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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.

  • Dropbox and Google team up

    Dropbox and Google team up

    Dropbox has just announced it has teamed up with Google Cloud to integrate Docs, Sheets, and Slides into its system. The highly-anticipated new feature will be available as a beta for Dropbox Business users starting April 9 and is meant to allow users to create, edit, and store Google Docs, Sheets, and Slides in Dropbox.

    If you’re a Dropbox Business users, you must sign in to both your Google and Dropbox accounts so that you can create and store Docs, Sheets, and Slides files in any Dropbox folder. But the new feature doesn’t stop here, as you’ll be able to share individual files, manage access to your files and get feedback at the same time.

    Of course, sharing and co-editing is done in real-time, while adding Docs, Sheets, or Slides files to a shared Dropbox folder will automatically grant member access, which means you won’t have to leave Dropbox.

    Keep in mind that since the new feature is still in beta, you’ll have to opt-in by visiting Dropbox’s sign-up page. Once you activate it, you will be able to create Google Docs, Sheets, and Slides files, as well as browse, move, copy and delete them from the iOS and Android apps.

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  • Economy Vietnam Q1 inflation lowest in 3 years

    Economy Vietnam Q1 inflation lowest in 3 years

    March prices fell 0.21 percent over February, according to the General Statistics Office (GSO). There was a fall in the prices of seven of 11 items in the basket of consumer goods and services that make up the index.

    According to Do Thi Ngoc, director of the GSO, the reasons for the low inflation rate were the African swine fever outbreak and lower petrol and gas prices during the period. A 1.42 percent fall in the prices of essential foods, including eating out, was the biggest drag on the CPI.

    The African swine fever epidemic has meant that in some places pork prices have fallen by 40 percent since the beginning of February.

    Other notable decreases were of the prices of clothing and telecommunications, which were down by 0.17 percent and 0.07 percent.

    At a recent meeting of the Steering Committee on Price Management Thursday, Deputy Prime Minister Vuong Dinh Hue said in the current scenario the target of keeping this year’s inflation at 3.3-3.9 percent is within reach.

    CPI in 2018 increased by 3.54 percent, well below the 4 percent target set by the National Assembly.

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  • SM Group introduces first Customer Service Robot

    SM Group introduces first Customer Service Robot

    SM Group has employed its first in-mall customer service robot, at SM Megamall.

    Named Sam, the AI humanoid robot is designed to help customers with directions and information about the latest mall deals, promotions and events.

    “Innovation is what SM strives for in providing better customer service to all and we are proud to introduce our latest innovation yet,” said Steven Tan, SM Supermalls COO.

    “Sam is easy to approach and has answers to almost everything SM mall related, making shopping more seamless and fun for our customers.”

    Equipped with an advanced face-recognition technology, Sam can also make personalised greetings to customers at Mega Atrium, Mega Fashion Hall and Bank Drive.

    Customers can also chat with Sam through the SM Supermalls Facebook page 24/7 to get information on branch locations, mall schedules and promotions.

    Created in partnership with the Cal-Comp Technology, Sam will be upgraded with more functions to provide a more fun and engaging shopping experience.

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  • Shop&Go chain showcases brutal retail practice with 1$ Price Tags

    Shop&Go chain showcases brutal retail practice with 1$ Price Tags

    Shop&Go became the newest loser in Vietnam’s retail market Monday when it was bought out by conglomerate Vingroup for $1.

    The company reported an aggregated loss of almost VND205 billion ($8.81 million) by 2016, the latest year for which figures are available. VinCommerce, the retail arm of Vingroup, took over its 87 stores and its debts in the latest deal.

    Vietnam’s retail market has become increasingly crowded with both local and international players over the last five years. Although experts have said that the market has a lot of growth potential, many businesses have quit or scaling back expansion plans.

    Coffee giant Trung Nguyen has twice attempted and failed with its G7 Mart and G7-Ministop.

    Super market chain Saigon Co.op established its first retail store Co.op Smiles in 2016 with the hope of opening 500 such outlets a year, but two years later, the number is around 100.

    Japanese convenience store chain FamilyMart previously said it wanted to have 1,000 stores by 2020, but it announced last year that it won’t invest in new stores. The number of its stores stay at 151.

