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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.

  • Tesco mulls exiting Thailand and Malaysia

    Tesco mulls exiting Thailand and Malaysia

    British grocer Tesco is considering exiting Asia with a shock sale of its operations in Thailand and Malaysia.

    Tesco has confirmed that following an inbound interest, it has “commenced a review of the strategic options for its businesses in Thailand and Malaysia, including an evaluation of a possible sale of these businesses”.

    “The evaluation of strategic options is at an early stage, no decisions concerning the future of Tesco Thailand or Malaysia have been taken, and there can be no assurance that any transaction will be concluded,” the company said.

    “A further announcement will be made if and when appropriate,” it added.

    Dow Jones, citing people familiar with the plan, reported that the sale could fetch up to US$9 billion.

    Tesco operates 74 stores in Malaysia and 1967 in Thailand under Tesco Lotus brand. The combined stores generated £286 million (US$375.8 million) operating profit in the year to February.

    Tesco previously sold businesses in South Korea and Singapore during a period of restructuring following an accounting scandal. But the company said it believed in the long-term potential of the remaining operations in Thailand and Malaysia.

    Tesco did not identify where the approach had come from, but it is likely to be from a private equity company, or possibly Japanese retailer Aeon seeking to boost its expansion in the region. Aeon already has stores in both markets.

  • Vietnam aims to free tourist areas of plastic waste

    Vietnam aims to free tourist areas of plastic waste

    Vietnam will cut down 75 percent of its marine plastics and stop generating plastic waste in coastal tourist areas by 2030, the government says.

    Prime Minister Nguyen Xuan Phuc has issued a national action plan on the management of plastic waste in the ocean until 2030, which aims to fulfill the country’s international commitment to resolve the issue of marine plastics.

    According to the plan, by 2030, Vietnam would have reduced the amount of plastic waste being dumped into the ocean and collected 100 percent of lost or discarded fishing equipment. Additionally, 100 percent of coastal tourism service providers would stop using disposable plastic products and non-degradable plastic bags, and 100 percent of marine protected areas would be free of plastic waste.

    The government has asked the Ministry of Natural Resources and Environment to expand its annual monitoring activities and evaluate the current status of marine plastics at river mouths and in 12 island districts every five years.

    To achieve its goals, the government will work to promote and raise public awareness on the issue of plastic waste; change the public’s behavior and treatment of plastic products and marine plastics; collect, sort, store, transport and treat plastic waste generated by activities in coastal areas and on the seas.

    The PM asked the Ministry of Natural Resources and Environment to work with authorities of coastal provinces and municipalities to develop and pilot models for managing, reducing and eventually stopping the use of disposable plastic products and hard-to-degrade plastic bags in coastal areas.

    According to the United Nations Environment Program, Vietnam is the world’s fourth-largest marine plastic polluter after China, Indonesia and the Philippines. It has been estimated that Vietnam dumps an average of 300,000-700,000 tons of plastic waste into the ocean per year, accounting for six percent of the world’s marine plastics.

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  • Nok Air gets new staff and planes

    Nok Air gets new staff and planes

    Loss-ridden budget airline Nok Air is recruiting pilots and flight attendants and will acquire two new planes to serve high-season demand as its rehabilitation plan shows positive effects, its chief executive Wutthiphum Jurangkool said on Wednesday.

    He said that the airline’s recruitment of about 800 new pilots and flight attendants is evidence that its rehabilitation plan has been effectively implemented and has strengthened its financial status.

    Apart from staff recruitment, the airline would acquire two new aircraft to add to its 22-plane fleet by the end of the year.

    Mr Wutthiphum added that Nok Air will launch direct service between Bangkok (Don Mueang) and Hiroshima, Japan. It has increased domestic flight frequencies from three to four daily on the Don Mueang-Buri Ram route and from four to seven flights a week on the Chiang Mai-Ubon Ratchathani route.

    Nok Air’s passenger load factor stood at 88% in the first half this year, down from 91% year-on-year because of the reduction in aircraft numbers from 28 to 22, he said. The reduced fleet saw flight and passenger volume in the second quarter drop by 10.3% and 8.18 respectively.

    Nok Air reported a loss of 470 million baht in the second quarter, down from a loss of 742 million in the same period last year, and a net loss of 751 million for the first six months, down from a loss of 774 million year-on-year.

  • Hong Kong Customs seize $2m in fake goods in prime retail strip

    Hong Kong Customs seize $2m in fake goods in prime retail strip

    Hong Kong Customs raided an upstairs showroom in the heart of the city’s prime retail precinct this week, seizing about HK$2 million worth of fake goods.

