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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.

  • OGIO Announces First Retail Store Opening in Indonesia

    OGIO Announces First Retail Store Opening in Indonesia

    Following the highly successful introductions of their first 3 flagship store locations in Beijing, Shanghai and Seoul, South Korea, OGIO International announces the opening of its first retail store in Jakarta, Indonesia. The Jakarta location officially opened to the public on December 1st. The location, in the heart of Jakarta’s bustling Gambir Sub-District, is designed to house all of OGIO’s product collections.

    Investorideas.com Newswire

    “We are excited that our brand retail platform continues to be a major driver of growth for our international distributors and for our brand,” said OGIO CEO Tony Palma. “We feel that these flagship stores allow for a great introduction of OGIO to local customers around the world.”

    “The Jakarta location is our way of introducing our customers to the OGIO brand in Indonesia,” said Setiawan Sodhi, CEO at distribution partner PT Raja. “We feel that OGIO’s brand identity can really connect with the end consumer in Indonesia. Our customers will love OGIO’s adrenaline-driven styling in all of the various product collections.”

    Investorideas.com Newswire

    OGIO anticipates a second new flagship location in Indonesia, in the tourist mecca of Bali, slated for opening in 2016. With retail concepts successfully executed in China, Korea, Japan, Italy and Indonesia, OGIO continues to grow its international lifestyle business by double digits.

    “The success of our retail locations in other countries, both flagship stores and shop-in-shop concepts, has really caught the attention of many of our International distribution partners”, said OGIO’s GVP of International Mark Talarico. “The retail store concept is proving itself to be a fantastic marketing, sales, and most importantly, brand awareness driver for our distributors.”

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  • Singapore-Indonesia Talk Agribusiness Export

    Singapore-Indonesia Talk Agribusiness Export

    Minister of Foreign Affairs Retno Marsudi received her Singaporean counterpart Vivian Balakrishnan at the Foreign Affairs Ministry building in Jakarta today, January 13. This meeting between the two ministers is their second after the ASEAN Summit in Kuala Lumpur in November last year.

    For Mr. Balakrishnan, this is his introductory visit to Indonesia since he was appointed as Singapore’s Foreign Affairs Minister in October 2015. In the meeting, the two ministers talked about a number of important issues.

    “The relationship between Indonesia and Singapore is one of the most intensive bilateral ties due to our geographic proximity and tight work relations,” Minister Retno said in an official statement on Wednesday, January 13.

    The ministers talked about how to enhance economic ties between the two nations. One way is through agribusiness exports.

    “Singapore needs this product, while Indonesia has the capacity. The geographic proximity between the two countries is a potential than can be brought closer,” the minister said.

    Indonesia and Singapore are planning to hold agribusiness collaborations in the fields of cool storage and infrastructure standard.

    The two ministers also discussed about the potential for a partnership in the manpower sector. Minister Retno said that, in the future, Indonesia will enhance the quality of skilled workers – particularly in fields with high demands such as therapists, caregivers, and other.

    The meeting was also spent talking about regional cooperation, ASEAN in particular, and the plan for Singapore’s Prime Minister to visit Indonesia.

    In addition to meeting Minister Retno, Mr. Balakrishnan’s trip to Indonesia also included an honorary visit to President Joko WIdodo and Luhut Pandjaitan, Coordinating Minister of Law and Human Rights.

    Singapore is Indonesia’s second largest trading partner after China. In 2014, the trading value between Indonesia and Singapore reached US$42 billion.

    In terms of investment, Singapore is Indonesia’s biggest investor. In 2014, Singapore’s investment actualization in Indonesia valued at US$5.8 billion. Singapore is also Indonesia’s largest contributor of foreign tourists, with more than 1.5 million Singaporeans visiting Indonesia per year on average.

  • Siemens studies participation in Indonesia`s electricity program

    Siemens studies participation in Indonesia`s electricity program

    German company Siemens Energy Sector is studying the possibility of taking part in the governments program in the electricity sector.

    The government has a program to build power plants with a total capacity of 35,000 megawatts until 2019.

    Member of the board of management of Siemens Lisa Davis met Vice President M. Jusuf Kalla on Tuesday discussing Siemens interest in taking part in carrying out the program.

    Lisa said Siemens has long been venturing in Indonesia taking part in the government development program especially in development of power plants.

    She also expressed interest in cooperating with the state power utility company PLN in building power plants.

    “We discussed a lot of things in the energy sector such as in power generating plant, power transmission facility and distribution of power,” she said.

    She said involvement of Siemens in the 35,000 MW electric program would open many jobs in the country.

    Siemens has produced electrical components and Indonesia is a potential market for the products.

