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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.

  • Walmart China opening 500 more stores

    Walmart China opening 500 more stores

    US retailer Walmart is planning to launch 500 new outlets in China within five to seven years.

    The expansion will more than double the firm’s presence in the territory in time for China to emerge as the world’s biggest grocery market come 2023. The move comes in the face of an economic slowdown as China grapples with the US trade war and slow growth.

    In spite of the setback, Chinese consumers are still buying from Walmart, which experienced 6.3-per-cent year-on-year growth in the last quarter. Its global growth during the period was just 2.5 percent.

    “We will continue to collaborate with partners and policymakers in China to accelerate our expansion,” Walmart China senior VP James Ku said.

    The firm will also remodel more than 200 of its stores in China in the coming years, including installing self-service checkouts using facial recognition technology.

    Walmart China has operated for more than 20 years.

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  • Korean retail giants expect improved profits next year

    Korean retail giants expect improved profits next year

    After a tough year, South Korean retail giants are tipped to log a modest improvement in their earnings next year on the back of improved business conditions and cost-cutting efforts, industry sources say.

    This year has been the toughest ever for two homegrown South Korean retail giants, Emart and Lotte Shopping, as they struggled to battle with e-commerce giants such as Coupang and TMON, which launched aggressive promotion and free delivery services to woo more customers.

    Hit by increased competition and an economic slowdown, Emart, the country’s No 1 retailer, suffered a 40.3 percent year-on-year fall in its third-quarter operating income to 116.2 billion won (US$98.8 million).

    Analysts said Emart will be on a roll next year, as the company’s efforts to improve margins have started to bear fruits since the third quarter, according to IBK analyst Lee Myung-hee. The brokerage estimated an 18 percent on-year rise in sales for 2020 and a 60 percent jump in operating profit.

    Emart saw the number of its underperforming or loss-making offline stores fall to 141 this year, down from 147 in 2016. The company also expanded shipping infrastructure for its online-only retail corporation SSG.com, launched on March 1, in a bid to win back customers from e-commerce operators.

    To bolster its delivery services, Emart also plans to open its third pick-and-packing station in Gimpo, 29 km west of Seoul, by the end of the year. The company currently runs two facilities, one in Gimpo and another in Yongin, 49km south of Seoul.

    Lotte Shopping, the operator of the supermarket chain Lotte Mart, also suffered a sharp fall in its third-quarter earnings because of poor performance by its supermarket chain. Lotte Mart takes up about 30 percent of its business portfolio.

    Lotte Shopping’s July-September operating income stood at 87.6 billion won, falling 56 percent on-year. The earnings shock came due to the nationwide boycotting of Lotte’s products since July, triggered by trade tensions between Korea and Japan.

    But the market consensus is that the discount store chain’s quarterly operating profit will go up thanks to reduced costs stemming from layoffs of contract workers.

    Ju Young-hoon, an analyst at Eugene Securities, forecast a 2.9 per-cent year-on-year gain in Lotte Mart’s annual sales for next year, compared to a 1.3-per-cent decline this year.

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  • Facebook reportedly tested a facial recognition app

    Facebook reportedly tested a facial recognition app

    It would be interesting to see how many people flat out don’t trust Facebook. This is the company that got fined $5 billion by the Federal Trade Commission (FTC) for failing to adhere to a consent decree it signed back in 2011. The terms of the consent decree prevented Facebook from using member profiles without the express consent of subscribers. In 2015-2016 Aleksandr Kogan, a Russian-American professor at Cambridge University, collected profiles through the use of an app he developed ostensibly for research purposes. But Kogan sold as many as 87 million user profiles to a company called Cambridge Analytica, which was hired by the Trump campaign to turn the data into information that it could use.

    As recently as the first day of this year, an organization called Privacy International issued a report claiming that certain Android apps sent users’ personal information to Facebook. The social-media site allegedly received this personal data even if the user did not have a Facebook account.

    What brings up Facebook’s apparent inability to keep members’ private data private is a report from Business Insider stating that the company had developed a facial recognition app between 2015 and 2016 that was developed for employees. The app was never released to consumers and has been discontinued. The frightening thing about the system is that according to one source, it could identify any Facebook member if enough data about the member was available. The app was in the early stages of development, according to the report. Facebook employees with the app installed on their phones could point the camera at a person and seconds later the display would show their name and Facebook profile photo.