    Vietnamese food company Vissan said early last year that it has closed nearly 60 of 100 convenience stores. Nguyen Ngoc An, CEO of Vissan, said that the stores had failed to attract a large number of customers.

    A senior manager of the Family Mart said that they “could no longer pour more resources into the chain.”

    Industry insiders say that retail chains fail to compete because they don’t have deep pockets to bear the losses. Pham Viet Anh, a strategic business expert, said that cash flow is among the most important factors in the retail business. If a company cannot collect enough revenue before it has to pay suppliers, its working capital gets eroded.

    “A retail company can rely on its debts with providers in the short term, but in the longer term, it needs to find a way to be profitable. If not, growing losses will eventually bankrupt it,” Anh said.

    Vietnam’s revenue from selling goods last year rose by 11.7 percent from 2017 to $142 billion, up 12.4 percent from 2017.

  • Flight Centre Looking at Corporate Travellers

    Flight Centre Looking at Corporate Travellers

    Travel retailer Flight Centre has made a 25 per cent investment in The Upside Travel Company, strengthening its presence in the global corporate travel sector.

    Flight Centre, which is now the business’s largest shareholder, will gain access to its technology platform and software development resources, enabling it to fast track growth in the small-to-medium sized corporate sector.

    “Upside is an emerging corporate travel business with an innovative customer offering that has the potential to disrupt traditional offerings in the SME sector in the future,” Graham Turner, Flight Centre’s managing director, said.

    Turner said the business is taking steps to future proof its SME offerings, which it predominantly provides through its Corporate Traveller brand, while also creating a blended on and offline offering for customers.

    Dean Smith, president of Flight Centre’s operations in the Americas, said the company planned to utilise Upside’s technology platform to grow Corporate Traveller’s digital offering.

    “We’ve been impressed by the capability and flexibility of Upside’s technology and team to improve the business traveller experience,” Smith said.

    For Upside, the deal will significant improve the business’s reach by giving it access to Flight Centre’s supplier relationships and global business.

    “Flight Centre is the perfect partner for Upside as we get aggressive in serving small corporate clients,” Jay Walker, CEO of Upside, said.

    “Not only does Flight Centre’s global scale, content and experience immediately make our product more complete and more credible, but its people and expertise also make us smarter, which is key as we accelerate into the future.”

    The investment is the latest in a string of such moves by Flight Centre, which recently invested in Bangkok-based 30SecondsToFly, and the acquisition of travel companion app Sam.

    The enhanced Corporate Traveller option will initially only be available in the Americas, but will be pushed to the United Kingdom in the “medium-term”.

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  • Vietnam state steel company close to bankruptcy

    Vietnam state steel company close to bankruptcy

    In a recent letter to shareholders, Thai Nguyen Iron and Steel Jsc (TISCO) said it is facing “a financial crisis which could lead to bankruptcy if it is not saved by the government, banks and other authorities.” The charter capital of the company, one of the largest steel producers in Vietnam, was VND1.94 trillion ($83.6 million) last year but owner’s equity accounted for only 18 percent, which the company regards as a low ratio.

    With liabilities 4.65 times owner’s equity, TISCO said its capital structure is unstable.

    The company added it needs to increase owner’s equity and recover bad debts. The bad debts climbed to almost VND852 billion ($36.7 million) last year, of which the company said 46 percent could be recovered.

    One of the problems the company has been facing is the delay in a stop-start expansion project. The Government Inspectorate has listed it among 12 state-owned projects suffering major losses and with many violations of the law.

    The project first began in 2007 but stalled soon afterwards due to the global economic crisis. The original cost of expansion of VND3.84 trillion ($165.5 million) was increased to over VND8.1 trillion ($349 million) on the suggestion of Chinese contractors when it was restarted in 2009.

    But in 2012 it stalled again when TISCO faced a resources crunch, causing the China Metallurgical Group Corporation (MCC) to withdraw from the project.

    TISCO had paid MCC 92 percent of the contract value at the time, but much of the work was left incomplete, according to the Government Inspectorate.

    Machinery and equipment MCC delivered had rusted and become damaged after lying unused for long, the inspectors said.

    The government prohibited further investment of public funds in the company in 2016. Following this, sovereign wealth fund State Capital Investment Corporation (SCIC) pulled out its capital of VND1 trillion ($43.1 million) from the company.

