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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.

  • Lotte Duty Free online sales up

    Lotte Duty Free online sales up

    Online store sales at Lotte Duty Free (LDF) increased by 49 percent year on year to KRW1.4 trillion (US$1.85 billion) during the first half of this year.

    The firm is targeting total online sales of KRW2.9 trillion ($2.46 billion) by the end of the year, following around KRW2 trillion in sales last year – an increase of 46.3 percent over 2017 results. It welcomes an average of 5.4 million active users per month on its retail platform and is on track to take in 30 percent of its total revenues from online sales within five years.

    LDF’s online store offers roughly 87,000 products from almost 2000 brands, around 324 of which are Korean-industry-exclusives such as Filorga, Eve Lom, S. Maria Novella, Barbour, Dr. Martens, Crocs, Joseph&Stacey, Primage, and Lucky Chouette.

    According to the firm, it is the only online duty free operator supporting four languages – Korean, English, Japanese, and Chinese (both simplified and traditional). The addition of traditional Chinese characters in September last year contributed to a 291 percent boost from countries using the character set, including Taiwan, Singapore and Hong Kong.

    The online platform has recently introduced several measures to improve its online services. It monitors real-time congestion levels at its Incheon Airport pick-up counters and has recently relaxed conditions for online VIP membership. The firm has also been conspicuously targeting a younger market with partnerships with other online platforms – supermarket Market Kurly and fashion retailer W Concept – popular with that demographic. Lotte also markets throughout its subsidiary platforms via other Lotte-branded online services.

  • Instagram tests hidden like counts in Australia

    Instagram tests hidden like counts in Australia

    Some Instagram users in Australia are no longer able to see exactly how many likes other users’ posts have received, after the social media platform expanded a test to hide like counts to more countries today.

    Instagram has been testing hidden like counts in Canada for the past 2.5 months, and on Thursday, the platform expanded the test to six more countries, including Australia and New Zealand.

    According to reports, users involved in the test can still see how many likes their own posts receive, but the number is not made public, unless they opt out of the test. Instead, posts show the usernames of one or two people, and say they and “others” have liked the post.

    The company, which is owned by Facebook, has said it is exploring whether hidden like counts will encourage users to pay more attention to the photos and videos being shared, rather than the number of likes a post receives.

    The change comes amid growing concern about the impact of social media on users’ mental health, especially young people. A recent study conducted with university students found that those who limited their total time on Facebook, Instagram and Snapchat to 30 minutes per day reported feeling less depressed and lonely.

    The head of Instagram Adam Mosseri recently told the Financial Times that ensuring safety and well-being on the platform is his “number-one priority”.

    In addition to hiding like counts, the platform is also exploring features to reduce bullying on Instagram, such as a new “nudge” feature that will warn users if they’re about to comment something hurtful, and an “away mode” that will enable users to take a break from the platform without deleting their account.

    The platform is also exploring ways to enable users to control how certain people interact with them without having to block them completely.

    But while these measures largely have been welcomed by users, it is unclear how they will impact the millions of businesses that use Instagram to share new products and offerings with consumers.

    Like counts not only give businesses a rough indication of how popular certain products or trends are, they are a key metric for influencers and the brands that hire them.

    An Instagram spokesperson said: We understand that this is important for many creators, and while this test is in exploratory stages, we are thinking through ways for them to communicate value to their brand partners.”

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  • Positive outlook for Singapore retail leasing sector

    Positive outlook for Singapore retail leasing sector

    Ongoing investment-sale activity for malls suggests a positive outlook for the Singapore retail leasing sector, reports Edmund Tie & Company – especially for properties well connected to public transport and offering experiential and activity-based retail options.

    In a report Q2 2019 Real Estate Times for the Singapore market, the property company projects islandwide rental growth will be mixed, ranging from a 2 per cent decline to a 2 per cent increase this year. The low supply pipeline from next year onwards is likely to provide some underlying support to occupancy rates and rental levels.

    Investment market 

    For the second consecutive quarter, investment transaction value (of properties valued above S$100 million) jumped more than 52 per cent quarter on quarter with two transactions totalling $961 million. The largest sale was Chinatown Point for $520 million to a foreign institutional investor.