    “We see Indonesia a potential market for our manufactured products. That is the reason for our interest in cooperation with the Indonesian government,” she added.

    German Ambassador Georg Witschel, who accompanied Lisa at the meeting with the vice president, said Germany will also be ready to offer help for Indonesia in the implementation of its programs including in its electricity program.

  • CNBC to launch channel in Indonesia

    CNBC to launch channel in Indonesia

    Financial news channel CNBC has struck a deal with PT Trans Media Corpora to launch a CNBC-branded channel in Indonesia.

    CNBC Indonesia is to enter Southeast Asia’s largest economy later this year, and will be a Bahasa-language service.

    Mark Hoffman, chairman of CNBC, said that the deal with Trans Media underpins the broadcaster’s emerging markets strategy.

    “We are pleased to bring CNBC’s unique and robust content proposition to millions of Indonesians in their local language, further opening the world of international business and finance to a growing economic powerhouse,” Hoffman said.

    Chairul Tanjung, founder and chairman of PT Trans Media Corpora’s parent company, CT Corp, said: “The primary objectives of the CNBC Indonesia venture are to facilitate global business conversations in Bahasa Indonesia, to educate our growing middle class, and to facilitate better information flow for decision making. This will help realise the full potential of the capital markets and businesses, accelerating the economic development of Indonesia.”

    CNBC’s announced launch comes just three months after rival Bloomberg closed its Indonesian joint venture after running into financial difficulties. Bloomberg is still looking for a new local partner to revive its Indonesian ambitions, Mumbrella understands.

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  • Myanmar City Mart eyes US$25m expansion

    Myanmar City Mart eyes US$25m expansion

    The Work Bank Group’s International Finance Corporation (IFC) has invested US$25m in Myanmar’s largest private retailer Myanmar City Mart Holding (CMHL) to expand its operations, create jobs and boost Myanmar’s retail sector.

    CMHL plans to use the loan to construct 20 additional supermarkets and hypermarkets over the next three years, adding to the 150 stores operating in Myanmar.

    The new operations are expected to increase CMHL’s purchases from domestic suppliers six-fold, hitting US$150m by 2021, and creating more than 4,000 jobs, half of which will be for women.

    “IFC’s investment is a sign of confidence in our business plan as well as in Myanmar’s retail sector potential,” founder and managing director Win Win Tint said in a company statement.

    “In addition to funding, IFC’s expertise and advice on food safety, good social and environmental practices and corporate governance will also help us take the company to the next level.”

    “IFC supports the development of a modern retail sector in developing countries as it helps spur growth and job creation, develop supply chain and logistics infrastructure, and support smaller businesses,” said Vivek Pathak, IFC regional director for East Asia and Pacific. “With our global expertise and industry knowledge, we will be delighted to work with CMHL to improve efficiency and standards to become a model retailer in Myanmar.”

    CMHL was established in 1996 and today operates supermarkets, hypermarkets, bakeries, pharmacies and convenience stores across Myanmar.

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  • Lion group to receive 44 aircraft

    Lion group to receive 44 aircraft

    Lion Group will procure 44 aircraft this year for the airlines under its operations, including Lion Air, Wings Air, and Batik Air, Edward Sirait, its president director, stated here on Monday.

    He noted that the aircraft fleet is being expanded to increase capacity in view of the growth this year, which is expected to reach 15 percent.

    Edward remarked that 14 aircraft will be for Lion Air, 18 for Wings Air, and 12 for Batik Air.

    “The number will be adjusted based on the market demand in line with the transportation ministrys forecast that the number of passengers will increase by 15 percent,” he claimed.

    He affirmed that all the new aircraft for Lion Air are Boeing, while Batik Air will receive Boeing and Airbus aircraft, and Wings Air would get ATR aircraft.

    He stated that the aircraft were procured through operating lease and financial lease schemes.

    He noted that the new aircraft will be used to serve new routes, especially for direct flights such as on the Balikpapan-Bandung, Tarakan-Semarang, and Banjarmasin-Denpasar routes.

    He remarked that Lion Group will also start flight services for minor Hajj pilgrims, with direct flights to Madinah using the wide-bodied Boeing 747 and Airbus 330.

    “Other airlines only offer flights to Jeddah, from where the passengers have to undertake a six-hour land journey. We have prepared direct flights to Madinah, so that the passengers could immediately proceed to carry out their religious rites,” he added.

    Lion Group currently has two Boeing 747 and three Airbus 330 aircraft.

