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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.

  • Online shopping boom in Korea risks mall debt downgrades

    Online shopping boom in Korea risks mall debt downgrades

    South Koreans are spending record amounts shopping with their mobile devices, raising the risk of debt downgrades for retail giants still focused on mall traffic.

    The odds that the nation’s No 1 department store operator, Lotte Shopping Co, will miss debt payments in the coming 12 months doubled to 0.64 per cent from 0.29 per cent a year earlier, according to Bloomberg’s default-risk model that takes into account a company’s finances and stock moves. That suggests it merits a non-investment debt rating. Default risk using the model also climbed for Shinsegae Co, the third-ranked department store operator.

    Moody’s Investors Service and Fitch Ratings have both changed their outlook for Lotte Shopping’s score to negative from stable this month, following a cut in Shinsegae’s outlook to negative by Korea Investors Service last month. The nation’s mobile shopping transactions surged 64 per cent to a record 24.4 trillion won (S$28 billion) last year while sales at department stores dropped for a second straight year, according to Statistics Korea data.

    “We don’t expect a meaningful improvement in Lotte Shopping’s earnings this year,” said Hong Kong- based senior analyst at Moody’s, Wan Hee Yoo.

    Lotte Shopping expects sales in its overseas business to grow this year and it also seeks to increase domestic sales by linking its online and off-line businesses, said its spokesman on Wednesday.

    Shinsegae has been making efforts to reduce its debt ratio since last year, including by selling shares of Samsung Life Insurance Co and issuing perpetual bonds, said its spokesman on Wednesday.

    The spread on Shinsegae’s dollar notes due in 2045 rose to 185 basis points on Feb 23, the highest since its issue in May, showed Bloomberg-compiled data. Lotte Shopping’s 2017 bond spread has fallen 14 basis points this year to 130.

    The nation’s online shopping market is forecast to grow to more than 100 trillion won by 2019, with purchases on mobiles making up about 75 per cent, said Korea Ratings last month, citing Bain & Co’s projection.

    Total transactions on the Internet increased 19 per cent to 53.9 trillion won last year, according to Statistics Korea data.

    South Korea’s smartphone penetration rate is the world’s fourth highest at 83 per cent as of end-March, according to a KT Economics & Management Research Lab report released in July.

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  • Malaysia to Invest in Indonesian Startup Companies

    Malaysia to Invest in Indonesian Startup Companies

    Malaysia Venture Capital Management Berhad (MAVCAP) held a meeting with the Indonesian Chamber of Commerce and Industry to talk about e-commerce.  With the revision of negative investment list, it is expected to facilitate the state’s investment towards digital business in Indonesia.

    Communications and Informatics Minister Rudiantara appreciates this intention.  However, he asked that Malaysia not only invests in funding, but also request that the cooperation can simultaneously share knowledge.  “So its not just about money, but also on the know how,” he said in Jakarta on Tuesday, Feb 23.

    Rudiantara said that Malaysia’s intention to invest in the e-commerce sector is normal.  Especially when Indonesia is the largest digital economy in ASEAN.  In order to quickly achieve digital economy by 2020, Indonesia needs knowledge and experts.

    Deputy of Investment Implementation Control of the Indonesian Coordinating Investment Board (BKPM) Azhar Lubis says to build a startup company, this type of financing is actually required.  This is supported by the revision of DNI.

    The financing is a solution if a company wants to develop but has difficulties getting a bank loan, especially when bank loan requires collateral.  “Hopefully there will be many startup companies that can be aided,” said Azhar.

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  • Retailers grapple with dull domestic consumption

    Retailers grapple with dull domestic consumption

    South Korea’s retail stocks suffered a series of challenges last year, including the broader economy’s downturn to a nationwide outbreak of a deadly virus. Experts see no turnaround in sight for them this year, as economic worries continue to weigh down on consumer sentiment while competition from online and mobile rivals intensify.

    “It’s hard to expect a dramatic turnaround for the retail industry, except from the base effect from the year-earlier period when the MERS outbreak kept people holed up in their homes,” said Kim Ji-hyo, an analyst at Eugene Investment & Securities,

    The combined operating profit of 10 major retail companies, including

     


    department stores, home shopping firms and convenience stores, declined 11 percent in 2015 from a year earlier, according to Hyundai Securities.

    The government had pushed retailers to hold coordinated sales events last year starting in October, which helped increase private consumption by an annual 3.2 percent in the final quarter of 2015 — the strongest figure in five years.

    But the spike in spending seemed short-lived after the bargain ended.

    January’s consumer sentiment index slipped to a level on par with July last year when consumption fell into the doldrums in the aftermath of the Middle East respiratory syndrome outbreak.

    “For the time being, I do not expect to see meaningful growth in domestic consumption,” Kim said.

    Last December, hypermarkets reported a 5.1 percent year-over-year drop in sales as they failed to recover from the human traffic loss to department stores during the massive sale events initiated by the government, according to Mirae Asset Securities.

    Department stores were also affected by an unseasonably warm winter that held back the sales of winter goods, which suffered a 5.7 percent year-on-year decline.

    Shares of retail giant Shinsegae fell by nearly 20 percent, from 262,500 won ($212.63) in November to 211,000 won in Monday’s trading.

