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.

  • AirAsia signs component support deal for A320neo jets

    AirAsia signs component support deal for A320neo jets

    AirAsia and Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) has inked a component support agreement for the airline’s fleet of Airbus A320neo passenger jets, which is ultimately scheduled to number 304 aircraft.

    AirAsia took delivery of its first A320neo on Sept 7 this year in Hamburg.

    The contract between the two groups includes component repair services and solutions designed to maximise aircraft availability.

    “We are delighted to find a strong partner in AFI KLM E&M and one that is as dynamic as us. Operating a new-generation aircraft at such a large scale requires adaptive, world-class support, and we have the utmost confidence that AFI KLM E&M will be able to provide us with the responsiveness, reliability and performance needed,” said AirAsia Group CEO Tony Fernandes in a statement yesterday.

    AFI KLM E&M came up with an ultra-competitive support offer which is specially tailored for the carrier.

    With its experience of large-scale support, AFI KLM E&M is able to offer maintenance solutions for large fleets like that operated by AirAsia.

    “We are very honoured that AirAsia is extending its trust to us by awarding AFI KLM E&M with the support of its brand new A320neo fleet,” said Air France CEO Franck Terner.

    AFI KLM E&M currently provides component support for AirAsia’s A330 fleet operated by AirAsia X, its budget long-haul subsidiary.

    That support agreement was signed in 2009 and was extended in 2013.

  • Target China learning fast as it gains momentum

    Target China learning fast as it gains momentum

    Target China is continuing to learn about the vast mainland market as it builds brand awareness in the region in preparation for a major push.

    Vincent Lau, GM China with Target Corporation, told the Omni-Channel Retailing Conference half-year seminar yesterday that China represented a steep learning curve for the US$73.8 billion US-headquartered value retail business.

    “We had to forget everything we know. Being number two in the US market doesn’t resonate into anything in China.”

    Lau said that while 96 per cent of Americans recognised the distinctive red circles of the Target logo, it was probably the opposite in China. “They just see a bullseye.”

    Target believes its US brand promise “Expect more, pay less” is relevant to Chinese. But the stock range had to be adjusted to local market expectations. To date, Target is strong in mother and baby products and dry grocery lines, where it has localised sourcing and range.

    “We keep an open mind. We test and we learn. We want to see what [Chinese consumers want] and why.”

    Partnering with Alibaba has been crucial for Target in building the brand there. On Singles Day, or 11.11, Target was one of the US retailers to sign on to Alibaba’s Buy+ Virtual Reality shopping experience where shoppers online could ‘walk the aisles’ of a target store in Harlem.

    Lau declined to reveal sales figures but said every product on the digital shelf had sold multiple numbers during the 24-hour online sales.

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  • Myanmar retail will get investment boost

    Myanmar retail will get investment boost

    Myanmar retail will get a boost from the lifting of US sanctions, opening the way for foreign investment.

    The official end of the restrictions was formalised on October 7 and confirmed by the US Treasury, unblocking sanctioned properties, removing various banking restrictions and reporting requirements for investment. Exporters and manufacturers are expected to be the main beneficiaries, but the retail sector is also expected to see Western brands seeking local partners.

    With the easing of restrictions, local partners will find it easier to find international firms looking to enter the country, but due diligence will be needed as per industry analysts.

    Several brands have already entered the market in recent years including KFC, Pizza Hut and Gloria Jean’s Coffees. Japanese retail company Aeon was the first foreign retail chain to gain access to the market this year. It partnered with Creation (Myanmar) Group to open stores in Yangon and Mandalay.

    In addition, demand for retail space, which is in shortage, is expected to go up following Aeon’s lead. While the trend of shifting from local stores to large retail centers will take time, the pattern is already changing in major urban centers. The wider range of products, particularly foreign brands is expected to further quicken the process.

     

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  • Cebu Pacific eyes new jets for possible US flights

    Cebu Pacific eyes new jets for possible US flights

    Cebu Pacific, the country’s largest carrier, said Wednesday it was considering acquiring wide-body jets for possible flights to the United States.

    While “no formal decisions” have been made, Cebu Pacific said studying the acquisition of new aircraft is part of its long-term planning.

    In a disclosure to the stock exchange, the company said it was “evaluating new generation wide body aircraft that would enable it to enter new markets such as the United States.”

    The clarification was issued after The Standard newspaper, quoting an aviation think-tank, said Cebu Pacific was planning to acquire new planes for trips to the US West Coast.

    Cebu Pacific currently flies to the US territory of Guam. It also operates long-haul flights to the Middle East and Australia.

