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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.

  • Local PEFs emerge as big players in M&A market

    Local PEFs emerge as big players in M&A market

    Breaking with their traditional role as mutual fund managers or short-term profit seekers, homegrown PEFs have now transformed into strategic investors to spearhead the recent boom of mega-sized M&As. And leading the pack is Seoul-based MBK Partners Ltd.

    Beating global big-name PEFs like KKR & Co. and Affinity Equity Partners, MBK Partners clinched a 7.2 trillion won (US$6.37 billion) deal last month to acquire U.K. retail giant Tesco Plc’s Korean unit Homeplus, South Korea’s second-largest supermarket chain with 8.6 trillion won in sales last year. It is the country’s largest takeover deal in size.

    Last year, Hahn & Co., the second-largest PEF based in South Korea, bought a controlling 70 percent stake in Hanon Systems, formerly Halla Visteon Climate Control Corp., a leading automotive thermal management solutions provider, for about 4 trillion won.

    Taihan Electric Wire Co., South Korea’s second-largest electrical materials manufacturers, was sold to No. 3 IMM Private Equity last month for 300 billion won.

    Local PEFs’ aggressive investments have spiced up the long-slumped local M&A market as they have registered huge returns from leveraged company buyout deals amid a low interest rate trend.

    Many well known brands are owned by PEFs, ranging from Burger King and KFC to NEPA Co., an outdoor apparel manufacturer, and Coway Co., a leading water purifier firm.

    PEF managers offer a series of distinct private equity funds to make investments in various equity securities after raising capital from cash-rich individuals and institutional investors such as public pension plans, insurance companies and foundations.

    South Korea opened the PEF market in 2004 to encourage corporate takeovers and investment to provide capital to venture start-ups.

    According to data compiled by the Financial Supervisory Service (FSS), a total of 51.2 trillion won in assets were under management by 277 PEFs at the end of 2014, compared with 400 billion won tallied in 2004 when two PEFs were floated for the first time in the country.

    They have attracted more than 5 trillion won every year since 2008 and collected 9.8 trillion won in investment last year alone.

    PEFs have started to draw attention from institutional investors, including the National Pension Service, as the South Korean economy has seemingly entered a low-growth cycle and the benchmark KOSPI has moved in a narrow box range since the 2008 global financial crisis.

    Recently, the South Korean government relaxed regulations in a bid to fuel the M&A market by luring PEFs. It has loosened the so-called double reviewing process by the state anti-trust agency and stakeholder filing requirements.

    MBK Partners is in the forefront to explore the PEF-led M&A market.

    Founded by former Carlyle managers in 2005, MBK Partners has grown into one of the biggest Asian buyout funds with about 14 trillion won in assets under management, with a focus on South Korea and other Asian regions.

    It has invested in 23 companies including Coway, cable TV operator C&M Co., NEPA Co. and Homeplus. Its total assets amount to that of Dongbu Group, the 20th largest conglomerate, with 14.6 trillion won.

    Hahn & Co. has assets of 3.3 trillion won with 12 businesses including Hanon Systems, Daehan Cement and Woongjin Foods Co. under management. No. 3 IMM Private Equity operates 100 firms worth 2.8 trillion won in total assets, followed by Mirae Asset Global Investments Co. with 2.2 trillion won and Vogo Investment with 1.9 trillion won.

    “In the beginning, most PEFs were founded by retired government officials and fund managers with a career in global PEFs. They were financial investors, who bought stakes and sold them to lock in profits,” said Kim Kyung-young from the Asset Management Supervision Office at the FSS.

    “Now they are changing into strategic investors, or buyout investors, playing a major role in acquiring large companies and carrying out corporate restructuring.”

    Although such PEFs have successfully made their presence felt in the local M&A market, South Korean investors are wary of such buyout funds as many PEFs have still disappeared from the market due to worse-than-expected profitability in a takeover deal.

    “PEF-led M&As are not always successful,” said Koo Kyung-hoe, a senior analyst at Hyundai Securities Research Center. “About 66 percent of PEFs reach target profit rates, but we have to bear in mind that the rest, 34 percent, end up in vain.”