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  • Largest Licensing Show and Conference Open in Hong Kong

    Largest Licensing Show and Conference Open in Hong Kong

    The world’s leading licensors have gathered at the Hong Kong Convention and Exhibition Centre (HKCEC) for the 14th Hong Kong International Licensing Show and fifth Asian Licensing Conference which opened today. Organised by the Hong Kong Trade Development Council (HKTDC), the twin events explore partnership and licensing opportunities in Asia, and especially the Chinese mainland.

    Among the international brands taking part in the International Licensing Show (11-13 January) are BBC Worldwide, Chelsea Football Club, Hasbro, Hearst Magazines International, Sanrio, The Palace Museum in Beijing, The Wiggles, Warner Bros., 20th Century Fox and Ali-the-Fox. This year, the show features a record number of more than 340 exhibitors from 15 countries and regions, showcasing more than 860 brands and properties across such categories as animation and edutainment, art and design, fashion and lifestyle, and food and beverage.

    HKTDC Executive Director Margaret Fong said the global licensing industry is valued at more than US$158 billion, with Asia accounting for 12.2 per cent of the global market and the Chinese mainland being the main driving force of such sales. She also noted that Asia is not only a key market for licensing, but also the origin of dynamic and indigenous brands developed by the region’s young creative talents and backed by strong local government support, as evidenced by the strong Asian participation at the International Licensing Show.

    Ms Fong also pointed out that Hong Kong, with its strategic location, robust protection of intellectual property (IP) rights, an independent legal system, deep and broad pool of IP professionals as well as close business links with the Chinese mainland and the rest of the region, is the best place from which to tap into licensing opportunities in Asia, and especially the mainland.

    Licensing is a type of intellectual property trading. The HKTDC supports and promotes IP trading, including by developing and enhancing the Asia IP Exchange (AsiaIPEX), a free online intellectual property trading platform and database. The Character Brand Licensing Association (CBLA), organiser of the Japan Pavilion at the Licensing Show, this morning (11 January) formed a strategic partnership with the HKTDC to foster IP trading between Hong Kong and Japan through the AsiaIPEX.

    Besides the Japan Pavilion, other international pavilions include those from the mainland, Korea, Taiwan, Malaysia, Thailand, Australia and the United Kingdom, which together enrich the show with more region-specific content.

    China’s Ministry of Culture brings a large delegation

    China’s Ministry of Culture is leading a delegation of more than 60 companies, including over 30 from Guangdong, Zhejiang and Szechuan, making the Chinese mainland pavilion the largest in the Licensing Show’s history. Among the key enterprises and organisations are The Palace Museum, Beijing Dream Castle Culture Co. Ltd with its brand Ali-the-Fox and the animation enterprise Zhejiang Zhongnan Animation Co.

    Dynamic prospects for lifestyle sectors

    Among the wide range of licensing categories spotlighted are character, animation, edutainment, art and culture, fashion and lifestyle as well as the newly added food and beverage licensing category.

    The Art and Culture Licensing category features well-known brands showcasing their properties and merchandise, including The Palace Museum (China), National Museum of History (Taiwan), Van Gogh Museum (Netherlands), ink colour paintings by Master Lam Tian Xing and three Japanese manga culture museums, namely The Osamu Tezuka Manga Museum, Kawasaki City Fujiko F. Fujio Museum and the Anpanman Museum.

    Under the Fashion & Lifestyle Licensing category, classic and stylish brands such as Smiley, Ducati, Paris Saint-Germain FC, AC Milan, Chelsea Football Club, FC Barcelona and Manchester City Football Club are on display. The “Harper’s Bazaar Lounge”, sponsored by Hearst Magazines in the Chancellor Room of the newly expanded show venue, offers a taste of lifestyle licensing. Also, The Royal Touch created by Carolyn Robb, former Executive Chef to Prince Charles and Princess Diana and world-famous food critic, has joined hands with Dining Plus, a premier business food and beverage platform, to present Food and Beverage Licensing.

    Hong Kong Creative Gallery, promoting home-grown creativity, returns with around 60 original characters created by young Hong Kong designers and illustrators. Hong Kong’s Leisure and Cultural Services Department presents cross-over merchandise from Hong Kong museums and local designers under the theme “Bring Me Home – the Story of Hong Kong Culture, Art & Design”. Hong Kong Creative Gallery also features award-winning brands from the inaugural Hong Kong Licensing Awards 2015, organised by the Asian Licensing Association.

