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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.

  • New EU funding to help boost Myanmar garment exports

    New EU funding to help boost Myanmar garment exports

    Myanmar’s garment sector is targeting a 300% increase in garment exports to the European Union (EU) by end of 2019 thanks to a EUR2.8m (US$3m) funding boost as the second phase of the SMART Myanmar project gets underway.

    The EU-funded SMART Myanmar project – SMEs for Environmental Accountability, Responsibility and Transparency – aims to build the sustainable recovery of the Southeast Asian country’s garment industry.

    Phase two of the initiative launched last week, with the goal of boosting productivity and creating over 300,000 jobs for low-skilled workers during the next four years. It has been implemented by a consortium of partners including Germany’s Sequa, the Foreign Trade Association of German Retail Trade (AVE), sustainable fashion group Made-by, the Myanmar Garment Manufacturers Association (MGMA), and the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP).

    More specifically, Jacob Clere, team leader with SMART Myanmar II, told just-style: “The project focus is on improving social and environmental compliance in garment factories, in particular, upscaling and mainstreaming some of the activities piloted and launched during the first project phase from 2013-2015. We’re targeting social compliance improvements in 100 factories during the next four years, as well as delivering HR management to 400 factory managers. As well, we plan to continue capacity building activities with the MGMA and with the training of local technical staff on compliance issues.”

    Other activities will include educating factory workers on labour and OHS laws, working with the government on public procurement procedures, and educating local banks on financial products and services – including introducing the concept of green finance.

    The ultimate goal of the SMART project, which has been running for three years, is to help Myanmar’s garment industry compete in the global market. At its inception, EUR2m was invested in a bid to improve the production and consumption of sustainably manufactured garments in the country.

    Project partners hope other results will be achieved, such as a 20% reduction in waste production in 100 garment factories. Garment exports are also targeted for a 300% increase from 2015 to the end of 2019.

    The consortium is also expecting that at least 150 garment factories will improve their working conditions as a consequence of participating in the SMART Compliance Academies, and that up to 30 banks will take part in at least eight workshops on green finance. In addition, the programme is targeting the training of 15 Safer Consumer Products (SCP) consultants to advanced level to deliver factory improvement programmes. And it is hoping the initiative will create new business opportunities, such as joint ventures between factories in Myanmar and EU brands.

    Speaking at the launch ceremony, EU Ambassador Roland Kobia celebrated the achievements of Myanmar’s garment industry, noting that the value of garment exports has more than doubled in recent years, making it “a catalytic sector of Myanmar’s economic transition”.

    SMART Myanmar is an EU-funded SWITCH Asia project, which, while promoting and supporting the sustainable production of ‘Made in Myanmar’ garments, strives to increase the international competitiveness of small and medium enterprises (SMEs) in the sector. It works alongside companies and business support organisations located in the country, helping build capacity and increase skills and knowledge in local partner organisations, facilitating the development of marketing and export strategies for the garment sector.

    From 2013-2015 the project engaged with dozens of local garment factories on social and environmental compliance issues, providing technical support and capacity building. The project also assisted in boosting the capacity of business associations, helping the Myanmar Garment Manufacturers Association (MGMA) draft a first-ever Code of Conduct for its members.

    Project director Simone Lehmann said at the press conference in Yangon that the focus of the next phase will be on “technical support and capacity building” through workshops engaging dozens of factory employers. She added that there will not be a focus on labour disputes in the sector, but instead, “developing the sector and providing professional support for MGMA”.

    She added: “The garment sector has quickly become Myanmar’s main export sector after oil and gas. The value of exports has more than doubled in less than two years and is projected to continue to grow almost exponentially for the next several years. The growth of the garment sector will contribute to the growth of the industrial sector and create many new jobs.”

  • CITS forecasts Thai wholesale and retail markets to grow by one percent

    CITS forecasts Thai wholesale and retail markets to grow by one percent

    The Center for International Trade Studies (CITS) has predicted that the wholesale and retail markets in Indonesia and the Philippines will score the highest growths among the ASEAN countries in 2020.

