Retail News CRM

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.

  • Artificial intelligence is $300 billion cost-saving opportunity

    Artificial intelligence is $300 billion cost-saving opportunity

    The use of artificial intelligence in the retail sector is a $300 billion cost-saving opportunity for retailers which are able to scale and expand the technology, though just 1 per cent of retailers have achieved the necessary level of development, according to research from Capgemini Research Institute. The study looked at 400 global retailers, and how they are implementing the burgeoning technology at different stages of maturity, and found that over a quarter of retailers are deploying AI in their businesses – a seven-fold increase from 2016.

    “For global retailers, it appears reality has kicked in regarding AI, both in terms of what the technology can achieve and what they need to do to get there,” Capgemini vice president global consumer products and retail sector Kees Jacobs said.

    “Of course, deploying and scaling will be the next big objective, but retailers should be wary not to chase ROI figures without also considering the customer experience.”

    According to the research, retailers deploying AI systems were eight times more likely to be working on high-complexity projects rather than smaller projects which are easier to scale, and generally lack a focus on customer usability.

    Only 10 per cent of such retailers noted customer experience as a driving factor of these developments, and only 7 per cent noted customer pain points as a priority. Meanwhile, cost (62 per cent) and ROI (59 per cent) are driving most investment into the space.

    Despite this, 98 per cent of retailers surveyed expect customer complaints to decrease, while 99 expect to see an increase in sales, as a result of investment into AI – far ahead of the more contrasted expectations noted in 2017.

    Lees ook:

    Lees ook:

    Lees ook:

  • Prosecutors drop charges against Samsung chairman

    Prosecutors drop charges against Samsung chairman

    Prosecutors dropped tax evasion and embezzlement charges against Samsung Group Chairman Lee Kun-hee on Thursday. The decision was based on the judgment that further investigation into the case was impossible due to Lee’s health issues. The investigation may resume if Lee recovers, but the possibility is slim. Lee has been hospitalized for more than four years now since a fall in May 2014.

    Lee was accused of avoiding taxes worth 8.5 billion won ($7.6 million) that involved multiple bank accounts under the names of Samsung executives. More than 1,700 accounts were found to have been used for this purpose since 2008, when the investigation started.

    Another charge against the chairman was the embezzlement of 3.3 billion won from Samsung C&T, which was used to pay for the interior renovation of Lee’s private home.

    The Seoul Central District Prosecutors’ Office, however, did decide to indict four Samsung executives who played a role in the two cases – one for the tax evasion scheme and three for the embezzlement case.

  • Average New Year bonuses in HCMC up 30 pct

    Average New Year bonuses in HCMC up 30 pct

    Average New Year bonus given by HCMC firms to an employee is VND3.4 million ($146), 30 percent higher than in 2018. For the 2019 Roman Calendar New Year, bonuses have been significantly higher than in 2018, Le Minh Tan, director of the HCMC Department of Labor, Invalids and Social Affairs said, citing a survey. The survey covered nearly 2,000 enterprises and 415,000 workers.

    On average, bonuses given by foreign invested enterprises for the New Year was VND9.4 million ($403.65), 70 percent higher than the last, the survey found.

    For this Roman Calendar New Year, the highest bonus was VND500 million ($21,470), given by a foreign-invested enterprise.

    For Lunar New Year (Tet), which falls in February, the highest reported bonus was VND1.17 billion ($50,343), coming from a bank headquartered in HCMC.

    The average reward for Tet offered by enterprises surveyed is over VND10 million ($430.78) per person. Only four respondent businesses reported facing difficulties and not giving Tet bonuses for employees.

    There are still some enterprises that have not announced Tet bonuses for workers, waiting for business results. These firms plan to announce their bonuses by mid-January.

    Last Tet, the highest Tet bonus in HCMC was VND855 million ($36,718), given by an unidentified private enterprise.

