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.

  • Economy Hong Kong’s retail sales drop hardest in 17 years

    Economy Hong Kong’s retail sales drop hardest in 17 years

    Hong Kong’s retail sales plunged in February, as the economic slowdown in China prompted fewer visits from the mainland.

    On an annual basis, the total value of retail sales in February dropped by 20.6 per cent to HK$37bn, from January’s 6.6 per cent drop. The drop in February was the worst since January of 1999.

    After stripping out price changes, the total volume of retail sales decreased by 19.5 per cent, the worst since September of 1998.

    Combining January and February figures, the value of sales of luxury goods like jewellery, watches and clocks, which mainland Chinese tourists often visit Hong Kong to buy, decreased by 24.2 per cent. This was followed by 11.4 per cent decrease in clothes, a 12.3 per cent decline in commodities in department stores, and 7.7 per cent decrease in medicines and cosmetics.

    In a statement, Hong Kong’s Census and Statistics Department said:

    Apart from the severe drag from the protracted slowdown in inbound tourism, the asset market consolidation might also have weighed on local consumption sentiment.

    The near-term outlook for retail sales will still be constrained by the weak inbound tourism performance and uncertain economic prospects. The Government will continue to monitor closely the retail sales performance and its repercussions on the wider economy and job market.

    With Chinese consumers unwilling to spend on luxury goods, Swiss watchmakers, known for their luxury watches, are having a hard time, with UBS cutting earnings forecast.

  • Adidas Sets Goal For 3,000 More Chinese Stores

    Adidas Sets Goal For 3,000 More Chinese Stores

    Colin Currie, head of Adidas’ China operations, announced in a press conference that the sportswear company would be adding 3,000 more storefronts to the 9,000 it already operates inside the People’s Republic. Currie emphasized that these new stores wouldn’t just be rehashes of existing designs but targeted implementations of locations that focus on running, soccer and tennis equipment and apparel.

    It’s details like these that Currie hopes can help Adidas find revenue, even when the Chinese economy doesn’t seem to be making it any easier.

    “We are cautiously optimistic, but we’re far more on the optimistic side,” Currie said during the briefing.

    It’s one thing to say that Adidas is confident but another thing to actually mean it. A pledge to open 3,000 stores certainly seems like an earnest statement that can’t be easily walked back, explained that changing demographics might be why Adidas is so ready to hitch its wagon to the down-right-now Chinese economy. As more and more Chinese consumers enter the middle class, Adidas has planned, since at least 2010, to take advantage of the growing desire for sportswear, not just for fitness but as everyday dress as well.

    “We expect two-thirds of our growth to be from consumers in the lower-tier cities as they become attracted to sportswear — not just for fitness but for easy casual wear,” Currie said at an event in 2010.

    If it’s any consolation for Adidas and the Chinese economy at large, odds are both parties will succeed or fail together.

    Lees ook:

    Lees ook:

    Lees ook:

  • Lotte opens 2nd duty-free store in Tokyo

    Lotte opens 2nd duty-free store in Tokyo

    Lotte Duty Free, South Korea’s No. 1 duty-free operator, opened a duty-free store in Tokyo on Thursday to target rising travelers, as part of efforts to expand its global presence.

    The duty-free store opened in the upscale shopping district of Ginza, the second following one in the Japanese capital in late January.

    Lotte, the world’s No. 3 duty-free operator, said it will strengthen its brand competitiveness in Japan, which attracted a huge influx of Chinese travelers last year.

    Lotte chairman Shin Dong-bin and his family, including his mother, wife and son, attended the opening ceremony. His father and corporate founder Kyuk-ho and his elder brother and former vice president Dong-joo did not attend.

    The rare family gathering at a public event was seen as an effort to show internal unity as Lotte has been trying to improve its tarnished corporate image following a prolonged succession feud between the founder’s two brothers.

    “The duty-free business has created some noise in South Korea, but I hope it to do well,” Shin told Yonhap News Agency during the ceremony. “I think this store is better than I expected.”

