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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.

  • China ends Lotte Markt Sanctions

    China ends Lotte Markt Sanctions

    Lotte sanctions imposed by the Chinese government two years ago have now been lifted.

    Authorities in Shenyang have allowed South Korea’s Lotte Group to resume work on a US$2.6 billion retail and leisure development in the region following the lifting of sanctions against the firm by the Chinese government last month.

    The Lotte sanctions were imposed two years ago after the group yielded land to a US anti-missile defense system.

    Shenyang, a capital city in China’s Northeast, has now permitted the resumption of work on the Lotte Town development, although Lotte has not yet formally indicated whether or not it intends to restart construction, which has been on hold while the sanctions have been in place.

    The first phase of the project was completed in 2014, while the theme park, flats, and hotel planned for the site remain unfinished following Lotte’s sale of land in Seongju county to the South Korean government to allow the deployment of the US Terminal High Altitude Area Defence system.

    The Lotte sanctions prompted the South Korean company to announce its withdrawal from Mainland China last year, although it now insists that no final decision has been made.

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  • Vietnam’s Petrolimex plans Countrywide Convenience Stores

    Vietnam’s Petrolimex plans Countrywide Convenience Stores

    Vietnamese petroleum retailer Petrolimex is planning to build a convenience-store chain.

    After five years of research, the group plans to open stores across its network of 5200 gas locations across the country.

    “Petrolimex will expand into this sector, each store will host 1500 to 2000 products,” a Petrolimex representative said during a conference.

    “Our strategy partner JX Nippon Oil will support us to set up the chain in the most optimal way.”

    Petrolimex has tested the industry with its P-Mart in Hanoi’s Hoai Duc district. The store only sells Petrolimex-branded products such as oils and a limited range of snacks and beverages.

    There is no official information if Petrolimex will base its chain on this concept or build a different one.

    Stepping into the convenience-retailing sector, Petrolimex will compete with experienced players such as Circle K, 7-Eleven, VinMart + and FamilyMart, but none of those brands are affiliated with service stations.

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  • Vietnamese good to be displayed at Japanese supermarket chain

    Vietnamese good to be displayed at Japanese supermarket chain

    A week for Vietnamese goods this year will be held at the Aeon supermarket chain in Saitama prefecture and Kanto region in Japan from June 5-12, according to organizers.

    During the week, Vietnamese goods will be highlighted at 40 outlets in the Aeon distribution system, along with many activities such as plant tours, product assessment, and consultations.

    Business-to-business contacts between Vietnam and Aeon importers, the introduction of Vietnamese products and capacity, popularisation of standards for imports, and agreement signing, along with food shows, tourism promotion, and art performances will be held within the framework of the week.

    After the week, enterprises will be supported to connect with Aeon so as to supply their products to the supermarket chain. AEON committed to raising Vietnam’s export turnover through the group’s system to US$500 million in 2020 and $1 billion in 2025, following a memorandum of understanding (MoU) inked between the Japanese group and the Ministry of Industry and Trade.

    In order to help Vietnamese businesses to join the AEON supply chain and become a supplier for the over 1,000 AEON supermarkets around the globe, the group has built a plan including a number of activities to increase the presence of made-in-Việt Nam goods, Yuichiro Shiotani, General Director of AEON Topvalu Vietnam, said at a recent conference in HCM City.

    AEON has also provided technical support to improve the production capability of Vietnamese suppliers and help them access Japanese customers, as well as boost the purchase of Vietnamese goods to sell at its stores in Japan and other countries, he said

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  • Little Dip in Hong Kong Retail Sales Last Month

    Little Dip in Hong Kong Retail Sales Last Month

    Hong Kong retail sales in March slipped by a negligible 0.2 percent, a slower decline than the 1.6 percent of January and February combined.

    But figures from the Census and Statistics Department show first-quarter retail sales were still down 1.2 percent year on year.

    After netting out the effect of price changes over the same period, the provisional estimate of the volume of retail sales in March decreased by 0.8 percent compared with a year earlier, and for the first quarter by 1.6 per cent.

    March’s decline was driven largely by the watches, jewelry and valuable gifts sector, which fell by 2.6 percent, and apparel, down by 2.3 percent. Sales of electronic goods fell by 15.6 per cent, of optical shops by 5.7 per cent and of books and stationery by 2.5 percent.