    Following the long expansion delay, banks have slashed TISCO’s credit ratings and increased interest rates to 8 percent a year, worsening the situation.

    The company board said despite its petitions to authorities for a solution no progress has been made.

  • International luxury brands down in Brisbane

    International luxury brands down in Brisbane

    Luxury brands are descending on Brisbane, with fashion house Saint Laurent opening its first store in Queensland at QueensPlaza on March 28, ahead of arrivals from Fendi and Dior slated for later this year.

    The new store, Saint Laurent’s sixth Australian store, has an architectural design that features three types of marble and refined detailing accented with anodised gold, mirrored stainless steel and leather joinery.

    “The arrival of Saint Laurent, another first to Brisbane, further cements QueensPlaza’s position as the city’s leading luxury retail and lifestyle destination,” said Pamela Wakeford, centre manager.

    Saint Laurent joins a slew of luxury retailers already located at the centre, including Chanel, Burberry, Tiffany and Co, Zimmermann, Scanlan Theodore and Camilla.

    Italian fashion house Fendi is poised to unveil its new boutique mid-year and Stanton café and bar will also open in the coming months. The new café will have a dining and bar experience including an outdoor terrace overlooking the Queen Street Mall.

    Queensland has also recently welcomed fashion jewellery brand APM Monaco, which opened a new store in Brisbane’s high street, joining a suite of luxury fashion retailers along MacArthur Central.

    The new store features the retailer’s traditional handcrafted jewellery pieces along with some most recent collections like open chokers with sky silver and zarconia meteorites, and asymmetric underlobe earrings and jackets.

    “Precision Group is proud to welcome APM Monaco to MacArthur Central where it will sit alongside some of the best international and national retailers fronting Edward Street Brisbane, where Brisbane City Council have invested $11.8 million into a beautification project of the precinct,” said Colleen Middlemass, centre and state asset manager.

    Middlemass said the new store will complement the area’s “luxe offering with a fashion focus on new trends from across the globe”.

  • Businesses face conundrum image when placing ads on Youtube

    Businesses face conundrum image when placing ads on Youtube

    After the streaming website blocked the accounts of online gangster Kha Banh for violating its terms of service on April 3, YouTube also terminated the account of the god of profanity Duong Minh Tuyen, another self-proclaimed gangster, due to repeated violations of YouTube’s policies on violence.

    Kha and Tuyen are two YouTubers who were recently condemned by the general public for uploading videos promoting gang culture, gambling and crudeness, but are adored and given superstar status by many Vietnamese youths.

    The public outcry in the country against YouTube channels promoting violence, profanity, and repulsive material is worrying businesses who advertise on the platform.

    Only recently Vietnam Maritime Bank (MSB) announced it was pulling out all its ads from YouTube. It would conduct a review with YouTube so that its ads would only appear on content compatible with “regulations, ethics and positivity,” it said.

    The private bank’s ads have appeared in clips of internet gangster phenomenon Ngo Ba Kha (Kha Banh). Last week he was arrested and charged with gambling and organising gambling.

    In 2017 many major companies such as Vinamilk and Ford Vietnam also demanded that YouTube should pull out their ads, voicing concern over its lack of content control causing their ads to be associated with dubious channels.

    “Responsibility first lies with the content managers, or multi-channel networks authorised by YouTube if dubious channels register with them to make money,” Vo Do Thang, a cyber-security expert, said.

    “Let’s also not rule out the possibility these content managers overlooked or even promoted negative content on purpose to make money off views.

    “Some advertising agencies working with YouTube guarantee they will use tracking and filtering programmes using keywords and search terms to prevent enterprises’ ads appearing along with negative content.

    “However, this cannot be 100 percent guaranteed by anyone, the risk to the brand image is still there.”

    Viet Phuong, who works for an advertising agency, said: “When uploading ads, there is an option not to post on specific channels. However, this job is tedious, and it is difficult for an advertising agency to cover everything unless the client hands their own list of channels. Sometimes this step is skipped, because it is more effective to run ads everywhere.”

    He revealed however that his company had been working vigorously on channel filters since Kha Banh’s arrest.

    YouTube’s mechanism prioritizes ads for videos with more views. Most agencies in Vietnam have successfully filtered political videos well, but entertainment channels are difficult to control because they garner much more viewership and are traditionally considered harmless.