    Lotte lost its duty-free license in Lotte World Tower in southern Seoul in a November bid, amid the family succession feud and criticism for its dominance in the domestic market.

    Shin said his company will open a new tax-free store in Thailand in June, and two more in Japan — Osaka in early 2017 and Fukuoka later that year.

    Lotte, the retail giant who runs businesses in Korea and Japan, said the new duty-free shop is targeting 150 billion won (US$131 million) in sales this year and it plans to open additional shops in Japan over the next decade.

    Foreign visitors to Japan hit a record high of 19.69 million in 2015, marking the first time since 1970 that inbound travelers surpassed those who headed abroad, according to the Japan National Tourism Organization. Koreans were the biggest tourist group to Japan by nationality, followed by Chinese with 3.78 million.

    Lees ook:

  • Myanmar rushes through masses of investments

    Myanmar rushes through masses of investments

    The Myanmar Investment Commission (MIC) has approved an unusually large number of projects in its final meeting before the new government takes office, including luxury resorts, office towers, port developments, factories and roads.

    The commission, which answers directly to the President’s Office, meets several times a month to approve foreign, joint-venture and local investments.

    According to MIC information dating back to January 2015, the average number of investments approved at each meeting is just under 10. No more than 20 projects have been approved at any previous meeting.

    Bucking the trend, the MIC approved 48 new investments on March 25, according to a document published on the Directorate of Investment and Company Administration website.

    Asked about the unusually high number of approvals, a spokesperson directed requests to secretary Aung Naing Oo, who was not available for comment on Tuesday.

    Notably, the MIC has approved a number of major projects at Yangon’s ports.

    Kaung Myanmar Aung Shipping Co, owned by well-known tycoon Khin Maung Aye, received consent to build a wharf and supporting facilities in Seikkan township after winning a government tender just over a week ago.

    New Downtown Development Public Co has approval to build a shopping mall and office complex in the Myanma Port Authority-owned Nanthida compound and New Strand Development Co has permission to build commercial, office and retail space, hotels and serviced apartments at Ahlone international port in Ahlone township.

    Several port-related investments have also been approved at Thilawa. Khaing Oo Co has been given the green light to build a jetty and buildings, and Myanmar Edible Oil Industrial Public Co is allowed to build and operate a multi-purpose international wharf in the Thilawa port area.

    The MIC also approved a number of hotels and resorts in its most recent meeting, including H&Co Platinum Pathein Co’s 15-acre project in Ayeyarwady region comprising a hotel, shopping mall and villas.

    Pongpipat Development, known for operating the Heinda tin mine in Tanintharyi region, has been given permission to build a resort in Htee Khee village in Myitta, Dawei township, while a company called K Future secured approval to build a hotel on Bo Net Kyaw island in Kawthoung district.

    In Yangon, KT Development Co has approval to build a hotel, office space, retail, serviced apartments and other commercial businesses and long-term leasehold units on an 11.753-acre site in Yankin township.

    New City Development Public, which also has links to tycoon Khin Maung Aye, has approval to build a light industrial park in Yangon region’s East Dagon township. Another of his companies, Kaytumadi Development Public, has approval to build two further industrial parks in Bago region’s Taungoo.

    Also in Bago, Hantharwady Development Public has approval to build an improbably large eco-resort and high-end housing project on 2455.77 acres, and Thiri Multi Agricultural Co has permission to build a hotel in Taungoo.

    A number of roads were also approved, and more than a dozen manufacturing ventures. Three companies – Mya Kan Engineering, Htoo Naing Lin and Linn Shwe Sin – received a green light to produce and distribute crushed stones.

    Sembcorp Myingyan Power Co has received the go-ahead to build a 225-megawatt gas-fired plant near Mandalay, which will eventually transmit more power to the national grid than any other independent gas-fired plant in the country.

