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.

  • Harbour City books HK$5.94b retail revenue

    Harbour City books HK$5.94b retail revenue

    Revenue at Tsim Sha Tsui’s popular luxury shopping mall, Harbour City, (excluding hotels) increased by 6 percent to HK$8.56 billion, Wharf Holdings (0004) reported today.

    Operating profit grew by 6 percent to HK$7.48 billion. Retail revenue increased by 5 percent to HK$5.94 billion.
    The occupancy rate was nearly 100 percent, the company reported today.

    New openings or commitments including Miu Miu (Canton Road), Philipp Plein, J. Crew, Pandora, Sulwhasoo and Rado further improved the tenant mix, the company said. The introduction of various Hong Kong and Kowloon debuts across distinct categories including Maison Margiela, Issey Miyake, Christian Louboutin Men and Tea WG Boutique continued to raise the retail and culinary experience, Wharf said.

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  • SHB new Club sponsor in Vietnam, Laos & Cambodia

    SHB new Club sponsor in Vietnam, Laos & Cambodia

    On 8 March 2016 in Hanoi, FC Barcelona unveiled a sponsorship agreement with Saigon – Hanoi Commercial Joint Stock Bank (known as SHB), the top 5 Private Commercial Banks in Vietnam. This agreement will make SHB the first and only banking partner of FC Barcelona in Vietnam, Laos and Cambodia and enable SHB to open various business opportunities in retail sector in the territories, and bring the club closer to the Vietnamese Barça fans.

    A signing ceremony was held in Melia Hanoi Hotel today. Xavier Asensi, Asia-Pacific Managing Director, attended the event in representation of FC Barcelona, while SHB was represented by Chairman Do Quang Hien and CEO Nguyen Van Le. The ceremony also received the participation of the Representative of Vietnam Football Federation (VFF) – Mr. Tran Quoc Tuan, Vice President, Mr. Nguyen Xuan Gu, Vice President, as well as the coach of local football team SHB Da Nang Football Club, Mr. Le Huynh Duc.

    Strategic partnership for SHB and FC Barcelona

    With this partnership begins, SHB and FCB will cooperate to expand the Barça fan base in Vietnam, Laos and Cambodia. SHB also aims at opening up great business opportunities in retail sector through the development of co-branded cards in the territories. In the time to come, SHB will organize exchange and fan activities in the territories as well as bringing the local Barça fans to Camp Nou, contributing to build the foundation of culture, tradition and Barça spirit we found in millions of our fans.

    Statement by Manel Arroyo, FC Barcelona Vice president, Marketing and Communication department

    “The signing of this new regional sponsorship deal reaffirms our interest in increasing our presence in this continent and also reflects how our Club is gaining notable levels of popularity in this strategic zone, which is encouraging us to continue focusing our presence in Southeast Asia. The agreement with SHB also means a partnership with a highly prestigious entity and will be the vehicle for the name and colours of FC Barcelona to spread to Vietnam, Laos and Cambodia. FC Barcelona’s experience shows that football is a driver that generates cooperation and success, and hand in hand with SHB, we hope to achieve major social objectives.”

    Statement by Xavier Asensi, FC Barcelona Asia Pacific Managing Director:

    “We are so happy to have SHB as our first ever bank partner in Vietnam, Laos and Cambodia. Through partnering with SHB, we will be closer to the 90 million Vietnamese, including a growing fan community. SHB is young and taking up the leading part in the industry; while FCB is deep-rooted and has been successful in defending the glory. I do believe that the collaboration between these two different but yet, similar entities will create a huge buzz and synergy.”

    SHB, a dynamic bank

    SHB has become one of the leading urban banks in Vietnam with the image of a dynamic, modern, and efficient bank after establishment from 23 years ago. By the end of 2015, SHB total assets reached more than VND 205,000 billion, charter capital of nearly VND 9,500 billion with 7,000 employees and transaction network of more than 500 points all over Vietnam and overseas. Not only having an extensive presence in Vietnam, SHB is currently the second Vietnamese private Bank which opened a 100% foreign capital Bank in Laos in January 2016. Along with 4 branches operating in Cambodia, the reputation and financial capacity of SHB have been appreciated in Indochina. SHB has always actively participated in social and charity activities making great contributions to the development of the community, especially sports.