    Some say the malaise of the retail sector owes much to a shift in consumer spending patterns.

    Major retailers are failing to adapt to the growth of online and mobile shopping, they say.

    “The sharp drop in retail firms’ earnings is bound up with the mobile shopping market’s growth. It won’t be an easy battle to fight against online rivals,” Kim Keun-Jong, analyst at Hyundai Securities said.

    For traditional retailers, opening of physical retail outlets used to provide significant advantages in expanding the geographical reach of business, but with the huge spike in mobile shopping, they have lost the competitive advantage, he added.

    In contrast to large retailers, Korea’s mobile retail market is large and growing. Its value increased to 13 trillion won in 2015 from just 60 billion won in 2008.

    Convenience stores remain a bright spot for the retail industry. Sales at convenience stores jumped 29.6 percent on-year to 16.52 trillion won last year, due to the popularity of convenient meals prepared away from home and increased margins in cigarette prices.

    “Although the positive impact of the cigarette price hike on the convenience stores’ revenues will fade away this year, they are expected to improve profitability by expanding a range of private brand products, such as prepackaged meals and coffee,” Lim Dong-geun, an analyst at Mirae Asset said.

     

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  • Lotte, Salim to set up e-commerce platform solution JV in Indonesia

    Lotte, Salim to set up e-commerce platform solution JV in Indonesia

    South Korea’s retail conglomerate Lotte Group said Sunday that it plans to form a joint e-commerce venture with Indonesia’s biggest conglomerate Salim Group to grab a pie of the rapidly growing e-commerce market in Indonesia.

    According to Lotte Group, its Chairman Shin Dong-bin on Friday signed a memorandum of understanding (MOU) agreement with Salim Group Chairman Anthony Salim to establish an e-commerce platform solution joint venture in the first half of this year. They aim to officially launch the company early next year.

    The South Korean retail mogul expects the Indonesian online retail market to grow to 25 trillion won ($20.27 billion) in value by 2020 after the market grew to 3.2 trillion won in 2014. The two companies plan to set up a comprehensive e-commerce platform solution and logistics service that will allow Lotte’s 41 offline retail stores and one department store operating in the Southeast Asian country as well as Salim’s 11,000 offline convenient stores, Indomaret, to sell and deliver products to Indonesian consumers. They will also introduce some popular products of Lotte Mart and Lotte Department Store in Korea through the new platform.

    In Indonesia, Lotte is operating one department store, 41 retail stores (including two grocery stores), 31 Lotteria fast-food franchises, two Angel-in-us cafés and two Lotte duty-free shops (one in airport and the other in downtown). In 2010, the retail group acquired Titan Chemicals, one of the leading petrochemical company in Southeast Asia, to gain a foothold in the petrochemical industry in the region.

    Salim Group, the biggest Indonesian conglomerate, operates a diverse array of business ranging from food, infrastructure, logistics, telecommunications, media and automobile, to real estate.

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  • Walmart India ramps up investment

    Walmart India ramps up investment

    US-retail giant Walmart is investing between $240m and $300m to bolster its presence in India by expanding its number of stores from 21 to 70 by 2020.

    “We have a cash-and-carry model, and the growth has been good for us,” Walmart India VP and head of corporate affairs Rajneesh Kumar told Retail Update.

    “Each store takes two to three years to set up. These will create nearly 2000 direct and indirect jobs.”

    Walmart India inside

    Meanwhile, Walmart’s technology centre in Bengaluru is also expanding its role and headcount, ramping up from 750 employees to 1200 by next month, says the Business Standard.

    “Most of the growth at Walmart Labs here is driven by supply chain and analytics,” says Walmart Global Technology Services VP and MD Jayakumar K. “The focus is to set up two centres of excellence, from ground up.”

    Walmart is working to merge its retail stores and online presence to become an omni-channel player, and has merged its computer systems technology team and its eCommerce technology team in Silicon Valley to create Walmart Technology.

    Jayakumar says that as the announcement is new, the immediate impact on the India centre is yet to unfold.

    “However, the combined structure in some sense already exists here. The Bengaluru centre is the only one in the world for Walmart where both these teams work together. We not only work in the same building, but have also collaborated on projects.”

    Walmart has made huge changes to its technology roadmap for its eCommerce over the past few years. Two years ago, the company changed from using off-the-shelf applications to using more software developed in-house.

    In India, it has created the Pangaea platform, which has been partially rolled out locally and this year will be introduced in other countries.

    Jayakumar says this approach allows the company to be quicker and more agile when launching products.

    As well as its focus on technology, Walmart is also tapping into the start-up ecosystem, acquiring 15 start-ups since 2011.

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  • Hong Kong start-up PopUp Angels offers retailers Popup Stores

    Hong Kong start-up PopUp Angels offers retailers Popup Stores

    Hong Kong start-up PopUp Angels is offering a short-term alternative to retailers and landlords with pop-up store rentals as shop vacancies across the city continue to rise.

    Launched in November in Hong Kong, the PopUp Angels portal lets retailers, or food and beverage companies, test ideas and reach new markets without committing to a long contract.