    For example, MBK Partners, regarded as having the Midas touch in the financial market, took over C&M in 2008 for about 2 trillion won, but its plan to resell the company has been stalled due to a long slump in the cable TV industry.

    He said they have to expand the range of investors as nearly all local PEF clients are institutions like pension funds and financial firms.

    “In advanced countries, PEFs collect money from universities, foundations and even cash-rich individuals,” said Koo. “They need to draw up plans to lure them as they can serve as an effective, appropriate alternative investment tool in the future.”

    Experts also noted that local PEFs have to overcome the negative public perception in South Korea that they clash with labor unions over restructuring after a takeover.

    U.S. Lone Star Funds’ purchase and resale of Korea Exchange Bank has deepened such negative perceptions toward PEFs among South Koreans, according to experts. Lone Star bought KEB in 2003 for 1.38 trillion won and then sold it to Hana Financial Group Inc. in 2012, pocketing a profit of 4.5 trillion won.

     

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  • CIMB Thai to target less aggressive loan growth

    CIMB Thai to target less aggressive loan growth

    For the past five years, CIMB Thai Bank has accelerated its loan growth, especially in retail banking, to comply with Malaysia-based CIMB Group’s policy.

    This has been achieved via housing loans in the retail – or individual – segment in order to build up the bank’s customer base, he said.

    The strategy has resulted in a housing-loan portfolio of Bt50 billion to Bt60 billion, against less than Bt10 billion five years ago, giving CIMB Thai Bank a total retail-banking portfolio of nearly Bt100 billion.

    During this period, the bank targeted overall annual loan growth of above 20 per cent, but this was only achieved in 2013, when lending expanded by 23.2 per cent.

    Last year’s loan growth came in at 11 per cent, with growth of just 4.7 per cent being achieved in the first nine months of this year, against a target of 15-20 per cent, said the CEO.

    In terms of asset size, CIMB Thai Bank’s Bt300 billion gives it a ranking of eighth out of the 11 listed banks in Thailand.

    “Singapore-based United Overseas Bank (Thai) has an asset size of Bt350 billion, and they are okay with this size, as well. With the current scale of CIMB Thai Bank, we should not be aggressive and we should keep to [loan] growth of 10 per cent per year,” Subhak said

    “We discussed this with the group in Malaysia and they agreed with our way. The economic slowdown of the past two years [in Thailand] has impacted on retail lending, causing the bank to spend much more time than expected on expanding business to retail clients and resulting in our return on equity being lower than the target of 5 to 6 per cent,” he said.

    CIMB Thai Bank reported a return on equity of 9.58 per cent for 2012, followed by 7.18 per cent for 2013 and 4.44 per cent for last year, while net profit came in at Bt1.58 billion, Bt1.49 billion and Bt988.8 million, respectively.

    For the first nine months of this year, the bank posted net earnings of Bt847 million, down 6 per cent from Bt900 million in the same period last year.

    Subhak said he expected full-year net profit to be similar to or a little higher than last year’s level, because even though it had posted the highest third-quarter percentage growth among its peers, the sum needed to be put aside as additional provisioning, especially during the current economic environment.

    CIMB Thai Bank recorded a year-on-year rise of 81 per cent in third-quarter net profit to Bt498 million.

    However, the Thai unit of CIMB Group hopes to achieve a return on equity of 10-12 per cent in the next three years, by focusing on non-interest income from areas such as investment banking, treasury products, bancassurance and mutual funds, Subhak said.

    While non-interest income at present contributes 30-35 per cent of the bank’s income, it will not overtake interest income as the main contributor despite the planned shift to a lower gear for loan growth in the coming years, he said.

    In the next two to three years, non-interest income should reach 40 per cent, he added.

    CIMB Group is strongly committed to its investment in Thailand, as reflected in its approval of the local bank’s capital increase of Bt3.68 billion via the issuance of new shares, he stressed.

    CIMB Thai Bank will increase its registered capital from Bt10.54 billion to Bt13.7 billion by issuing 6.325 billion new shares.

    The subscription period is October 26-30 and, after the additional funds are mobilised, its capital-adequacy ratio will rise to 15 per cent, from the current 13.7 per cent.