    Lees ook:

  • HK customs seized counterfeit cosmetics

    HK customs seized counterfeit cosmetics

    Hong Kong Customs has seized more than 1300 items of suspected counterfeit cosmetics after raids on three sites this week. In an anti-counterfeiting operation conducted with the assistance of the trademark owners, customs officers took enforcement action at four dispensaries, five medicine stores and a warehouse. The raids took place in Tsim Sha Tsui, Mong Kok and Sheung Shui.

    The suspected counterfeit cosmetics and skin care products have an estimated market value of about $73,000 and included soothing gel, eyebrow pencils and face powder.

    Eight men and five women were arrested, including seven shop owners and six salespersons, aged from 19 to 60. They have all been released on bail as investigations continue.

    In a statement, Hong Kong Customs said it has been carrying out stringent enforcement against the sale of infringing goods and will continue to step up patrols and enforcement actions against infringing activities during the Christmas season.

    “Customs reminds consumers to procure goods at reputable shops and to check with the trademark owners or their authorised agents if the authenticity of a product is in doubt.”

    Retailers were warned to be cautious and prudent in merchandising since the sale of counterfeit goods is a serious crime and offenders are liable to criminal liability.

    Under the Trade Descriptions Ordinance, any person who sells or possesses for sale any goods with a forged trademark commits an offence. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years.

  • 5 Tips for Digital Transformation

    5 Tips for Digital Transformation

    Retailers know they need to evolve, even though they cannot do it overnight. But while there’s no silver bullet for transforming culture, collaboration, and workflows inside a large organization, there are steps you can take to make sure your business is receptive to the change it’s about to undergo.

    Understand performance goals

    Before you start, you need to understand the business problem and the role that technology is going to play. Solving complex organizational issues needs the relentless management of changes in behavior, process, and technology all working together to support your performance goals and objectives.

    Collaboration is not a KPI

    Decide how you’re going to measure your KPIs. And remember that collaboration is not a KPI – it’s a means to an end. KPIs could include customer satisfaction, getting products to store faster, selling more products per visit, or retention. You need to get down to that granular detail.

    Shut things off

    If you have an existing tool which people did not like and you invest in something new to overcome those challenges and frustrations, you need to have a path to turning that tool off or at least turning off the elements that are now conflicting. This will impact adoption of new tools and ways of working.

    Educate, educate, educate

    Launching a tool is the easy part, the real work begins when people use it. People need to be educated on what they should be using it for. Show some examples of what ‘good’ looks like, and also what the tool should not be used for. Design an internal marketing campaign and treat it exactly the same as an external campaign. A product-driven approach could help here. Think about how companies try to refresh products in the market over time to improve adoption.

    Put somebody in charge

    For any system, and especially for a collaborative experience, you need someone who can get employees to use the tool in the right way at different times. That might be a community manager who understands the business cycle. Putting up content is the single most important driver of getting people to use the platform and to entice them to contribute their own.

    Lees ook:

  • Samsung to take eight C-Lab start-ups to CES

    Samsung to take eight C-Lab start-ups to CES

    Samsung Electronics will introduce eight in-house artificial intelligence (AI) start-ups at the Consumer Electronics Show (CES) 2019 to take place next month in Los Angeles, the company said Wednesday. All eight start-ups are under Samsung’s C-Lab, an in-house incubating program that allows employees to embark on a one-year project to realize a business idea. Samsung will organize an independent booth to present their products and services at the four-day exhibition scheduled to take off on Jan. 9.

    All eight of the projects use AI as a core part of their business.

    For example, the mobile app SnailSound uses AI technology to remove background noise and provide clear human voices in a tailored way based on the app’s test results of the user’s hearing abilities.

    Another app called Medeo uses AI to select the best shots in a video while it is being shot.

    Prismit is an AI-based news app that shows news articles of the same topic automatically aligned in the form of a timeline.

    The list also includes Girin Monitor Stand, which helps to correct posture while sitting in front of computer screens, and the Alight desk light, which adjusts light in the best way to enhance one’s concentration.