    While demand from potential tenants is high, the city’s landlords are slowly coming round to the idea as their traditional model comes under threat from slumping retails sales.

    “Given that the retail market in Hong Kong has been doing so well in the past few years, it takes a while for the landlords to realise the golden age has passed and it’s time to find different ways to maximise the use of their vacant spaces,” said Kit Chan, director of PopUp Angels.

    Real Estate Agency Sheraton Valuers predicted the vacancy rate for ground floor stores in Causeway Bay to reach one in 10 in the wake of the recently ended Lunar New Year holiday.

    Retail sales recorded a year-on-year decrease of 3.7 per cent in 2015, hitting the lowest level since 2002, pushing many retailers to close stores.

    The start-up is aimed at companies testing a new idea or online retailers wanting to open a bricks and mortar store for a short period to boost their brands’ presence.

    PopUp Angels offer spaces to rent for any period from one day to up to a year, Chan said.

    Rental prices range from HK$3,000 (US$386) a day for a 375-sq-ft space in Central to HK$25,000 a week for two-storey location in the Western district.

    The start-up is also able to put potential tenants in touch with contractors and help guide them through any licensing issues.

    PopUp Angels was launched last September in Singapore, where the majority of vacant properties it lists are in shopping malls, according to Adrian Chan, who heads the operation in the Lion City.

    Melanie B, owner of Yoga BamBam, leases out the 375-sq-ft first floor space above her studio in Central through PopUp Angels to help with costs and to bring in some creativity.

    The former art gallery below PMQ – a design cluster on the grounds of the city’s former Police Married Quarters – was renovated with the goal of leasing the space as a pop-up by including internet access for card payment, a sturdy floor and lighting suitable for displaying art.

    “I don’t like stagnation, so the idea of a pop-up is that it changes every weekend, or every week,” she said.

    “So to have designer lingerie one week and then a hair product the next seems like a fun way to do it.”

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  • Hong Kong tourism, retail continue slump with less mainlander visits

    Hong Kong tourism, retail continue slump with less mainlander visits

    The Hong Kong Tourism Board (HKTB) said on Jan. 19 that the number of visitors to the city fell 2.5 percent last year over 2014 to 59.31 million, among whom 45.84 million were from the Chinese mainland, down 3 percent. The number of overnight mainland visitors dropped 5.7 percent to slightly less than 18 million.

    Even Christmas season failed to meet expectations, with the number of mainland travelers being merely 3.72 million in December, down 15.5 percent, the biggest monthly drop in 2015.

    The total number of visitors to Hong Kong had been on the decline for seven consecutive months since June, the HKTB said.

    On the other hand, the retail sector also had a difficult time. According to the latest data from Hong Kong’s Census and Statistics Department, retail sales totaled 475.2 billion Hong Kong dollars in 2015, down 3.7 percent from 2014, the biggest drop since 2002.

    Last December’s retail sales were estimated at 43.7 billion Hong Kong dollars, down 8.5 percent year-on-year, while the total volume of retail in the same month fell 6.1 percent.

    Sales revenues of jewelry, watches and luxury gifts registered the biggest fall, down 17 percent in December year-on-year and 15.6 percent last year from 2014. In addition, clothes, commodities at department stores, medicine and cosmetics all saw a fall in revenue.

    The retail sector has been falling since March 2015, and saw revenue drops for ten months in a row last year. Retail sales in August totaled 37.9 billion Hong Kong dollars, down 5.4 percent year-on-year, the biggest fall in 2015.

    On February 15, Hong Kong Disneyland said it suffered a net profit loss of 148 million Hong Kong dollars, the first of its kind since 2012.

    Besides, Ocean Park,recently reported a double-digit fall in the number of mainland visitors during the Spring Festival holidays, while total admissions to the park fell 14 percent in 2015. Tom Mehrmann, the park’s chief executive, said the number of mainland visitors now has dropped to a mere 40 percent of the total admissions from over 50 percent in July 2015, and he expected a further drop in numbers during the months to come.

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  • World catches the Chinese holiday shopping bug

    World catches the Chinese holiday shopping bug

    Chinese consumers have long enjoyed the annual ritual of shopping in the run-up to Spring Festival in January or February, and now e-commerce is beckoning shoppers worldwide to share in the fun.

    Elena Zhang, sales manager of Xi’an Silk Road Crafts Co, said the company started receiving overseas orders for Spring Festival in July last year.

    One order last month came from Spain, for more than 1,000 red hanging lanterns made of Chinese fabric.

    Orders for various products related to Chinese New Year had come in from Canada, France, Germany and Russia, she said. AliExpress, a website that sells made-in-China products to overseas customers, is by far the most used online shop.

    Our China Dream series of lanterns are the bestsellers among overseas Chinese this year. It belongs to Alibaba, China’s largest e-commerce player. “Fabric lanterns priced between $1.50 and $4.30 (£1-3) each were the most popular items this year,” Ms Zhang said.

    “Overseas buyers usually place their Spring Festival orders in summer. But we have had orders at the end of the year, too. Enthusiasm overseas in Chinese New Year shopping seems to be increasing, and e-commerce is helping increase sales.”