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  • Singapore Myanmar Investco hinges growth on Myanmar’s robust tourism

    Singapore Myanmar Investco hinges growth on Myanmar’s robust tourism

    It secured 90% of commercial space in YIA’s new terminal. Singapore Myanmar Investco’s duty free shops, retail outlets and car rental services are seen benefitting from growing tourism in Myanmar, said DBS Vicker Securities.

    The research house notes that the influx of tourists, estimated by the Tourism Ministry to increase from 5m in FY2016 to 7.5m in FY2020 on the back of the improved political and economic stability, will lead to the capacity expansion of YIA from 2.7m to 8m passengers by 2019.

    As such, with 90% of the commercial space secured on a 10-year agreement with merchandise supplied by DFS Venture Singapore at the new terminal at YIA which opened in mid-March, it believes SMI is set to benefit from the rising tourism in Myanmar.

    SMI will also manage three F&B outlets; with franchise agreements signed with Crystal Jade, IPPUDO (Japanese ramen restaurant) and The Coffee Bean & Tea Leaf.

    SMI plans to expand its range of F&B franchise concepts into the domestic market.

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  • AirAsia India adds more direct flights

    AirAsia India adds more direct flights

    AirAsia India today announced an additional flight connecting Bengaluru to Goa and Pune starting fourth week this month.

    The airline currently operates one daily connection between Bengaluru and Pune, and with this additional flight, the airline will operate two daily flights connecting the two cities, the company said in a release issued here.

    AirAsia India will also operate its fourth daily connection between Bengaluru and Goa starting December 18, 2016, it added.

    “Our flights from Bengaluru to Pune are doing extremely well and so are our three existing connections to Goa. We see immense demand in this sector. We are constantly working towards providing our guests the most convenient options for them to pick from. We are confident that this new connection is going to be well received by our guests,” AirAsia Managing Director and CEO Amar Abrol said.

    AirAsia India currently flies to 11 destinations with its two hubs in Bengaluru and New Delhi covering Chandigarh, Jaipur, Guwahati, Imphal, Pune, Goa, Vizag, Kochi and Hyderabad.

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  • China Duty Free Group appoints Lee Charn Cheng as COO

    China Duty Free Group appoints Lee Charn Cheng as COO

    China Duty Free Group (CDFG) has announced the appointment of Lee Charn Cheng (CC Lee) as Chief Operating Officer.

    A seasoned retail professional with a wealth of travel-retail experience, Lee spent 26 years with DFS Group, serving as managing director of Singapore and subsequently  managing director for Australia before leaving to join Valiram Group as Country Manager for Singapore. His most recent position was CEO for Lagardère Travel Retail responsible for Singapore and Malaysia and overseeing business developments in Hong Kong.

    Lee commented: “My last five years with Lagardère Travel Retail has been exciting as we see significant business growth. I thank my bosses Dag and Emmanuel for their support. I look forward to the exciting challenge of assisting CDFG in realising its vision and global ambition. CDFG has a great team and I am highly confident of building on their strengths.”

    A CDFG statement said Lee’s broad retail background and portfolio was a strong asset and would bring CDFG to the next level as a top global retailer offering a broad new exciting spectrum of retail experience to customers.

  • China’s Social Consumer Retail Sales Up 10% In October 2016

    China’s Social Consumer Retail Sales Up 10% In October 2016

    China’s social consumer retail sales in October 2016 reached CNY3.112 trillion, representing a year-on-year nominal increase of 10% and actual increase of 8.8% if deducting price factors.

    Meanwhile, from January to October 2016, China’s total social consumer retail sales reached CNY26.96 trillion, a year-on-year increase of 10.3%.

    By location of operating units, China’s urban consumer retail sales were CNY2.689 trillion in October, a year-on-year increase of 10%; while rural consumer retail sales were CNY422.6 billion, a year-on-year increase of 10.3%. During the first ten months of 2016, China’s urban consumer retail sales were CNY23.183 trillion, a year-on-year increase of 10.2%; and rural consumer retail sales were CNY3.777 trillion, a year-on-year increase of 10.9%.

    By consumption type, China’s food and beverage sales in October were CNY349.2 billion, a year-on-year increase of 10%; and commodity retail sales were CNY2.763 trillion, a year-on-year increase of 10.1%. From January to October 2016, China’s food and beverage sales were CNY2.911 trillion, a year-on-year increase of 10.9%; and its commodity retail sales were CNY24.05 trillion, a year-on-year increase of 10.3%.