    CIMB Group is happy with the bank’s performance because of the quarterly profit contribution of 8-10 per cent that it makes to the group, he said.

    Furthermore, the Thai unit has a substantial role in strengthening cross-border deals for the Malaysian banking group.

    The bank is one of four institutions mandated as lead arrangers for a syndicated term loan of US$1.25 billion (Bt44.25 billion) to Charoen Pokphand Group, with CIMB Labuan – part of CIMB Group’s Malaysian operations – lending $250 million as part of the deal.

    CIMB Thai Bank, meanwhile, is the onshore security agent for a $400-million loan to Maxtop Management Corp, a TCC Group company.

    CIMB Labuan is the lender and arranger and offshore security agent, while CIMB SG – CIMB Group’s Singaporean arm – provides the bank account for the deal.

  • Thailand sweeps energy awards

    Thailand sweeps energy awards

    Thailand was the big winner at the Asean Energy Awards, reflecting growing awareness on energy efficiency.

    The awards were presented as part of the 33rd Asean Energy Ministers Meeting in Kuala Lumpur. Thailand submitted 30 projects for the 64 available awards and 26 of them won, said Energy Minister General Anantaporn Kanjanarat after returning from the meeting.

    The projects were selected through a national-level competition called the Thailand Energy Awards, which encouraged private companies to embark on energy-efficiency programmes.

    Of the 26 winning projects, one from Tip Sukhothai Bio Energy Co, a sugar manufacturer, was the most outstanding. The project, requiring an investment of Bt1.6 billion, uses molasses to generate electricity and steam and more than 90 per cent of the output is sold.

    Indorama Ventures issues overseas bond

    Indorama Ventures has successfully issued its first overseas senior unsecured bond to the amount of $195 million Singapore dollar (Bt4.95 billion) to institutional investors in Singapore through its wholly-owned subsidiary, IVL Singapore, according to its filing to the Stock Exchange of Thailand yesterday.

    The Bond has been rated AA (Stable) by Standard and Poor’s and has a tenor of 10 years with an interest rate of 3.73 per cent per annum. It is guaranteed by Credit Guarantee & Investment Facility (CGIF), a trust fund of the Asian Development Bank and listed on the SGX-ST. The proceeds from this issuance will be used for working capital and general corporate purposes within the group.

    Latest partner

    TMB Bank has added Manulife Asset Management as latest partners in helping strengthen its “TMB Open Architecture” mutual funds offerings.

    TMB Open Architecture allows all of TMB’s customers to invest in funds from different asset management firms, offering wider investment choices with the benefit of potentially higher returns from more quality funds. The bank expects Assets Under Management this year to rise by 30 per cent from the year before, said Marie Ramlie, TMB Bank’s Head of Retail Products.

    TMB is the only commercial Thai bank that offers Open Architecture service to all of its customers. This service responds to customer needs, simplifying their life, as quality mutual funds from leading asset management firms are centralised at one single-service point exclusively for TMB customers.

    The project has received an overwhelming response since its launch in the middle of 2014 with the number of mutual funds unit-holders rising by close to 20 per cent to 220,000.

    MPC gains new member

    Apichai Boontherawara was appointed to the Monetary Policy Committee at a special Bank of Thailand meeting on Monday, the BOT announced.

    He resigned as vice chairman of the executive board of Southeast Insurance and Finance Group and as director of the Export-Import Bank of Thailand in order to accept the MPC post.

    The appointment came into effect yesterday. Apichai replaces Veerathai Santiprabhob, who resigned from the MPC on October 1 taking over as governor of the central bank.

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  • ANZ grows retail footprint in Asia

    ANZ grows retail footprint in Asia

    The branch has been established to service multinational and joint venture companies with a presence in Myanmar, as well as international companies looking to enter the country from ANZ’s network countries.

    ANZ said the Myanmar branch provides comprehensive solutions covering a full range of banking products including payments and cash management, electronic banking, lending, foreign exchange, and fund-based and non-fund-based trade finance.

    The branch also offers specialist banking services for natural resources, utilities and infrastructure, telecommunication, consumer goods and other global diversified sectors that are expanding in Myanmar.