    Indonesia and Vietnam will have higher growth rates than all other countries due to a relatively large number of foreign investments and an increased income per head, the center forecast.

    Meanwhile, Thailand’s wholesale and retail markets are expected to grow by just one percent this year and 10 percent in the next five years, according to CITS. However, that will largely depend on the people’s incomes and domestic consumption. Thailand’s modern-day trading is expected to grow while traditional retail trading will be gradually closed down like in other countries.

     

     

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  • Asahi Glass begins shipment of PVC from Indonesian plant

    Asahi Glass begins shipment of PVC from Indonesian plant

    AGCAsahi Glass (AGC), a world-leading manufacturer of glass, chemicals and high-tech materials, has begun supply of polyvinyl chloride (PVC) from the Anyer plant of P T Asahimas Chemical (ASC), one of its consolidated subsidiaries in Indonesia.

    With the aim to meet the growing demand for caustic soda and polyvinyl chloride in Southeast Asia, the production facility enhancement at the Anyer plant was launched in 2013 to significantly boost the output of caustic soda and vinyl chloride in Indonesia. The construction project has been completed as scheduled and commercial production will start in the first quarter of this year.

    The caustic soda and PVC markets in Southeast Asia are projected to grow at over 5 percent per year. Of the demand in the market, Indonesia, Thailand and Vietnam, where AGC has production bases for the chlor-alkali business, account for 70 percent. By capturing growing demand in the region, the AGC Group will move forward toward its long-term goals under Vision 2025.

  • Inflight Sales Group captures Garuda Indonesia concession

    Inflight Sales Group captures Garuda Indonesia concession

    Inflight Sales Group (ISG) has reinforced its position in Asia with the addition of the inflight duty-free and duty-paid concession onboard Garuda Indonesia airline.

    The new programme will be launched April 1 under a partnership with parent company PT Garuda Indonesia (Persero) Tbk.

    Together with the current contract with Citilink, a low-cost subsidiary of the same group, ISG has strengthened its footprint in Indonesia and the agreement continues the growth momentum within ISG, said the inflight concessionaire.

    ISG executive director Vimal Rai said: “Winning a competitive partner selection process is always delightful! ISG now stands ready to deliver an exciting and dynamic inflight retail programme for Garuda. We are confident to take it to the next level, commensurate with Garuda’s five-star status as an airline. We, together with the PT Rodamas Wirasakti team in Indonesia, have had a long history of retail partnership with Garuda already, and after a short break, we are happy to be bringing new insights and innovations to the airline’s inflight retail offering.

    ISG managing director Tony Detter added: “While we are expanding in the European market, we continue to see great potential in the Asian market. With the extensive network that Garuda is flying and its forecasted growth, we foresee that there is an opportunity to further expand ancillary revenues through inflight sales.”

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  • Manila FAME Expo To Feature Works of Famous Artists, Young Talents

    Manila FAME Expo To Feature Works of Famous Artists, Young Talents

    Intensive preparations are underway for the holding of “Manila FAME: The Design and Lifestyle Event,” which will showcase the works of the Philippines young talents in the crafts and design field.

    The expo would be held in Manilas World Trade Center, from April 21 to 24, 2016, Alma Argayoso, Philippine Trade Representative to Indonesia, said here, Tuesday.

    The Philippine Department of Trades promotion arm, the Center for International Trade Expositions and Museums (CITEM) will unveil the creation of a distinct Philippine brand in the creative industry, she noted.

    She also said that this time FAME expects to welcome an even larger number of foreign buyers from Europe and the Americas as well as from Japan, China and Taiwan.

    Also to be featured in the Manila FAME exposition are the works of Kenneth Cobunpue, whose furniture designs have received so many international accolades in the United States and Europe that TIME Magazine has dubbed him “rattans first great virtuoso.” His works today grace luxury hotels and the residences of royalties and celebrities worldwide.