    They arrested a 71-year-old man on site who was allegedly in charge of the counterfeit retailing business.

    A Customs spokesperson said the showroom had been operating in “a low-profile mode” and mainly served foreign visitors to Hong Kong. Typically in these businesses, tourists are approached by individuals and invited to see luxury goods in hidden-away ‘stores’.

    Customs had earlier discovered an upstairs showroom in Causeway Bay selling suspected counterfeit goods and after an investigation with the assistance of trademark owners, officers took enforcement action on Wednesday. After raiding the showroom they seized about 1700 items including handbags, belts, watches and sneakers.

    “Famous brands were involved and the goods available for sale had a high degree of resemblance,” said the spokesperson.

    Customs says it plans to step up investigations into the sale of counterfeit goods and enforcement of the law in the coming weeks as Christmas approaches.

    The spokesperson reminded traders to be “cautious and prudent” in merchandising since the sale of counterfeit goods is a serious crime and offenders are liable to criminal sanctions. Under the Trade Descriptions Ordinance, any person who sells or possesses for sale any goods with a forged trademark commits an offense. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years.

  • Big C reveals expansion plans at home and abroad

    Big C reveals expansion plans at home and abroad

    Thai supermarket business Big C is planning to spend THB6.5 billion (US$214 million) on expansion both domestically and internationally next year.

    While the majority of the funds earmarked for growth will go towards development within the brand’s home territory, THB500 million ($16.5 million) will be set aside for overseas expansion. The brand has just launched its first 8000sqm Big C in Cambodia, and has designs on a launch in Laos next year.

    The firm’s domestic thrust is focused on small retail outlets – branded Mini Big C – designed to facilitate its reach to more customers in Bangkok and beyond. It is also investigating 3000–5000sqm hypermarkets as a “town centre” concept.

    “We are committed to investing in Thailand next year because we are confident in the country’s economic foundation,” said Big C’s CEO Aswin Techajareonvikul. “From next year, we will pay more attention to expanding our retail business abroad, focusing on Cambodia, Laos, Myanmar and Vietnam, where the economies are strong.”

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  • Bangkok’s Chatuchak Market head to Singapore

    Bangkok’s Chatuchak Market head to Singapore

    The world-famous Bangkok Chatuchak Market is set to open in Singapore, drawing an expected 600 Thai vendors.

    A 40,000sqft pop-up market will be open from February 4 to May 3 at The Grandstand on Turf Club Road. Between 30 and 50 Thai vendors will participate at the market each week on a rotational basis alongside local vendors, operating up to 272 stalls vending handicrafts, fashion and other items.

    It is the first time the Chatuchak Market has been convened outside of Thailand.

    Thai street food will be sold at the market for visitors seeking an authentic Chatuchak Market experience, complete with the snacks.

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  • Hong Kong retail ‘will recover’ says analyst

    Hong Kong retail ‘will recover’ says analyst

    The Hong Kong retail industry – hammered by declining visitor numbers from the mainland will recover, says leading analyst Pascal Martin, a partner at OC&C Strategy Consultants.

    As reported earlier this week, Hong Kong retail sales in October plunged by 24.3 percent year on year – the largest decline since records began. That followed a revised fall of 18.2 percent in September and several retailers have told Inside Retail Asia they expect November’s figures to be even worse.

    But Martin has a positive spin: “The Hong Kong market will recover, as it always does. As soon as Chinese tourists are reassured about the safety and convenience of visiting Hong Kong, they will come back.”

    However, he cautions than the recent events have accelerated “a structural trend” that Hong Kong is not as attractive a retail destination as it used to be.

    “There are a variety of reasons contributing to this trend – among them the lower China taxes and duties, and brands’ global pricing structures that have become much more homogeneous and harmonized, with smaller price differences across markets because of the transparency created by the Internet.

    “Additionally, Chinese travelers also have a greater diversity of shopping destinations beyond Hong Kong, with Japan, South Korea, France, and Italy becoming increasingly popular.”

    Martin says many brands that have built extensive retail footprints in Hong Kong on the assumption that Chinese tourist numbers and spending power will continue to grow without limit will have to adjust their presence in Hong Kong.

    “The impact of this trend will not be felt immediately, but gradually, as brands reach the renewal date of their stores, one store at a time, over the next few years. There will be adjustments in the number of stores, and adjustments in rent levels.”