    However, agencies say their job is getting harder as videos with violent content are being uploaded in response to the general public finding them popular.

    “Brands should cooperate closely with agencies or choose only to run ads in the mid-range of popularity, videos which do not fall into the ‘top/hot’ categories on YouTube,” Phuong said.

    But despite these risks, it is hard for businesses to abandon the website and lose a large audience.

    In 2017 the Authority of Broadcasting and Electronic Information estimated that Google and Facebook accounted for 80 percent of the online advertising market share in Vietnam.

    The director of a major online business, who asked not to be named, said this ratio had probably not changed by much.

    In other countries too, major businesses have withdrawn their ads from YouTube. In March 2017 Walmart and PepsiCo terminated their advertising contracts with it after their commercials were featured on videos featuring racist content.

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  • AirAsia adds Quanzhou to its Asian routes

    AirAsia adds Quanzhou to its Asian routes

    AirAsia will be flying direct daily from Kuala Lumpur to Quanzhou in Fujian, China.bOnce, one of the world’s biggest ports and the starting point of the Maritime Silk Road, Quanzhou was known to Arab traders as Zaiton and was praised by Marco Polo as the “one of the two greatest havens in the world for commerce”.

    Thanks to its status as a major trading port for more than three centuries, Quanzhou today remains a melting pot of diverse cultures and religions, and boasts many Buddhist and Hindu temples, mosques and churches, as well as museums celebrating its proud maritime heritage.

    Some of these must-visit sites include the Kaiyuan Temple, the largest Buddhist temple in Fujian, which was built over 1,300 years ago, as well as the Qingjing Mosque, China’s oldest Arab-style mosque, inspired by the Umayyad Mosque in Damascus.

    Then there is the Luoyang Bridge, one of the ‘four ancient bridges of China’, which resembles a silver dragon lying above the green waters of the Luoyang River.

    Another site is the largest stone carving of the famous Chinese sage Laozi made during the Song Dynasty, which is found at the foot of Mount Qingyuan.

    Meanwhile, the beautiful port city of Xiamen is only an hour away by high-speed train.

    AirAsia Malaysia CEO Riad Asmat said: “AirAsia has been championing connectivity to secondary cities in China such as Guilin, Shantou, and Nanning.

    “This Kuala Lumpur-Quanzhou service further grows our footprint of unique destinations in China, and will provide greater accessibility to Malaysian and Chinese travellers.

    “We look forward to exploring opportunities to connect our, other secondary hubs in Malaysia to China as well.”

    AirAsia currently is offering promotional all-in fares from RM99 for those who book flights from Kuala Lumpur to Quanzhou from now till Sunday at airasia.com or via the AirAsia mobile app, for travel from May 1 to Oct 26, 2019.

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  • Microsoft Launcher major update brings widget redesign

    Microsoft Launcher major update brings widget redesign

    Microsoft is making major changes to its Android launcher, many of which have been tested for about a month in the beta channel. Most of the new features and improvements are cosmetic, but there are some important under the hood enhancements included as well.

    Microsoft Launcher version 5.3 comes with a completely redesigned Time/Weather widget, which allows users to have multiple widgets for multiple locations. The detail page has been redesigned as well.

    The update brings many refinements to the app, but the most important are those made to the Home Screen, Dock and Search widget. If you’re a long-time user, you’ll most likely notice them once you start using the new version.

    Furthermore, the News tab now supports “Technology” as a news interest, while the Tasks card now features “My Day” and “Flagged Emails” features from Microsoft To Do. With the latest version of Microsoft Launcher, work profile users will be able to access their work apps fast and easy.

    Although it’s less important, you’ll probably want to know that the beta community link in Settings has been changed to Microsoft Tech Community. Microsoft Launcher 5.3 is already available for download via Google Play Store, so make sure to install the update to benefit from the latest improvements.

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  • Tigerair Taiwan to open new route flying to Palawan in the Philippines

    Tigerair Taiwan to open new route flying to Palawan in the Philippines

    Tigerair Taiwan announced Monday plans to inaugurate a new flight route between Taoyuan in Taiwan and the Philippine city of Puerto Princesa on Palawan Island starting June 7, said reports.

    It will become the third route between Taoyuan and the Southeast Asian country following the announcement by the Singapore-headquartered budget airline that it would begin flying from Taoyuan to Kalibo, a major hub for the tourist destination of Boracay island, reported UDN.