    The Perfume Blender suggests the best perfume recipe based on a user’s preferences and also comes with a device to make the personalized perfume.

    As well as the eight in-house start-ups that are currently working under Samsung’s C-Lab, eight groups that have already graduated from the scheme will take part in CES 2019 to set up booths of their own.

    Among them, three have earned awards from this year’s CES. Since the program’s launch in 2012, C-Lab has produced 36 spin-offs that now conduct business as start-ups outside of Samsung.

    Lees ook:

  • 7-Eleven Malaysia mulls float

    7-Eleven Malaysia mulls float

    The 7-Eleven Malaysia business may be floated. Malaysian businessman Tan Sri Vincent Tan is considering turning over his shareholding in convenience store operator 7-Eleven to his Berjaya Corp Bhd group. Maintaining that the share price of 7-Eleven is undervalued on Bursa Malaysia, Tan claims that the business, currently valued at RM1.43 billion (US$342 million) should be worth more than US$1 billion.

    The chain has 2250 locations within the territory, and according to Tan aims to open at least another 200 stores next year.

    “We are considering maybe sell all my 46 per cent shareholdings in 7-Eleven to BCorp, then let BCorp launch a General Offer (GO), but nothing is firmed yet,” he said.

    The businessman owns 48.33 per cent of Berjaya Corp, which is valued at around RM1.35 billion (US$323 million).

  • 7-Eleven tests facial-recognition technology

    7-Eleven tests facial-recognition technology

    7-Eleven Japan has opened an experimental concept store in Tokyo offering payment through facial-recognition technology developed by NEC. The trial is a precursor to a planned rollout of unmanned convenience stores in locations such as office buildings, car parks and factories allowing consumers to purchase essential items where it may not be commercially viable to operate a full-scale staffed store.

    The test store is located inside a building which is home to companies from the NEC group and can be accessed only by employees.

    Facial-recognition technology identifies shoppers when they enter the store and again when they make payment. The cost of purchases is deducted from their salaries.

    Rival retail groups including Aeon and FamilyMart have already adopted self-service payment checkouts and Lawson is trialling a scheme using barcodes scanned by smartphones.

  • Visa and The Mall Group collaborate to drive the future of retail in Thailand

    Visa and The Mall Group collaborate to drive the future of retail in Thailand

    Visa, the world’s leader in digital payments, and The Mall Group, Thailand’s leading retail and entertainment complex developer, last week announced a new long-term partnership set to drive the future of retail in Thailand.

    Building on their existing relationship, this partnership will see The Mall Group and Visa develop personalised shopping experiences for consumers, using Visa’s capabilities and exploring new technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Augmented Reality (AR), Virtual Reality (VR), biometrics, as well as data analytics to understand changing consumer behaviours.

    Chris Clark, Visa’s Regional President for Asia Pacific, said: “We believe payment technology can be a key differentiator for The Mall Group helping it to deliver a faster, more convenient and more personalised shopping experience for consumers. We’re looking forward to working together to drive payments innovation at The Mall Group’s expansive locations across Thailand.”

    Supaluck Umpujh, Chairwoman of The Mall Group, said: “The partnership with Visa represents a significant step into a new era of retail where customer experience is at the heart of everything we do. Our goal is to explore and leverage the latest innovations that will add value to our business. This will consequently benefit our shoppers and help strengthen our position as a world-class shopping destination among both local and international visitors.”

    Studies have shown that by 2020 AI will be responsible for managing 85 percent of retail customer interactions and as many as 100 million consumers will use AR to create a more novel shopping experience.

    For decades, Visa, together with its merchant partners, has consistently invested in growing electronic payments in Thailand. This has included educating consumers and merchants on the benefits of electronic payments, expanding the acceptance of electronic payments, and introducing new technologies to enhance the payment experience and make it more secure, such as EMV, contactless payment technology, tokenisation, and Visa QR payments.