    Statement by Do Quang Hien, Chairman of SHB:

    “The partnership between SHB and FC Barcelona may be considered a perfect cooperation of the leaders. SHB and FC Barcelona share the commons in brand and development philosophy on the road to success, the objective of sustainable development and the desire of devoting to fans and customers. SHB is proud to be the first and only partner bank of FC Barcelona in Vietnam, Laos and Cambodia. This is not only a business opportunity for SHB but firstly it is for a large number of football fans in particular, sports fans in general. Customers are now able to see, feel, and more easily access to their idols daily, hourly … when using and enjoying benefits of Barça – SHB co-branded card and banking products. Moreover, this is also an opportunity for SHB to contribute to the promotion of a beautiful, peaceful, hospitable, dynamic and deeply imbued with the culture Vietnam all over the world.”

  • China aims for +6.5% growth for 2016 to 2020

    China aims for +6.5% growth for 2016 to 2020

    There will be no ‘hard landing’ for the Chinese economy, despite growth forecast cuts, according to Xu Shaoshi, the Head of China’s state planning agency, commenting on the draft outline of the 13th Five-Year Plan on national economy and social development at the 12th National People’s Congress (NPC).

    This message was delivered loud and clear in the Great Hall of the People in Beijing last Saturday, despite Asia’s leading economic powerhouse missing its growth target of around 7% last year. The economy is said to have grown by 6.9% in 2015 – the lowest level in 25 years – according to the Chinese Government’s official news arm, the Xinhua News Agency.

    At the same time, Chinese Premier Li Keqiang pointed to lower growth expectations in his opening speech and more challenging times. He also announced a lowering of the economic growth target for this year to between 6.5% to 7% – a level most nations and economies around the world would obviously welcome, although this range over five years is much slower than the rates seen over the last 25-30 years.

    However, Xinhua reports that the bottom end of this new target figure is understood to represent the ‘minimum growth required’ for China to attain its stated target of doubling its 2010 GDP and per capita income level within four years by 2020.

    RISING TO NEW ECONOMIC CHALLENGE
    Li Keqiang also announced that China’s GDP is now forecast to be in excess of CY92.7 trillion ($14.2 trillion) in 2020, compared with CY67.7 trillion in 2015, according to the draft, submitted to the National People’s Congress (NPC) annual session, which opened Saturday, for review.

    The new five-year plan contains a number of important new policy measures, including the amazing prediction that China will create more than 50m new urban jobs in the next five years.

    Xinhua also points to the Chinese Premier’s promise to try and help improve the quality of life for poverty-stricken rural residents, as well as reduce the number of heavily polluted days in large cities by 25%. However, this last aim will require a cap on industrial factory output that the country has so far been slow to implement.

    Meanwhile, on the transport front, China is expected to complete its target of 30,000km of high-speed railways to link 80% of big cities nationwide. This is expected to take more pressure off the country’s airports where domestic flights are routinely delayed and many airports suffer from severe congestion.

    China-US-Tourism-Year-2016-Opening

    CHINA-US TOURISM YEAR: This year (2016) is China-US Tourism Year, with Chinese President Xi Jinping sending a message of welcome to a high-powered tourism delegation from the US last week. He said: “I hope we’ll take this opportunity to expand personnel exchange, reinforce cultural exchange and foster a more solid social basis for bilateral relations development. American tourists are welcome to China. I wish 2016 China-U.S. Tourism Year a complete success.” US President Barack Obama reciprocated with his message: “Please get ready for more and more Americans are travelling to China. I also look forward to and welcome more Chinese to the United States. I believe that the more we understand each other, the more we can work with each other.”(Photo Credit: China National Tourist Office).

    The recent announcement related to the creation of more duty free arrivals shops in China is also entirely in line with these ‘readjustments’ to the Chinese duty free regulations, as predicted last year and reported last month.

    This follows the Chinese Government’s move to reign in a bigger share of high duty free spending levels by its Chinese nationals abroad, by authorising multiple duty free arrivals shop openings at leading airports and border points.

     

  • Hong Kong International Jewellery Show Opens

    Hong Kong International Jewellery Show Opens

    The 33rd HKTDC Hong Kong International Jewellery Show opened today and runs through 7 March at the Hong Kong Convention and Exhibition Centre (HKCEC). With more than 2,500 exhibitors from 41 countries and regions, the five-day show features a wide range of finished fine jewellery. Along with the International Diamond, Gem & Pearl Show, currently taking place at the AsiaWorld-Expo with more than 1,880 exhibitors, the two fairs form the world’s largest marketplace for the jewellery industry, gathering a total of more than 4,380 exhibitors.