    Andrew Géczy, ANZ’s chief executive for international and institutional banking, said the licence approval is the final step in the bank’s plans to deepen its presence in the Greater Mekong, following its recent branch opening in Thailand.

    “As one of the only international banks with a presence in all five Greater Mekong countries, ANZ is uniquely placed to play a leading role for customers wanting to enter Myanmar,” he said.

  • Philippine banks lead in retail financial services

    Philippine banks lead in retail financial services

    Singapore-based publication The Asian Banker sees the Philippines leading the strong  growth in the retail financial services market in Asia Pacific on the back of increasing consumption and improved access.

    A study conducted by Asian Banker Research showed the income of commercial banks from retail financial services in Asia Pacific growing 77.5 percent to $824 billion by 2020 from the projected $464 billion this year.

    “Asia Pacific’s retail financial services market will be worth $824 billion by 2020. Increasing consumption and improved access to financial services in combination with mobile banking technologies, will be key catalysts in driving retail banking income between 2015 and 2020,” The Asian Banker said.

    Retail banking income was defined as business from retail deposits, mortgages, credit cards/unsecured lending, wealth management and, wherever possible, small and medium enterprises banking.

    “The ability to generate gross income in any given market is regarded as a key indicator of wallet share and a determinant of a bank’s bench strength in retail financial services,” said Mobasher Zein Kazmi, head of research at The Asian Banker.

    The study showed the Philippines is expected to book the highest compound annual growth rate and total income generated among emerging markets between 2015 and 2020 with 18 percent followed by Indonesia with a little over 15 percent, and Thailand with 15 percent.

    Malaysia is seen to post the slowest income growth with a growth rate of six percent for the five-year period.

    “Since 2014, the Philippines has outpaced China and Thailand and is becoming one of the key growth engines in the Asia Pacific,” The Asian Banker said.

    However, China would continue to generate higher earnings by 2020.

    “Currently, China’s retail financial services industry alone generates 48 percent to total regional income, followed by India with 12 percent and Australia with nine percent,” it added.

    The Asian Banker sees income from retail financial services of commercial banks in Asia posting a CAGR of 12 percent from 2015 to 2020.

    “There are, however, stark variances in growth rates between the mature markets of Korea, Hong Kong, Australia, Japan, Taiwan and Singapore and developing markets,” it said.

    On the other hand, income growth in mature markets is lower and expected to grow by an average of five percent this year and by the same amount in subsequent years until 2020.

    Developing markets have grown on average by 13 percent annually to 2015. However there have been dramatic changes since 2014.

    The fastest growing markets up to 2013 were Thailand and China after having grown by more than 20 percent annually.  Both markets, however, have been slowing down due to economic woes.

    The Asian Banker noted that retail banking income is shifting focus on high yield businesses but sees tightening of consumer banking regulations as a key threat.

    The greatest change in regulations is a shift away from a principle-based regulatory framework to a rule-based framework. As a result regulators have much more power to intervene.

    In particular, in emerging markets, financial authorities often want to control everything down to the product level, including loan pricing and fee income.

    Commercial banks have managed the impact of new regulations imposed on banks’ wealth management businesses in the aftermath of the global financial crisis, but a second wave of regulatory scrutiny, initiated in 2012, into interest rates and fee structures, compounded by recent macro-economic weaknesses, continues to pose ongoing threats to income expansion.

    “Regulators are increasingly worried about rising consumer debt so they have resorted to tightening unsecured lending, credit cards and home loans. In addition, consumer protection and optionality, which requires banks to seek a customer’s consent to opt in or out of services, are becoming key agenda items for financial regulators in this region,” Kazmi said.

    According to The Asian Banker, the most profitable banks in Asia include Bank of Mandiri in Indonesia, Union Bank of the Philippines, and Siam Commercial Bank in Thailand.

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  • FamilyMart-Uny seal merger

    FamilyMart-Uny seal merger

    A merger of Japan’s third and fourth-ranked convenience store operators is set to create a “third force” in Japanese retailing behind Seven & I and Aeon.

    The FamilyMart-Uny merger terms have now been agreed and the two companies are now working towards an implementation date of September 2016.