    Conversely, sales by supermarkets increased 3.3 percent, of medicines and cosmetics by 2.5 percent, in department stores by 5 percent, and of food, liquor and tobacco by 3.6 per cent.

    Footwear and accessories sales rose by 7.1 percent, furniture by 4.3 percent and Chinese drugs and herbs by 1 percent.

    A government spokesman said the decline in Hong Kong retail sales in March “reflected the cautious consumption sentiment amid various external uncertainties”.

    He said that looking forward, retail sales business will likely continue to be affected by various external uncertainties in the near term, but the largely stable labor market and the sustained growth in inbound tourism should provide some support.

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  • Apple faces a fineof $26.6 billion in antitrust probe

    Apple faces a fineof $26.6 billion in antitrust probe

    The Financial Times reports today that complaints made by music streamer Spotify against Apple will be investigated by the EU competition commission. The issue is the 30% cut of revenue that Apple charges apps in the App Store for using its payment system. Spotify calls this the “Apple Tax” and complains that it gives rival streamer Apple Music an unfair advantage. The complaint was originally lodged in March. While Apple takes 30% from Spotify and other music subscription services, it doesn’t charge other apps like Uber.

    If the EU rules in favor of Spotify, it can force Apple to change its business practices on the continent and fine Apple up to 10% of the company’s global revenue. In Apple’s case, the fine could total as much as $26.6 billion. Most likely, Apple and the EU competition committee will work out a settlement with the company promising to lower or end the so-called “Apple Tax.”

    Both Apple Music and Spotify have similar monthly subscription rates, with both charging $9.99 a month for an individual subscription, $14.99 a month for families with up to six members, and $4.99 a month for verified students. However, because of Apple’s 30% cut, in the App Store Spotify charges $12.99 a month for individuals, $16.99 a month for families and $7.99 a month for verified students. Unlike Apple, Spotify does have a free tier of service that is ad-supported, although it doesn’t allow users to download music or select individual songs.

    Just last week, Spotify announced that it grew the number of its paying Premium tier subscribers by 32% year-over-year during the first quarter. The company now has 100 million paying subscribers and 117 million who use the free ad-supported service. At last count, Apple Music had 56 million paying subscribers worldwide. However, in the states, it is Apple Music on top-barely. Just recently, the Wall Street Journal said that in the U.S., Apple Music has 28 million paying subscribers compared to 26 million for Spotify.

    A lawyer at Clifford Chance that helped Spotify file its complaint, Thomas Vinje, said that there are other music streamers that agree with Spotify’s position. However, Vinje says that these other companies are “too afraid to take on Apple.” Back in March, Apple responded to the charges by pointing out that Spotify used the App Store to grow its business over the years without making any contributions to it in return.

    “After using the App Store for years to dramatically grow their business, Spotify seeks to keep all the benefits of the App Store ecosystem — including the substantial revenue that they draw from the App Store’s customers — without making any contributions to that marketplace. At the same time, they distribute the music you love while making ever-smaller contributions to the artists, musicians, and songwriters who create it — even going so far as to take these creators to court.
    Spotify has every right to determine their own business model, but we feel an obligation to respond when Spotify wraps its financial motivations in misleading rhetoric about who we are, what we’ve built and what we do to support independent developers, musicians, songwriters and creators of all stripes.”-Apple

    Apple has been fined before by the EU’s competition commission. In 2017, commissioner Margrethe Vestager ruled that Apple had to pay 13 billion Euros ($14.6 billion USD) in back taxes. The commission found that a tax deal Apple had with Ireland was actually considered to be illegal state-aid from the country.

  • Vietnamese real estate market attracts Japanese firms

    Vietnamese real estate market attracts Japanese firms

    In an interview with correspondents from the Vietnam News Agency on the sidelines of the TMS Group’s investment promotion workshop in Osaka on April 9, Nakata said that it is not just Vietnam’s real estate market, but those in some Asian countries like Cambodia, Indonesia also have good prospects.

    However, he believed that Vietnam is the most attractive due to its safe and stable investment environment. According to Nakata, the real estate industry in Vietnam has been developing to become the number one investment channel.