    Malaysian firm OCK Yangon has been approved to build telecoms infrastructure and Asian Blue Aviation to run an international air transport service. The company is a tie-up between Japan’s ANA Holdings and Shwe Than Lwin-owned Golden Sky World, and plans to offer services between Yangon and Tokyo.

    The MIC approval does not necessarily guarantee a project will go ahead, as Hong Kong-based developer Marga Landmark and a number of local companies discovered when their real estate projects beside Shwedagon Pagoda were cancelled by the President’s Office early last year.

    Many of these projects will also require approvals from other government departments. Nevertheless, once approval has been granted it is difficult to undo.

    Han Thar Myint, who chaired the National League for Democracy’s (NLD) economic committee until it was dissolved last week, said the incoming government had not been warned that such a large number of investments would be approved.

    “Since respective ministerial offices do not have to inform us of their decisions, we had no knowledge of this. We cannot criticise or object to the outgoing government permitting a lot of new investments, or whatever the case is,” he said.

    “Only after the new ministers have taken office can these things possibly be done.”

    Last month the NLD called for an investigation into a wave of lucrative business deals that had seemingly been fast-tracked by officials in the outgoing government during the period between the election and the power transfer.

    Military MPs reacted to the motion with disapproval, standing up in unison to demonstrate their objection. The debate infuriated the outgoing government and prompted presidential spokesperson Ye Htut to suggest that it does not need to be accountable to parliament.

    “Whether the incumbent Union government should be accountable to the second parliament or not is an issue to be reviewed according to the constitution,” he said, adding that the government had decided to “suspend” its cooperation with parliament on responding to questions and proposals.

    Lees ook:

    Lees ook:

  • Singapore start-up betting on more luxury consumption

    Singapore start-up betting on more luxury consumption

    The global economic chill may have helped cool the runaway growth in luxury brands as consumers start to think twice before splurging. One e-commerce player, however, is hoping for an Indian summer.

    Daniel Lim, one of the co-founders of Reebonz, said the “aspirational middle class” – particularly in Asia – will underpin demand for personal luxury products.

    Reebonz sells new and pre-owned designer bags, shoes and other personal luxury items on its website and mobile app. It has a service, Reebonz Closet, available in selected markets, that lets users buy and sell directly to one another.

    Merchants from around the world are also able to list their items on Reebonz Marketplace, creating variety in selection. The company also has in-store presence in Australia and pop-up stores in Singapore.

    Aspiring toward luxury

    Lim’s forecasts come at a somewhat challenging time for personal luxury goods. A study by management consulting firm Bain & Company released in December showed the real growth in the global personal luxury, at constant exchange rates, was only 1 to 2 percent in 2015. This compared with a 3 percent growth in 2014 and 7 percent in 2013.

    Bain said in the report that a combination of currency fluctuations, contracted local spending, government reforms against graft, and tourist arrivals influenced regional performances in 2015.

    “Macroeconomic factors will always be there,” said Lim in an exclusive interview with CNBC. However, “luxury is one of the few classes of products, where people aspire to constantly upgrade,” he said.

    Erwan Rambourg, global co-head of consumer and retail research at HSBC echoed the sentiment, telling CNBC that luxury demand is “often driven by social, cultural and fashion trends rather than by mere financial means.”

    Unlike other purchases, luxury items have great resale value, the Reebonz co-founder added.

    Online shopping has seen rapid growth over the last several years, underpinned by emergence of e-commerce giants such as Amazon and Alibaba. Euromonitor data showed in 2015, internet retailing totaled $990.7 billion worldwide, up from $851.20 billion in 2014.

    Luxury players have been relatively slow to adopt e-commerce due to fear among brands of not being able to replicate the experience of in-store buying, according to Lim.

    Data from Bain showed online shopping currently comprises only 7 percent of the luxury market, with 93 percent of market share still resting with brick-and-mortar stores.

    But Lim expects more innovation to take place as more players explore online options and models to sell to customers. “We have only touched the tip of the iceberg,” he said.