    The net supply of space fell by about 78 per cent as fewer projects were completed. As such, islandwide occupancy declined slightly by 0.4 percentage points to 90.1 per cent in the first quarter, however, the opening of Funan mall with 325,000sqft net lettable area – with 95 per cent of space pre-leased – is not expected to significantly impact occupancy rates in the second quarter.

    Rental rates 

    Singapore retail leasing rates across the different market segments remained largely flat, as occupancy rates remained high for malls located in prime positions. Upper-storey retail in the Orchard Road/Scotts Road area likely fell slightly due to weakened tourist spending, while the prime malls in the suburban areas continue to attract major brand retailers and new-to-market brands.

    The net demand and supply for retail spaces in suburban areas slowed in the first quarter, with the occupancy rate down marginally.  Prime-located malls with easy transportation access and a diverse and well-managed tenant mix continued to perform relatively well.

    New openings included Cafe Amazon outlets at Jewel Changi and Jurong Point Shopping Centre, and Xing Fu Tang (a Taiwanese bubble tea chain) opened a permanent store at Century Square in the second quarter.

    New space supply pipeline 

    From the third quarter of this year through to 2022, some 1.1 million sqft of retail space is expected to come onstream, with the majority of that to be completed in the second half of this year. The largest will be the Paya Lebar Quarter mall of about 313,000sqft.

    The average annual pipeline of known projects from next year through to 2022 is less than 150,000sqft, which is substantially below the three- and five-year average.

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  • Lee Hwa’s JewelPlay opens at Bugis Junction

    Lee Hwa’s JewelPlay opens at Bugis Junction

    Lee Hwa’s JewelPlay concept has opened at Bugis Junction, promising personalised jewellery and services for weddings.

    Targeting millennial couples and fashion-forward shoppers, the 880sqft concept store features interactive touch-points and spaces geared to showcasing the brand’s bridal jewellery collection, Lee Hwa Romance, as well as its extensive multi-wear series catered to the young and the young-at-heart.

    “Besides the trendsetting multi-wear jewellery for daily wear, we observed a growing demand among young couples,” said Mavis Toh, business director of Lee Hwa Jewellery.

    “We want to be a part of every couple’s unique love journey, from couple bands, to proposal ring, wedding bands, bridal jewellery, and anniversary gifts.”

    She says Lee Hwa’s JewelPlay boutique is providing an engaging space for couples to “revel in the experience and celebrate their love story together”.

    The store features a JewelPlay Mirror in front of which people can try on jewellery for Instagrammable photographs.

    In the ‘Love Cove’ customers can receive a private consultation with a boutique staff member to explore creative bridal styles and personalisation.

    Lee Hwa’s JewelPlay carries the widest selection of bridal jewellery among all of its stores, which includes global jewellery brands such as Destinee, Forevermark and Niessing as well as customisable wedding-band collections such as Ensemble Collection, Niessing Configurator, and Furrer Jacot Ringdividuell.

    Couples can design their own jewellery Lee Hwa Jewellery’s My Personal Designer service.

    Lee Hwa’s JewelPlay has launched a store-exclusive collection to celebrate the boutique’s opening.

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  • South Koreans boycott Japanese products

    South Koreans boycott Japanese products

    A boycott campaign against Japanese products and services is becoming a nationwide movement and extending into travel.

    The boycott started after Japan imposed trade restrictions against South Korea. Amid the boycott, a series of statistics show that the number of reservations for trips to Japan has dropped significantly.

    Hana Tour, the nation’s leading travel agency, reports that the number of new reservations for three-day trips to Japan from July 8 to 10 dropped to an average of 400 per day.

    The figure is down one-third, considering the average number of people booking a new trip to Japan through the company is around 1200 per day.

    However, Hana Tour reported that the number of cancellations, where customers retrack their reservation, remained the same.

    “Up until last week, the number of customers making reservations to Japan was similar, but this week the number declined sharply,” a Hana Tour official said.

    Another travel agency, which requested anonymity, also said that reservations for trips to Japan had been declining compared to typical levels since late last week.

    Those who considered travelling to Japan for the summer vacation season are changing their destinations to other countries. The decision is part of the aftermath of the boycott, a travel industry source said.