    Kako Sasai, head of the business information division of the Japan External Trade Organisation (JETRO), said foreign investment in Vietnam’s real estate could increase in the time ahead.

    She noted that Japan’s investment in Vietnam went up rapidly from 2016 to 2018. The number of Japanese firms investing in the Southeast Asian country has surged, resulting in the increasing demand for offices and houses.

    Most Japanese investors in Vietnam evaluated that the country has lots of potentials and brings stable profits, she said.

    The Vietnamese Government and enterprises have been focusing on attracting more overseas firms to invest in Vietnam beyond the field of real estate, she added.

    According to the latest survey of JETRO, Japan’s direct investment in Vietnam has increased in terms of the number of businesses and the amount of capital. As many as 70 percents of Japanese businesses plan to expand operations in Vietnam, while 88 percent expect their revenues in the market will increase in the future.

    Toru Tomita, director general at the Osaka-based O.M.NET cooperative business association, described Vietnam as a young nation with abundant labor supplies.

    In the future, more Japanese businesses will come to invest in Vietnam, he said.

    The investment promotion workshop in Osaka is part of activities of the TMS Group to introduce the investment environment in Vietnam and seek potential partners in real estate projects that the group is implementing in Vietnam.

    Vietnamese Consul General in Osaka Vu Tuan Hai affirmed that the Vietnamese Government will create an open and equal business environment for Japanese investors.

    The Vietnamese Consulate General will continue supporting and accompanying Japanese businesses in studying, preparing and implementing business investment plans in Vietnam, he said.

    TMS Group has been cooperating with Japanese partners over the past 15 years and it has been serving as a bridge to connect Vietnamese businesses with Japanese partners in the fields of their strengths such as real estate, human resources supply, education-training, trade, services, healthcare, and high-tech agriculture.

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  • Facebook is making changes to the App

    Facebook is making changes to the App

    Besides unveiling a new quicker and lighter Messenger app with end-to-end encryption, and new features for Instagram and WhatsApp, Facebook announced today some changes that are being made to its flagship app. The new focus of the Facebook app will be on groups, and FB5 will feature new ways to bring together people offline. With 400 million users subscribed to over ten million active groups, the redesigned app will make it easier for users to access the groups they belong to and find new ones to join. The groups tab will show a feed from all of the groups a member has joined, with recommendations for new groups to sign up with. Starting today Facebook users will see in their News Feed more content from the groups they belong to, and content from the feeds can be sent to these groups.

    Facebook will add new features for certain groups. HealthSupport Group members will be able to make anonymous posts about their medical conditions. Job groups will have a template to allow employers to post job openings; those interested in a particular job can message the employer and apply for the job through Facebook. Gaming groups will have a new chat feature, and Facebook is looking at ways to allow buyers on Facebook Live to find out more information about a product and make a purchase without leaving the live stream. Opting into the Meet New Friends feature will allow Facebook users to meet others that they share a community with like a school, office or city. Facebook has been testing Meet New Friends and a wider rollout is coming soon. Facebook Groups will be integrated so that users can meet people they share similar opinions with.

    The company also announced the expansion of Facebook Dating to 14 new countries. Facebook Dating is available in Colombia, Thailand, Canada, Argentina, Mexico, Philippines, Vietnam, Singapore, Malaysia, Laos, Brazil, Peru, Chile, Bolivia, Ecuador, Paraguay, Uruguay, Guyana, and Suriname. This feature allows you to find potential matches from your Facebook groups, friends of friends and more. Facebook also is launching a Secret Crush feature that allows you to designate up to nine friends as Secret Crushes. If any one of the nine has opted into Facebook Dating, they will receive a notification alerting them that someone has a crush on them. If one of your crushes then adds you to their Secret Crush list, a match is made. If a crush isn’t on Facebook Dating or doesn’t add your name to his/her Secret Crush list, your interest is never revealed.

    Those using Marketplace to sell items will be happy to hear that they will soon be able to ship their wares anywhere in the continental U.S. and get paid on Facebook using a secure platform. And lastly, a new Events tab will show you things taking place around you and even recommend places to go and things to see. The tab will help you make plans with friends to meet up at an event. Some of the new features will be available right away, while others will be found on the app in a few months.