    Hall of Fame displays world-renowned jewellery brands

    The Jewellery Show features a number of themed zones. The prominent Hall of Fame brings together more than 40 internationally acclaimed jewellery brands, including The Fifth Season by Roberto Coin from Italy, Lady Heart from Hong Kong, Kuwayama from Japan and TTF Haute Joaillerie and Lao Feng Xiang from the Chinese mainland. The most prestigious jewellery collections can be found at the Hall of Extraordinary – including Dehres (Booth GH-B02), a leading player in the Asian diamond and jewellery industry. Dehres is showcasing its pear-shaped diamond necklace and pendant valued at over US$2 million, with 180 pieces of diamonds accompanying the 15-carat centrepiece, and the necklace made up of 40 pear-shaped diamonds. The Wedding Bijoux zone makes its fair debut this year, focusing on bridal jewellery and wedding rings. The T-GOLD+METS pavilion displays professional jewellery and watchmaking machinery, equipment, technology and supplies to meet the needs of buyers. This pavilion is co-organised by the Hong Kong Jewellery & Jade Manufacturers Association (HKJJA) and Fiera di Vicenza.

    Other themed zones each have distinctive characteristics. Hall of Time presents luxury watches and clocks, among which the rising local watch brand Anpassa (Booth 3C-E12) combines jewellery and timekeeping to create a 999.9 gold dragon and phoenix bangle tourbillon watch. World of Glamour spotlights the craftsmanship of Hong Kong and overseas exhibitors, including Wing Hang Jewellery (Booth 1E-D24) with its natural golden south sea pearls, and an artistically designed jewellery set crafted with diamonds. Elsewhere, Antique & Vintage Jewellery Galleria emphasises the charm of classic jewellery; Designer Galleria offers the latest jewellery designs; Hall of Jade Jewellery collects a wide range of exquisite jade pieces, and Treasures of Craftsmanship parades sophisticated decorative items made with precious stones, semi-precious stones and precious metals.

    Jewellery market insights and business opportunities

    The HKTDC has organised more than 110 buying missions for the twin shows, bringing over 9,300 buyers from 75 countries and regions to explore new business opportunities. To help industry players keep up with the latest market trends and intelligence, a series of seminars and networking events have been organised. Several jewellery parades will also demonstrate a wide range of prestigious jewellery and fashionable designs.

    Amid raising brand awareness among consumers, the jewellery industry is paying more attention to brand development. Today’s seminar on “Brand Establishment of Chuk Kam Jewellery” invited professionals from the Gemmological Association of Hong Kong to analyse the secrets to successful brand-building in the industry. The HKTDC will also organise a seminar on “Consumer Updates on Jewellery Market 2016/2017” to keep the industry informed about the latest market trends and opportunities.

    Opening day activities also include a Gala Dinner. The Royal Cruise-themed dinner features fusion dishes designed by celebrated chef Michael Gilligan, Director of Culinary, Royal Caribbean International. Legislative Council member James Tien is guest of honour at the Gala Dinner, joining other guests for an evening of fine cuisine and parades of spectacular jewellery sponsored by the exhibitors.

    Local designs shine bright

    To highlight local creative talents, the HKTDC co-organised the 17th Hong Kong Jewellery Design Competition with the four leading associations of the jewellery industry. Meanwhile, the award ceremony for the biennial event Chuk Kam Jewellery Design Competition 2016, under the theme “Gold 4.0 – Innovate outside of the box. Inspire the heart and soul”, also took place today. The winning pieces of the two competitions are on display at Hall 1E during the Jewellery Show, presenting the creativity of Hong Kong jewellery designers to global buyers.

    International Diamond, Gem & Pearl Show

    The HKTDC Hong Kong International Diamond, Gem & Pearl Show (1-5 March) is underway at the AsiaWorld-Expo, featuring uncut pieces and jewellery raw materials. The show centres around three highlighted zones; Hall of Fine Diamonds with high-quality diamonds from around the world; Treasures of Nature, showcasing precious gemstones; and Treasures of Ocean, exhibiting a variety of prestigious pearls. The new Rough Stones & Minerals zone has been introduced this year to display unpolished and uncut stones and gems. The Diamond, Gem & Pearl Show also includes a number of pavilions, including the first staged by the Tanzanite Foundation.