    Lees ook:

  • Sears to be fined US$443 million

    Sears to be fined US$443 million

    Bankrupt U.S. retailer Sears has been hit with a charge of approximately US$443 million due to store closures. The charges relate to markdowns, severance costs and lease termination costs related to the business’ Chapter 11 bankruptcy, filed due to its inability to hit a debt payment deadline in October.

    The company said some of the charges, revealed in a regulatory filing, have already been incurred, with the remaining charges to be booked in the fourth quarter.

    At the time, Sears chairman Edward Lampert told investors that while the business had made progress, its plan had not delivered the desired results.

    “Addressing the Company’s immediate liquidity needs has impacted our efforts to become a profitable and more competitive retailer,” Lampert said.

    GlobalData Retail managing director Neil Saunders noted there was no clear path to success for the retailer.

    “The group has tried to shrink its way to profitability for years to no avail, so it is hard to see why pursuing the same strategy under the auspice of Chapter 11 would result in a different outcome,” Saunders said.

    Saunders said that several reasons have contributed to this outcome, but foremost among them is Sears management’s failure to evolve the store offering as retail modernised.

    “Ultimately, Sears needs not just to fix its financial problems. It also needs to repair the deficiencies in terms of retail strategy… only a complete change of management will bring this about.”

    Lees ook:

    Lees ook:

  • October Singapore retail sales static

    October Singapore retail sales static

    October Singapore retail sales inched up by 0.5 per cent year on year, after excluding motor vehicle sales from the data.

    Month-on-month they fell by 2.1 per cent, reaching S$3.7 billion (US$2.69 billion).

    Online retail sales breached the 5 per cent threshold of total retail sales at 5.3 per cent for October.

    By category, sales by petrol stations soared the most, up 11.4 per cent year on year, however when the effects of price changes was removed from the data, the increase was a more moderate 1.5 per cent.

    Sales of medical goods and toiletries rose 3.4 per cent on the back of cosmetics, with furniture and homewares up 1.5 per cent.

    In contrast, sales in department stores and supermarkets decreased 3.6 per cent and 2.9 per cent respectively. Retailers of optical goods and books and recreational goods declined by 1.9 per cent and 1.8 per cent.

    Sales of food and beverage services rose 1.1 per cent, with food caterers recording a 5.6 per cent increase in turnover, other eating places (such as cafes) improving by 3.8 per cent, and fast-food outlets by 3.2 per cent.

    Restaurant turnover, however, was down 3 per cent.

    Lees ook:

  • Google plans a representative office in Vietnam

    Google plans a representative office in Vietnam

    A senior Google official says the tech behemoth is studying the process of opening a representative office in Vietnam. Google senior vice president Kent Walker told Deputy Prime Minister Vuong Dinh Hue at a meeting Tuesday that the opening of a rep office in the country would follow the principle of ensuring that host country regulations do not contradict the firm’s international commitments.

    A report on the government website chinhphu.vn also quoted Walker as saying that he agreed with the Vietnamese government on the need for cyber-security to ensure a stable society. Google will cooperate with authorities in achieving this goal, he said.

    The rep office announcement came as Vietnam’s cybersecurity law is set to take effect next month. The law requires digital businesses like Facebook and Google to open a representative office in Vietnam.

    Deputy PM Hue said that he appreciated Google’s contribution to a draft decree on guidelines to implement the law and ensure cyber-safety and security.

    “Vietnam’s market advantages and the adaptability of its young workforce will be attractive factors for Google to open a representative office in Vietnam,” he said.

    Meanwhile, a Google spokesperson said on Wednesday: “We remain very excited to see how technology is being used by businesses and people in Vietnam. There are a number of different factors we look at before opening an office, but we have nothing to announce at this time.”

    Vietnam’s Cybersecurity Law, which was passed in June, requires tech businesses to store the data of Vietnamese users in Vietnam, and to provide this data to the Ministry of Public Security upon receipt of requests in writing, in cases where any infringement of the cybersecurity law is being investigated.