    Last week, we told you that 2.1 billion people use Facebook, WhatsApp, Messenger or Instagram on a daily basis. 2.7 billion use one of these Facebook properties on a monthly basis. The company does expect to be fined $3 billion to $5 billion for failing to comply with an FTC Consent Decree it signed back in 2011. With the latter, Facebook promised not to use member profiles without users’ approval. But during the Cambridge Analytica scandal, 87 million Facebook members had their profiles sold without permission to Cambridge Analytica and the data used to create psychological profiles.

  • Instagram just Added Three New Features

    Instagram just Added Three New Features

    Over 500 million Instagram users now use Stories on a daily basis to freely express themselves and check in on the lives of friends, family, and influencers. Today, with the goal of keeping these users hooked, some additional features have been announced.

    Unless you select the dedicated ‘Type’ mode in Stories, currently the only way of sharing something to Instagram Stories is by taking a picture or filming a short video. But pretty soon this is about to change.

    As part of a new UI, Stories will soon be divided into three separate modes dubbed ‘Live,’ ‘Camera,’ and ‘Create.’ The first, as its name indicates, will offer Instagram’s current live streaming option while the new ‘Camera’ mode will encompass all other features that are available at the moment. This means that Boomerang, Superzoom, Focus, Rewind, and all other quirky options can be found here.

    As for ‘Create,’ this will encourage sharing without taking photos or videos. It’ll offer colorful backgrounds and include features such as Type and Archive, interactive stickers like Polls and Questions, and much more.

    Instagram has confirmed that the new Stories UI and Create mode will be rolling out globally to users in the near future. Joining the revamped Stories are new Donation Stickers. Starting today in the US, Instagram users can raise money for nonprofit organizations by simply adding a sticker to their posts.

    Users will be given a list of nonprofit organizations which displays the ones they currently follow along with a bunch of other organizations that are popular at the moment. If you can’t find the one you’re looking for, a search bar will also be available.

    Once posted, users will be able to swipe up on the Story to view how much money has been donated. According to Instagram, the amount displayed will be donated in full to the chosen nonprofit.

    On an unrelated note, Instagram is also introducing a new feature called Shopping from Creators. As the name suggests, it’ll allow users to purchase products from influencers such as Kim Kardashian, Kylie Jenner, and Gigi Hadid directly. In order to do so, Instagram users simply need to tap on a post and click one of the tagged items. Then it’s as simple as using the built-in checkout process to buy it.

    This new feature will begin rolling out to users next week but will initially be limited to a small group of creators. In addition to the three mentioned above, Kris Jenner, Chiara Ferragni, Camila Coelho, and Katie Sturino will all have access to the tools. Publishers Elle, GQ, HypeBeast, and Refinery29 will also be able to tag products.

    Tagged items can only be from the brands that are participating in the Instagram checkout beta. These include Adidas, Nike, Burberry, Prada, Michael Kors, Mac, Kylie Cosmetics, H&M, and Zara at the moment

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  • AirAsia named top airline by passenger growth

    AirAsia named top airline by passenger growth

    AirAsia has been named the Top Airline by Absolute Passenger Growth (Southeast Asia) at Singapore’s Changi Airline Awards 2019 recently.

    This is in recognition of its 4.1 per cent increase in passengers carried to and from Singapore to 4.5 million pax recorded in 2018, up from 4.3 million pax the year before, the low-cost carrier said in a statement today.

    It said AirAsia was also adjudged as having the third-highest airline passenger movements overall in 2018, together with Singapore Airlines Group, Jetstar, Cathay Pacific Airways and Lion Group.

    AirAsia Singapore chief executive officer Logan Velaitham said together with Changi Airport Group (CAG), AirAsia has grown Singapore into its third-largest hub, with around 40 flights per day from cities in Malaysia, Indonesia, Thailand and the Philippines.

    “As the largest foreign carrier operating into Singapore, we will continue to link new cities and give travellers here more options,” AirAsia said.

    In support of CAG’s growth plans, AirAsia launched its first international route from Ipoh to Singapore in 2018, it said.

    The Changi Airline Awards, now in its 14th year, recognises airlines for their contributions to strengthening and growing Singapore as an aviation hub.

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  • Ex-AirAsia executive joins Malaysia Airports as COO

    Ex-AirAsia executive joins Malaysia Airports as COO

    Malaysia Airport Holdings (MAHB) has appointed former AirAsia executive Mohammed Shukrie Mohammed Salleh as its new chief operating officer.