    FamilyMart will soak up smaller Uny, which operates the Circle K Sunkus convenience store network in Japan. A new holding company will be created, 30 per cent owned by Japanese trading house Itochu, which currently owns three per cent of Uny and is FamilyMart’s single largest shareholder.

    Once merged, the new business will turn over around US$42.2 billion from some 18,000 stores, a network larger than current second placed Lawson and on a par with Seven Eleven Japan.

    The merger has already taken some eight years to negotiate making it nine years by the time the merged entity begins trading. It was back in 2007 when FamilyMart first approached Uny, an offer initially rebuffed.

    Some details have yet to be finalised – or announced – such as the future of Uny’s 230 or so general merchandise stores in what will essentially become a convenience store operator.

    Uny president Norio Sako says there will be some store closures, decided “on their individual merits”.

    There is also no final agreement yet on whether a single operating brand will be adopted.

  • Worldhotels Touches Down at Five-star Sama-Sama Hotel Kuala Lumpur International Airport

    Worldhotels Touches Down at Five-star Sama-Sama Hotel Kuala Lumpur International Airport

    Well-poised to take contemporary convenience and comfort to greater heights, Sama-Sama Hotel has joined the ranks of 450 independent hotels worldwide to fly the Worldhotels’ flag. Occupying a strategic location adjacent to the Kuala Lumpur International Airport, the award-winning hotel epitomises unsurpassed Asian hospitality that complements the best in proximity, convenience and comfort, perfectly suited for the needs of discerning travellers with business and leisure pursuits alike.

    Sama-Sama Hotel is connected by a sheltered sky bridge to the main terminal building of the Kuala Lumpur International Airport (KLIA) which houses the Arrival and Departure Halls. A dedicated check-in counter at the airport ensures a hassle-free and quick check-in for visitors right from their arrival, making the hotel a perfect base for transit air travellers with long hours in between flights and those with early morning departures or late night arrivals. The hotel also operates a complimentary 24-hour buggy shuttle service that runs between the airport and the hotel for added convenience.

    Service philosophy rooted in warm Malaysian hospitality

    Service at Sama-Sama Hotel is inspired by the melding of Malaysia’s rich tapestry of cultures into a harmonious collective. The name “Sama-Sama”, meaning “togetherness” in the Malay language, is a testament to the hotel’s commitment in delivering warm, personalised and memorable Sama-Sama experience to its guests – a guiding philosophy deeply rooted in the works of the team. The hotel’s logo aptly illustrates two hands coming together, a symbol of the inclusiveness of the nation’s diverse people and cultural heritage.

    Designed for the ultimate in comfort and peace of mind

    Guests visiting the capital city can touch down in five-star comfort and retreat into any of 442 non-smoking accommodations, including four types of suites.

    Designed for a revitalising stay and a comfortable work environment, the elegantly styled and soundproofed rooms and suites feature perspectives of lush greenery, along with thoughtful, contemporary amenities including high-speed Internet connectivity, touch-screen control panels, LCD televisions, video-on-demand, and a spacious work desk, among others.

    Guests staying in the suite categories enjoy exclusive access to the hotel’s Premier Lounge which offers a host of additional privileges.

    Elite functions space meets leading edge technology

    Totaling almost 2,800 square metres of function space, Sama-Sama Hotel boasts excellent facilities for conferences and events, including 10 superbly-appointed multifunctional rooms that accommodate up to 1,700 delegates, as well as an auditorium with a capacity of 180. Alongside a spacious foyer, high-speed Internet access and leading edge audiovisual equipment, the hotel plays host to a wide range of international conferences, seminars, exhibitions and gala dinners.

    First-class facilities reinvigorate weary minds and souls

    Enjoy quiet sanctuaries to relax at Sama-Sama Hotel with its comprehensive wellness facilities. Sweat it out at the tennis court or shape up at any time of the day and night at the 24-hour health club comprising gymnasium, jacuzzi, steam room and sauna. Relax with a refreshing dip in the outdoor pool, or pamper oneself at Tamara Spa, where a range of indulgent treatments and therapies beckons.