    “However, those who had booked trips to Japan in advance seem to be reluctant to cancel because of the huge burden of cancellation fees,” added the source.

  • SMCP launches Sandro on Farfetch

    SMCP launches Sandro on Farfetch

    Fashion group SMCP is to launch its Sandro brand on Farfetch.

    The Chinese-controlled, French-based affordable luxury retailer says the 13 million-plus clients per month around the world that Farfetch attracts will be an ideal partner to enable Sandro to address a wider, premium customer base.

    “We are delighted with this new partnership with one of the major digital players of the luxury sector,” said Sandro CEO Isabelle Allouch.  “We are convinced that having our products on Farfetch will contribute to Sandro’s digital expansion across the globe, positioning it as a high-end luxury brand and enhancing its worldwide visibility and awareness.”

    She said the partnership marks a key milestone in the global roll-out of SMCP’s digital strategy, bringing together online and offline shopping.

    “It perfectly complements the group’s growing digital presence alongside the successful global deployment of our own websites, and further diversifies its digital sales channels, enabling the group to reach more than 190 countries across the world.”

    The partnership comes just three months after the announcement of a landmark partnership with JD.

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  • Luk Fook sales drop 10 per cent as trade war bites

    Luk Fook sales drop 10 per cent as trade war bites

    The trade war between the US and China has been partially blamed for a 10 per cent fall in Luk Fook sales.

    In a quarterly sales update, the Hong Kong-listed jewellery retailer said a relatively higher base in the comparable period also contributed to the decline.

    First-quarter same-store Luk Fook sales were down 10 per cent with the overall same-store sales of gold products down 19 per cent. Gem-set jewellery sales rose 4 per cent.

    In Hong Kong and Macau, sales of gold products fell by 20 per cent while gem-set jewellery sales rose 6 per cent.

    “The favourable sales performance of lower-value items resulted in a double-digit drop in the average selling price of gem-set jewellery products,” said chairman and CEO Wai Sheung Wong. “However, due to the remarkable increase in sales volume, the same-store sales of gem-set jewellery products still recorded positive growth given a high base.”

    Sales on the mainland fell 7 per cent, with gold products down by 4 per cent and gem-set jewellery down by 7 per cent. However, mainland licensed shops recorded a low single-digit same store sales growth.

    Luk Fook added a net 35 new Lukfook stores in the mainland during the quarter. As at June 30, the company operated 1861 worldwide, 1790 of those on the mainland.

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  • India’s Ferns N Petals launches in Singapore

    India’s Ferns N Petals launches in Singapore

    Indian flower-and-gift retailer Ferns N Petals has launched in Singapore, planning to offer gift deliveries for special occasions.

    The company hopes Singapore will provide it with an opportunity to grow awareness and increase its customer base across Southeast Asia.

    Customers can place orders from the website already, with a mobile app to be launched soon.

    “Expansion is the ultimate aim of a business and for us at Ferns N Petals. The vision is to expand across Southeast Asia and the Middle East,” said Pawan Gadia, CEO, retail & online at Ferns N Petals.

    “After making our venture profitable in the UAE, we are now eyeing the Southeast-Asian market, starting with Singapore.”

    With 25 years of experience, Ferns N Petal has more than 330 retail outlets across India and the UAE.

  • Craveable Brands bought by Hong Kong private equity company

    Craveable Brands bought by Hong Kong private equity company

    A Hong Kong-based private equity company has bought out restaurant operator Craveable Brands as the Australian company steps up its foray into Asia.

    PAG Asia has paid an undisclosed amount to acquire the business from Archer Capital and other minority shareholders.

    Craveable Brands owns the Red Rooster chain of fried chicken fast-food restaurants and Oporto, a Portuguese chicken quick-service restaurant which will open its first outlet in Vietnam this week. Oporto stores are already operating in Singapore and Sri Lanka.

    Craveable Brands has more than 580 stores, including a third, smaller chain Chicken Treat.

    “Craveable Brands is a terrific asset in the Australian QSR market, owning three iconic brands with significant scale,” said PAG chairman and CEO Weijian Shan in a statement announcing the purchase. “We see great opportunities for Craveable and look forward to working with management on the next stage of portfolio innovation.”