    MAHB says that Shukrie will oversee strategies related to airport operations, safety and security, as well as planning and development.

    Shukrie was formerly AirAsia Malaysia’s chief operating officer, before moving to the current position.

    It is the second senior leadership appointment at the airport operator in 2019. In January, MAHB appointed its former finance chief Raja Azmi Raja Nazuddin as its chief executive.

    On Twitter, AirAsia group chief executive officer Tony Fernandes lauded the move, saying that he was “thrilled” that Shukrie would be joining MAHB.

    “He values partners, can communicate well and is a positive human being and a team player. These are qualities that have been lacking in MAHB so I’m sure with him there now things will improve,” he adds.

    AirAsia and MAHB have been embroiled in a legal spat over passenger service charges and service levels at Kuala Lumpur International airport. MAHB has initiated court action against the budget carrier over unpaid passenger service charges, while the low-cost carrier then responded with a counter-claim against the airport operator and has been pushing for mediation.

    MAHB manages 39 Malaysian airports, including those in Kuala Lumpur, Penang, Kuching, and Kota Kinabalu.

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  • AirAsia flies to Lanzhou and Quanzhou

    AirAsia flies to Lanzhou and Quanzhou

    AirAsia continues its expansion into China with two new services from Kuala Lumpur to Lanzhou and Quanzhou. These new services take the number of AirAsia destinations in China to 24, firmly cementing the airline’s position as the largest foreign carrier by capacity operating in China with over 400 weekly flights.

    “Malaysia and China are celebrating 45 years of bilateral relations this year. These exclusive direct services from Kuala Lumpur to Lanzhou in the north-west and Quanzhou in the south-east will deliver an additional 280,000 seats per annum to and from China, allowing us to forge even stronger ties between both nations,” said AirAsia X Malaysia CEO Benyamin Ismail.

    AirAsia China CEO Tassapon Bijleveld said: “AirAsia has grown its footprint in China for more than 14 years now, connecting millions of people from Asean to underserved second and third-tier Chinese cities at low fares.

    And China remains a key market for our future growth. Just recently, we launched our new Bangkok-Shenyang service and we continue to review a number of other potential Chinese routes that we hope to be in a position to announce soon.”

    Book all-inclusive AirAsia BIG member fares from as low as RM209 (one-way) to Lanzhou and RM129 (one-way) to Quanzhou on airasia.com or the AirAsia mobile app from now until May 5, 2019, for travel until Sept 30, 2019.

    Enjoy the award-winning premium flatbed to Lanzhou for all-inclusive AirAsia BIG member fares from as low as RM889 (one-way) during the same booking period.

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  • AirAsia India Desire Jet Airways’ Boeing 737s

    AirAsia India Desire Jet Airways’ Boeing 737s

    A joint venture of Tata group and Malaysian Air Asia, AirAsia India is planning to induct some of the Jet Airways’ Boeing 737s that have now been repossessed by lessors. The move comes at the time when full-service Vistara is also planning to induct some of Jet’s Boeing 737s in its fleet.

    AirAsia India Pvt Ltd’s (AAIPL) flying license has listed Airbus fleet for its operations. The low-cost carrier (LCC) has applied for operating Boeing aircraft and the ex-Jet B737s to aviation regulator Directorate General of Civil Aviation (DGCA), according to a ToI report.

    It is to be noted that currently, AAIPL has 20 Airbus A320s and may also add five more of these planes. It is looking at ex-Jet B737s as well.  The suspension of operations by Jet Airways has suddenly freed up slots at India’s busiest airports- Delhi, Mumbai, and Bengaluru. The government has linked a temporary granting of these slots to other airlines’ to add to the capacity and to help to control the fares. The domestic market shares of AAIPL was 5.9 percent and that of Vistara was 4.2 percent in March 2019.

    This summer, AAIPL will complete its five years and become eligible to fly abroad. Full-service Vistara has already got government’s nod to fly abroad. Vistara was the first private carrier to get permission for overseas flights under the amended rules. In 2016, the government amended the 5/20 rule, which required an airline to complete fives years of operations and has 20 planes in its fleet, to fly abroad to 0/20.