    Meanwhile, the Hong Kong Retail Management Association this week predicted Hong Kong retail will experience a “low double-digit drop” in sales for the full year.

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  • Instagram users now allowed to decide who can follow them

    Instagram users now allowed to decide who can follow them

    If you think that Facebook-owned apps already get too much of your personal data, you’re not going to be happy when we tell you that starting today, Instagram wants to know your birthday. However, this data is only required when creating a new account. Instagram says that its Terms of Use call for account holders to be at least 13 years of age in most countries. By requesting a new account holder’s birthday, Instagram can make sure that no one underage has an account. Instagram also says that it will “help us keep young people safer and enable more age-appropriate experiences overall.” Of course, birthdays can be faked and this doesn’t prevent an older person from creating an account for someone under 13 years of age.

    If you open a new Instagram account and provide your birthday, other members will not be able to view your date of birth. You will be able to find it when viewing your own personal profile information. If your Facebook account is connected to your Instagram account, the birthday listed on your Facebook profile will be added to your personal profile on Instagram and again, only you will be able to see it. And if for some reason you need to edit your date of birth on Facebook, your birthday on Instagram will also reflect the edit.

    Instagram does state that it plans on using the birthday information in the coming months to provide “more tailored experiences” including recommending to younger members certain privacy controls they should use and teaching them about account controls. “These newest updates are part of our ongoing commitment to ensuring Instagram remains a safe and supportive place, especially for the youngest people in our community,” Instagram said today in a blog post.

    And Instagram is also cracking down by allowing you to decide who can send you a Direct Message. Under Message Controls, you’ll be able to choose from options like Everybody, which will allow you to receive new message requests from everyone except those who you have blocked, and Only People You Follow. With the latter setting selected, you won’t receive new message requests and story replies from people you do not follow. Those you do not follow and haven’t blocked will know that you don’t accept messages from everyone.

    You can also determine who can follow your Instagram account. Select Everyone and your account can be added by any Instagram member except those who you have blocked. Choose Only People You Follow and people you don’t know won’t be able to follow your Instagram account. Those you don’t follow and haven’t blocked will know that you don’t allow everyone to add you to groups if they try to do so.

    If you do not have the Instagram app installed on your mobile device, you can find it in the Apple App Store and the Google Play Store. The purchase of Instagram by Facebook for $1 billion back in 2012 turned out to be one of the most profitable investments in tech history. As of last year, Bloomberg estimated Instagram’s value as a standalone company north of $100 billion. The app has more than 1 billion active monthly users and is the second most popular social network following Facebook. Instagram originally provided filters for photographs before it borrowed the Stories feature from Snapchat helping it to become the immensely popular online destination that it now is. And with 71% of its users under 35, Instagram is demand by advertisers looking to reach a decidedly younger demographic.

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  • Bamboo Airways expects profits to take off in 2020

    Bamboo Airways expects profits to take off in 2020

    Private budget airline Bamboo Airways says it expects profits in the first quarter next year as its fleet expands to 30 aircraft.

    The carrier’s deputy chairman Dang Tat Thang said at a press conference Tuesday that it was operating 20 aircraft with over 100 trips a day, but an airline typically needs to operate at least 25-30 jets.

    “We hope that by having 30 aircraft in the first quarter next year we will record profits. By expanding our fleet to 30, we can stabilize operations and launch more routes.”

    The airline had recorded cumulative losses of VND329 billion ($14.2 million) at the end of April, three months after its first flight, according to the Ministry of Finance.

    Bamboo Airways chairman Trinh Van Quyet explained the losses at a shareholders’ meeting in June, saying the airline had to pay salaries for a team big enough to operate 30 aircraft, while the fleet was just 10 then.

    Quyet also expects profit from its direct U.S. flights. The airline is set to receive its first wide-body Boeing 787-9 Dreamliner this month, which will be used for direct flights to the U.S. in late 2020 or early 2021.

    Bamboo Airways is in the process of selecting an U.S. airline partner for its direct route, Thang said Tuesday. It is also mulling direct routes to Germany and the Czech Republic.

    The airline plans to launch an initial public offering next year to raise around $100 million. It is eyeing investors from Japan, the U.S., and Europe, he added.

    Foreign investors can own up to 34 percent of a Vietnamese airline, according to a government decree set to take effect January 1, 2020.

    The entrance of Bamboo Airways earlier this year has eaten into the market share of national flag carrier Vietnam Airlines and budget carrier Vietjet.