    Sales by AliExpress to overseas consumers from the city of Yiwu, Zhejiang province, well-known as a centre for small commodities, have risen sharply since the company began to ship worldwide on Dec 31.

    To the end of January it had shipped more than one million parcels overseas. One of the companies making full use of this new service is Yiwu Wonderful Lantern Co.

    Xia Rongwang, the company’s manager, said many overseas orders had been placed since the middle of January, especially from overseas Chinese in countries such as Malaysia.

    Some buyers said the lanterns make them feel as though they are back home celebrating new year

    “Our China Dream series of lanterns are the bestsellers among overseas Chinese this year. Some buyers have said the lanterns make them feel as though they are back home celebrating the new year.”

    Apart from Spring Festival-related items such as lanterns, overseas consumers are buying other products made in China selling at bargain prices in the holiday period and just before it. DHgate, a Chinese online wholesale marketplace, said sofa and bed cushions are particularly popular among Canadian shoppers.

    Russians are said to be the most numerous overseas buyers. AliExpress says they love buying clothes made in China, their keenness to shop online spurred by a depreciating rouble. Consumers in countries where winters tend to be very cold buy made-in-China down jackets and other winter-wear.

    Felix Zhang, sales manager for Shaoxing Goldson Dress Co in Zhejiang province, said Chinese down jackets in the $40 to $47 price range are popular among buyers in Kazakhstan, Estonia and Latvia. “We offer discounts of up to $500 for buyers who order more than 10,000 down jackets. The reason is obvious: Online selling means we cut the costs resulting from going through intermediaries.”

  • Vietnam risks losing entire retail market to Thailand

    Vietnam risks losing entire retail market to Thailand

    Industry insiders have warned that Vietnam is on the brink of losing its entire retail market to neighbor Thailand. Made-in-Thailand goods, from confectionery to luxury items, are making their largest-ever ‘invasion’ of the Vietnamese market, and many local firms are looking like being acquired by Thai investors.

    Last month, Thailand’s TCC Holding Co. officially acquired Metro Cash & Carry Vietnam’s operations from Germany’s giant retailer Metro Group for an enterprise value of €655 million (US$712.14 million).

    The business includes 19 wholesale stores and related real estate portfolios across Vietnam.

    Another major Thai investor, Berli Jucker (BJC), is also is keen to buy the Big C Vietnam supermarket chain from its French operator, Casino Group.

    The French company reportedly wanted to sell its Vietnam business after completing the transfer of its business in Thailand, Thai Big C, to home player TCC in a $3.5 billion deal earlier this month.

    “If Big C Vietnam is sold to a Thai investor, it can then be said that the entire Vietnamese retail market is in Thailand’s hands,” said Vu Kim Hanh, chairwoman of the Business Association of High-Quality Vietnamese Goods.

    In 2013, BJC acquired the Vietnamese convenience store chain from Japan’s Family Mart and renamed it B’s Mart.

    Later that year, Family Mart teamed up with a new Vietnamese partner to keep the Family Mart chain running, not to be confused with the Thai-operated B’S Mart.

    “A supermarket chain is the missing piece at a time when Thai companies are already running wholesale markets, convenience stores, and even traditional retail channels in Vietnam,” Hanh told us recently.

    With multiple retail channels under their control, Thai investors can easily cut costs and increase competitiveness, and “it will be more difficult for Vietnamese goods to enter Thai-controlled retail outlets,” Hanh said.

    In fact, Thai goods are currently dominating the B’s Mart chain in Vietnam following its acquisition from Family Mart, according to the director of a processed food company.

    “There have been huge changes in the way these stores source products, with Thai candies, snacks and packaged food dominating shelves,” she told Tuoi Tre.

    A real threat

    Shelf space for Thai goods has also increased in other Thai-owned retail channels in Vietnam.

    One executive from a Ho Chi Minh City-based frozen foods trading firm said they had stopped making private-label products for Metro late last year, even before the cash and carry business was sold to TCC.

    Private-label goods are typically those manufactured or provided by one company sold under another company’s brand name.

    “Several procedures have taken longer than usual since the Thais have controlled Metro,” she added.

    “It took me six months to pull some products from their shelves, and requests to adjust prices also took a long time to be effected.”

    Other Vietnamese businesses said the trading policies of Metro, under the new owner, have changed a lot.

    “We are offered higher commissions, but sales have been much slower,” one company director said.

    N.T.C., director of a fresh food producer, said Metro Cash & Carry Vietnam has a new marketing policy that openly favors Thai suppliers.

    “Across product categories, only the Thai ones are subject to repeated promotional campaigns, which leave Vietnamese suppliers like us in shock,” he said.

    The presence of Thai-made products has even increased in retail outlets not owned by the Thais, including South Korea’s Lotte Mart and Co.op Mart, which is Vietnam’s largest supermarket chain.

    “Thai businesses are receiving huge support from the government, in terms of both policies and capital, in their ‘invasion campaign’,” said Vo Xuan Trung, director of IBP Co., a local distributor of Thai snacks.

    While there used to be only one annual Thai goods fair in Ho Chi Minh City, the event has been held four times annually since 2014, Trung said.

    “Having said that, we should acknowledge that most Thai products are of better quality and available at more attractive prices than their local competitors,” he said.