    To promote the launch of the route, individuals who book tickets between 10:00 a.m. on April 10 and 11:59 p.m. on April 11 will enjoy a discounted price of NT$399 for each single journey ticket (excluding taxes). The departure dates must be between June 7 and Oct. 18, 2019.

    There new route will offer three flights a week, according to Tigerair.

    Puerto Princesa will become the fourth destination route targeting the Southeast Asian market offered by Tigerair Taiwan, which will soon be flying 29 international routes to 22 cities, the report wrote.

    Palawan, the fifth largest island of the Philippines, boasts a plethora of wildlife, jungle mountains, and white sandy beaches. In 2016, Palawan was ranked the “Most Beautiful Island in the World” by readers of Conde Nast Traveller.

  • AirAsia to sell tickets of non-competing carriers on website

    AirAsia to sell tickets of non-competing carriers on website

    AirAsia, whose website is used by 65 million customers every month, is considering a plan to sell tickets of non-competing carriers on airasia.com, using its size to give online travel agents a run for their money. The Kuala Lumpur-based carrier, Southeast Asia’s largest airline group, which already sells car rentals, accommodation at half a million hotels and serviced apartments worldwide and holiday packages in five regional destinations, thinks it can do a better job of selling these services than the travel industry because of the volume of data available from frequent travellers on its network.

    “I have a phenomenally strong platform that I [can] open for business to sell other content,” Tony Fernandes, AirAsia’s founder and chief executive, said in an interview with the South China Morning Post during Credit Suisse’s Asia Investment Conference in Hong Kong. “We can be as strong as any online travel agent in terms of selling hotel content. I think we can be stronger than Klook at selling activities.”

    Data is at the heart of the low-cost carrier’s ambitions to grab a bigger share of tourism revenue, which is projected to rise by 53 per cent to US$625 billion (S$847 billion) in Asia in the next five years, according to the Pacific Asia Travel Association (PATA). Airasia.com boasts 65 million unique monthly visitors, as well as data of 50 million repeat customers. Klook, an online tour agency and activities organiser founded in Hong Kong in 2014, had 16 million monthly visits last summer.

    The airline, which prefers to be seen and heard as part of a wider travel technology group, is leveraging data to know its customers better and keep them spending in its ecosystem.

    “Everyone is excited about platform businesses. Everyone is excited by GoJek and Grab and the unlimited potential of who they can reach and what they can sell,” the AirAsia founder added.

    Fernandes pointed out that the first thing people did when they wanted to travel was to buy an airline ticket, not a hotel. AirAsia.com generated US$4 billion in ticket sales last year for the budget carrier.

    “We are going to see the customer first, so we are going to take a large share of the wallet and we’re going to be good at it,” he said. “The first step would be to be as good as anyone selling hotels, selling activities. And then we may start selling [tickets of] airlines who don’t compete with us.”

    The plan may have easyJet or Ryanair selling their European flights to an Asian traveller planning a trip to the continent, he said, adding that AirAsia was currently not engaged in any active discussions with other airlines.

    “He is thinking more about a lifestyle, digital platform than a traditional airline,” said Mohshin Aziz, an analyst at Malaysian lender Maybank in Kuala Lumpur.

    AirAsia has enough user data to “formulate or create an algorithm to predict the buying pattern” of travellers, Mohshin said. “So many airlines are backwards – they don’t have a well-functioning distribution system. So [AirAsia] can easily become the one that is willing to share for some money and intelligence.”

    ​​​​​​​The scope and potential for AirAsia to sell foreign airline tickets was substantial, Mohshin said, particularly for carriers that operate services in Southeast Asia as non-stop flights to Europe or Australia, and did not have the same success in sales as a local airline would.

    Airlines such as KLM, which operates a connecting flight from Kuala Lumpur to Jakarta, or Ethiopian Airlines’ service to Singapore, could also benefit from AirAsia’s data and sales power.

    “For foreign carriers to try and get Singaporean customers, they are not going to put much effort into it. It is better for them to pass it on to AirAsia, to try and sell tickets on their behalf,” Mohshin said.

    AirAsia was well positioned in Southeast Asia, said Raini Hamdi, Asia Editor at travel and technology website Skift, citing a growing population of 650 million people, high mobile and internet use and a shift to online travel booking.