    Seventeen U.S. lawmakers in July urged the CEOs of tech giants Facebook and Google to resist changes stipulated by the law.

    However, Vietnam’s Ministry of Foreign Affairs reasserted that the cybersecurity law is designed to protect rights of organizations and individuals.

  • New Hanoi taxi merger to fight Grab on the streets

    New Hanoi taxi merger to fight Grab on the streets

    Three Hanoi operators have banded together to create the largest taxi business in the capital and compete with Grab. The union, named G7 Taxi, has been able to undercut the fares of Grab, at least over short distances, and it may be looking to bring still more players into its group.

    G7 was formed in October by Thanh Cong, Ba Sao, and Sao Hanoi. Together, they have about 3,000 cars, accounting for around 20 percent of taxis in the Hanoi area.

    The G7 base fare is VND9,900 (43 U.S. cents) for the first one km, while Grab charges VND20,000 (86 U.S. cents) for the first two km.

    The entrance of the new brand is expected to increase competition between traditional taxis and raid hailing firms like Grab.

    Earlier, Nguyen Cong Hung, chairman of the Hanoi Taxi Association, had said: “Traditional taxis, each with their own app, are now trying to compete with Grab. But we are divided, therefore we need to unite.”

    Before Thanh Cong, Ba Sao, and Sao Hanoi teamed up, annual sales at the three companies had declined by 10-15 percent on average over the past few years.

    The number of taxi companies in Hanoi has also fallen down to 70 taxi now, from 115 in 2010.

    Joining the fight

    The taxi trio is not alone in pushing back against the ride-hailing industry.

    In March, southern taxi firms ComfortDelgro Savico and Vinataxi had merged with the same purpose.

    Vinataxi, the third largest taxi firm in HCMC, was confident the merger would increase its growth six-fold this year.

    Mai Linh, Vietnam’s No. 1 taxi operator, has developed a smartphone app similar to that of Grab. Meanwhile, second-ranked Vinasun has launched a ride-hailing service using Facebook’s Messenger app, enabling customers to hail cars and make complaints and requests directly, much like Grab.

    But Grab, the dominant player in the ride-hailing business in Vietnam, is also working on strategies to compete better with local taxi firms.

    Several months ago, it introduced Grab for Business in Vietnam, a service that helps a company track the trips its employees make to limit unnecessary trips and control expenses.

    Grab is also deploying various policies to attract drivers by offering bonuses and opening stops with free wifi and coffee.

    Lees ook:

    Lees ook:

  • Shanghai, Singapore is now Asia’s most expensive city

    Shanghai, Singapore is now Asia’s most expensive city

    Asia’s most expensive city for high net worth individuals is no longer Hong Kong. Both Shanghai and Singapore have overtaken it, with property costs alone pushing it beyond capital cities across the region. Wealth Report Asia, published annually by financial services company Julius Baer, measures the price of a basket of items including property prices, a degustation dinner, cars, a piano, wine, jewellery and even botox.

     

    Shanghai is now Asia’s most expensive city to buy six of the 22 items Julius Baer surveys (a hospital room, watch, handbag, wine, jewellery and skin cream). In addition, it has grown more pricey on a relative basis to buy property (from fifth to fourth most expensive), and legal fees have lept from 10th to second.

    Singapore is the most expensive city to buy a car or a degustation dinner, and ranks in the middle of the list on every other item, its best result eighth for a piano.

    Property prices and business class air fares have skewed Hong Kong’s position on the list – they are more expensive there than elsewhere. But in contrast, Hong Kong is cheapest city to buy skin cream, the second cheapest for wine and jewellery and the fourth cheapest for men’s suits, womens shoes and watches.

    The region’s least expensive city is Kuala Lumpur, Malaysia’s capital. According to Julius Baer, it is the most competitive city to buy property, wine, jewellery, a piano and cigars or to rent a hotel suite.