    Tran Anh Tuan, general director of Pathfinder, a Ho Chi Minh City-based market consulting firm, said it was a real threat for Vietnam to lose its home market to Thai retailers.

    “Once Thai retailers are in Vietnam, it is certain that they will try to increase the presence of their goods,” he said.

    Tuan underlined that timely policies should be made before the second, bigger risk comes.

    “Soon we will see not only our consumers rush to buy Thai goods, but also Vietnamese firms acquired by Thai investors,” he warned.

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  • New ‘Siam Discovery-the Exploratorium’ to open Q2 as Thailand’s first hybrid retail store

    New ‘Siam Discovery-the Exploratorium’ to open Q2 as Thailand’s first hybrid retail store

    Siam Piwat Co., Ltd., the owner and operator of prestige retail developments such as Siam Paragon, Siam Center, Siam Discovery, and Paradise Park, as well as the joint venture partner of ICONSIAM, today, announced that it is introducing a revolutionary new retail concept to Thailand with the opening of the new Siam Discovery retail destination in the second quarter of 2016, after a Bht 4,000 million re-build.

    Mrs. Chadatip Chutrakul, Chief Executive Officer of Siam Piwat Co., Ltd. said: “The new Siam Discovery is the first hybrid retail destination in Thailand.  We have created a venue where thousands of lifestyle brands are brought together under a single universal concept that puts customers at the centre, rather than brands.  That means everything presented at Siam Discovery is not organized by brand, or category, as in traditional retailing, but by the visitors’ interest, because our purpose is no longer just to sell products but to provide an extraordinary and emotional experience to the visitor allowing them to discover themselves, as well as express themselves.

    Mr. Oki Sato, Chief Designer and Founder of nendo and Mrs. Chadatip Chutrakul, Chief Executive Officer of Siam Piwat-1

    “We then enhance that experience by presenting a story rather than just products, and by making the experience in our store highly interactive as well as allowing visitors to personalize their purchases.  We give visitors opportunities to make a statement about their life preferences, whether it be about sustainability or a love of nature, and to support those preferences through their purchases, and through occasions to interact with like-minded people and communities.  And then we further enhance those experiences through the power of the most advanced digital technology,” she said.

    Mrs. Chutrakul added, “Taken together, this new retail format makes a visit to the store an exciting, emotional experience that gives visitors a great opportunity to play, to experiment, to discover and re-discover themselves.  We want people to fall in love with that experience.

    “Our role as a retailer has advanced to another level and become one of managing visitors’ experiences and emotions at the destination, rather than just one of managing products, categories and displays,” she said

    “We target all genders and all age groups, and there is something for everyone at all price points,” Mrs. Chutrakul said.

    “Come Play With Me”

    Empowering visitors to create their own personal style

    Siam Discovery Infographic

    According to Mrs. Chutrakul, “The new Siam Discovery says ‘Come play with me!’ to visitors, inviting them to experiment by trying out new products, new ideas, re-thinking conventions, and customising their purchases, all across 40,000 square metres of floor space.”

    “We are completely overturning past retailer practice of organising and presenting products by brand or category.  Instead, at the new Siam Discovery, multiple brands and complementary merchandise are brought together for the convenience and enjoyment of the visitor and unified with underlying stories.  They are organised and presented by type, function, relevance and, most importantly, the visitor’s interest.

    “This is a pioneering retail concept that empowers visitors to mix and match across brands and categories to discover, define and create their own distinct, personal style, while also pursuing related interests and passions that need not be tied to any purchase intent.  It has never been done before in Thailand and on such a scale, and it’s a concept that will bring new excitement to any visit to Siam Discovery.  We estimate it will also double Siam Discovery’s per-square-metre sales within a year,” she said.

    Mrs. Chutrakul added that the new Siam Discovery is called ‘The Exploratorium’ and is a ‘lifestyle lab’ because it allows every individual to explore who they want to be and what is the style that best reflects their true self without the constraints of a particular brand or school of design.  She said that visitors can try new ideas across the hundreds of categories and more than 5,000 international and local brands on offer, many of which are first-time-in-Thailand brands.  It includes everyday products, sustainability products, trend products, collaboration and limited edition collections, as well as innovative products.

    Visitors can go even further in experimenting with creating their own style because the new Siam Discovery also provides bespoke personalisation opportunities that let customers tailor their purchases to their own personal preferences.

    Immersive Story-Telling, Advanced Digital Technology, Interactive Experience

    The presentations of products have a very strong story-telling component.  As visitors move through the various parts of Siam Discovery, they are immersed in the heritage and the intangibles of a brand and a category.  They are also drawn into stories relevant to their interests, their beliefs, and trends rather than just being presented a selection of products.

    “These experiences are enriched and heightened through advanced digital technology as well as many interactive experiences that are offered to the visitor.  It’s a totally new and an extraordinarily exciting way of presenting products and their associated lifestyles,” she said.

    “As part of this ‘immersive experience’, Siam Discovery has created areas for people of similar interests to interact, share experiences, make friends and create their own communities, whether they be designers, sportsmen, collectors, health gurus, or travellers.  Not only can they do things with other people, they can also do things for other people: through their purchases, they will be able to indulge in their passions and convictions, such as supporting sustainability or other causes important to them,” she added.