    Another Filipino artist whose works will be an attraction in Manila FAME is Mila Imson who won top prize in the ASEAN Jewelry Design Competition in Thailand in September 2015. Her winning design is called “The Serpent.”

    The competition was organized by the ASEAN Intellectual Property Offices in collaboration with the European Union.

    According to Philippine Trade Representative Alma Argayoso, the achievements of Kenneth Cobonpue and Mila Imson did not come by accident.

    They are the result of the following factors: 1) Both come from families with businesses that are already well established in the trade; 2) they passionately honed their natural skills; 3) the Philippine government, no matter how poorly it performs in other fields of governance, has consistently supported and guided the creative economy since 1983; and 4) the government, through the Department of Trade and Industrys Center For International Trade Exposition and Missions (CITEM), has instituted quality control measures that ensure Philippine crafts and designs match world standards. And then, aside from all these, there is the mentorship program.

    Called “Red Box”, the mentorship program simply aims at nurturing the next generation of designers of home accents, furniture, apparel, and accessories. Young talents are paired off with successful and celebrated Filipino designers.

    Under close supervision, the young talents go through total immersion in the creative fields they are passionate about.

    They are challenged to turn out fresh designs, concepts and innovations, and to refine them so that they reflect their artistic personalities. In brief, to achieve branding.

    As a mentorship program, Red Box is supported by a platform called FAME.

    The bi-annual “Manila FAME, The Design and Lifestyle Event” showcases the works of young talents every April and last quarter of the year. The event has flourished in recent years, as it has regularly attracted many buyers from all over the world.

    As to the regional context of Manila FAME, Argayoso has explained that Southeast Asia is a region of craftsmen and designers with an abundance of natural materials that they can convert into practical items that also evoke aesthetic pleasure.

    But Southeast Asian craftsmen and designers have had to struggle to gain international recognition and patronage – even among the regions collectors.

    This is largely because most Asian buyers have fallen for the allure of Western designs and brands, she remarked.

    But times are changing, she said. Technology and global trends have revolutionized lifestyles everywhere. This revolution in tastes has leveled the playing fields for craftsmen and designers, including those from Southeast Asia.

    The Philippines has been among the first countries in the region to seize the opportunities brought about by this revolution. For over three decades since 1983, with the encouragement of a succession of government administrations, the crafts and design sector of the country patiently nurtured the skills of its professionals and the entrepreneurial foundation for a creative industry.

    This endeavor was premised on a great confidence in the quality of the nations human resources, a confidence regularly vindicated by the amount of money that Filipino overseas workers remit home every year.

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  • Garuda Indonesia Group to Join Singapore Airshow 2016

    Garuda Indonesia Group to Join Singapore Airshow 2016

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

    M. Arif Wibowo, President & CEO, Garuda Indonesia, feels the presence of the Garuda Indonsia Group at Singapore Airshow 2016 is inline with the company’s “Group Synergy” program, as detailed in its strategic plan 2016.

    “The Garuda Indonesia Group is delighted to present itself as an integrated whole, presenting our business synergies as group action in providing service excellence to all customers, through each member’s strengths and main businesses,” Arif added.

    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 the Singapore Airshow 2016, Garuda Indonesia Group – through Garuda Maintenance Facility AeroAsia – looks to several short-term and long-term business contracts, of a value reaching USD 100 milions.

    Singapore Airshow is one of three prestigious airshows in the world, along with Farnborough Airshow and Paris Airshow. During the airshow, Garuda Indonesia Group will hold several partnership and business deal signings, including an announcement of attainment; which expected to promote and stregthen Garuda Indonesia Group’s value in global market.

    Garuda Indonesia currently has 6 subsidiaries with diverse business sectors, comprised of:

    – 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, supported by cargo and warehousing service;

    – Asyst, specialized in IT and consultation service;

    – Abacus – which now has transformed to Sabre Travel Network Indonesia – specialized in technology provider service for global travel and tourism.