    Three dining establishments invite guests to savour delectable dining options including scrumptious buffet of Asian, International and Fushion specialties at Degrees, the hotel’s all-day dining restaurant; unwinding with a cocktail amid soothing music while staying up-to-date with flight information at Palmz Lounge; or gather for a good game of darts and snooker with delightful appetisers and entréesprepared in an open bar kitchen at Travellers’ Bar & Grill.

    “As an organisation which represents a curated collection of unique hotels, Worldhotels connects today’s more independently minded travellers to the world’s finest hotels, and we are thrilled at the addition of yet another remarkable affiliate in Sama-Sama Hotel,” remarks Roland Jegge, Worldhotels Executive Vice President Asia Pacific.

    “This addition illustrates the strategic importance we attach to our continual expansion across the Asia Pacific region. With 45 years of experience in the global field, we look forward to realising the full potential of Sama-Sama Hotel’s unique resources and positioning.”

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  • Forrester sees rise in m-payments adoption in Southeast Asia

    Forrester sees rise in m-payments adoption in Southeast Asia

    Revenue prospects for mobile operators, banks, credit card networks, and financial technology startups in Southeast Asia are looking up as mobile payments adoption is expected to rise in the region over the next five years.

    Driving this growth, according to research firm Forrester, is the surge of smartphone penetration in the region, which it forecasts to grow to 230 million units by 2017 from 175 million this year.

    A report released by Forrester recently showed that remittances will continue to spur peer-to-peer (P2P) payment growth in emerging markets, which is setting the stage for digital wallets.  Migrant workers are also increasingly turning to telcos and fintech startups such as Xoom, Remitly, TransferTo, TransferWise, and MatchMove to remit money via their mobile phones.

    Meanwhile, cross-border m-commerce is also driving growth in remote payments as many online consumers are shopping on their mobile devices in countries like Singapore and Malaysia. Cross-border orders using credit cards and PayPal are significant.

    Forrester observed that more players are incorporating features such as coupons and loyalty rewards into their mobile payment systems, which somewhat resemble digital wallets but do not qualify as such — yet.

    “Banks looking to get in on the mobile payment opportunity must decide if they want to build their own mobile payment systems or partner with business/technology vendors. Having a clearly defined mobile payment strategy will protect and deepen the bank’s relationships with both retail and business customers,” the report noted said.

  • Marriott International Asia Pacific Believes its Women Associates “Shape Our Future”

    Marriott International Asia Pacific Believes its Women Associates “Shape Our Future”

    Marriott International Asia Pacific announces its second Women in Leadership Asia Pacific Conference closes today after a resounding past three days of success. The event took place at Marriott International’s recently-opened The Ritz-Carlton Macau and JW Marriott Macau Hotels, and was hosted by Peggy Fang Roe, Chief Sales & Marketing Officer Asia Pacific; and Yibing Mao, General Counsel and Senior Vice President of Asset Management & Financial Analysis Asia Pacific. The conference convened 73 Marriott women executives from across the Asia-Pacific region to bolster their working knowledge and give them an opportunity to network, share insights, and be inspired by each other.

    “Women have always played a pivotal role at Marriott. Even in 1927, our co-founder, Alice S. Marriott, was imperative to Marriott’s success. Marriott International Asia Pacific has a high percentage of women in leadership roles, and a third of our senior executives are women. That makes me very proud and I know that the company is better for it,” said Craig S. Smith, President and Managing Director for Asia Pacific.

    Mr. Smith continued, “However, we are far from being done. Marriott International is committed to encouraging more women to take on leadership roles and we will support our women associates and help them grow personally and professionally. They are vital to Marriott’s future.”

    A series of diverse topics covered over the three days included “The Competitive Advantage of Female Talent,” presented by Mr. Smith; “Pursuing Excellence” by Rajeev Menon, Chief Operations Officer, Asia Pacific (excluding Greater China); and “Building Your Innovation Brand,” presented by Jenny Hsieh, Vice President, Insight, Strategy & Innovation.

    “The company is determined to think forward on how it can continue to mentor and grow women in leadership roles, and I have seen it firsthand since I started at Marriott International over 10 years ago. It is an honor to co-host this year’s conference, continue Alice’s legacy, and do my part in opening doors of opportunity to the women in the company within this region,” said Ms. Roe.