    “If AirAsia puts its energy into this, it will be successful,” she said. “It is a torch-bearer of great value, convenience, ease of use. It has a strong customer base. Add personalisation through data mining, AI, machine learning, ease of payment and ease of earning and burning points for customers, the stickiness of airasia.com will increase rapidly.”

  • “The Great Move” is largely concluded

    “The Great Move” is largely concluded

    Turkish Airline’s transition to its new home, Istanbul Airport, is largely concluded with progress at 96 percent. With the “Great Move” representing one of the most significant cornerstones of the Turkish Aviation history, Turkish Airlines has nearly concluded its gradual move to Istanbul Airport, which started following the official opening on 29th October last year. The moving operation, which started on 5th April, Friday, at 3:00, had reached 96 percent completion 12 hours earlier than the projected 45-hour plan. It concluded on 6th April, Saturday, at 20:00, and the flag carrier airline has already begun a new era at its new home, Istanbul Airport, which will be the new center of the global aviation sector.

    Commenting on the “Great Move” process, which included saying farewell to Atatürk Airport – home to Turkish Airlines throughout its 86 years of history, and moving to its new home base, Istanbul Airport, also known as “Monument of Victory”, Turkish Airlines Chairman of the Board and the Executive Committee, M. İlker Aycı said: “Currently the biggest airport project in the world, this enormous facility will be the home of the resounding local and global growth of Turkish Airlines in the future while becoming the most important driving force behind our growth with its state of the art physical capabilities and capacity.”

    “Successfully concluding its mission of being the home of our brand throughout our 86 years of history, saying farewell to Atatürk Airport was a highly saddening experience for us. However, our brand’s unstoppable growth and progress especially over the last 15 years forced us to make this decision to part ways. As Turkish Airlines became unable to fit its mold with its efficient growth performance, the need for a new home that will support its development and open its way with capacity and other physical capabilities was born. Starting with the originator of the idea for this monumental project and its biggest supporter, our President Recep Tayyip Erdoğan, as well as our Ministry of Transport and Infrastructure, IGA consortium, our various business partners, every single member of our family and everyone else who offered their toil and support, we are grateful to all of those for bringing us this bundle of opportunities, which will allow us to carry the passenger and flight experience into a whole new platform. In addition to this, I would like to also express my great pleasure and honor in announcing that the future of the global aviation will develop with Turkish Airlines at its center with our new home, and new face of our brand.”

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  • Taobao Leverages Live Streaming to Boost Rural Development

    Taobao Leverages Live Streaming to Boost Rural Development

    Taobao will leverage its livestreaming technology to help incubate 1,000 key opinion leaders in China’s countryside in an effort to boost rural development. By helping farmers go online, Taobao aims to enable farmers to find new markets and customers from their homegrown products.

    Taobao’s target is to boost the livelihood of 1,000 farmer livestreamers from 100 counties in Chinan by helping them each generate over RMB10,000 in monthly income. The idea is to drive online sales of local agricultural products via livestreams conducted by the newly minted rural KOLs – the farmers, themselves. To promote this new initiative, Taobao plans collaboration with countylevel governments to highlight local points of interest and expand the popularity and recognition of various villages participating in the livestreaming.

    “Our rural livestream program aims to empower local livestreamers to boost business for povertystricken areas, while enabling farmers to manage their own livestream e-commerce channels. It’s Taobao’s devotion to poverty relief by leveraging e-commerce and livestreaming via creative digital technologies.” said Chen Lei, director of e-commerce content at Taobao. Last year, Taobao hosted more than 150,000 agriculture-themed livestreams, which drew over 400 million viewers. Taobao innovated the “Live on the Farm” model, featured with agriculture livestreamers, KOLs, and even local government officials from counties to join livestream sessions and promote their local goods. In January 2019, Taobao’s “Live on the Farm” sevenday online sales campaign generated over RMB9.35 million in sales, right ahead of Chinese New Year, a prime gifting period in China.