    Business matching sessions foster collaboration

    The HKTDC has organised 63 delegations, welcoming more than 1,000 business representatives from some 20 countries and regions to participate in the Licensing Show. To connect more buyers with exhibitors, a dedicated business matching session is organised in collaboration with Hong Kong’s industry associations (Federation of Hong Kong Brands, the Hong Kong Association of Amusement Parks and Attractions, Hong Kong Apparel Society, the Hong Kong Exporters’ Association, Hong Kong Watch Manufacturers Association Limited, Hong Kong Toys Council, the Federation of Hong Kong Watch Trades & Industries Ltd, Hong Kong Retail Management Association and Hong Kong Publishing Federation) covering sectors including toys, garment, watch and clock, publishing, retail and travel. More than 500 business matching meetings will be arranged at the fairground to create more business opportunities for the show’s participants.

    Interactive events generate business exchange

    The Licensing Show includes interactive events to create more business matching opportunities for visitors. The ink colour painting Master Lam Tian Xing presented art demonstrations today during the show. Activities tomorrow include “Kumamon Exercise” organised by Kumamoto Prefectural Government of Japan, a presentation by actor Jim Chim entitled “Jim Chim x PLAYCORNER x dr jim jim: Reaching out to the world of licensing”, “Junior Chef Go! Go! Go!” delivered by Dining Plus as well as a series of activities presented by Warner Bros.

    Asian Licensing Conference explores opportunities in the region

    Held alongside the Licensing Show, the Asian Licensing Conference (11-12 January) welcomes more than 30 global licensing experts to speak at the conference. During this morning’s plenary session, Maura Regan, Sesame Workshop’s Senior Vice President & General Manager of International Media Business, spoke about the company’s strategic collaborations with mainland broadcasters and top digital platforms in expanding to Asia, in particular the Chinese mainland market. Another speaker Shinichi Murata, Vice Governor of Kumamoto Prefectural Government Japan, demonstrated how the Japanese prefecture uses the licenses of Kumamon to promote Kumamoto’s tourism and culture. Senior executives from BBC Worldwide and Michelin Lifestyle also discussed licensing opportunities and their corporate strategies in Asia.

    Meanwhile, three Breakout Sessions today explored brand extension through licensing in areas of “entertainment and new media”, “fashion, lifestyle and branded services” as well as “art, culture and tourism”. Speakers included representatives from Disney, Harley Davidson, Hearst Magazines, Kodak Worldwide, Taiwan’s Jimmy S.P.A., The British Library, The Palace Museum, The Wiggles and Tezuka Productions.

    The main theme of the conference tomorrow will be the Chinese mainland market, with senior executives from Hasbro, JD.com, Guangzhou’s HccartoonAnimationTechnology (GZ) Company Limited and Alpha Animation Brand Management Company Limited discussing how licensing can help companies tap into the mainland market. Two workshops will introduce the basics of licensing and hear from experts on legal and intellectual property (IP) issues related to licensing. The Intellectual Property Department of the Hong Kong Special Administrative Region (HKSAR) Government is a strategic partner of the IP and legal workshop.

    Concurrent events add new business dimension

    Taking place in parallel with the Licensing Show and the Asian Licensing Conference are the Hong Kong Toys & Games Fair, Hong Kong Baby Products Fair and Hong Kong International Stationery Fair. Together these events, which each have significant licensing elements, will generate new business opportunities and attract more industry professionals and buyers to the fairs.

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  • Giant to open six new stores and relaunch 28 existing stores nationwide

    Giant to open six new stores and relaunch 28 existing stores nationwide

    Giant plans to open six new stores and relaunch 28 existing stores nationwide to provide a renewed shopping experience for customers next year.

    Among the six new stores to be opened are in Setapak, Kuala Lumpur, ICangar, Kedah; Kota Baru, Kelantan; and Jeneh. Terenggam while the remaining two have yet to be revealed.

    Giant operations director Ernest Potgleter said the company has decided to relaunch its stores after receiving complaints from customers that the stores have started to tool outdated.

    ‘Our customers said we look old. We have to revive the business. The stores have not been refurbished for the past five years and It Is time to give a new look.

    “Giant Malaysia listens to customers and the transformation is tailored with the customer in mind, aiming at providing greater value and customer friendly lay out.

    “We serve 23 million customers a week. You have to give them what they need and customers these days are very demanding. We have to be cheaper than other retailers and provide good service, good products and good environment in Giant stores,” he said at the relaunch of Giant Hypermarket Shah Alam, here, yesterday.

    Potgleter said Giant spent RM2.5 million in capital expenditure to re-furbish the Shah Aim store and the amount would differ according to the size of the stores.

    General merchandising director Lee Slew Mei said the relaunch embraced a change of layout making shopping a one-stop experience for customers.

    “Children-related products are put together and We have a dedicated seasonal promotional area. Now, there is a back-to-school pro-motion running for six weeks and all back-to-school retatect products including stationery, school bags and uniforms are in one place,” she said.