    Last year, a lawsuit against Facebook was certified as a Class Action meaning that several similar suits were consolidated into one. The plaintiffs claimed that the app was using facial recognition on their phones without permission. Since 2010, the company had been collecting facial templates based on users’ physical characteristics in order to show members’ names in photographs. But the plaintiffs say that this violates the 2008 Illinois Biometric Information Privacy Act which prohibits companies from collecting and storing biometric data without permission. Facebook’s defense is that facial templates do not count as biometric data. This feature remains on the app, and when someone “tags” a Facebook subscriber in a photo it links back to the subscriber’s Facebook profile. This feature used to be enabled by default on the app, but users must now opt-in.

    Facebook is also reportedly developing its own AI assistant similar to Google Assistant, Siri and Alexa. The company would use it for its Portal line of smart displays; currently, the Portal speakers use Amazon’s Alexa digital helper. Back in 2015, Facebook did add such a feature for the Messenger app which it called “M.” While “M” used AI to answer certain questions, those it couldn’t handle were sent to a call center manned by humans. In January 2018, Facebook eliminated the feature.

    Meanwhile, Facebook is one of four tech firms (along with Apple, Google, and Amazon) that is being investigated by the House of Representatives’ Judiciary Committee for possible antitrust violations. Just this past week, the committee released written responses from the four tech firms to questions it asked each of the companies. Facebook admitted in its reply that it dropped certain apps from its developer platform if they competed with Facebook’s own features. As an example, the company admitted that it dropped Vine, Twitter’s now-defunct app that created six-second video loops. Facebook said that Vine was a copy of its News Feed. Committee members also wanted to know the “exact circumstances” behind Facebook’s decision to drop apps like Phhhoto, MessageMe, Voxer, and Stackla. The company said that it “will restrict apps that violate its policies.”

    If Facebook cannot be trusted with personal and biometric data, we should be breathing a sigh of relief that it stopped developing the aforementioned facial recognition app. Or did it? Can we believe Facebook when they say that it is no longer developing such a tool?

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  • Vietjet Launches Black Friday Ticket Promotions from S$0

    Vietjet Launches Black Friday Ticket Promotions from S$0

    Vietjet launches Black Friday promotions with millions of tickets from only S$0 (*). All promotional tickets are available for the whole day on 29 November 2019 (GMT +7), with the fastest fingers winning more tickets.

    Explore domestic destinations within Vietnam and fly between Vietnam and Japan, South Korea, Taiwan, Hong Kong, India, Indonesia, Thailand, Singapore, Malaysia, Myanmar, and Cambodia, including all other routes operated by Vietjet Thailand. Tickets for this promotion is applicable for travel between 1 December 2019 to 24 October 2020 (**).

    Promotional tickets are available on Vietjet’s website, the “Vietjet Air” mobile app and on Facebook. Tickets can also be booked via Vietjet’s hotline +8419001886 or from official Vietjet agents and ticket offices. Payment can be easily made with Visa/ MasterCard/ AMEX/ JCB/ KCP/UnionPay cards.

    Vietjet’s biggest promotional campaign in 2019 is also ongoing, titled “Fly around Asia and hunt for the 1kg golden aircraft” with hundreds of attractive prizes. Customers joining the program will have opportunities to win prizes daily and weekly with a grand prize, the 1kg golden aircraft.

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  • AuMake pivots to sell to Asian tourists

    AuMake pivots to sell to Asian tourists

    AuMake says it will focus on catering to Asian tourists at its Australian outlets, shifting away from its original business model of targeting Chinese shoppers intent on posting their products to the mainland.

    The ASX-listed company’s 16 shops initially concentrated on selling Australian products to “daigou” – residents who frequent the stores, which each have a designated parking area, in order to send bought items to China in parcels.

    “From early 2018 and due to the locations of our stores in Sydney’s CBD, we began to observe the increasing visitation of Asian tourists and their propensity to purchase less well-known and higher margin products relative to daigou,” AuMake executive chairman Keong Chan told shareholders on Wednesday.