    Many agriculture livestreamers tasted their first success on the platform last year, including Chen Jiubei, who has helped farmers in her hometown in Hunan province sell up to 2 million kilograms
    of previously unsaleable oranges in just 13 days last winter. Taobao also coordinated with county-level governments to provide a suite of livestreaming marketing services, including seeking out and training livestreamers, as well as identifying local selling points. With more than 60,000 distinct livestreams on agricultural products every month,

    Taobao is committed to driving RMB 3 billion in sales for the sector in 2019. This month, Taobao will roll out livestreams that introduce the source of a range of agricultural products, helping viewers discover the local landscape and customs where their products come  from. In addition, Taobao also plans to partner with CCTV, Hunan Television and Zhejiang Television to develop livestreaming shows that invite popstars and celebrities to participate in poverty-relief activities, aiming to generate more public awareness for underprivileged areas. More on Taobao Livestreaming Taobao livestreaming is an emerging marketing channel that started in 2016 and has rapidly grown into a proven marketing strategy. Powered by advanced technologies from across the Alibaba Group, KOLs and livestreamers provide both indoor and outdoor livestreaming to customers. During these livestreams, they introduce and recommend different products across diverse areas ranging from clothing, cosmetics and jewelry, to agriculture goods and plus-sized clothes. In 2018, 81 livestreamers notched over RMB 100 million in sales, respectively.

    Across all industries and sectors in China, brands and sellers are already transforming their digitalncapabilities to stimulate business development through Taobao livestreaming. L’Oréal’s flagship store experienced a nearly 20% increase in purchases after Viya and Jiaqi Li, Taobao’s most recognized livestreamers promoted the brand’s signature goods via livestream. Among the top female clothing brands, more than 30% of sales are driven by live streaming. In certain industries such as jewelry and jade, flowers and plants, the penetration rate of brands using Taobao livestreaming is close to 50%, bringing great changes to the previous online marketing mix that was adopted.

    Livestreaming serves as an efficient tool to empower traditional industries and drive sales. During the “Double 12 Shopping Festival” in 2018, Taobao organized a 12-day livestreaming event from once-booming industrial belts to rejuvenate traditional businesses with cutting-edge technologies and powerful new modes of retail operation. Livestreamers were everywhere from an agricultural products base in Sichuan and porcelain production firm in Jingdezhen to a home textiles mall in Nantong and leather factory in Haining, bringing a growing number of young customers to forgotten industrial towns. In order to inject more renewed energy into traditional industries, Taobao also launched plans at the recent summit to incubate and develop 10 offline traditional retail markets. The aspiration is to help them reach annual revenues of over RMB 100 million. Other initiatives that are being rolled out to maximize the influence of livestreaming includes developing 10 professional PGC (Professional Generated Content) organizations with over RMB 100 million revenues, creating 10 super programs with more than 100 million views and promoting over 100 regional television stations to collaborate with Tao Live, an app focused on PGC area.

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  • CIMB IB Research expects higher operating costs

    CIMB IB Research expects higher operating costs

    CIMB Investment Bank Research (CIMB IB Research) has retained its “reduce” call on AirAsia Group Bhd as it forecasted the company to face higher operating costs and gearing levels until 2021.

    The research house lowered its target price for AirAsia to RM1.50, from RM1.82 previously, as it expects lower core earnings per share and dividend of 13 sen.

    At 11.00am, AirAsia was trading down 1 sen or 0.38% at RM2.64 with 1.55 million shares transacted. Its market capitalisation stood at RM8.86 billion.

    In a note today, CIMB IB Research analyst Raymond Yap pointed out that AirAsia had sold 79 aircraft to lessor BBAM Ltd Partnership in 2018 and is expected to sell a further 25 planes to lessor Castlelake LP by the third quarter of this year.

    Given this, Yap explained that together with other existing operating lease aircraft, AirAsia is expected to capitalise RM11.8 billion worth of borrowings related to the operating leases in financial year 2019, effectively bringing back to the balance sheet what had previously been off-balance sheet.

    “The impact would be to raise reported gross gearing of 19% in FY18 to 198% on a pro forma basis after MFRS 16.

    “The overall impact to P&L (profit and loss) earnings from the above sale and leasebacks (S&LB) is negative because AirAsia would have to pay for the lessors’ profit margin as well as provide for a higher level of maintenance charges based on lessors’ conditions for lease returns, which tend to be strict. The net result would be a squeeze on AirAsia’s profit margins,” he said.

    Yap added that with the squeeze in profitability, AirAsia will experience greater operating leverage from unexpected changes in fuel prices, exchange rates, competitive dynamics, and airport taxes and levies.