    In addition, during the first ten months of 2016, China’s Internet retail sales reached CNY3.929 trillion, a year-on-year increase of 25.7%. Of the total, Internet sales of physical goods increased by 24.9% year-on-year to CNY3.174 trillion, accounting for 11.8% of the total social consumer retail sales of China.

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  • Lego Korea launching first official shop

    Lego Korea launching first official shop

    Lego Korea is to launch its first shop at the Hyundai Department Store Pangyo branch in Gyeonggi Province, southeast of Seoul, on Friday.

    Officially certified by the Lego Group headquarters in Denmark, it will differentiate itself in design from outlets that sell a limited range of Lego sets. It joins a range of official Lego Stores in Asia including Hong Kong, Japan, Malaysia and Singapore.

    A comprehensive inventory of Lego sets, some of which are hard to buy at shops in Korea, will feature at the new official store. To mark its opening, there will also be limited editions of such sets as Lego Store and Lego Disney Castle.

    There will also be a Pick a Brick zone, where customers can put together customised sets.
    For its first six days, the Hyundai Department Store Pangyo will run Korea’s largest-ever Lego experience zone, a free attraction at its Topaz Hall.

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  • Sony Pictures signs VR content deal with Nokia

    Sony Pictures signs VR content deal with Nokia

    Nokia and Sony Pictures have inked a new multi-year worldwide agreement whereby the latter will use Nokia OZO hardware and software tools to explore the creative potential of virtual reality production and distribution.

    The studio will also integrate the OZO Player SDK into Sony Pictures Home Entertainment’s Privilege Plus app, available through Google Play.

    “VR is a fast growing medium that is rapidly changing how we communicate and bringing a deeper connection to how we experience content,” said Paul Melin, VP of digital media at Nokia Technologies. “We’re thrilled to partner with Sony Pictures and its talented storytellers to apply our technology and create experiences only possible with OZO — like 3D 360 live VR broadcast.”

    Nokia will collaborate with Sony Pictures and provide equipment and VR technology to support the creation of special VR content. Sony Pictures will also leverage OZO Live to transport fans to Sony Pictures events that they couldn’t otherwise attend.

    OZO Live allows content creators to produce fully immersive live experiences through 3D 360 degree video and audio playback technologies.

    While the OZO solution offers many advantages for content creators, it also extends several benefits for playback. OZO Player SDK will be integrated into Sony’s Privilege Plus app, which will bring unique content straight to fans.

    The OZO Player SDK allows professionals to create amazing VR apps and experiences on any major platform. The SDK supports the creation of immersive apps with the highest quality playback of OZO content including 360 spatial audio, while also providing support for standard VR video and audio formats.

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  • CNN taps Beme to launch new media outfit

    CNN taps Beme to launch new media outfit

    CNN is funding and launching by summer of 2017 a standalone startup and it has tapped with Beme co-founders Casey Neistat and Matt Hackett to build the new brand.

    The new company will be devoted to filling the world with timely and topical video and empowering content creators to use technology to find their voice.

    For the new outfit, CNN is hiring “dozens of producers, builders, developers, designers and content creators of every mold.”

    The deal also means that CNN has acquired Beme, which is the digital innovation piece of a multiyear development deal that will result in the formation of a new media company “bringing together technology and storytelling.”

    CNN said it was approaching this project as a startup, with Andrew Morse (GM, CNN Digital Worldwide), Chris Berend (SVP, digital video), Casey Neistat and Matt Hackett are the new brand’s founders.

    “And just like Great Big Story, it will operate as a separate, stand-alone business as part of the CNN Digital portfolio,” the company said.

    As for Beme, the app will cease to exist and the innovation team will focus on launching the new company and building premium and transformative technology-driven experiences for CNN’s portfolio of businesses. Users will be notified and will have ample time to download their videos.

    All 11 Beme employees will join CNN as a distinct technology group, dedicated to charting the future of CNN through innovative mobile video products –- some as stand alones, others as enhancements to the vast array of existing products in the CNN portfolio.

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  • Thai Airways International Shares Take A Dive Last Week

    Thai Airways International Shares Take A Dive Last Week

    The President of Thai Airways Charamporn Jotikasthira has told reporters that the full-year target of 180 billion baht is unlikely to be achievable.

    A report posted with regard Thailand’s crackdown on China’s so-called zero-dollar tours has led to a sharp decline in Chinese tourists. These tours were offered below cost, with operators making big profits through kickbacks from affiliated souvenir shops and service providers from which travelers were forced to buy at inflated prices.

    Thai Airways revenue from Chinese passengers has dropped by 25% over the past several months because of this crackdown.