    As part of the 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 reached by its “Quick Wins” program in 2015, Garuda Indonesia will execute a “Sky Beyond” strategy in 2016 for short-term company expansion, focusing on three ‘core strategies’ – company group synergy, effectiveness and efficiency, and service enhancement – to accelerate company achievement and performance.

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  • Debenhams poaches Body Shop Asia boss for international role

    Debenhams poaches Body Shop Asia boss for international role

    Smith will join Debenhams in May. He will also be appointed to the department store group’s executive committee. Smith, who is currently based in Singapore, has been with The Body Shop for five years and previously held the same position at Pepe Jeans. He has also spent time at VF Corporation, which owns fashion brands including Lee, The North Face and Vans.

    Outgoing chief executive Michael Sharp said that Smith’s “wide range of experience in growing International brands will play a key role in building our overseas presence”.

    Smith added: “The opportunities for global growth are very exciting for Debenhams. I look forward to building on what is already a well-established international business.”

    Former international director Francis McCauley left the retailer in June 2015 and was not part of the executive committee.

    In the eight months following his departure the role has been covered by directors within the international team including director of international franchise operations Phil Topham and director of business development John Scott.

    Debenhams’ management team has seen several changes at the top level in recent months.

    Sharp announced his intention to leave the business after five years at the helm last October. Since then, there has been no announcement regarding his replacement.

    The department store appointed former Kingfisher chief executive Sir Ian Cheshire as chairman last month.

    It announced a better than expected Christmas trading update last month. It has suffered volatile trading in recent years after a focus on discounting damaged margins.

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  • BNOW.org In Preparation for Entrepreneur Now Awards 2016

    BNOW.org In Preparation for Entrepreneur Now Awards 2016

    Bnow.org  (Bangkok Now), a Bangkok networking community for startups, SMEs  and a registered social enterprise based in Thailand, announced during a media group interview today that preparations are under way for the Entrepreneur Now Awards  (ENA) 2016 scheduled to be held in October 2016.

    Last year, ten awards were presented to various Thai and non-Thai entrepreneurs and the event was presided over by Khun Salinee Wangtal, Director General of the Office of the Small and Medium Enterprises Promotion (OSMEP).

    Entrepreneur Now Awards is a program recognizing enterprising people and teams operating in the kingdom of Thailand. The objective of ENA is to promote entrepreneurism, attract investors to Thailand and ASEAN and revitalize the Thai economy and SME sector.

    “Last year ENA attracted over 100 Thai and non-Thai entrepreneurs with a registered business in Thailand, representing a wide range of industries including tech, F&B, health, fashion, education, FMCG, sports and construction, among others,” said Pacharee Pantoomano Pfirsch, Founder of  Bnow.org and Chairwoman of ENA, adding that this year she is looking  forward to see more entries.

    “According to the Federation of Thai Industries, there were about 2.7 million SMEs and start-ups in Thailand, providing more than 10 million jobs nationwide. These businesses are estimated to account for nearly 40% of the country’s GDP. FTI added that for the Thai economy to grow with stability, the country needs to balance it by boosting SME share of GDP to 40% in the future,” said Pacharee.

    “As a social enterprise, ENA aims to support the start-up and SME community in Thailand. We want to garner more involvement from the various chambers of commerce in Thailand, including the start-up community. We believe that working collaboratively with such organizations will facilitate the recognition of enterprising people and teams. Ultimately, it creates a better market place for all,” added Pacharee.

    “Our partners this year include Thai-Italian Chamber of Commerce, The Irish Thai Chamber of Commerce, Thai-Canadian Chamber of Commerce, GMASA, Creative Bangkok, Connecting Founders, Startup Bangkok, Travel Daily News and Brand Now.  More partners are expected to join and we will also be announcing the working committee and judges at the press conference slated for mid-2016.”

    This year, BNOW.org is organizing a series of knowledge sharing events related to SMEs and Startups, which will culminate at The ENA 2016 Awards Night in October 2016.