    Archer Capital managing partner Peter Gold said his team had built the Craveable Brands business into a US$560 million company since acquiring it in 2011.

    “We have had a great experience partnering with the management team led by Brett Holding and countless hardworking franchisees who have transformed the brands and customer experience.”

    The current Craveable Brands management team will be retained.

  • Tenants leaving Thomson Plaza due to renovation works

    Tenants leaving Thomson Plaza due to renovation works

    Tenants are upset over Thomson Plaza renovation works, with at least 20 retailers leaving.

    The renovation started this month and will last until the second quarter of next year. Parts of the first and third storeys are being renovated by one of its landlords, Mercatus Co-operative.

    “The renovation will provide shoppers with a holistic and comfortable shopping experience, in preparation for the improved connectivity from the upcoming MRT station at Upper Thomson,”

    Retailers say business has fallen since the renovation began.

    “They didn’t give us enough time, and we just renovated. Business has been so bad since the renovation started, we earned only $200 on some days,” said Siva Crakash, branch manager of Home-Fix, which has been there for 15 years.

    Twenty tenants out of 180, will not be returning, including Royal Sporting House and Wine Connection.

    Shoe shop NTS Marketing on the third floor has moved to the second and its owner is also unhappy with the revamp.

    “Regulars don’t know where we moved to and we have a smaller unit now, so we have to serve fewer people at one time,” the owner said.

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  • Bonjour Holdings warns of loss ahead

    Bonjour Holdings warns of loss ahead

    Bonjour Holdings says it expects a loss in the half year to June as protests took their toll on the city’s retail sector.

    Last year, Bonjour Holdings reported a profit of HK$7.4 million in the six month period.

    In a stock-exchange filing, the company did not release an estimate of the level of loss it anticipates, with the preparation of final results still incomplete.

    Chairman and executive director Wilson Ip Chun Heng said the board believes the reversal of fortune is mainly attributable to the weak sales performance brought about by both local and global factors, including the US-China trade war, the depreciation of RMB, and the demonstrations and social unrest in Hong Kong which occurred in June.

    “Moreover, the implementation of the e-commerce law in China at the beginning of the year has severely hit the mainland “Daigou” (surrogate shopping) which has, to a certain extent, adversely affected our group’s turnover in the short-term.”

  • Daiso launches its first Threeppy shop in Singapore

    Daiso launches its first Threeppy shop in Singapore

    Japanese discount retailer Daiso will launch its Threeppy store at Funan mall on Sunday.

    Japanese discount retailer Daiso will launch its Threeppy retail store at Funan mall on Sunday (July 14).

    Known as the ‘premium’ version of Daiso, the first Threeppy outlet in Singapore and Southeast Asia will offer kitchenware, household goods, and stuffed toys, among other items, with prices starting at US$5.80

    The new brand is hoping to attract family shoppers in Singapore with women in their 20s to 40s their main target.

    Daiso currently operates 22 Threeppy shops in Japan, and plans to add 30 stores every year.

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  • Vietjet Recognised as One of the “Best Companies to Work for in Asia 2019”

    Vietjet Recognised as One of the “Best Companies to Work for in Asia 2019”

    Vietjet has been recognised as one of the best employers in Asia at the ” HR Asia – Best companies to work for in Asia 2019″ awards. Held in Ho Chi Minh City and organised by Asia’s leading human resource magazine, HR Asia Magazine, the awards recognise Vietnamese companies with the best working culture.-

    The HR Asia Awards is a prestigious regional award that evaluates and recognises companies with excellent working environments throughout Asia and has been held annually in various Asian countries such as Hong Kong, Singapore, China, Malaysia, Indonesia and Taiwan. Other companies in Ho Chi Minh City such as HDBank and Sun Group also received the award this year. HR Asia carries out in-depth surveys with senior executives and HR managers at leading Vietnamese companies to evaluate their HR policies, recruitment and strategies put in place to cultivate excellent working environments, among other factors to determine the winners of the award.