    Since its foundation in 2009, Reebonz has expanded into several developed and developing markets in Asia Pacific, including Australia and Indonesia among others. While the company is still focused on Asia Pacific, it delivers to 30 countries worldwide, including the United States.

    Tackling China

    Last April, Reebonz entered Asia’s largest luxury consumption market: China.

    Lim said Reebonz’s decision to enter China was influenced by favorable cross border e-commerce tax policies, the huge market for luxury, and strong local partnerships the company has forged.

    Even though some of the tax policies that attracted his company to China are now being reversed, Lim remains unfazed.

    Last week, China announced it will charge imported retail items purchased online in the same way as any other imported goods, scrapping a provision that enabled e-commerce companies to import goods more cheaply, reported China’s Xinhua news agency. The changes will be effective from April 8, said Xinhua.

    The move will see many e-commerce retailers experience a cost increase through higher taxes, according to Yating Xu, an economist at IHS Global Insight. Xu told CNBC the tax reform is designed to level the playing field for traditional retailers, who have, in recent years, been hurt by the tax benefits enjoyed by e-commerce players.

    He acknowledged, however, the steep competition Reebonz faces from local players in China.

    Many luxury brands, such as Burberry, Estee Lauder, and Calvin Klein, have launched e-boutiques on Alibaba’s Tmall platform to penetrate broader areas of China, according to Hui Wan, research team lead at Euromonitor International.

    Other brands such as Alexander McQueen and Balenciaga have established official websites “to present their brand image, launch their new collections and sell products as well,” she said.

    Wan told CNBC, currently “Chinese consumers prefer to browse online but buy at the stores, especially for luxury goods purchases.”

    Lim is banking on Reebonz’s strong reputation for selling authentic products, wide range of options and good customer service to make headway into the biggest luxury market in Asia Pacific.

    “Penetrating China obviously will take a bit of time but I think we see a great opportunity there.”

    Lees ook:

  • Hong Kong’s retail sales plunge most in 17 years

    Hong Kong’s retail sales plunge most in 17 years

    Hong Kong’s retail sales in February plunged the most since 1999 as fewer Chinese tourists visited the territory during the Lunar New Year holiday.

    Retail sales dropped 21 percent in February to HK$37 billion (US$4.8 billion) year-on-year, according to a statement from the Hong Kong’s Department of Statistics.

    Combining January and February, sales fell 14 percent. The monthly decline is the worst since January 1999 when sales were also down 21 percent.

    “Apart from the severe drag from the protracted slowdown in inbound tourism, the asset market consolidation might also have weighed on local consumption sentiment,” the Hong Kong government said in a statement yesterday. “The near-term outlook for retail sales will still be constrained by the weak inbound tourism performance and uncertain economic prospects.”

    The government will monitor closely its repercussions on the wider economy and job market, it said.

    Chow Tai Fook Jewellery Group, the world’s largest listed jewelry chain, and Sa Sa International Holdings reported slumping sales over the holiday from Feb. 7 to Feb. 13 when Chinese tourists to the territory dropped 12 percent.

    The stock market rout and a slowing Chinese economy have affected consumer sentiment for luxury goods, Chow Tai Fook has said.

    Mainland China tourists “are unlikely to come back in the short term,” CCB International Securities analyst Forrest Chan said.

    Hong Kong residents are also consuming less due to stagnant property values and the weak stock market, he said.

    “Hong Kong’s retail market will continue to fall for the rest of 2016 as all the negative factors won’t be solved in the near term,” Chan said in a telephone interview.

    Chinese visitors are projected to fall 3.2 percent for the year, according to the Hong Kong Tourism Board, with average spending dropping 4 percent to HK$6,948.

    Sales of jewelry, watches and clocks, and valuable gifts dropped 24 percent, while those of electrical goods and photographic equipment plunged 27 percent, according to yesterday’s statement.