    The annual conference is part of Women’s Leadership Development Initiative, which was founded in 1999 with the aim to increase the presence of women in management or decision-making positions by engaging senior leaders to ensure career development, as well as encouraging current female leaders to drive organizational success.

    Globally, women represent 52% of Marriott International’s staff and nearly 60% of its management roles, with nine women leading divisions worth more than US$100 million annually. Women executives on the rise are offered a wide variety of development programs, including formal mentoring, coaching, leadership training and succession planning.

    In Asia Pacific, close to 40% of the company’s managers are women, with a substantial increase in women General Managers over the past few years.

    Marriott International Asia Pacific has leveraged several programs to identify and develop future women leaders, such as Human Capital Planning, GM Elevate and Asia One-Week Leadership Development Program. In addition to these, Marriott International Asia Pacific launched last year a series called “Evenings of Engagement,” which comprises events across the continent providing networking opportunities for women leaders where they can share stories, discuss experiences and issues, form deeper relationships, and inspire future women leaders.

    In September 2015, Marriott International was named one of the 100 Best Workplaces for Women 2015 by Fortune.com and the Great Place to Work® Institute. Companies were selected based on responses from over 135,000 women in the US on issues such as fairness of promotions, access to information and leadership, and support for personal lives as well as for the level of representation of women in leadership positions.

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  • Sunseap Group launches SAVE Campaign

    Sunseap Group launches SAVE Campaign

    Sunseap unveiled its first marketing campaign simply titled, “SAVE” in line with the company’s launch of their clean energy retail offering. Sunseap conducted extensive surveys, and “SAVE” reflects the insights of many individuals’ and corporations’ desire to help protect the environment and fight climate change and save in the process of doing so – a mind-set that is aligned at the very core with the company’s ethos.

    The heavy reliance on the burning of fossil fuels has led to the rise in carbon dioxide levels and global warming. While many businesses wish do their part to save the environment for future generations and at the same time, save on electrical bills or upfront cost, many do not find ready solutions.

    More, recently, listed corporations have also been mandated by Singapore Exchange (SGX) to publish sustainability reports by 2017/2018.

    Frank Phuan, Managing Director of Sunseap Group, explained, “Sunseap’s SAVE campaign will make clean energy more accessible to everyone. Regardless of which industry the business lies in or whichever energy retailer the business is buying power from, anyone can utilize clean energy readily at competitive prices without any upfront costs. Building owners can save electricity bills via an on-site power purchase agreement (PPA) with Sunseap and the solar systems can be installed on the rooftop to provide competitively priced clean energy in the day.”

    Kicking off as one of the early adopters of the SAVE Campaign is Panasonic Appliances Refrigeration Devices Singapore (Panasonic), where Sunseap has installed a 2.4 MW system, spanning more than 20,000 square meters of rooftop area.

    In order to put the size of this project into perspective, the 2.4 MWp system is able to power close to 7,000 HDB households with its annual energy generation capacity of more than 3 Gigawatt hours (GWh). As a huge power consumer with operations running 24 hours all year round, Panasonic is able to offset close to 10 per cent of its peak energy needs. At the same time, this project will further demonstrate Panasonic’s commitment towards environmental sustainability. Sunseap hopes this project to be the first of many other collaborations with Panasonic to come.

    Atsunao Terasaki, Managing Director, Panasonic Appliances Refrigeration Devices Singapore, said, “This is the first time Panasonic is participating in a solar leasing agreement with a clean energy provider. Our partnership with Sunseap reflects the company’s commitment in integrating environmental sustainability with business growth. With the government’s vision to utilise solar energy to power 5% of Singapore’s peak electricity demand by 2020, we hope this will encourage more businesses and industries to adopt solar.”

    Other than Panasonic, Housing Development Board (HDB), Singapore American School, ABB, Sakae Holdings and Jurong Port are just some names that have taken that step to save the environment with Sunseap.