    These include:

    –  Feb 18th / 6.30pm-9pm at FCCT: Insight from investors and serial entrepreneurs: Why some start-ups success while others fail

    –  Mar 19th/11.30am-5pm at DraftBoard, Chidlom: Geek Girl Gathering:  A Workshop on Digital Marketing and Coding for non-coders

    –  April 26th/  Discussion: Tips and Advice for SMEs on “How to Export to Other Markets”

    –  May 26th/ 9am-5pm: Entrepreneur Summit at Bangkok University School of Entrepreneurship and Management

    –  June/ Announcement of ENA 2016

    –  July –Aug / Accepting Nominations for ENA 2016

    –  Aug/ Walkabout Bangkok : Several companies will open their doors to visitors who can meet the founders, entrepreneurial team, and get insights from some of most creative and innovative organizations in Thailand.

    –  Sept/ Networking Night for ENA nominees and judges

    –  October/ ENA Award Night 2016

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  • CMHL to expand Retail Industry

    CMHL to expand Retail Industry

    International Finance Corporation (IFC), a leading global development institution and a member of the World Bank Group has provided a loan to City Mart Holding Company Limited (CMHL), a supermarket outlet, worth $25 million loan, with the aim of development, to boost the country’s retail sector, and create much-needed jobs along the supply chain.

    IFC’s funding will help CMHL to build approximately 20 more supermarkets and hypermarkets globally, over the next 3 years. CMHLs’ expansion will also enable it to integrate more farmers, micro, small and medium enterprises, and other suppliers into its supply chain and distribution networks.

    The contract was inked on 11th January’ 2016 and it was closed on 10th February’ 2016.

    CMHL is likely to raise its purchases from domestic suppliers six fold, reaching around $150 million by 2021, and create nearly 4,000 new 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,” “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,” said Win Win Tint, Managing Director of CMHL.

    At present, Myanmar’s $12-billion retail sector is predominantly informal, with formal retailers holding less than 10 per cent of the market. However, economic growth and the opening up of the market after years of isolation have boosted demand for consumer goods.

    “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,” “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,” said Vivek Pathak, IFC’s Regional Director for East Asia and Pacific.

    With the aim of enhancing the country’s investment climate, access to finance, and infrastructure, with an initial focus on the power and telecommunications sectors, IFC is functioning with the government and the private sector.

    On this transaction, AZB & Partners advised IFC. And it’s concerned partner and Associates were Gautam Saha & Amrita Patnaik (Partners), Swati Chauhan & Pallavi Meena (Senior Associates).

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  • South Korea January dept, discount store sales seen rebounding from December

    South Korea January dept, discount store sales seen rebounding from December

    Annual sales at South Korea’s top department and discount stores in January were seen rebounding from the previous month, finance ministry estimates showed on Friday, backing recent policymaker comments that consumption is steadily recovering.

    Combined sales at department stores run by Hyundai Department Store, Lotte Shopping and Shinsegae rose 9.6 percent in January from a year ago, the finance ministry said in a monthly report.

    Sales at major discount stores were seen to jump 13.4 percent over the same period, the data showed.

    Figures from the trade ministry, which will publish confirmed numbers later in the month, had shown department stores’ December sales fell 5.7 percent and discount store sales had been down 5.1 percent on-year.

    The finance ministry data also showed gasoline and diesel sales in volume terms had gained 8.5 percent in January from a year ago, which was the fastest rise in three months and compared to a 4.3 percent rise in December.

    The ministry said in the report that domestic consumption had steadily posted positive growth while production and investment were showing signs of improvement. However, it noted that external risks to the economy were increased by slowing Chinese growth, geopolitical risks sparked by a rocket launch from North Korea on Sunday, falling oil prices, and jitters stemming from the direction of U.S. monetary policy.

     

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  • Singapore retail chains look to Muslim market

    Singapore retail chains look to Muslim market

    Amid the rows of blue jeans lining the walls of apparel chain Uniqlo are headscarves, baju kurung and kebaya — part of the Japanese retailer’s new section in Singapore that caters mainly to Muslim shoppers.