    Price deflation of items onshore such as legal fees (down four spots) and jewellery (down three spots) offset a recovery in the value of the ringgit against the US dollar.

    The data was calculated on a price-weighted basis.

    Chinese luxury consumption slowing

    Meanwhile, the report says the “China express” driving the world’s luxury retail market is slowing.

    Chinese nationals accounted for just 2 per cent of luxury spending in 2003 yet by last year that share had soared to 32 per cent – and they account for more than 70 per cent of global growth.

    But Julius Baer says recent signs “are pointing to an outlook that will be less spectacular”.

    “Amid the ongoing trade conflict with the US and a softening growth dynamic, the Chinese stock market has come under significant selling pressure this year. Chinese consumer confidence, which has been a good leading indicator for luxury goods performance trends, appears to have rolled over.

    The weakness in Chinese consumer confidence has weighed on the sector of late, and is likely to remain a drag going forward if Chinese consumption trends continue to slow.”

    The report also noted that Chinese retail sales growth has also been moderating in recent months.

    “We believe China is going through a self-induced slowdown as the economy transforms from investment-led to consumption-led growth. Reforms are currently taking a back seat in favour of selective and measured easing but [we] still expect 6.5 per cent growth this year, before a slowdown to 6.2 per cent next year.

    “Following a strong recovery since 2015, it is reasonable to expect global luxury consumption to slow in the near-term from a high base and moderating Chinese demand. Yet we remain upbeat in the longer term premised on structural growing demand from Chinese millennials and a more prominent female presence in the luxury market.”

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Spending Power of a Secretive Billionaire

    Spending Power of a Secretive Billionaire

    The lifestyles of the world’s billionaires reflect celebrity status globally, with the super-wealthy amongst us as scrutinized for their ability to perform as athletes, actors and politicians. The best in the business are some of the richest, most powerful people on the planet, yet many billionaires are reserved when it comes to the media spotlight, managing to stay below the public radar. We’re not talking about being famous and reclusive. We’re talking about being flat-out unknown among the masses.

    For example, in the finance world few can boast the spending power of Calvin Lo (盧啟賢), the CEO of life insurance broker, R.E. Lee international. His company regularly places around $1 billion of premiums annually, making it one of the most successful in the world.  Lo has amassed an estimated personal fortune of around $1.7 billion, yet despite being supremely wealthy and successful, Lo has managed to stay under the radar.

    Calvin Lo. Photograph: Apple Daily Hong Kong


    It was only when the Hong Kong press uncovered Lo’s visit to Champagne, France, earlier this year that the world start noticing him. His most recent purchase was forking out $250 million for his champagne collection.

    How did Lo travel to France? In his Gulfstream G650 of course. There are less than 20 of these extremely luxurious planes registered in Asia—with a list price of nearly $65 million, you’ll have to wait for nearly four years to get one after you sign up. Even though Lo does travel commercial (first class of course) every now and then, the billionaire prefers to enjoy his success in anonymity. His G650 allows him to fly without being recognised.

    Even though Lo lives his life in secrecy, the public managed to get a glimpse of his glamorous lifestyle when he dated Hong Kong actress, Bernice Liu (廖碧兒). They were spotted enjoying exotic holidays around the world, drinking the rarest vintage champagnes and driving in a collection of limited hypercars.

    Aside from this, Lo appears to live a normal life, just like most of us do (with varying degree of luxurious perks). That is why you’ve never heard of him. No interviews. No attention-seeking habits. Just a simple person with a lot of money.

    Billionaires are not just people who make money, they are equally influential in their social lives as they are in business. We watch their talks, follow their lives and read their books. But unknown billionaires like Lo are staying surprisingly low profile in today’s connected world. He is highly dedicated to his businesses and investments and has no desire to be famous. Traits like these make him a rare breed—one in a billion.

    Editor’s note: This article originally appeared on Forbes