    Siam Discovery Visual Ad-1

    Thailand on the World Stage

    Mrs. Chutrakul noted that the introduction of a revolutionary, new retail concept will reinforce Bangkok’s appeal as the retail hub of the ASEAN Economic Community (AEC) and help make the city a favourite shopping destination for the world.

    “Siam Area is Bangkok’s top-ranked retail destination with more than two million square metres of world-class attractions and the widest variety of shopping, dining, art, culture and education offerings in Thailand, attracting traffic of over 160 million visits, annually.  The new Siam Discovery enriches the total package of offerings in Siam Area by introducing a completely new proposition,” she said

    Top Global Designer ‘nendo’

    ‘nendo’ (Mr. Oki Sato), who is one of the world’s top designers and a person voted as among the ‘100 Most Respected Japanese’ by Newsweek Magazine, provided the overall design inspiration for the new Siam Discovery.  He was engaged as the chief consultant for the building design as well as the interior design, while Urban Architect Co., Ltd. was the Thai architectural design and interior design company for the project.

    The new Siam Discovery is nendo’s largest project, ever, and his first in Thailand.

    Mrs. Chutrakul said, “We invited nendo to provide the inspirational design concept for Siam Discovery because Siam Piwat looks at the future from a global perspective rather than just the potential of the Thai market.  This is because Siam Piwat is committed to the business of creating extraordinary experiences for customers who are not only Thai people but also visitors from every corner of the world.

    “In line with our growth strategy, Siam Piwat is creating unprecedented destinations in Thailand that can compete with the best of the world’s destinations and help support Thailand to become a top-ranked global retail and entertainment paradise.”

    “Within the first year, we aim to have 100,000 people a day visit and fall in love with the new Siam Discovery, of which around 65% are expected to be Thai and 35% to be international visitors.  What our visitors will have in common will be their progressive, independent-minded outlook on life, and a passion to explore and try new things,” she said.

    The new Siam Discovery follows from Siam Piwat’s highly successful Bht 1,800 million     re-build of Siam Center three years ago, which pioneered a revolutionary retail development concept where the developer worked collaboratively with retailers and brand owners to give the entire venue a consistent visual identity that is clearly and distinctly Siam Center.  The concept has been showered with eight highly prestigious international awards, including recognition as one of the world’s 5 best-designed retail centres by the retail industry’s leading international association – the International Council of Shopping Centers (ICSC).

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  • Retail In China Suffers From New Year’s Hangover

    Retail In China Suffers From New Year’s Hangover

    While sales surrounding China’s Lunar New Year gave some retailers reason to celebrate, that was not the case for all of them.

    As a result, the stock value of a number of jewelry and cosmetics retailers in the country dropped yesterday. Analysts told the outlet that lackluster New Year sales were felt particularly hard by those sellers with locations in smaller neighborhood malls, as opposed to ones housed in larger ones, which saw a greater influx of foot traffic during the holiday period.

    Another factor that contributed to the stock slide for jewelry and cosmetics retailers in the region, was a dropoff in shopping by mainland tourists during the Lunar New Year. Sa Sa International, for example, reported to the outlet that its sales to mainland tourists fell 26 percent from the same period last year, with the average number of transactions among that consumer group decreasing 18 percent and the average ticket cost falling 9 percent.

    “This showed a further deterioration from the third quarter [for Sa Sa] as the Chinese tourist arrivals widened to a double-digit decline during the period,” Bocom International.

    Credit Suisse, meanwhile, told the outlet that it had visited nine shopping malls in China during the Lunar New Year and found that the majority of them were less busy within that period than they normally are on any given weekend.

    “The era of easy money in the retail industry has come to end,” Maureen Fung Sau-yim, a director of Sun Hung Kai Properties subsidiary, Sun Hung Kai Development. “Looking ahead, we have to work harder to cope with the market change” (referring to, explains the outlet, a stronger Hong Kong dollar and fewer mainland tourists).

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  • Hong Kong to post surplus even as economy grapples with China slowdown

    Hong Kong to post surplus even as economy grapples with China slowdown

    Hong Kong is forecast to post a healthy fiscal surplus in its annual budget on Wednesday, with a series of one-off sweeteners expected to help businesses hurt by a slowdown in China, including the hard-hit retail and tourism sectors.

    Hong Kong’s longstanding Financial Secretary John Tsang isn’t expected, however, to unveil any sweeping new initiatives amid concerns the government’s reliance on one-off measures are failing to bolster the city’s economic fundamentals as it enters a period of slower growth and heightened political tensions.

    Tsang wrote on his official blog on Sunday that while sweeteners may only account for 1 percent of Hong Kong’s annual budget, they provide an important boost for the local economy and job market, and play an important “stabilising” role.

    A night-long riot shook the city after the authorities tried to remove illegal street stalls during the Lunar New Year, the worst violence since pro-democracy protests in 2014.

    While Hong Kong has tended to post healthy surpluses over the past decade, pressures are mounting on some of the economy’s biggest drivers. Mainland Chinese tourists who power the territory’s all-important retail sector stayed away from the city last year, leading to the worst annual decline in sales since 2002.

