month, the Malaysian Aviation Commission reduced Malaysia’s passenger traffic growth forecast from between 5% and 6% to between 4.6% and 5.7% this year as a direct impact of Covid-19.

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  • Kikki.K appoints voluntary administrators

    Kikki.K appoints voluntary administrators

    Australian-born stationery business Kikki.K has been placed in voluntary administration, leaving the fate of 450 employees and 65 stores uncertain.

    In Asia, Kikki.K has stores in Hong Kong and Singapore and it sells online.

    CEO Paul Lacy said the business had been caught in a perfect storm – feeling the impact of Brexit in the UK, the Hong Kong protests in its Asian arm, the bushfires in Australia and the global coronavirus crisis.

    “This unprecedented line-up of external events, particularly in recent weeks, has really taken its toll,” Lacy said.

    “As we looked ahead we just didn’t have the certainty we could keep going so we have had to take this decision.”

    The business appointed Jim Downey of J.P. Downey & Co as an administrator, and Cor Cordis’s Barry Wight and Bruno Secatore as receivers.

    For the time being the business will continue to run as usual while its future is determined – with founder Kristina Karlsson hoping to find a new home and partner for the brand.

    “The last few weeks have been some of the most challenging of our lives but we remain determined to find the right new partner to continue chasing our dream, so we can get back on track for all the people including our wonderful team who rely in some way on this beautiful brand,” Karlsson said.

    According to Wight, administrators are now urgently working with management to plan a restructure of the business, while investigating potential sale options.

    “Kikki.K has unfortunately joined what has now become a long list of financially distressed retailers, given softening consumer spending, high leasing costs, compounded by a disappointing December and January trading period,” Wight said.

    At its peak the business traded across 100 global stores, though the impact of a disastrous international expansion to the UK and the continued spectre of low consumer confidence took its toll.

    According to The General Store partner and CEO Matt Newell retailers can struggle with juggling the difficulties of a global expansion alongside keeping their offer fresh and exciting for existing customers.

    “Kikki.K were executing a pretty ambitious global expansion program which would have sucked out a lot of the capital required to weather difficult trading conditions,” Newell told Inside Retail Australia.

    “You have to admire what Kikki.K created since it launched in the 1990s. It totally redefined customer expectations in the stationery category and grew a global brand that retailed in 140 countries worldwide.”

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