    Lees ook:

    Lees ook:

  • Sanrio and Universal Parks & Resorts Open New Hello Kitty Retail Store Concept

    Sanrio and Universal Parks & Resorts Open New Hello Kitty Retail Store Concept

    Sanrio, the global lifestyle brand best known for beloved pop iconHello Kitty, and Universal Parks & Resorts have opened the Hello Kitty Shop Featuring Hello Kitty and Friends at Universal Orlando Resort.

    The Hello Kitty Shop at Universal Studios Florida marks Sanrio’s official retail debut and Hello Kitty’s first appearance at a theme park in North America. The supercute retail experience, located along Hollywood Boulevard in the theme park, offers specialty merchandise including stationery, home goods, apparel, accessories, collectibles and confectionery treats. The majority of product will be exclusive to the park. Additional Sanrio characters including Chococat, My Melody, Badtz-Maru,Pompompurin and Keroppi will also be featured.

    “As Sanrio’s first official retail debut at a theme park in North America, the Hello Kitty Shop offers a new retail experience for fans of all ages,” said Jill Koch, Sr. Vice President of Brand Management and Marketing at Sanrio, Inc. “Our partnership with Universal delivers a new touch point for the brand through special products, unique merchandising and a fully branded store experience that incorporates many of our beloved characters.”

    The Hello Kitty Shop at Universal Studios Florida offers a supercute, immersive environment that fans of all ages will love. Customers can shop for exclusive merchandise, enjoy photo opportunities, create souvenir versions of Hello Kitty’s signature bow, mail letters and receive small gifts. With four specially themed areas within the Hello Kitty Shop, fans can find treats at the “Hello Kitty Sweet Yummy Shop,” loungewear and home goods in the “Hello Kitty Lounge” area, multi-character accessories, stationery and gifts in the “Hello Kitty and Friends Town” area, and collectibles featuring Sanrio characters reimagined with classic Universal properties in the “Hello Kitty at the Movies” area. New products and designs will be released regularly so fans will always find something new.

    Beginning March 31st, guests can also say hello to Hello Kitty herself. Hello Kitty will make regular appearances, greet fans and take photos.

  • China to cut import tax on some online retail purchases

    China to cut import tax on some online retail purchases

    China will cut import taxes on some online retail purchases starting April 8, the finance ministry said on its website on Thursday.

    Goods with a value of 20,000 yuan (US$3,070) or less bought online and shipped into China would no longer be subject to customs duty, the ministry said.

    Imports of goods bought online had previously been subject to customs duty, consumer tax and value-added tax, according to the ministry’s statement. The tax due will now also be capped at 70 percent of the applicable consumer tax and VAT.

    Goods worth more than 20,000 yuan would be liable for the current general trade tax, the ministry said.

     

  • Fuji keen to intensify cooperation with Indonesia

    Fuji keen to intensify cooperation with Indonesia

    Fijian Minister for Agriculture, Rural, and Maritime Development and National Disaster Management Ina Seruiratu has expressed his countrys keenness to expand cooperation with Indonesia in various fields.

    “We have expanded our cooperation with Indonesia in areas such as agriculture, which is paramount for the two countries as well as in the field of residential development,” Seruiratu noted in a press statement of the Indonesian Coordinating Minister for Political, Legal and Security Affairs Luhut Binsar Pandjaitan released on Thursday.

    He made the remarks after receiving assistance worth US$5 million from the Indonesian government through Minister Pandjaitan to help alleviate the financial burden of the victims of Cyclone Winston, which left 19 people dead and affected part of the country.

    He expressed hope that the Indonesian assistance would strengthen relations between the two nations.

    Pandjaitan also said his country was looking forward to taking a cue from Indonesia in mitigating natural disasters as it was also a disaster-prone nation.

    “Besides learning from Indonesias experiences, we also want to gain a deeper understanding of disaster mitigation technology from the country,” he revealed.

    During his visit to Fiji, Minister Luhut also met Prime Minister Josaia Bainimarama to extend his condolences over the disaster that affected the South Pacific country.

    Luhut praised the Fijian premier for his swift action in addressing the disaster.