  • Three Indonesians Receive UK Alumni Award

    Three Indonesians Receive UK Alumni Award

    Three Indonesian nationals, who graduated from universities in UK, received awards from the UK government at the British Council’s Education Alumni Award 2016 held on Thursday, March 3, 2016.

    The three graduates are Betty Purwandar, director of information technology at the University of Indonesia, Theresia Alit Widyasari, young entrepreneur and founder of three clothing companies, and Ahmad Fuadi, author of Negeri 5 Menara (The Land of Five Towers) novel.

    Betty was awarded as the best alumni in the professional achievement category. After completing her computer science doctorate program at Southampton University, Betty returned home to work at the University of Indonesia (UI). Betty was considered as the best alumni for helping UI to reform and improve information technology services in the university.

    “I learned how to study the World Wide Web and how the web can have positive impacts on humanity,” Betty said.

    Theresia was awarded as the best alumni in the entrepreneurship category for facilitating young generations to design, produce and market their products through her brands. Theresia, who majored in fashion business at Westminster University, said that living and studying overseas had broadened her horizon and sharpened her business skills.

    Despite doubts over the future of the fashion industry, Theresia remains confident with three of her brands, Bloop, Endorse and Urbie.

    “I learned that being good is not enough. You have to be excellent and creative,” Theresia said in her speech delivered by her colleague, since she could not attend the event.

    In addition to Betty and Theresia, Ahmad was awarded as the best alumni since his novel was considered to have positive social impacts on many people. With his readers, Ahmad founded a non-profit community called `Komunitas Menara` that provides education access and books to poor people.

    Ahmad said that the award was a proof of how a teacher can be influential to students.

    “My teacher told me to study anywhere, to go outside and not to limit myself. The advice gave me quite a push,” Ahmad, who was graduated from Royal Halloway, University of London, said.

    The Education UK Alumni Award is an event to commemorate the UK Education Month and to tighten Indonesian and UK partnership in the higher education sector. The event is also held in nine other countries, namely Brazil, China, Hong Kong, India, Nigeria, Pakistan, Saudi Arabia, Turkey, and the United States.

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  • Indonesia, Philippines and many more sign up as exhibitors for WTM Connect 2016

    Indonesia, Philippines and many more sign up as exhibitors for WTM Connect 2016

    The first editions of World Travel Market’s new “pod” shows – WTM Connect Asia and WTM Connect China, will take place back to back in May this year focusing on the booming South East Asian and Chinese leisure tourism markets.

    Both events bring together carefully selected South East Asian, international and outbound Chinese Hosted Buyers to meet with suppliers of international travel product for 2.5 days of pre-scheduled business appointments, inspiring education content, networking functions and cultural evening events.
    WTM Connect Asia will see the likes of Visit Berlin, Malaysia Tourism Promotions Board, Prodo Travel, Philippines Tourism Promotions Board, Jordan Tourism Board, Penang Tourism, Europcar International, Ministry of Tourism Indonesia and many more gather in Penang, Malaysia from May 18-20, 2016.

    Confirmed exhibitors attending WTM Connect China taking place in Sanya, Hainan Island, China from May 23-25, 2016, include Marriott Vacation Club International, Eskimos Iceland, Cox & Kings, Nepal, Westfield, Poseidon Expeditions, Uniline d.o.o, Jac Travel and Lernidee Trains & Cruises. Some suppliers such as Penang Tourism, Visit Berlin and Marriott Vacation Club are attending both Connect events making the most of the shows being a couple of days apart leading to more business deals.

    Tiara Firsalina Surya, Director of South East Asia Tourism Promotion, Ministry of Tourism of The Republic of Indonesia says: “Ministry of Tourism of The Republic of Indonesia is delighted to participate in the very first WTM Connect Asia 2016. We believe this event will be our new B2B platform based on the success of WTM London for the last several years. Ministry of Tourism of The Republic of Indonesia together with 5 tourism industries will promote Indonesia tourism to international buyers during the event.”

    James Sy, Marketing and Promotions, Philippines Tourism Promotions Board adds: “The Philippines would like to utilize the full potential of WTM Connect Asia as the world’s leading B2B travel exhibitions’ organizer and as a platform to launch our Visit the Philippines Again (VPA) 2016 branding. In addition, WTM Connect Asia will serve as a prime tool for the WTM buyers and the Philippines exhibitors to connect and network.”