    Hong Kong officials have also sought to integrate more closely with China through Beijing’s “One Belt, One Road” blueprint to deepen regional economic co-operation, though the details remain sketchy.

    Four economists surveyed by Reuters expect fourth quarter growth to slow to a seasonally adjusted 0.1 percent from 0.9 percent in the third. From a year earlier, growth was forecast at 2 percent, down from 2.3 percent in the third quarter.

    Six economists estimated the economy would expand 2.3 percent in 2015, slightly less than the official forecast of 2.4 percent.

    The global financial hub’s economy is highly reliant on China which is grappling with its slowest growth in nearly 25 years.

    The government is forecasting a surplus of HK$36.8 billion while professional services firm Deloitte expects HK$80 billion.

    Despite a recent softening in the city’s sky-high property prices, analysts expect cooling measures implemented over the past few years to stay in place. Standard & Poor’s has forecast a 10 to 15 percent drop in property prices in 2016.

    Hong Kong’s economic pressures come on top of an increasingly fraught political environment, including the disappearances and feared abductions by Chinese agents of several Hong Kong booksellers, and lingering tensions towards Beijing’s refusal to allow full democracy in Hong Kong after protesters occupied major roads for 79 days in late 2014.

    The former British colony, with a population of 7.3 million, returned to Chinese rule in 1997 under a “one country, two systems” framework that gave it a large degree of autonomy although its leaders ultimately defer to Beijing.

  • BKPM Launches Easy Investing Service

    BKPM Launches Easy Investing Service

    The Investment Coordinating Board (BKPM) has launched two investment services for the convenience of investors. The first service is called KLIK, which is short for Kemudahan Investasi Langsung Konstruksi, a.k.a. simplicity in direct investment for the construction sector. The second is a three-hour service for permit upgrade in the infrastructure sector.

    In the launching ceremony at the Mercure Hotel in Jakarta, Monday, February 22, BKPM chief Franky Sibarani said the KLIK facility is a convenience provided by the government to companies willing to invest in specific areas. There are 14 industrial areas in six provinces and nine regencies/cities established to implement this service. The areas cover 10,022 hectares of effective land from a total land size of 17,154 hectares.

    With KLIK, Franky said, investors can immediately build their projects after obtaining the principle license.

    The launching ceremony was also attended also by officials from relevant ministries including the Public Works and Public Housing Ministry, the Energy and Mineral Resources Ministry, the Transportation Ministry, and the Ministry of Communication and Information. Also present were officials from the Attorney General, the Indonesian National Police, and representatives from provinces associated with the KLIK program: North Sumatra , Banten, West Java, Central Java, East Java, and South Sulawesi.

    In a press conference held at the same day, Franky said the investment facilities are given as a way to enhance Indonesia’s competitiveness and help meet the government’s investment target of Rp 594.8 trillion in 2016.

  • Tyco Retail Solutions Opens New Office in Tokyo

    Tyco Retail Solutions Opens New Office in Tokyo

    Tyco Retail Solutions (www.tycoretailsolutions.com) is pleased to announce the opening of its new Tokyo office to meet the growing need for Store Performance Solutions in Japan, the world’s third-largest economy. As Japan-based multinational retailers are upgrading technology and expanding in Asia, Tyco is strengthening its presence to support retailers’ demand for new technologies, including RFID for which the adoption rate in Japan is ahead of other Asian markets.

    According to PwC’s report, “2015-16 Outlook for the Retail and Consumer Products Sector in Asia,” retail sales in Asia are expected to top U.S. $10 trillion by 2018. Japan, home to a number of internationally recognized designer brands, will remain a cornerstone of the global fashion industry. PwC reported that Japanese fashion continues to influence apparel and footwear trends in many other countries.

    Tyco has served the Japanese retail market for 45 years, focused on loss prevention solutions and customer relationships managed through certified business partners. Building on its success in the region, Tyco is reinforcing its RFID resources on the ground to support key retail global accounts.

    As the retail industry undergoes transformation, RFID has emerged as a critical, enabling technology for retailers competing in an omni-channel world and a cornerstone for the retail Internet of Things (IoT). Progressive retailers understand the critical role of RFID-based inventory visibility to maximize revenue, improve store operations, and meet the demands of today’s consumers. Tyco has seen significant momentum, not only in the number of retailers deploying RFID, but also in the number of stores and merchandise categories designated for RFID roll-outs. It is gaining increased value as an essential technology for solving inventory challenges.

    “The Tokyo site represents our continued investment in IoT technologies such as RFID, which helps deliver meaningful, tangible business benefits for our customers,” said Nancy Chisholm, President, Tyco Retail Solutions. “Our expansion in the region allows us to keep pace with their needs and deliver the quality solutions, products and services they have come to expect over the years.”

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  • Garuda Indonesia Attains “5-Star Airline” Award for second year running

    Garuda Indonesia Attains “5-Star Airline” Award for second year running

    National flag carrier Garuda Indonesia has been awarded the ultimate “5-Star Airline” rating from Skytrax for a second year running. This year’s award was presented to the President & CEO of Garuda Indonesia, M. Arif Wibowo, by Edward Plaisted, CEO of Skytrax, at the Changi Exhibition Center during Singapore Airshow 2016.