    “I believe that under the leadership of Prime Minister Bainimarama, Fiji would soon recover and rebuild itself,” he added.

    Lees ook:

    Lees ook:

  • Garuda Indonesia Inaugurates Flight to London Heathrow

    Garuda Indonesia Inaugurates Flight to London Heathrow

    In a bid to strengthen its business expansion and nation branding in Europe, Garuda Indonesia today has inaugurated flight service to Heathrow Airport, London. Earlier, since September 2014, Garuda Indonesia has opened flight service to Gatwick Airport, London.

    “London Heathrow is the world’s 6th busiest airport with high passenger traffic. Garuda Indonesia’s service in the airport is expected to expand passenger connectivity in European market, particularly England, mainly through SkyTeam network to various world destinations,” said President Director of Garuda Indonesia M. Arif Wibowo in a press release as quoted by Bisnis.com, Thursday, March 31, 2016.

    Garuda Indonesia will offer flights from Jakarta to London Heathrow through Singapore (transit), whereas from London Heathrow to Jakarta, Garuda will operate five times weekly non–stop flight service (every Tuesday, Wednesday, Thursday, Saturday and Sunday), using Boeing 777-300ER aircraft with First Class service, with a capacity of 314 passengers, with 8 seats configuration for First Class, 38 seats for business class and 268 seats for economy class.

    Meanwhile, Deputy for Financial Service Business, Survey and Consulting Division of SOE Minister, Gatot Trihargo, in his speech representing Indonesia’s SEO Minister has expressed his appreciation on Garuda Indonesia’s effort who has continuously provides the best services to its users.

    “As a the nation’s flag carrier who also carries a five star rating, Garuda Indonesia’s presence, wherever it is, will carry the state’s name. Flight services to London Heathrow is expected to strengthen Garuda’s flight network, which can certainly help boost Indonesia’s economic, business and tourism growth,” Gatot added.

    Lees ook:

  • Is this the city of the future?

    Is this the city of the future?

    Today, more than half of our planet’s population live in urban areas, with millions of people migrating from the countryside to towns and cities in search of prosperity to a point where the world’s urban population has rocketed from 746 million in 1950 to 3.9 billion in 2014, according to the United Nations.

    As urban populations balloon, the strain on cities – many of them hundreds of years old – increases, with everything from transport to living space, healthcare and security put under pressure.

    In South Korea, the Songdo International Business District (Songdo IBD) is offering one vision of how cities might look in the future. A $35 billion project, Songdo has been developed across more than 1,000 acres of reclaimed land.

    “The original concept of Songdo was as a gateway city to the Korean mainland from Incheon International Airport, where basically all the uses – be they residential, retail, work, educational or cultural – would… all be within a 15 minute walking time of one another,” Jonathan Thorpe, senior EVP and chief investment officer at Gale International, part of the public-private partnership behind Songdo, told CNBC’s Sustainable Energy.

    As well as being technologically advanced, there is a heavy emphasis placed on sustainability. Forty percent of the city has been designated as “green public space” while the city is also home to 20 million square feet of LEED – Leadership in Energy and Environmental Design – certified space.

    “The residents can… control their lighting, their heating, ventilation, air conditioning usage, all within a single panel,” Thorpe said.

    “Moreover, they can track the actual consumption of energy that they individually are consuming, compare that to the use of their neighbours and this helps, really, greatly increase efficiency,” he added.

    The importance of technology is crucial, according to renowned British architect Norman Foster.

    “In many ways technology has been a constant throughout civilization,” Foster told Sustainable Energy.

    “It’s always been maximizing the materials to transform the climate and create a more comfortable environment in an age before cheap energy,” he said.

    “We have to relearn those traditional lessons and apply that with the technology of our time. You have to look at all the elements within the building – the materials, the way in which it responds to climate – to reduce the amount of energy and ideally move to buildings which harvest energy.”