    While these garments are usually sold at niche stores in Geylang Serai and Kampong Glam, they can now be found at Uniqlo stores in town or at neighborhood centers.

    Uniqlo is one of the first mainstream retailers in Singapore to turn its focus to the Muslim market.

    The current selection is the second collection launched by Uniqlo following a successful initial run last July. The range is carried at five of its outlets — 313@Somerset, Causeway Point, Jem, One KM and Suntec City Mall — and its website.

    Another retailer that has jumped on the bandwagon is Singapore-based online store Zalora. Each month, it introduces about 50 to 60 products such as long and flowy tops and dresses under its “Zalia” collection. Managing director Dione Song described these as “trendy yet modest” pieces.

    The budding trend here mirrors the global boom in Islamic fashion in recent years. Muslims across the globe spent SG$266 billion (US$188.77 billion) on clothing in 2013 — more than the combined spending in Japan and Italy on fashion. This is set to almost double to SG$484 billion by 2019.

    Observers say the market potential in Singapore is large, with 15 percent of the resident population being Muslims. Also, unlike certain ethnic or cultural wear that is seasonal, such as the cheongsam, this clothing is everyday wear for a substantial proportion of Muslim women.

    Uniqlo said that it is discussing expansion plans for upcoming fashion seasons. It “acknowledges that there is a need among the markets where we are present for stylish and comfortable modest wear.”

    The collection is also retailing in Malaysia, Indonesia and Thailand.

    There is yet to be a major international clothing brand for Muslim wear, but over the past two years brands such as DKNY, Tommy Hilfiger, Zara and Mango have started to offer Muslim-oriented collections in their Middle Eastern stores.

    Major retailers here like H&M, Topshop, Topman and Dorothy Perkins say they have not rolled out any cultural or religious products.

    Although many here have welcomed the greater diversity of choice for consumers, a handful of netizens have voiced their displeasure about Uniqlo’s sale of religious and ethnic wear.

    Associate professor Ang Swee Hoon of the National University of Singapore’s business school said a secular chain offering religious wear could raise eyebrows.

    But Ustaz Firdaus Yahya, manager of an Islamic learning center, said it “reflects their acknowledgement of diversity, and those who do not welcome it may be ignorant or have their own personal bias.”

     
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  • Hong Kong retail sales plummet

    Hong Kong retail sales plummeted 8.5 per cent year on year in December, ending a dismal year for retailers.

    It followed a revised 7.8 per cent fall in November.

    For the full 2015 year, Hong Kong retail sales fell 3.7 per cent in value and 0.3 per cent in volume according to data released by the Census and Statistics Department (C&SD).

    The value of total retail sales in December 2015 was provisionally estimated at $43.7 billion.

    And a government spokesman, commenting on the data, warns there is little chance of respite in the short term.

    “Apart from the continued slowdown in inbound tourism, the uncertain economic outlook and asset market corrections may also have dented local consumption sentiment.

    “Looking ahead, the near-term outlook for retail sales will still be constrained by the weak performance of inbound tourism,” he said.

    “The negative spillovers on consumer sentiment from the consolidation of asset markets in recent periods, as well as from external headwinds including dimmer global economic prospects amid the US interest rate normalisation, also need to be closely watched.

    “The government will continue to monitor the performance of retail business and its repercussions on the wider economy and the job market.”

    After netting out the effect of price changes year on year, the volume of total retail sales in December decreased by 6.1 per cent. The revised estimate of the volume of total retail sales in November 2015 decreased by 6 per cent.