    AuMake announced in April that it had acquired the Broadway business, including its six Australian stores popular with foreign tourists, for $14.2 million.

    “AuMake will continue to service daigou however this will increasingly be transitioning offline traffic to the company’s online platforms, to maximise efficiencies and profitability,” Chan said.

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  • Metcash shares hit by lost 7-Eleven deal

    Metcash shares hit by lost 7-Eleven deal

    Metcash shares have dropped more than 10 percent to a four-month low after 7-Eleven chose not to renew its contract with the wholesale food and beverage supplier when it expires in August.

    Metcash on Friday said its annual sales to 7-Eleven total about $800 million a year, mostly in lower-margin tobacco products.

    “Metcash was unable to reach an agreement with 7-Eleven on its supply requirements for the east coast, including delivery routes and scheduling,” the ASX-listed firm said.

    However, Metcash said it was still in talks to continue to supply 7-Eleven stores in WA.

    The blow is just the latest for Metcash, which in 2018 posted an impairment-driven loss of $149.5 million when Drakes Supermarkets declined to extend its SA contract after Metcash had announced plans to open a new purpose-built distribution center.

    At 1306 AEDT, Metcash shares were down 10.5 percent to $2.72.

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  • Toby Black chases Hello Kitty in China

    Toby Black chases Hello Kitty in China

    Hong Kong fashion brand Azona (Asia)’s cartoon character Toby Black is proving popular in Mainland China.

    Dubbed Hong Kong’s answer to Hello Kitty since 2006, the character has appeared on many of the firm’s products, and was licensed under Toby World Limited since late last year. The firm developed a partnership with multiple European brands at the Hong Kong International Licensing Show last January.

    Toby Black has more than 1.2 million fans on Tmall, sells on all major online e-commerce platforms, and has a presence at school and university events throughout the territory.

    “We have an extensive online and offline sales network and experience in product development and have sold hundreds of millions of products,” said Toby World Limited GM Florence Law in an interview with Hong Kong Means Business.

    “Licensing has taken off in the mainland market, with remarkable growth recently, and – hoping to reach out to other businesses – we established a subsidiary in December last year. We hope to use this to develop other products and roles through licensing.”

    One of the firm’s products, a phone charger shaped as a cat’s paw, reached viral popularity since being used by leading Chinese actress Yang Mi.

    “We try to cater to international tastes that respect the true spirit of design,” said Law. “Instead of simply copying the image and applying it to different products, we invest in model-making for unique products.

    “Licensing helps to extend our business blueprint; next we hope to participate in areas like franchising, wholesale, theme parks and premium gifts.”

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  • AS Watson opens its 3800th Watsons store in China

    AS Watson opens its 3800th Watsons store in China

    AS Watson Group is opening its 3800th Watsons store in China.

    The new outlet is located in Kunming, the largest city in Yunnan Province, and is designed to provide one-on-one beauty services to customers supported by the fully integrated digital experience.

    “Our extensive physical store network provides unique touchpoints in over 470 cities in China, connecting us to customers through the in-store experience and digital engagement,” said AS Watson (Asia & Europe) CEO Malina Ngai. “All stores provide 30-minute ‘click-and-collect’ service and 60-minute ‘click-and-delivery’ service which are widely used and appreciated by customers. Including China, this year AS Watson Group is on plan to open 1300 new stores globally. That is, on average one new store every seven hours.”

    The new Watsons store in China, located in Living Mall of Yunnan, uses the latest retail technologies to combine online and offline (O+O) platforms. The new more than 2000sqft store is committed to providing customers with an engaging shopping experience through a wide range of Watsons offerings.

    “Building customer connectivity with our 65 million loyal members in Mainland China plays a vital role in our growth in this vibrant market,” said Watsons China CEO Kulvinder Birring. “On top of that, we have launched our Elite Card VIP program to ensure our highest-spending members enjoy the most privileged service … Going forward, Watsons China will continue to enh

  • Sands Shoppes Macao honours its top selling retailers

    Sands Shoppes Macao honours its top selling retailers

    Sands Shoppes Macao held its fifth Sands Retail Awards this week, at the Four Seasons Hotel.