    There are obviously other factors involved as Charamporn also said many economizing steps have not yet been fully implemented, suggesting that the full-year cost-cutting target may also be missed.

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  • Garuda Indonesia Opens Jakarta-Mumbai Route on December 12th

    Garuda Indonesia Opens Jakarta-Mumbai Route on December 12th

    Flag carrier Garuda Indonesia will open scheduled flights to India starting December 12, 2016. Garuda Indonesia will operate three flights a week from Jakarta to Mumbai via China.

    Garuda Indonesia president director Arif Wibowo said that the flights will make one transit stop in China in first phase of operation.

    “We will see how it goes in two or three months; if the results are good, we will make it direct flights,” he told reporters at a tourism event in Jakarta on Tuesday, December 6, 2016.

    Arif went on to say that India has a huge potential considering its 1.4 billion population. On the other hand, the number of tourists traveling from India to Indonesia is quite significant at 300,000 arrivals per year.

    As such, he is confident that seat occupancy rate of Garuda’s Boeing 737 to operate in that route will reach 70-75%.

    “More so because it will start to operate on the right time, i.e. before year-end holidays,” he added.

    Aside from India, Garuda will also open direct flights from China’s Chengdu province to Bali. Regular flights will commence mid-January 2017.

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  • Mainland role for Hong Kong retail

    Mainland role for Hong Kong retail

    While there are fewer of them, visitors from Mainland China are still vital to Hong Kong retail, says a new report from analyst Nielsen.

    It says Hong Kong has 42.8 million mainland visitors every year, representing 75 per cent of its total tourists and generating 35 per cent of retail sales.

    In the past 12 months, according to the 2016 Mainland Tourists Syndicated Report, 17 million mainland tourists stayed overnight in Hong Kong, with 80 per cent of them taking two trips a year on average and spending HK$20,000 (US$2578).

    Nielsen says that while the figures show Hong Kong businesses “still have a big chance to win if they find the right way to attract mainland travellers”, cross-border eCommerce opportunities offer them cheaper, easier access.

    “The incidence of buying foreign goods via a Chinese cross-border eCommerce platform is higher than overseas platforms and physical visits,” says Nielsen Hong Kong MD Angel Young.

    “Those overnight visitors, who are short in number but stronger in buying power compared with the day-trippers, is a key group to watch,” Nielsen’s report says business owners in Hong Kong might need to adapt their advertising and feedback mechanisms to create better customer experiences for digital-savvy mainland travellers.

    “They should focus more on the pre-travel period as more and more mainlanders are planning independent tours to Hong Kong, with 95 per cent gaining the necessary information from online travel agencies and 49 per cent from social media. Many can’t wait to post pictures on social websites when they are still shopping, to share both positive and negative comments and discount information.

    “Business owners also have to improve in-store customer service, as the research shows that 80 per cent of the mainlanders’ purchases in Hong Kong are for their own use rather than for friends.”

    The report recommends targeting two specific groups: so-called “super mainlanders” and culture seekers.

    The super mainlanders have a “huge shopping thirst”, says the report. They make up only 23 per cent of tourists from the mainland but account for 54 per cent of total mainlander sales, spending an average CNY46,902 (US$6810) each per visit.

    Culture seekers travel to Hong Kong for concerts, the food, sightseeing and exploring places they have seen on television shows. While not shopping-oriented, they still spend 10 per cent more than other mainland tourists.

  • Shilla Duty Free opens 25,000sq m Phuket store

    Shilla Duty Free opens 25,000sq m Phuket store

    The Shilla Duty Free conducted a soft opening of its new downtown store in Phuket, Thailand at the weekend, which has allowed it to take the next step in its ‘diverse global expansion strategy’, it says.

    As reported, the store was slated to open originally in August, but the South Korean TR operator was actually able to officially add the Kathu district store to its growing international store network on 19 November. The retailer first opened a store outside Thailand in 2012 with its Changi Airport concession in Singapore. Since then Shilla has opened in Macau also.

    This time Shilla has partnered with two local companies (Gems Gallery and The Mall) to operate the store under a ‘GMS Duty Free’ joint venture first agreed in 2013. However the store fascia with carry ‘The Shilla Duty Free’ company name.

    Shilla says it is in charge of ‘general operation of the store including MD and store operation’.

    TWO-STOREY 25,000SQ M STORE

    “Gems Gallery, sole market leader of Phuket’s jewellery market, and The Mall, operator of top-of-the-class department stores and shopping malls in Thailand, are in charge of sourcing of Thailand local goods and marketing,” reveals Shilla.

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