    At the same time, Lee said Giant has brought in many new ranges including those exclusive for Giant.

    We have the O’Fresh range which comes directly from the farms in Cameron Highlands. The vegetables do not go through distribution cen-tres, therefore they are of better quality and the price is also lower,” she said.

    Giant announced a special “Re-launch Promotion”, In conjunction with the relaunch of Giant Shah Alam from December 23 to January 31.

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  • Suzhou selected to host China Retail Trade Fair

    Suzhou selected to host China Retail Trade Fair

    The China Retail Trade Fair, more commonly known as CHINASHOP, the benchmark and barometer of China’s retail industry, announced that following voting by exhibitors and followers, Suzhou International Expo Center, the convention and exhibition venue owned and operated by Suzhou Culture and Expo Center Co., Ltd., has been selected to host 18th edition of the event, CHINASHOP 2016, with 41% of votes.

    CHINASHOP rolled out a voting campaign on December 11, 2015, inviting exhibitors and followers to select the host venue for the 18th CHINASHOP by choosing between five cities: Haikou , Qingdao , Nanjing , Suzhou and Chongqing .

    Suzhou outrivaled other cities with 41 per cent of votes. Following a wide-ranging consultation with exhibitors and on-site investigation of the venue, the organizers announced that the event will be held at Suzhou International Expo Center between the 3rd and the 5th of November 2016.

    With the approval and support of China’s Ministry of Commerce, CHINASHOP is organized by China Chain Store & Franchise Association and Beijing Zhihe Lianchuang Exhibition Co., Ltd. With a 16-year track record under its belt, CHINASHOP has become China’s largest and the world’s second largest retail industry event and is regarded by retailers worldwide as a key annual gathering.

    The city’s unique advantages lend to Suzhou International Expo Center’s popularity

    Suzhou, located in the fast-growing Yangtze River Delta, is in close proximity to major commercial centers including Shanghai , Nanjing and Zhejiang and is, itself, a city which is seeing a rapid expansion in its commercial activities. Recent statistics show that dozens of large shopping malls and supermarkets opened their doors here in 2015 and that the local retail industry has been on the fast growth track.
    At the same time, Suzhou and the nearby cities of Shanghai , Wuxi and Kunshan are all home to China’s leading manufacturers of commercial shelves, logos and signs. CHINASHOP 2016 in Suzhou will not only allow purchasers to visit and inspect suppliers, but also reduce exhibitors’ labor and transportation costs. Jiangsu province is also a very active hub in terms of the development of China’s online businesses, giving exhibitors an opportunity to enter into face-to-face conversations with China’s leading Internet companies and further explore how to best be a part of the transformation of the traditional retail industry in the new consumption environment.

    Suzhou International Expo Center is located in Suzhou Industrial Park. The center has available 60 conference rooms of varying sizes, occupying a combined area of 50,000 square meters, as well as 100,000 square meters of indoor exhibition space and 60,000 square meters of outdoor space. Its 8,000 square meter column-free luxury banquet hall is among the best in Asia . Based in Suzhou, a city with deep historical and cultural roots, the center has a full range of support facilities in immediate proximity including hotels, restaurants, shopping malls and entertainment venues. At the same time, the center is conveniently located in terms of transportation, with proximity to airports and high-speed railway stations in Shanghai and Wuxi, facilitating access for exhibitors and visitors.

    “We are honored to provide the venue for CHINASHOP 2016,” said Yin Weidong , chairman of Suzhou International Expo Center. “We sincerely invite all to the center between November 3 and 5, 2016 , when we will offer exhibitors and visitors all over the world an international expo with the most advanced exhibition facilities, the most comprehensive support services and the most professional exhibition team.”

  • Korean tobacco group fights ‘duty free threat’

    Korean tobacco group fights ‘duty free threat’

    Several media organisations in South Korea and beyond have reported criticism from the 100,000-strong ‘I Love Smoking’ online pro-smoking group towards ‘alleged’ plans by the South Korean government to halt sales of duty free cigarettes at Jeju International Airport’s shops.

    The pro-smoking group has told local media that if duty free cigarettes at Jeju are banned, the government believes these sales will simply migrate to the domestic market, where all cigarettes and tobacco products are subject to normal taxation.

    Customers are currently allowed to buy and import one duty free carton of 200 cigarettes, saving around 60% of the comparative domestic market retail price.

    Hanwha Galleria Timeworld trading as Galleria Duty Free

    At the same time, the I Love Smoking group in South Korea has suggested that if the Finance Ministry does have a public health agenda on this issue then it may have to ban duty free cigarettes altogether in South Korea – a move that would certainly prove hugely unpopular with many Korean and overseas customers, as well as duty free retailers and suppliers.