    Ministry of Tourism and Culture Malaysia, Malaysia Convention & Exhibition Bureau, Tourism Malaysia and State Tourism of Penang are all supporting the launch of WTM Connect Asia in their home country. And WTM Connect China is officially supported by Sanya Tourism.

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  • Indonesia cuts exports of natural rubber to prop up market

    Indonesia cuts exports of natural rubber to prop up market

    Indonesian rubber exporters agreed to cut their exports of that commodity in line with the Agreed Export Tonnage Scheme (AETS) starting March until August this year.

    “AETS scheme agreed upon by the three member countries of the International Tripartite Rubber Council (ITRC) is aimed at propping up the natural rubber market by cutting supply of that commodity to the world market,” Foreign Trade Director General Karyanto Suprih said in a statement here on Monday.

    The government has asked the business players to comply with the scheme, Karyanto pointed out.

    The commitment was declared at a Focus Group Discussion (FGD) with theme “Readiness of Indonesian Rubber Exporters to implement the AETS scheme in 2016 in line with the agreement reached on February 4, 2016 between the governments of Indonesia, Thailand, and Malaysia to cut supply of natural rubber to the world market.

    The export cut would be effective from March 1 to August 31 this year.

    Under the AETS scheme Thailand, the worlds largest producer is to reduce its exports of natural rubber by 324,005 tons, Indonesia, the second largest producer by 238,736 tons, and Malaysia, the third largest by 52,259 tons.

    Altogether ITRC member countries agreed to reduce exports of natural rubber by 615,000 tons during the March-August period.

    Indonesia, while cutting exports hopes to increase domestic consumption of natural rubber.

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  • Indonesian fishery products showcased at Boston expo

    Indonesian fishery products showcased at Boston expo

    Maritime Affairs and Fishery Minister Susi Pudjiastuti hoped that the visitors and prospective buyers of fishery products at the seafood exhibition in Boston, the United States, would recognize the progressive market and potential of Indonesia.

    “With our sincere efforts to combat illegal, unreported, and unregulated (IUU) fishing, the people will witness a rapid growth in our fishery products,” the minister noted on the sidelines of the seafood fair held in Boston on Sunday local time.

    The minister was also optimistic of receiving valuable feedback from both the exhibitors and visitors to boost the exports of its maritime products and to garner global recognition.

    “I also hope that the Indonesian fishery businessmen would engage in fishing in a responsible manner,” Susi said, adding that the Indonesian fishery community is not only selling the products but also engaging in rightful fishing practices and not violating IUU.

    The minister also urged the Indonesian businessmen to continue developing the fishing industry in ways that are environment-friendly.

    “I see a great opportunity for the exports of Indonesian marine products, although there are still obstacles to be faced, and certainly, we can solve such problems,” she emphasized.

    Susi also gave assurance to the Indonesian maritime businessmen that curbing illegal fishing would open up a larger market, and thus, they must follow the international regulation on fishing.

    “The Indonesian fishery businessmen have been urged to follow responsible and sustainable fishing practices,” Susi remarked.

    As many as 17 fishery companies, including PT. Central Proteina Prima, Tbk, Sustainable Fisheries, Sekar Bumi, PT. Wahyu Pradana Binulia, PT Permata Marindo Jaya, and Kudatama Mas had showcased their products at the Indonesian pavilion during the seafood exhibition.

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  • “Wonderful Indonesia” promoted on sidelines of OIC Summit

    “Wonderful Indonesia” promoted on sidelines of OIC Summit

    Indonesias Tourism Ministry promoted “Wonderful Indonesia” brand on the sidelines of the Fifth Extraordinary Summit of the Organization of Islamic Cooperation (OIC) held at the Jakarta Convention Center on March 6-7.

    The ministry extended support for conducting the summit, the ministrys spokesman Billy Iqbal Alamsyah said here on Monday.
    “We provided support in several forms, including by providing souvenirs, etc.,” he said.
    The summit was also a strategic forum to promote “Wonderful Indonesia” brand as a total of 605 delegates from 57 countries and two international organizations were present in the meeting, he said.