    Sales of jewellery, watches and clocks and valuable gifts decreased by 17 per cent. This was followed by sales of wearing apparel (down 12.1 per cent); commodities in department stores (down 12.3 per cent); medicines and cosmetics (down 7.5 per cent); electrical goods and photographic equipment (down 9.3 per cent); miscellaneous consumer durable goods (down 10.6 per cent); footwear, allied products and other clothing accessories (down 8.7 per cent); furniture and fixtures (down 3.3 per cent); books, newspapers, stationery and gifts (down 1.6 per cent); Chinese drugs and herbs (down 6.1 per cent); and optical shops (down 3.8 per cent).

    The only categories to improve year on year in December were groceries: Sales of commodities in supermarkets increased by 3.6 per cent and of food, alcoholic drinks and tobacco by 1.1 per cent.

    On a full year basis, the value of sales of jewellery, watches and clocks and valuable gifts decreased by 15.6 per cent. This was followed by sales of wearing apparel (down 7.2 per cent); commodities in department stores (down 4.1 per cent); medicines and cosmetics (down 1.9 per cent); footwear, allied products and other clothing accessories (down 4.1 per cent); books, newspapers, stationery and gifts (down 2.6 per cent); furniture and fixtures (down 1.8 per cent); Chinese drugs and herbs (down 5.5 per cent); and optical shops (down 3.6 per cent).

    Supermarkets sales rose 1.3 per cent; food, alcoholic drinks and tobacco rose 5.9 per cent; and electrical goods and photographic equipment by 3 per cent.

    The C&SD says the retail sales statistics measure the sales receipts in respect of goods sold by local retail establishments and are primarily intended for gauging the short-term business performance of the local retail sector. They cover consumer spending on goods but not on services (such as those on housing, catering, medical care and health services, transport and communication, financial services, education and entertainment) which account for about 50 per cent of the overall consumer spending. Moreover, they include spending on goods in Hong Kong by visitors but exclude spending outside Hong Kong by Hong Kong residents. Hence they should not be regarded as indicators for measuring overall consumer spending.

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  • Korean Manufacturers Witnessing More and More Idle Production Facilities

    Korean Manufacturers Witnessing More and More Idle Production Facilities

    It has been found that Korean manufacturing companies’ rate of operation reached a record low since the IMF bailout in 1998 due to the sluggish exports and domestic consumption.

    Under the circumstances, the manufacturers’ investment is forecast to decline to cause an increase in unemployment and the slowdown of the national economy as a whole.

    The Statistics Korea announced on February 11 that Korean manufacturers posted an average rate of operation of 74.2% last year, down 1.9 percentage points from a year ago, with their exports showing no signs of recovery amid the global economic recession. The percentage of 2015 was the lowest since 1998.

    According to the Bank of Korea, Korea’s total exports decreased by no less than 10.5% year-on-year to US$548.93 billion last year. Besides, Korea’s exports to the emerging markets including China, which account for 60% of the total exports, showed a decline of 7.9% in 2015.

    Sluggish domestic consumption is another reason for the low operating ratio of the manufacturing firms. According to the Statistics Korea’s report that was released on January 29, Korea’s retail sales index fell 1% from a month ago in November last year and 0.1% in the following month.

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  • Worst post-Lunar New Year sell-off in 22 years

    Worst post-Lunar New Year sell-off in 22 years

    The Hong Kong stock market saw the worst post-Lunar New Year session in 22 years on Thursday, a day after U.S. Federal Reserve chair Janet Yellen confirmed fears of a global slowdown in her testimony to Congress.

    Yellen raised the likelihood that U.S. interest rate hikes will be put on hold and possibly even cut over concerns about external risks to the U.S. economy and convulsions across stock markets worldwide.

    “Foreign economic developments, in particular, pose risks to U.S. economic growth,” said Yellen, referring to the debilitating effects of China’s economic slowdown, most remarkably, in dragging commodities prices down.

    On the back of those comments, the Hong Kong bourse reopened after a three-day break to a sharp sell-off, with the benchmark Hang Seng Index shedding 3.8% to close at its lowest level since June 2012 at 18,545.80. The Hang Seng China Enterprise Index of Hong Kong-listed mainland companies fell 4.9% to end at 7,657.92.