    Lees ook:

    Lees ook:

    Lees ook:

  • Hong Kong International Airport officially opens Midfield Concourse

    Hong Kong International Airport officially opens Midfield Concourse

    Airport Authority Hong Kong (AA) held a Grand Opening Ceremony at the Midfield Concourse (MFC) of Hong Kong International Airport (HKIA) today to celebrate the full operation of the facility.

    The ceremony was officiated by Jack So Chak-kwong, Chairman of the AA, he said: “The concourse is an important development project that will help HKIA meet increasing traffic demand in the medium term, as we work towards completion of the three-runway system.”

    Located to the west of Terminal 1 between HKIA’s two existing runways, the 105,000sqm five-storey concourse provides 20 parking positions. AA says the new concourse and has increased the ratio of passengers boarding and disembarking aircraft using airbridges, enhancing the overall airport experience. Passengers can reach the MFC by an extension of the Automated People Mover system from Terminal 1.

    “HKIA, connecting Hong Kong to about 190 cities in the Mainland and overseas, is the most important transport infrastructure maintaining Hong Kong’s external connections, as well as an engine for our city’s economic growth. The outstanding achievement of HKIA today is attributable to the collective efforts of HKIA’s business partners, the aviation services sector, the relevant government departments and every stakeholder in society. My congratulations on the full operation of the MFC and I wish the business of our airport will continue to prosper,” said Carrie Lam Cheng Yuet-ngor, Chief Secretary for Administration.

    Last month Airport Authority Hong Kong (AA) opened nine new retail shops and a café at the MFC. Additionally, eight retail and three catering outlets are soon to be opened at the concourse, including a new multi-category store concept from DFS. The catering outlets will offer café and casual-dining options to departing passengers who have limited time before boarding.

    The concourse also features various ancillary facilities, including newly designed seats with power sockets, deck chairs along the glass facade, as well as free Wi-Fi connections and internet-enabled computer stations.

    HKIA has also just launched a range of promotions for travellers, including an instant rebate of up to HK$5,000 worth of cash coupons and a free delivery service.

  • IOC bids for fuel marketing and retail rights in Myanmar

    IOC bids for fuel marketing and retail rights in Myanmar

    State-run Indian Oil Corp (IOC) has bid for rights to import, store and distribute petroleum products in Myanmar.

    “We have put in a bid to enter fuel marketing and retail business in Myanmar,” a senior company official said.

    Myanma Petroleum Products Enterprise (MPPE) last year invited companies to form a joint venture for import, storage, distribution and sale of all petroleum products except liquefied petroleum gas (LPG) and liquefied natural gas (LNG).

    A separate tender for cooking gas LPG was floated. IOC had bid for that tender too, the official said.

    MPPE left the fuel distribution business when it was privatised in 2010, but is planning a re-entry into the fast-growing business sector that is marred by widespread dissatisfaction over service standards and fuel quality.

    In 2010, MPPE transferred 216 filling stations to private companies across the country but it still runs 12 pumps which supply fuel to state-owned vehicles.

    It also owns four main fuel terminals and 24 sub-fuel terminals. Around 70 private companies run the country’s 1163 petrol stations, but few have storage facilities or an import licence.

    MPPE now wants to tie up with foreign companies to expand the business and rehabilitate existing facilities. MPPE will hold 51 per cent of equity while the foreign company will hold the rest.

    The joint venture will be for a maximum of 30 years, extendable two 10-year periods.

    The official said IOC wants to use its just commissioned Paradip refinery in Odisha to ship fuel a short distance across the Bay of Bengal to get to Myanmar.

    Being the country’s largest fuel retailer, it also has experience of setting up fuel stations and managing logistics, which would be helpful in the nascent market.

    IOC is among the 11 to have bid for the separate tender to build a new liquefied petroleum gas (LPG) terminal and supply chain business for the distribution and marketing of the cooking and heating fuel.

    Winner of this tender will have to upgrade eight storage containers each with a capacity of 5550 metric tonnes of LPG for Ministry of Energy-owned No 1 Refinery (Thanlyin), and build a wharf with the capacity to load and unload 2000 metric tonnes of LPG.