    Worth mentioning here is that Jet Airways had a significant number of flights to the Gulf and Southeast Asia, and bilateral to both these places had been exhausted. If in the coming weeks and months, Jet Airways does not revive then its rights for international flights would also be distributed to other airlines.

    Air India was also looking at ex-Jet B777s and AI Express at B737s, but so far they have not taken these planes.

    In a circular dated April 25, Pawan Hans management stated to its employees that the company is not in a position to disburse employees’ salaries for the April month due to the uncomfortable financial position in Pawan Hans.

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  • YouTube Music can now play local files on Android

    YouTube Music can now play local files on Android

    The phase-out of Play Music in favor of YouTube Music has been a long time coming, though Google’s actions towards this goal haven’t been particularly quick or decisive up to this point. However, with the latest update, YouTube Music has gained an important feature that brings it closer to being Google’s one and only music streaming service. We’re talking about the ability to play local files on your Android phone – something so basic, yet so elusive.

    The latest update for YouTube Music has added local music integration to the app. The feature can be found under the “Library” tab and allows you to play music files that are stored on your SD card or the internal memory of your Android device.

    Previous updates to Google’s up-and-coming music streaming app allowed it to be used for playback when opening audio files on your phone, but it didn’t have a built-in local content browser, which is the biggest change in the latest iteration.

    Upon launching the local content browser in YouTube Music, you’ll notice a message that reads, “These songs can be played on their own, but can’t be added to queues or playlists with songs from YouTube Music. They also can’t be cast to another device.” This limitation is rather odd, considering the Google Play Music allows for playlists that seamlessly mix on-device songs with tunes from the cloud. This could change in future updates, or could be a strategy to bolster the streaming subscriber base.

    Another omission that should (hopefully) eventually make it into the YouTube Music app is the ability to migrate your library from Google Play Music.

    The local music browser is not yet available worldwide, and seems to be enabled by a server-side switch on Google’s part.

  • First Asian Samsonite Premium store Coming to The Jewel

    First Asian Samsonite Premium store Coming to The Jewel

    The first Samsonite ultra-premium store in Asia is to open at Jewel Changi.

    The luggage brand is also planning one more outlet at Changi, raising its store network at the airport to five.

    “Every time we come up with something new, something big, we launch it first in Singapore,” Subrata Dutta, president and CEO of Samsonite Asia-Pacific told.

    “This is a new retail concept that further elevates the look and feel of the brand to something more luxurious. At Jewel, we get travel traffic from around the world. When you do something in Singapore, you get noticed by the right people.”

    Samsonite has also opened an American Tourister outlet at Jewel Changi, and will open a store at the revamped Funan mall, scheduled to open in the second half of this year.

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  • Outdoor Retailers Fighting for Market Share

    Outdoor Retailers Fighting for Market Share

    Outdoor retailers Kathmandu and Decathlon are vying for a piece of Australia’s ski and snowboard market this winter.

    Both businesses are launching inaugural snow collections, despite the fact that less than a million Australians regularly or occasionally ski or snowboard, according to 2018 data from Roy Morgan.

    On Thursday, Kathmandu launched its inaugural snow collection called Styper, which includes ski jackets and pants for adults and kids, as well as goggles and snow luggage.

    “Designed to suit beginner and intermediate levels, as well as the more sophisticated skiers, the pieces connect seamlessly together to keep warmth in and snow out, and are made with sustainable, state of the art ngx2 fabric technology that is waterproof, wind-proof and breathable,” the retailer said in a statement.

    The launch comes on the heels of Decathlon’s announcement that it is introducing more than 100 ski and snowboard-specific product lines from its Wed’ze brand available in Australia this year.

    The European discount retailer described its offer as an affordable option for people who want a trusted brand and good advice. The range will include adult ski jackets and pants for under $100, adult ski gloves for less than $40, kids’ ski gloves for less than $20, neck warmers and beanies for $10 and ski and binding packages for under $500.

    The price point is considerably lower than Kathmandu, which starts at $199.98 for kids and $349.98 for adults.

    Kathmandu’s collection is available in-store in Australia and New Zealand, while Decathlon’s collection is available in-store and online in Australia.

    Fashion brand SuperDry has been selling its snow range in Australia and New Zealand for the past three years.

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