    While the OIC leaders held a closed-door meeting, the ministry showed a video on Indonesias top tourist destinations at the media center set up to facilitate some 500 national and foreign journalists.

    Heritage and Wonderful Indonesia stands presenting the Indonesian Beauty Pageant were set up in front of the media center.
    Widayanti Bandia, head of the tourism business partnership department of the Tourism Ministry, said the ministry, in cooperation with Mustika Ratu, offered free spa treatment to delegates.

    “The spa that we offer here is halal and in accordance with Syariah (Islamic laws),” she said.

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  • Lifestyle’s 2015 results have no impact on its ratings

    Lifestyle’s 2015 results have no impact on its ratings

    Moody’s Investors Services says that Lifestyle International Holdings Limited’s 2015 results have no impact on its Baa3 issuer rating.

    The rating outlook remains stable.

    “Despite the weak retail markets in Hong Kong and China, Lifestyle maintained stable revenue and operating profits in 2015. Combined with its flat debt leverage compared to a year ago, this resulted in a credit profile appropriate for its Baa3 ratings,” says Lina Choi, a Moody’s Vice President and Senior Credit Officer.

    “While the negative sales growth trend in the first two months of 2016 point to increased operating challenges, we expect Lifestyle will maintain credit metrics consistent with its Baa3 ratings in the next 12-18 months,” adds Choi, who is also the Lead Analyst for Lifestyle.

    Lifestyle recorded 1.6% year-on-year gross sales proceeds growth to HKD13.8 billion in 2015 from HKD13.6 billion in 2014. Driven by 2.3% revenue growth at SOGO Causeway Bay and SOGO Tsim Sha Tsui, Hong Kong and a strong performance in Shanghai Jiuguang, the group’s total revenue grew by 3.4% to HKD6.2 billion from 2014 levels.

    Gross sales proceeds declined by low-teen percentage points in the first two months of 2016 from the same period last year, pointing to increasing operating challenges. Lifestyle plans to lengthen promotion periods over the course of the year to avoid repeating the magnitude of revenue declines seen in January-February 2016.

    Meanwhile, Lifestyle’s adjusted EBITDA was around HKD3.1 billion in 2015, flat when compared with 2014 levels. Moody’s estimates the company’s profitability, as measured by adjusted EBITDA/gross sales proceeds, was 22%-23% in 2015, also largely stable from the above 20% reported since 2010.

    Moody’s expects the company’s adjusted EBITDA/gross sales proceeds ratio will remain above 20%, supported by the company’s established brand name and track record of effective cost control in down cycles.

    Although Lifestyle’s adjusted debt increased by around HKD2 billion to HKD14.3 billion at end-2015, this level remains within Moody’s expectation. Accordingly, 2015 adjusted debt/EBITDA for Lifestyle increased to around 4.8x in 2015, a level still appropriate for its Baa3 ratings.

    Moody’s expects the company’s leverage level to stay within 4.5x-5.0x in the next 12-18 months. This is based on the expectation that the company will pay down a HKD3.2 billion loan by mid-2017.

    Lifestyle’s liquidity remains solid. The company held HKD8.6 billion in cash on hand at end-2015, which is more than sufficient to cover its HKD3.2 billion debt due in the next 12 months.

    The principal methodology used in this rating was Retail Industry published in October 2015. Please see the Ratings Methodologies page on www.moodys.com for a copy of these methodologies.

    Listed on the Hong Kong Stock Exchange in 2004, Lifestyle International Holdings Limited is a Hong Kong-based retail operator that focuses on mid- to upper-end department stores, through its two retailer brand names, SOGO and Jiuguang. The company operated two SOGO stores in Hong Kong and three Jiuguang stores in China at end-2015.

     

  • Changi retail +8% to $1.56bn is new record in 2015

    Changi retail +8% to $1.56bn is new record in 2015

    Singapore Changi Airport has formally reported that it achieved an 8% record increase in retail and food and beverage sales worth S$2.2bn ($1.56bn) in 2015, compared with the previous trading period in calendar year 2014.

    The Changi Airport Group includes 350 retail shops and 160 food & beverage outlets within its ‘retail’ definition and it says that last year’s sales performance benefited from several innovative retail concepts.

    These included the introduction of duplex stores for duty free liquor and tobacco (DFS Group) and beauty (Shilla), a varied retail mix and successful retail campaigns – including the hugely popular ’Be a Changi Millionaire’.