    This is the first time foreign companies will be allowed to distribute LPG in Myanmar.

    Besides IOC, Singaporean firms Puma Energy Group and BB Energy (Asia) and a consortium of Japan’s Marubeni Corporation and Tokai Holdings has also bid.

    Lees ook:

  • Retail sector woes continue despite New Year festivities

    Retail sector woes continue despite New Year festivities

    Hong Kong’s retail sector woes continued in the second month of this year when sales tumbled by more than 20 percent during the period when the Lunar New Year is celebrated. The value of total retail sales in February, provisionally estimated at HK$37 billion, was down by 20.6 percent compared with the same month in 2015. The revised estimate of the value of total retail sales in January dropp…

    Hong Kong’s retail sector woes continued in the second month of this year when sales tumbled by more than 20 percent during the period when the Lunar New Year is celebrated. The value of total retail sales in February, provisionally estimated at HK$37 billion, was down by 20.6 percent compared with the same month in 2015.

    The revised estimate of the value of total retail sales in January dropped by 6.6 percent compared with a year earlier. For the first two months of this year, retail sales fell by 13.6 percent compared with the same period in 2015.

    January and February retail sales of jewelry, watches and clocks, and valuable gifts dropped by 24.2 percent, the government said.

    Apparel sales fell by 11.4 percent, while commodities in department stores fell by 12.3 percent.
    Sales of electrical goods and photographic equipment were down by 26.7 percent and miscellaneous consumer durable goods dropped by 31.9 percent. Motor vehicles and parts sales tumbled by 21.2 percent.

  • Will Hong Kong retail market, like Jesus, rise from the dead?

    Will Hong Kong retail market, like Jesus, rise from the dead?

    Spring is here, but our struggling retailers have yet to notice its arrival.

    Last week Li Ka-shing said the economy this year is the worst in 20 years, especially in the case of the retail market, which is facing a situation that is worse than SARS in 2003.

    It’s nice to know, though, that while Cheung Kong is grumbling, rival Sun Hung Kai Properties has come up with a way to cope with the situation.

    At its trendy shopping mall APM in Kwun Tong, Hong Kong’s No. 1 landlord is introducing short-term tenancy.

    Six shops of between 100 square feet and 300 square feet will be coming on stream for tenancy of no more than six months, says Maureen Fung Sau-yim, general manager (leasing) of Sun Hung Kai Real Estate Agency.

    Fung says the tenancy will involve a new profit-sharing system, in which 10 to 12 percent of the sales will be taken as rental.

    This new deal is breaking away from the traditional three-year lease where retailers have to pay 20 percent of their sales to the landlord.

    Landlords are adjusting their leasing strategies in the wake of the poor retail sentiment brought about by slowing tourist arrivals.

    Swire Properties, for example, is terminating the leases of underperforming tenants such as Dan Ryan and Grappa’s (and before that, the beloved of the middle class Marks & Spencer) as part of efforts to transform Pacific Place in Admiralty.

    From the tenants’ side, gold, jewelry and luxury watch shops, along with pharmacies or cosmetics outlets, are giving their spaces back to food stalls and other small operators who previously could not afford the high rent.

    Kowloon Watch, for example, has just closed its store at a shopping mall near my residence, its fifth closure in the past 12 months, leaving only seven shops in operation.

    The short-term tenancy seems the most logical strategy in the new business climate. Some trendy retailers, such as Bathing Ape, which used to draw long queues for its limited edition products, will be perfectly suited for this flexible scheme.

    In the first three months, visitors to APM surged over 10 percent to 27 million with sales topping HK$900 million, according to Fung.

    This coming Easter, the mall will be spending an advertising budget of HK$2.3 million, up 10 percent from the previous year, in anticipation of a huge wave of visitors, especially those coming from the Kai Tak Cruise Terminal.

    Hopes are high that the local retail market, like Jesus Christ, can rise from the dead after its extended crucifixion.