    The awards honor retailers who achieved outstanding performance this year across 13 categories including best store performance, best loyalty program, best window display, best store design, and best customer service, along with a rising star.

    “While the Sands Retail Awards recognize the best of the best, all our retailers across Sands Shoppes Macao set incredibly high industry standards,” said David Sylvester, executive VP of global retail at Las Vegas Sands Corp.

    “There is huge competition for these coveted awards and the retailers who make it through have demonstrated total commitment to ensuring visitors to our shopping malls enjoy their experience here.”

    Sands Shoppes Macao Retail Awards Winners are:

    Best Store Performance – Luxury: Louis Vuitton (Shoppes at Four Seasons)

    Best Store Performance – Luxury Watch & Jewellery: Rolex (Shoppes at Venetian, Shoppes at Cotai Central, Shoppes at Parisian)

    Best Store Performance – High Street Fashion: MSGM (Shoppes at Parisian)

    Best Store Performance – High Street Watch & Jewellery: Swarovski (Shoppes at Cotai Central)

    Best Store Performance – Beauty: Temptation (Shoppes at Parisian)

    Best Store Performance – General Retail: Mannings (Shoppes at Venetian)

    Best Store Performance – Food & Beverage: Lei Garden (Shoppes at Venetian)

    Best Loyalty Program Performance – Highest Point Redemption: Fortress (Shoppes at Venetian)

    Best Loyalty Program Performance – Highest Number of Transactions: Tai Hing Restaurant (Shoppes at Venetian)

    Best Window Display: Versace (Shoppes at Four Seasons)

    Best Store Design: Apple (Shoppes at Cotai Central)

    Best Customer Service: Victoria’s Secret (Shoppes at Venetian)

    Rising Star: Sandro (Shoppes at Venetian)

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  • Google adds dynamic email support to Gmail on Android and iOS

    Google adds dynamic email support to Gmail on Android and iOS

    Google Docs is not the only app the Mountain View company is improving this week. As the title says, Gmail, Google’s email app is getting important upgrades on both Android and iOS platforms.

    The highlight of the latest update is dynamic email, new functionality that is now rolling out to Gmail on Android and iOS. Dynamic email lets Gmail users take action directly within a message. For example, you can respond to a comment, RSVP to an event, or manage subscription preferences directly within the email.

    Another advantage of having support for dynamic email is that the functionality can be kept up to date so that when you open an email you’ll see the most up-to-date information about the subject.

    Now, according to Google, the rollout is starting today, but it may take more than two weeks for everyone to see the functionality on their Android and iOS devices. It’s also worth mentioning that dynamic email support will be turned on by default when the functionality arrives on a compatible device.

  • Indonesia’s Alfamart plans aggressive Philippine expansion

    Indonesia’s Alfamart plans aggressive Philippine expansion

    Indonesian convenience-store chain Alfamart plans to open 100 new stores in the Philippines by year end.

    Since opening its first Philippine store in 2014, Alfamart has grown its store network to around 600 stores, which are operated by its local partner SM Retail.

    Alfamart corporate affairs director Solihin says they have set up a subsidiary named DC Properties Management Corporation, in addition to the three distribution centers, to support its expansion drive.

    In Indonesia, Alfamart currently has more than 10,000 stores, having opened its first store in 1999.

    The convenience store market in the Philippines, dominated by 7-Eleven, is forecast to continue to grow as urbanization continues at a rapid pace and consumer confidence climbs. According to SM Supermalls COO Steven Tan, “retail in the Philippines remains vigorous and upbeat”.

    “Optimism to spend among Filipinos is more than just a sentiment. We see it translating into actual consumer behavior, especially retail,” he said.

  • Japanese used luxury-goods chain Komehyo opened in Bangkok

    Japanese used luxury-goods chain Komehyo opened in Bangkok

    Japanese used designer products retailer Komehyo has launched in Bangkok.

    The CentralWorld shopping complex outlet opened on Friday in cooperation with local partner Saha Group. It is part of the firm’s drive to expand throughout Southeast Asia.

    “With no other major competitors having a presence, Thailand offers hidden opportunities for Komehyo,” said president Takuji Ishihara.