    The city’s blue chips fell almost across the board, with technology company Lenovo Group, which recently posted disappointing top-line growth, leading the decline with a 6.7% drop to 6.35 Hong Kong dollars.

    Financials and oil stocks bore the brunt of the selldown. China Life Insurance slumped 6.6% to HK$16.44. Other insurers such as Ping An Insurance Group and AIA Group lost 5.6% at HK$39.15 and 3.7% at HK$37.95, respectively.

    HSBC fell 5.44% to HK$49.50. Its Chinese counterparts Agricultural Bank of China, China Construction Bank, Bank of China, and Industrial and Commercial Bank of China all dropped about 4% over worries about a mounting credit crisis on the mainland.

    China’s largest oil refiner China Petroleum & Chemical (Sinopec) skidded 6.4% to HK$4.10, while other mainland energy giants, PetroChina, CNOOC and China Shenhua Energy slipped more than 5%.

    Of all the property stocks, China Vanke took the deepest plunge to close 8.92% lower at HK$1.58, while China Overseas Land & Investment was down 4.3% to HK$21.10.

    Consumer stocks such as Belle International, Hengan International and Tingyi Holding all lost around 6%. A fierce riot in Mongkok, one of the most popular shopping districts in Hong Kong, during the holidays has hurt sentiment toward the city’s already-battered retail sector.

    Mainland internet and telecom heavyweights such as Tencent Holdings and China Mobile were not able to escape the selling pressure, falling 5.4% to HK$136.10 and 3.1% to HK$82, respectively.

    Bad news from China also contributed to the sell-off. Before the holiday, the People’s Bank of China reported that the country’s foreign exchange reserve had fallen to $3.23 trillion in January, the lowest level since 2012, depleted by the central bank’s defense of both its currency and stock market.

    On Wednesday, Yellen’s comments were scrutinized for clues about future interest rate direction. She said that “monetary policy is not on a pre-set course,” suggesting that a rate cut could be considered if necessary. Overnight, the Dow Jones Industrial Average and the S&P 500 indexes ended slightly down, posting their fourth consecutive day of losses, while the Nasdaq ended three days of decline.

    Investors looking for safe havens in the risk-off environment pushed the spot gold price up to $1,207.6, the highest level since May 22.

    While mainland China and Taiwan markets remained shut for the Chinese New Year holiday until next week, most bourses across Asia faltered.

    South Korea, which also reopened after a long Lunar New Year break, saw its benchmark Kospi Index lose 2.9%. Singapore’s Straits Times Index and Thailand’s SET index dropped 1.7% and 1.84%, respectively. India’s Sensex Index closed 3.3% lower to its weakest level since May 2014.

    The Indonesian and Philippine markets were the only ones bucking the trend, rising 0.9% and 0.3%, respectively.

  • J. Cort’s cements Part&Ma tie-up at CDG

    J. Cort’s cements Part&Ma tie-up at CDG

    Cigar house J. Cortès is intensifying its cooperation with commercial animation company, Part&Ma, at Lagardère Travel Retail stores at Paris Charles de Gaulle airport following good growth in 2015.

    This year, the partnership will reach a higher level to support the brands, J.Cortès and Neos, “with monthly reports and immediate interaction assuring that travellers will always find their products on the right spot, labelled with the right price” says Thomas Gryson, J. Cortès Travel Retail Coordinator.

    J.Cortès has invested in product training for Part&Ma staff (pictured) in Belgium where they had intensive and interactive sessions on the brand’s products and sales programmes. Later the group was taken to the cigar factory, Neos in Handzame, to see all aspects of the production of cigars/cigarillos.

    “J.Cortès Cigars is supporting its travel retail business by investing in many areas,” says Gryson. “One of the important is training the staff of airport shops and their partners. J. Cortès strongly believes that knowledge is the start of everything.”

    Last year the house invested in customised product and sales workshop for the staff of WDFG Queen Alia Airport, Jordan and for DFS staff at Changi, Singapore.

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