    Any such ban, local or otherwise, would also be certain to trigger contract renegotiations between affected retailers and airport landlords.

    Jeju International Airport is the biggest airport within the Korean Airports Corporation (KAC) portfolio. Hanwha Galleria Timeworld operates the 410sq m mixed category duty free store, having taken this over from Lotte Duty Free in mid-2014.

    Currently, around 95% of the Jeju duty free shop’s customers are Chinese, compared to an average for all South Korean duty free shops at about 60%, with tobacco sales four times bigger than liquor. Chinese cigarettes also dominate, accounting for more than 80% of all the store’s tobacco sales.

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  • Two Malaysian firms plan agarwood venture in Laos

    Two Malaysian firms plan agarwood venture in Laos

    Two Malaysian companies plan to invest US$18 million (RM79 million) for the inoculation of agarwood in Laos that is expected to generate US$200 million in three years.

    Agriculture transaction company Aseagate (M) Sdn Bhd, forestry management company Richwood Capital Sdn Bhd (RWC), together with non-governmental organisation Global Outstanding Chinese 100 Organisation of Singapore (GOC100) yesterday inked a memorandum of understanding (MoU) for the project.

    GOC100 inked an MoU with Aseagate that gave the latter sole rights to plantation management for over 2,000ha of land in Bolikhamsai province, Laos, while Aseagate inked an MoU with RWC to spell out their roles in the management, inoculation and supply of agarwood in the Indochinese state.

    The formalisation of the two MoU will be implemented in March.

    RWC CEO Kendrick Ho Qing Tyat said the parties are in the process of raising funds for the project and plan to get institutional investors from China.

    “Given the platform that we have, with GOC100 backing and the Lao government’s support, there’s no reason why people won’t believe and invest with us. This is a good opportunity for them to earn money as well. This market may be new to them but it’s not new in this world,” he told a press conference after signing the MoU yesterday.

    Agarwood is a dark resinous heartwood and is the most expensive wood in the world. Agarwood is pricier than gold with a retail price of between US$5,600 and US$10,000 per kilogramme. A litre of agarwood oil can be sold at US$10,000 to US$14,000. It is valued in many cultures for its distinctive fragrance, and thus is used for incense and perfume. One of the main reasons for the relative rarity and high cost of agarwood is the depletion of the wild resource.

    GOC100 was awarded the exclusive concession by the Lao central government’s Ministry of Agriculture and Forestry to manage the country’s agarwood plantation. GOC100 had in August 2015 signed an exclusive agreement with the Lao Ministry of Agriculture and Forestry for concession to these trees that are planted within the Lao military base and guarded by military.

    The Aseagate-RWC partnership will see the inoculation of agarwood trees aged from 15-22 years to produce resin on behalf of the government of Laos.

    GOC100 Singapore secretary-general Peter Lee said the Lao venture is significant to tap into the growing demand for agarwood, especially in the Middle East and China markets.

    He said the agarwood project is a safe investment, as it is more resilient to economic fluctuations as compared to stocks and bonds, with insurance purchased for its proven inoculation technique and against natural calamities.

    The parties are confident of the venture as the management and technical team has accumulated over seven years of experience in forestry management and agriculture technology, having provided solutions to plantation owners in Malaysia.

    Ho said it utilises technology from Singapore to artificially induce trees to produce resin.

  • Korean Customs to issue more duty free licenses?

    Korean Customs to issue more duty free licenses?

    Park Geun-Hye’s South Korean government has commissioned a formal review of the domestic duty free industry, its impact on tourism and what it perceives as the dominance of Lotte Duty Free and Shilla Duty Free in the sector.

    A private consulting firm has been commissioned to undertake the review, which is expected to forward its findings to government before releasing the results into the public domain.

    We understand that Korea Customs Service officials have informally told duty free industry executives that new Seoul downtown duty free shop licenses could be issued in 2016 – and possibly other key locations – as part of government efforts to reduce Lotte’s and Shilla’s present duty free industry dominance.

    “The government is researching the duty free environment and will announce the results including whether new downtown licenses will be issued and where, and the number of new licenses,” commented a reliable duty free industry source in Seoul.

    “The government has asked a private consulting company to research the duty free market here to boost tourism and reduce the present duty free market duopoly. The government is looking at a different solution to taking away existing licenses; instead they are planning to have more licenses. We hope there will be a positive result from the government’s announcement.”