    Komehyo has set up a purchasing office near its Bangkok location to facilitate sourcing used fashion products.

  • Vietjet Air signs $140 million loans for fleet expansion

    Vietjet Air signs $140 million loans for fleet expansion

    Vietjet Air has signed a syndicated loan agreement worth $140 million with three foreign banks to fund its aircraft purchase plans.

    The lenders were South Korea’s Woori Bank and KEB Hana Bank; and the Industrial and Commercial Bank of China, the airline said in a statement Tuesday.

    The low-cost airline is eyeing new routes to the Middle East, Eastern Europe and Australia using the 20 Airbus A321XLR aircraft it ordered last month.

    The A321XLRs are scheduled to be delivered from 2023 and the carrier plans to add 10 international routes every year, Thao said.

    Vietjet currently flies 40 domestic and 66 international routes. It operates 385 flights daily within Vietnam and to places such as Japan, Hong Kong, South Korea, Taiwan, Singapore, mainland China, Thailand, Myanmar, Malaysia and India.

  • Japanese used luxury-goods chain Komehyo has opened in Bangkok

    Japanese used luxury-goods chain Komehyo has opened in Bangkok

    Japanese used designer products retailer Komehyo has launched in Bangkok.

    The CentralWorld shopping complex outlet opened on Friday in cooperation with local partner Saha Group. It is part of the firm’s drive to expand throughout Southeast Asia.

    “With no other major competitors having a presence, Thailand offers hidden opportunities for Komehyo,” said president Takuji Ishihara in a Nikkei report.

    Komehyo has set up a purchasing office near its Bangkok location to facilitate sourcing used fashion products.

  • Tse Sui Luen profits plummet as Hong Kong protests impact sales

    Tse Sui Luen profits plummet as Hong Kong protests impact sales

    Tse Sui Luen profits plummeted in the first half as Hong Kong protests took their toll, especially during the September quarter.

    The company, which operates stores under the TSL banner, has reported a 14 percent year-on-year decline in sales to HK$1.6552 billion  ($US211 million) while Tse Sui Luen profits attributable to shareholders fell by 94 percent to just $1.6 million ($204,000).

    Chairman and executive director Annie Lau said the year to date has been challenging for all businesses operating in Hong Kong, where TSL’s sales fell by 23.9 percent in the half-year and same-store sales were down by 26.4 percent.

    “The outbreak of citywide protests and social unrest in Hong Kong in June has, when combined with the downward economic pressure being felt from the protracted US-China trade tensions and Renminbi depreciation, all conspired to devastate our retail business in Hong Kong.”

    She said the depreciation of the Renminbi has reduced spending by mainland visitors, impacting Hong Kong sales, and shrunk earnings from Mainland China businesses in Hong Kong dollar terms, (where the company is listed).

    “While the US and China have resumed trade talks, the economic outlook remains gloomy and shrouded in uncertainties as a trade consensus continues to appear beyond reach.”

    Lau said the social unrest since June has weakened local consumer sentiment and the protests have made it challenging for retailers to operate.

    “The hardship the local retail industry is facing is likely to persist or even worsen in the remainder of this financial year.”

    She said the company was continuing to optimize its store network in Hong Kong and work with landlords to reduce its rental costs.

    In Mainland China, TSL sales through self-operated stores were down by 8.5 percent overall and same-store sales fell by 7.5 percent, “mainly attributed to the protracted US-China trade war with tit-for-tat tariffs”.

    During the six months, seven new self-operated stores and 41 new franchised stores were opened, taking the Mainland China network to 448.

    “Going forward, we will take a cautious approach and optimize our retail network in Mainland China with the volatile market conditions being taken into consideration,” said Lau.

    Meanwhile, TSL has now expanded its Malaysia store network to six after opening at Mid Valley Southkey Megamall in April. Sales there were up 16.5 percent.

    On a more positive note, TSL’s e-commerce business grew by 27.7 percent year on year.

    “We believe that this sector will grow to be a significant source of revenue for the group going forward,” said Lau. “Encouraged by the great response received from the group’s official website for Mainland China, we are working on developing an official website for Hong Kong and establishing our online presence on e-business platforms in order to further facilitate the online-to-offline and offline-to-online retail practice.”

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