  • Bali gears up for the holiday season with extra AirAsia seats

    Bali gears up for the holiday season with extra AirAsia seats

    The Christmas and New Year holidays always see a spike in both local and foreign visitor arrivals to Bali. And this year is expected to be no different.

    In anticipation of more traffic, local news wires are reporting AirAsia Indonesia would be adding an additional 65,000 seats from December 1 to January 5, 2020.

    Speaking to reporters in Jakarta, Head of Communications at Indonesia’s Transportation Ministry, Baskoro Adiwiyono, said AirAsia Indonesia would also be bringing in an additional fleet of Airbus A320s and adding extra flights for several domestic routes to and from Jakarta.

    The Ministry is expecting a significant increase in seat occupancy rates for flights in mid-December 2019 to early 2020, especially to favorite holiday destinations such as Singapore, Lombok, Bali, and Surabaya. The Jakarta to Bali route, for example, will have an additional two flights per day until December 14.

    “Towards the Christmas and New Year holiday period we plan to increase the frequency of flights from the Jakarta to Denpasar to 13-times per day for the period December 15 to January 5,” said Baskoro.

    Prices tend to increase significantly as the major holidays approach and the Transportation Ministry is encouraging prospective passengers to book early to get the best prices while tickets are still available.

    AirAsia is also suggesting customers check the company’s social media accounts to take advantage of any holiday promotions.

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  • Carrefour Taiwan launches Asia’s first private-label cage-free eggs

    Carrefour Taiwan launches Asia’s first private-label cage-free eggs

    Carrefour Taiwan has launched its first line of private label cage-free eggs, responding to growing consumer demands for sustainable products.

    The range, originating from an Asian retailer at its Neihu Store in Taipei’s north, marks another step in the brand’s local Act For Food initiative, which is intended to project Carrefour as a leader in food transition.

    As part of the launch, one Taiwanese dollar from every box sold will be donated to promote the welfare of farm animals, with proceeds going to the Environment & Animal Society of Taiwan.

    “When I saw firsthand the rich and active lives of hens on cage-free farms,” said Carrefour Taiwan director of CSR and communications Marilyn Su, “it was clear to me the role retailers must play in the food transition.

    “As a large international retailer, Carrefour is constantly thinking about how it can exercise corporate social responsibility to make Taiwan a better, more beautiful place because of our presence.”

    Carrefour Taiwan announced its four-step commitment to going cage-free in May last year. The chain currently stocks 24 cage-free egg SKUs in Taiwan, and the market share has already risen to 17 percent.

    Last month the firm conducted a survey of almost 1000 consumers, with results showing that nearly 80 percent of Taiwanese consumers care about the production system of the eggs they buy, and almost nine in 10 are concerned about antibiotics use, antibiotic residues, and unhygienic rearing environments.

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  • Malaysia retail sales forecast remains gloomy

    Malaysia retail sales forecast remains gloomy

    Malaysian retail sales are expected to fall for the third consecutive quarter.

    Retail Group Malaysia, which prepares quarterly reports for the Malaysia Retailers Association, is now projecting total sales of RM107.5 billion (US$25.75 billion) for the financial year to March 31, a 3.7-per-cent growth over last year. However, early projections suggest a more positive performance next year with an expected growth of 4.6 percent.

    “The coming New Year will remain a challenge for the Malaysian retail industry,” said RGM MD Tan Hai Hsin. “Externally, trade disputes among countries are not expected to end soon. Internally, economic policies that can stimulate consumer spending are limited in the near term.”

    Particularly worrisome figures for the supermarket and hypermarket sector predict a contraction of around 9 percent for this year’s final quarter.

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  • Vingroup, Masan to form Vietnam’s biggest retail group

    Vingroup, Masan to form Vietnam’s biggest retail group

    Vietnamese business giant Vingroup has agreed to merge its retail and agriculture unit with Masan Consumer Holdings, aiming to form Vietnam’s biggest retailer.

    The deal has the effect of spinning off Vingroup’s retail assets into a new company in which it will hold a minority stake, freeing Vietnam’s largest privately-owned to focus on its industrial businesses, including car manufacturing, smartphones and a new flatscreen television brand it is launching.

    Under the agreement, Vingroup will convert shares in VinCommerce JSC (retail) and VinEco (agriculture) into shares of the post-merger company in which Masan Group will take control while Vingroup will be a minority shareholder.

    The new company will take over VinCommerce’s retail network including 2600 VinMart and VinMart+ outlets across the country together with 14 high-tech farms of VinEco.

    The new venture will merge the country’s largest retail group with its leading FMCG player, creating a farm- or factory-to-store business entity.