    Speaking about the award, Vietjet Managing Director Luu Duc Khanh said: “Our company’s greatest asset is our employees, and thus, we take great pride in creating a work environment and culture that fosters success. Vietjet’s success is contributed to by the performance of each employee and team work and this award is especially exciting as an employee survey is used as part of the evaluation. We will continue our commitment to investing in employee well-being and engagement in order to ensure our further success.” 

    The new-age airline Vietjet has not only created a “revolution” in the aviation industry by offering flying opportunities for millions of passengers all around the region and the world, but has also offered countless opportunities to its staff with a young, dynamic working environment, good benefits and good HR policies.

    Vietjet has been honored to be the best employer brand in Asia for many consecutive years and one of the top 50 airlines worldwide by Air Finance Journal for financing and operations. The company has also been recognised with many other domestic and international awards. 

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  • Vietjet Announces New Routes and IncreasesFlight Frequencies to Phu Quoc

    Vietjet Announces New Routes and IncreasesFlight Frequencies to Phu Quoc

    Vietjet has announced its plans to launch new routes and increase flight frequencies to and from Phu Quoc, one of Vietnam’s top beach destinations.

    The announcement was made on 29 July 2019 at the Kien Giang Investment Promotion Conference, titled “Kien Giang – Potential and opportunities for investments and sustainable development.” More than 500 industry and organizational leaders, investors and leading private enterprises attended the conference; Vietnamese Prime Minister Nguyen Xuan Phuc and senior leaders of the Vietnamese Government were also present at the event.

    Vietjet detailed its plans to operate two new domestic routes: Phu Quoc – Da Nang and Phu Quoc – Van Don. The new routes will operate at a frequency of seven flights per week from the end of this year and the middle of next year respectively. Two new international routes (air charters) were also announced: Phu Quoc – Chengdu (China) and Phu Quoc – Chongqing (China), with three round-trip flights per week starting from the end of 2019.

    The flight frequencies of two international routes Phu Quoc – Hong Kong (China) and Phu Quoc – Incheon (South Korea)will also be increased to six flights per week and fourteen flights per week respectively from the coming winter months to meet the increasing travel demands of Phu Quoc’s peak season.

    Since Vietjet’s first flight to Phu Quoc in 2012, its flight networks have continued to expand, connecting Phu Quoc to many other countries and cities in the region. Speaking at the conference, Prime Minister Nguyen Xuan Phuc expressed his support for investors and leading companies such as Vietjet in contributing to the economy of Kien Giang province.

    To celebrate the announcement of the new routes to Phu Quoc, Vietjet is offering 85,000 tickets from only S$0* for travelers to fly to Phu Quoc, the famous island of Kien Giang province. Promotional tickets are available for purchase from now until 31 July 2019 and are applicable for travel from 5 September 2019 to 31 December 2019 for domestic routes connecting Phu Quoc to Hanoi, Hai Phong and Ho Chi Minh City, and 5 September 2019 to 25 June 2020 for international routes connecting Phu Quoc to Hong Kong and Incheon.

     

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  • Hong Kong protests may drive retail-sales slump

    Hong Kong protests may drive retail-sales slump

    The ongoing Hong Kong protests are eroding the sales of the territory’s retailers according to the HKRMA.

    “Depending on the performance of different retail categories, most member companies said the turnover in the first week of June recorded an average [decline] of double digits,” said the Hong Kong Retail Management Association in a statement we have translated from Chinese.

    “Activities are spreading across districts, and members expect business to be greatly affected,” said the HKRMA, noting that July and August mark the traditional summer-holiday sales season, but recent large-scale demonstrations, including one in a Sha Tin shopping mall last Sunday, may deter manilanders from visiting the city.

    “Large-scale parade activities have caused individual stores to suspend business. Not only are the retail companies under pressure, so is the income of store employees.”

    The HKRMA said the industry is worried that the ongoing protests will impact on Hong Kong’s reputation as a safe city, a food capital, and a great place to shop.

    “These large-scale parades have an impact on the life of the people and the business environment. If the situation persists, the association anticipates an annual decline of retail sales in the double digits.

    “The association appeals to the government to solve the problem peacefully at an early date and bring social order back on track.”

    The HKRMA called on employers and employees to maintain close communication during Hong Kong protests.

    “In the face of special circumstances, employee safety should be the most important consideration.