    Although no decision has been made so far, Korea Customs Service officials are understood to have told duty free industry executives that new downtown licenses may be issued this year. Seoul, the South Korean capital, and Busan are the most likely locations for new downtown shop licenses, along with Jeju Island.

    ‘RUMOURS’ OF MORE LICENSES…

    “KCS is leaking rumours that there will be new duty free licenses around March 2016. There is still a debate in our National Assembly about diluting existing duty free retail monopolies by giving new licenses,” said the source.

    “KCS is thinking to issue more duty free licenses for Seoul and Busan. Tourism in Busan is growing, but not like Seoul. Lotte’s grip already is weaker as they have lost their Lotte World Tower license; also, Shinsegae Duty Free is coming into central Seoul with their new Namdaemun super store, which will take a significant part of Lotte’s Sogong shop’s sales.”

    News of the government’s duty free industry review comes as speculation continues to grow over the future use of Seoul’s Lotte World Tower duty free store and the Walkerhill downtown duty free shop, after both retailers recently lost licenses to successful rival bids from Shinsegae Duty Free and Doosan Duty Free.

    Under KCS regulations, losing duty free license holders may continue to operate their shops for a grace period of six months after license expirations to allow them to sell off stock, find new employment for staff and wind up their businesses.

    Both the Lotte World Tower and Walkerhill downtown stores are continuing to trade while their owners decide future arrangements for their outlets.

    PRESIDENT PARK GEUN-HYE SAID TO BE ‘CONCERNED’

    South Korean President Park Geun-Hye (top right) has only recently voiced concern about the large financial losses that both Lotte and Walkerhill face under KCS’s new non-renewable license arrangements, after investing in multi-million dollar new duty free facilities, only to lose their licenses soon afterwards.

    “There is a rumour that Lotte will try to pass its Lotte COEX duty free shop license in Seoul to Lotte World Tower duty free shop,” the source said. In the Lotte World Tower shopping complex there are already duty paid Louis Vuitton, Chanel and other luxury brand boutiques.

    “Without its Lotte World Tower duty free license there is no reason for Lotte to keep its former duty free boutiques there as well and have double stores in one location. Lotte will have to destroy all its investment in these duty free boutiques. The government does not want to see this happen, so it is thinking of different options.”

    Other possibilities apart from Lotte being permitted to transfer its COEX downtown duty free store license are that it could win a new license if KCS issues a new series in Seoul this year. Alternatively, another company winning a new duty free license might be permitted to operate the Lotte World Tower outlet, though it is unlikely that Lotte would agree to this.

    WALKERHILL RECONFIRMS IT IS LEAVING THE BUSINESS

    While Lotte continues to search for a solution, the SK Group parent of Walkerhill Duty Free has reconfirmed that it is to leave the duty free industry altogether and it will not seek a new duty free license in future.

    The Walkerhill duty free store actually represents only a very small share of the SK Group’s total revenue compared with its major business activities, that include telecommunications, transportation, oil refining and other energy-related interests.

    SK recently invested more than US$30m in upgrading and expanding its Walkerhill duty free store which forms part of the Walkerhill hotel and entertainment complex in eastern Seoul. The retailer’s options now include converting the duty free store back to hotel use, or leasing the shop to another retailer.

    Paradise Casino, which operates the Walkerhill complex casino, is understood to be disappointed at the loss of the duty free license as many high spending Chinese visitors to the duty free store visited the casino after shopping.

    In fact, the Walkerhill duty free shop and casino rely upon each other to attract customers, as many visitors to Paradise Casino also visit the ajoining duty free shop, which has built a strong reputation for its wide range of high-priced watches, along with other luxury goods.

  • Vietnam’s retail sales jump 9.5% last year

    Vietnam’s retail sales jump 9.5% last year

    Viet Nam’s retail sales of goods and services rose 9.5 per cent this year, the largest increase since 2011, as low inflation and strong economic growth bolstered consumer confidence, data from the General Statistics Office (GSO) revealed.

    Sales were estimated at VND3,242 trillion (US$148 billion), GSO said. Vu Manh Ha, domestic trade economist of the GSO, attributed the significant rise in 2015 to the country’s 0.63-per cent CPI year-on-year rise, the lowest increase in the past 14 years.

    Ha said the low CPI increase meant stable prices for several essential products, adding that manufacturers and suppliers could sell their products without raising prices, which encouraged consumption.

    Retail sales growth was also triggered by the increasing number of newly-opened supermarkets and convenience stores throughout the countries, enhancing competition among product suppliers, Ha said.

    The government said on Saturday that Viet Nam’s gross domestic product grew 7 per cent in the forth quarter and 6.7 per cent in 2015, the biggest expansion in five years.