    Vice-chairman and general director of VinGroup, Viet Quang Nguyen, said the main reason for the merger is that the group has changed its development strategy to focus on the technology industry, especially its new VinFast car company and VinSmart phone business.

    “Vingroup has completed its mission to create the pioneering and most effective clean agriculture and retail system in Vietnam,” says Cong Thang Truong, chairman of Masan Consumer. “And now we will carry this flag to continue our mission to serve consumers while ensuring a fair retail market for Vietnamese manufacturers.”

    VinCommerce has strengthened its retail presence by a combination of organic growth and by acquiring rival retail groups including 23 Fivimart supermarkets, 87 Shop&Go convenience stores, and the smaller Queensland convenience-store chain.

    Masan Consumer is one of Vietnam’s largest FMCG companies, manufacturing and distributing food-and-beverage products, including sauces, instant noodles and bottled beverages.

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  • Airplane mode might get more intelligent in Android 11

    Airplane mode might get more intelligent in Android 11

    When your phone is set on Airplane mode, all radios inside the device are disabled. This prevents radio signals from possibly interfering with the equipment that pilots rely on while flying an airplane. Also known as Flight mode, or even offline mode, passengers on a plane can use this setting to access content already downloaded on a phone such as a movie, music, or a mobile video game.

    While Bluetooth and Wi-Fi are currently disabled when Airplane mode is turned on, both can be used by enabling them separately. Google plans on making this feature more intelligent in Android 11. The report says that on phones running the next Android build, turning on Airplane mode will not automatically disable Bluetooth by default. Instead, if you are using Bluetooth and then turn on Airplane mode, Android will be smart enough to figure out that you still want this connection enabled even when activating Airplane mode.

    The new feature was spotted on the Android Open Source Project Gerrit under a new commit titled “Context-aware Bluetooth airplane mode.” It states that Bluetooth should not be automatically turned off when Airplane mode is turned on under one of two conditions. One, Bluetooth A2DP is connected, or two, the Bluetooth Hearing Aid profile is connected. A2DP stands for Advanced Audio Distribution Profile and is used to allow a device to send high-quality audio from a Bluetooth device to a handset. Both devices have to have A2DP or else the Bluetooth connection will be limited to passing along voice calls. Most phones do support A2DP these days. The Bluetooth Hearing Aid profile allows those with hearing aids to wirelessly connect to smartphones and other devices.

    With this new feature, a passenger in a plane won’t have to do anything to keep his wireless Bluetooth earpods connected to his Android phone once forced to turn on Airplane mode. Otherwise, the user’s wireless earpods will stop working until Bluetooth is separately enabled. It saves the user a little time and aggravation.

    Back in 2017 with iOS 11, Apple gave iPhone users the ability to keep Bluetooth and Wi-Fi enabled even when Airplane mode was turned on. This allows an iPhone user to keep his Apple Watch connected to his iPhone via Bluetooth even with the handset’s internal radios shut down. And it also allows an iPhone user to stay connected to his AirPods when Airplane mode is enabled.

  • Founders of Google announce a major corporate restructuring

    Founders of Google announce a major corporate restructuring

    Today, Larry Page and Sergey Brin, the co-founders of Google, announced that they would step down from their respective roles in Alphabet Inc., the parent company of the world’s largest search engine. Continuing forward, current Google CEO Sundar Pichai will take the chief executive officer position at Alphabet while retaining his role at Google.

    This change comes after four years after Google first announced the new public holding company Alphabet, as well as its own transition from a standalone to a subsidiary of that company. When the change occurred, Page and Brin took the positions of CEO and president at Alphabet, Inc, respectively, while Pichai took the reins at Google.

    This new transition reflects Google’s growth in the scale and variety of its ventures and offered services. Page and Brin write, “Today, in 2019, if [Google] was a person, it would be a young adult of 21 and it would be time to leave the roost. While it has been a tremendous privilege to be deeply involved in the day-to-day management of the company for so long, we believe it’s time to assume the role of proud parents,” in a founder’s letter posted.

    This doesn’t mean the co-founders are leaving the company entirely, however. They continue to write, “We are deeply committed to Google and Alphabet for the long term, and will remain actively involved as Board members, shareholders and co-founders. In addition, we plan to continue talking with Sundar regularly, especially on topics we’re passionate about!”

    With this change taking place, newly-appointed Alphabet CEO Sundar Pichai’s responsibilities will now include managing Nest, Waymo, Wing, and other subsidiaries that were related to but not directly affiliated with Google.

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