    New Shilla Duplex Sept 2015 opening

    The relatively new Shilla Duty Free duplex store in Changi Airport Terminal 3 which opened in September 2015.

    CAG says that its top customers by nationality were from China, Singapore, Indonesia, India and Australia, while its shoppers’ favourite product purchases (in order) were led by Liquor & Tobacco; Cosmetics & Perfumes; Luxury Goods; Electronics & Gadgets; and Chocolate/Candy/delicatessen.

    Interestingly, Changi Airport management added that the top three product categories bought on iSHOPCHANGI.COM were Cosmetics & Perfume, Electronics and Wine & Spirits, while the top three customers using this service were from China, Singapore and Malaysia.

    HUGELY POPULAR EVENT…

    Meanwhile, the ‘Be a Changi Millionaire’ campaign has literally crowned five winners since the competition draw began back in 2010, with another 333,828 instant winners drawn from an incredible 1.9m entries.

    Changi also claims that all of these sales and other achievements placed the airport amongst the top three in the world for concession sales.

    Singapore Changi Airport capped a resilient performance in 2015 with new benchmarks for passenger traffic and aircraft movements, handling a record 55.4m passengers and 346,330 landings and take-offs during the year. This represented a rise of 2.5% and 1.4% respectively.

    Changi Airport infographic retail 2015

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  • China’s Retail Sector Emerged as a Bright Spot in Slowing Economy

    China’s Retail Sector Emerged as a Bright Spot in Slowing Economy

    China’s retail sector shines

    China is facing an economic downturn, but Chinese consumers are hopeful about its economy. According to Boston Consulting Group, China’s total retail sales are forecasted to grow by 50% to $6.5 trillion by 2020 with online transactions growing by nearly 25%.

    Retail sales were up by 11.2% in January 2016 due to Lunar New Year holiday shopping. In 2015, retail sales grew by 10.7% YoY to 30.09 trillion yuan, slower than the 12.0% increase recorded in 2014. Urban retail sales of consumer goods were up by 10.5% YoY to 25.9 trillion yuan.

    Rural areas have become a major source of retail sales growth. Retailers are focusing on rural China to increase the penetration of e-commerce. In 2015, rural retail sales were up by 11.8% to 4.19 trillion yuan.

    Chinas Retail Sales 2016-02-28Enlarge Graph

    E-commerce played a major role in driving up retail sales. In 2015, the national online retail sales of goods and services grew 33.3% YoY to 3.88 trillion yuan, according to the National Bureau of Statistics of China. Some of the leading players in China’s e-commerce segment are Alibaba Group Holdings (BABA), Baidu (BIDU), JD.com (JD), NetEase (NTES), and 58.Com Inc. (WUBA).

    According to Fortune Character, a luxury product consulting firm, Chinese consumers accounted for 46% of global sales of luxury products in 2015.

    Transition from export-oriented economy to consumer-driven economy

    After a slowdown in demand and rising debt levels in the manufacturing sector and reduced dependence in the export business, China is shifting its focus to a consumption-driven economy. Although this transition would be painful in the near-term, it has the potential to deliver robust growth to China in the long term.

    Mutual funds such as the Templeton China World Fund (TCWAX) and the Fidelity Advisor China Region Fund – Class A (FHKAX) have exposures of 31.3% and 21.5%, respectively, to the consumer discretionary and consumer staples sector combined. These funds stand to gain immensely due to positive performance in the retail sector.

    After having a brief overview of China’s macroeconomic indicators, let’s begin our assessment of China-focused mutual funds.

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  • Macau retail sales weaken

    Macau retail sales weaken

    Sales of watches and jewellery, which comprise a major segment of Macau’s retail business, fell 10.4 per cent last year, fuelling the territory’s first annual retail sales decline since 2000.

    Department-store goods and leather products were also hit, according to the latest Macau retail sales data from the Statistics and Census Service.

    Overall, retail sales volume was down 7.9 per cent for the year, with their value reaching nearly MOP60.9 billion (US$7611 million), says the survey. However, the drop was in double digits for watches, clocks, jewellery, department-store goods, leather products and footwear. The watches, clocks and jewellery segment accounted for 22.2 per cent of all retail sales value – a drop of 25 per cent year-on-year to MOP13.53 billion.

    Department store goods, the second-largest retail segment, had sales fall 13.7 per cent year-on-year to MOP8.93 billion.