    Indonesian Minister of State-Owned Enterprises Rini Soemarno, Indonesian Ambassador for Singapore I Gusti Ngurah Swajayam, and President Commissioner of Garuda Indonesia Jusman Syafii Djamal were present during the ceremony. Minister Rini Soemarno expressed her highest regards “for all Garuda management and staff, their hard work, and their success in maintaining the quality and standards that exemplify a “5-Star Airline”.”
    “We believe that recognition of Garuda Indonesia as a “5-Star Airline” for consecutive years will not only help to strengthen Garuda Indonesia as a global brand, but also support our efforts at “Nation Branding”, as laid out in the Indonesian government’s strategic program,” Rini added.

    As the national flag carrier, Rini said, Garuda Indonesia was succesfully representing the Republik of Indonesia with this achievement. “But success also brings a larger challenge for Garuda Indonesia, to continuously improve the quality of their service, and deliver this service to all customers on the ground and in the air.”

    The Minister finished by suggesting that the global achievement would be followed by better financial results, and extended her appreciation for Garuda Indonesia’s turnaround financial results which ended in net profit for 2015.
    M. Arif Wibowo, President & CEO, Garuda Indonesia, expressed that “The 5-Star rating reflects the hard work and deep commitment from both management and staff at Garuda who continuously deliver their best efforts to maintain and improve the company’s performance in all business aspects.

    “This achievement will be an important milestone for Garuda Indonesia in 2016, as well as being a challenge for everybody in Garuda Indonesia Group to constantly improve performance and deliver service excellence to all customers,” Arif said.
    The “5-Star Airline” certification was awarded following the ongoing Skytrax Audit, with comprehensive points covering all service aspects; pre-flight, in-flight and post-flight, including ground handling services, lounge, seat and cabin comfort, inflight meals and inflight entertainment.

    Skytrax CEO Edward Plaisted said that the “5-Star Airline” rating awarded to Garuda Indonesia for two years consecutively was a result keeping consistently high service standards.
    “In the globally competitive airline industry, Garuda Indonesia proved that they can survive and even perform to the highest values and service standards. The consistency of product and service quality is the most important part in a 5-Star certification audit, and we proudly announce that Garuda’s aircraft are offering the variety of classes that is a requirement of a 5-Star Airline,” Edward added.

    Spurred on by a strong commitment from the airline’s management and staff to deliver best service, Garuda Indonesia’s performance continues to earn global recognition. In 2013, Skytrax awarded Garuda Indonesia for “The World’s Best Economy Class”. This continued in 2014, with recognition as “The World’s Best Cabin Staff”, a “5-Star Airline”, and 7th rank in “The World’s Top 10 Airlines”.

    At the World Airline Awards, Paris Airshow 2015, Garuda Indonesia was once again named “The World’s Best Cabin Staff”, based on a global customer satisfaction survey conducted by Skytrax of more than 18 million passengers. The survey, which covers 245 international airlines, is held every year and measures standards across 41 key performance indicators of airline products and services.

    As part of a fleet revitalization program throughout 2016, the Garuda Indonesia Group will receive 16 new aircraft in total; 1 Boeing 777-300ER, 4 Airbus A330-300, 4 ATR72-600, and also 8 Airbus A320 to be operated by Citilink. By the end of 2016, Garuda Indonesia Group will operate a total of 188 aircraft; 144 aircraft for Garuda Indonesia and 44 aircraft for Citilink.
    To continue the positive growth achieved during its “Quick Wins” program in 2015, Garuda Indonesia will enter a “Sky Beyond” program for 2016 aiming at rapid company expansion, focusing on three ‘core strategies’ – company group synergy, effectiveness and efficiency, and service enhancement – to accelerate company achievement and performance.

    As part of its company synergy, the Garuda Indonesia Group joined Singapore Airshow, Asia’s largest aerospace and defence event. This was Garuda Indonesia’s first participation as a Group, as only a subsidiary, the Garuda Maintenance Facility AeroAsia, had participated in the past.

    The presence of Garuda Indonesia Group at the Singapore Airshow follows Group strategy to develop brand image, to elaborate potential business, to enhance business relations with stakeholders, and to boost up the awareness to Garuda Indonesia Group’s strategic role as Indonesia’s trade envoy in international level.
    At Singapore Airshow 2016, the Garuda Indonesia Group, through Garuda Maintenance Facility AeroAsia, looks to several short- and long-term business contracts, with a value of nearly USD 100 milion.

    Garuda Indonesia currently has 6 subsidiaries with diverse business sectors; Garuda Maintenance Facility AeroAsia, specialized in integrated aircraft maintenance, including engine and aircraft components repair service; Citilink, a low cost carrier (LCC) airline projected for budget traveller; Aerowisata, specialized in hospitality, transportation, catering and travel agent service; Gapura, specialized in ground handling service, supoorted by cargo and warehousing service; Asyst, specialized in IT and consultation service; and Abacus – which now has transformed to Sabre Travel Network Indonesia – specialized in technology provider service for global travel and tourism.

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