    According to GSO, retail sales of goods, which account for 76 per cent of the total sales, reached VND2,470 trillion ($112 billion), up 11 per cent from last year.

    Revenue in some sectors saw a handsome increase. Food and foodstuffs saw an increase of 15 per cent, household appliances rose 15 per cent, garments and textiles up 13 per cent and transport services are estimated to increase 10 per cent.

    Retail sales of accommodation, restaurant and catering services reached VND372.2 trillion ($17 billion), accounting for 12 per cent of the total revenue, posting a 5.2 per cent year-on-year increase.

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  • Credit Suisse: Tough Days for Retailers Next Year as Weak Rupiah and Spending Linger

    Credit Suisse: Tough Days for Retailers Next Year as Weak Rupiah and Spending Linger

    Indonesian retailers could see tough days persisting next year as they wade through a storm of weak rupiah and waning consumer demands, analysts at Credit Suisse Securities Indonesia says.

    Retailers in the country have grappled with volatility in the rupiah this year — with an 11 percent decline to 13,872 against the US dollar year-to-date — which are hiking costs of imports as well as interest from dollar-denominated debt against the backdrop of a slower economy.

    Credit Suisse Securities Indonesia is now underweight on local retailers next year, especially those with high imported content such as fashion and lifestyle retailer Mitra Adiperkasa and household store operator Ace Hardware. Credit Suisse Securities Indonesia is the the sixth-biggest broker in total value in November taking some 4 percent of the trading, data from the local bourse authority showed.

    “I’m worried about retailers with a lot of imported content because the rupiah has weakened a lot, so their merchandise is becoming more expensive for the local population to buy,” Jahanzeb Naseer, head of research for Indonesia at Credit Suisse Securities Indonesia, told reporters in Jakarta on Monday.

    “The government is also expecting a lot of machinery and infrastructure-related imports next year that they may put pressure on consumption imports.”

    Consumer spending on discretionary items, such as electronic devices and apparel, is also unlikely to improve until the second half of next year due to higher prices, according to Naseer.

    Credit Suisse forecasts the rupiah to weaken by between 6 and 8 percent next year due to pressure from the US Federal Reserve’s monetary tightening as well as a possible rate cut by Bank Indonesia.

    Meanwhile, it sees the economy growing by 5.2 percent next year — roughly in line with the government’s 5.3 percent target — on the back of accelerated government spending as well as a potential rate cut of 75 basis points by Bank Indonesia.

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  • GST, ringgit decline hit retailers causing 40% drop in sales, says employers group

    GST, ringgit decline hit retailers causing 40% drop in sales, says employers group

    Retailers have experienced a major drop in sales with some registering a more than 40% decline over festive periods in the second half of the year, the Malaysian Employers’ Federation (MEF) said today.

    MEF executive director Datuk Shamsuddin Bardan said retailers attribute the decline to the combined impact from the implementation of the goods and services tax (GST) in April and the ringgit’s depreciation against the US dollar. He added that consumers became more prudent in their spending after the GST came into effect and this was reflected in Hari Raya and Deepavali shopping in the second half of the year.

    The cost of goods were “seemingly” higher because the tax and the exchange rate had also affected all players in the retail sector, both big and small companies, he added. “The challenges are very high for the retail sector. The sector has very much to do with domestic market outlook, especially when the rakyat is very careful with their spending and choosy with their purchases.

    As such, the retail sector will be affected very much,” he told The Malaysian Insider. Poor consumer sentiment saw retailers grapple with a drop of more the 40% than the usual spending during the last two festive seasons in July and November.

    “You look at Hari Raya and Deepavali. Many retailers are saying that their sales were affected, some by more than 40%. “In this kind of revenue outlook, this sector has no choice but to actually restructure their manpower and, unfortunately, when they talk about restructuring, they are talking about retrenchment.”

    Shamsuddin said many retailers were struggling although MEF had yet to receive any reports on closures or retrenchments. The Edge Financial Daily last week reported that independent retail research firm, Retail Group Malaysia (RGM) has cut its forecast for retail sales this year for the fifth time, attributing it to poor figures in the second and third quarters of the year.

    The firm said the decision to revise its forecast downward was due to the weakening ringgit in the past few months, which led to higher import costs. RGM, however, forecasted that the Q4 (October to December) growth to 3.8% year-on-year is higher than Malaysia Retailers Association’s (MRA) forecast of 1.3% growth for the same period.

    This was because RGM believed that the higher cost of overseas travel would encourage domestic spending. MRA also said it did not expect its businesses to recover strongly for the period as they expected a 2.6% contraction in sales.