    Meanwhile, cosmetics and sanitary articles as well as communication equipment had double-digit increases in sales for the year, reaching MOP2.36 billion and MOP1.68 billion respectively.

    Nearly half of the retailers covered in the survey anticipate a further drop in sales for the first quarter of this year compared with the same period last year, while nearly 40 per cent expect the sales volume to be stable.

    Retail sales for the fourth quarter of last year fell 10.5 per cent to MOP15.59 billion, with sales volume dropping 7.7 per cent. There were significant decreases in footwear (down 24.5 per cent), watches, clocks and jewellery (down 16 per cent), leather goods (down 11.3 per cent) and department store sales (down10 per cent).

  • Lego to open largest retail store in Shanghai

    Lego to open largest retail store in Shanghai

    Danish toy giant Lego A/S will open its largest retail store in the world near the Shanghai Disney Resort, the company said on Tuesday.

    The 1,000-square-meter store will be located on the main shopping street outside Disneyland, and will be operated by Lego.

    The resort, the first Disney theme park on the Chinese mainland, is scheduled to open in mid-June.

    “It will be a testament to our confidence in the China market,” said Jacob Kragh, general manager of Lego China.

    Lego to open largest retail store in Shanghai

    Kragh was speaking during a conference call following the release of Lego’s annual report, which showed revenue surged 25 percent to 35.8 billion kroner ($5.2 billion) last year.

    The company did not share the size of individual markets, but China has enjoyed what Lego called a “highly satisfactory” 34 percent growth year-on-year in 2015.

    Meanwhile, CEO Joergen Vig Knudstorp told China Daily that he believes there will be opportunities for Lego to grow as China transforms into a consumption-driven economy.

    While all of the 140 countries where Lego products are sold have posted double-digit growth in 2015, China has been one of the fastest-growing markets.

    Knudstorp expects that China will join the United States and Germany as the top three largest markets for Lego soon.

    Consulting firm Euromonitor International has forecast that by 2017, the Chinese toy market will be worth 100 billion yuan ($15.36 billion) and the Asia-pacific region will outnumber North America in sales as the world’s largest traditional toy market.

    While domestic brands still dominate the market, experts said that Chinese parents are likely to spend more on foreign toys in the coming years.

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  • Sogo switching its promotion plans after predicting a bumpy year ahead

    Sogo switching its promotion plans after predicting a bumpy year ahead

    Department store Sogo expects a gloomy year ahead due to a strong Hong Kong dollar and weak mainland tourists numbers. Its iconic Causeway Bay outlet recorded a 4.5 per cent year-on-year drop in sales, according to figures released yesterday.

    To survive in the increasingly tough local economy, the shop’s operator Lifestyle International is considering extending its twice-yearly sale weeks, which traditionally see customers cramming into the stores to hunt for bargains.

    “2015 was not too bad, but 2016 will be very challenging,” chief financial officer Terry Poon Fuk-chuen told reporters at the company’s annual results meeting yesterday.

    He pointed out that the Hong Kong dollar is strong, since it is pegged to the rising greenback, and it is having a dire effect on the already battered retail sector, which has been suffering from a shortage of mainland shoppers.

    The average daily customer traffic in the Causeway Bay branch dropped 2.4 per cent to 81,700 people last year and average sales per ticket shrank 3.1 per cent to HK$850 from the previous year.

    Chief executive Thomas Lau Luen-hung expects a flat year ahead, after sales at the island outlet experienced a double-digit decline over the past two months, compared with the same period last year.

    “I am not sure when the retail market will bottom out, but the chances are slim for a short-term rebound,” said Lau.

    The total number of visitors to Hong Kong declined 2.5 per cent last year – the first drop since 2004 – and mainland tourist numbers dipped 3.0 per cent.

    However, Lau is confident the long-term outlook of Hong Kong’s retail market is positive, as he believes the city is still an attractive place for mainland tourists, thanks to the expanding middle class and ongoing economic reforms north of the border.

    Despite more discounts being offered to customers in a period of weak consumer sentiment, Sogo has been luring in younger customers in a shift away from the previous focus on tourist promotions.

    Lau said shoppers have become younger and they prefer individuality to brand names when choosing what to buy.

    To adapt to this trend, more emerging international brands have been added to the first and second floors at the Causeway Bay shop over the past year, Lau said.

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