    Through the SAVE campaign, Sunseap hopes to create awareness of the cost efficiencies of solar energy in Singapore and invoke action to revolutionize the local energy supply to help SAVE the environment, reduce carbon footprint and electrical bills at the same time

    Lawrence Wu, Director of Sunseap Group, “Sunseap’s unique proposition of providing clean energy accumulated from rooftop farms scattered across the island will continue allow clients to enjoy the benefits of renewable energy even without installing solar energy systems on limited roof spaces and in a country where land is extremely scarce and precious. Sunseap can now potentially offset 100% of anyone’s electricity carbon footprint – something deemed impossible in the past. This is made possible with Sunseap clean energy retail offering.”

    The journey of Solarizing Singapore is being catalyzed by Sunseap as it has installed solar systems on building rooftops and this is fast reaching the thousandth mark, and in doing so the power grid is being “greenified” as there is a large amount of clean energy being fed into the grid. As a Market Participant Retailer (MPR) authorised by Energy Market Authority (EMA) and registered with the Energy Market Company (EMC), Sunseap is able to resell the clean energy generated via their off-site generation solar plants to contestable consumers who are interested procuring electricity from a clean energy producer.

    Deploying a 1 MW solar system (estimated one football field area) is equivalent to reducing 500 tons of carbon emission or planting 20,000 trees in Singapore each year. As such, Sunseap’s 80MW of contracted capacity translates to helping SAVE Singapore 400,000 tons of carbon emission annually, savings for it’s clients and is equivalent to planting 1.6 million trees each year.

    The SAVE campaign by Sunseap is timely as a key meeting dubbed COP21, held in Paris in early December 2015, will see the world’s leaders congregate for “a new international agreement on the climate, applicable to all countries, with the aim of keeping global warming below 2 degrees Celsius.”

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  • What should British retailers consider before expanding into China?

    What should British retailers consider before expanding into China?

    A Chinese delegation headed by president Xi Jinping is nearing the end of its four-day state visit to the UK, in a bid to improve business ties between the two countries. Despite the headlines of a slowdown in China, the country’s retail market remains one of the world’s largest – and as recent ventures into the country by Sainsbury’s and Mountain Warehouse suggest, it is too significant to ignore.

    Tapping into the Chinese market remains merely on the wish list for many retailers, but there are a number of important factors they should consider in order to realise their dreams of making it in China.

    Know your customer

    A recent report from Goldman Sachs declared that there is no such thing as the “average Chinese consumer”, and identified four key tiers.

    First, the crème de la crème. There are around 1.4 million movers and shakers with an annual income per capita of around $500,000 (£323,535).

    Second, the urban, ‘narrow’ class, with a population of 146 million people with an annual income of around $11,000 (£7,118).

    Next, the urban mass, which consists of 236 million people with an annual income per capita of just over $5,500 (£3,559), followed by the 387 million rural workers who earn just over $2,000 (£1,294).

    Retailers should also be aware of the differences and sensitivities between age groups. Those in their fifties and forties are likely to have experienced poverty and austerity. Those in their thirties and the millennials may not have experienced hardship and could be ‘second-generation rich’.

    Social media

    There is no Google, Facebook, YouTube, Twitter or WhatsApp in China. Instead, it has Baidu, Renren, Youku, Weibo and WeChat.

    Tommy Hilfiger and Burberry are just some of the retailers that have used Chinese social media channels to secure hundreds of thousands of followers and fans – and ultimately boost sales.

    Physical vs online

    To take advantage of China’s online grocery market, which IGD estimates will be worth more than $180bn by 2020, Sainsbury’s recently launched on Alibaba’s Tmall site.

    Grocery chains with physical stores such as Walmart and Carrefour have observed a change in tastes and trends, along with an increase in online competition.

    Following a spate of high-profile food scandals, Chinese consumers are placing greater emphasis on food provenance. These are all key considerations for retailers looking to expand to China.

    Retail technology

    Slowly, but surely, an increasing number of retailers in China have started to introduce free in-store wifi.

    With the consent of the shopper, wifi can provide retailers with valuable insight to identify popular offers, trends and deliver advertising or even exclusive “wifi only” promotions and discounts.

    Chinese shoppers love showrooming. Research from McKinsey found that only 16% of consumers who did their research on a mobile actually bought the product at the store. Yes, that is a threat. But forward-looking retailers need to see this as an opportunity to provide Chinese shoppers with an immersive retail experience.

    New retail technologies such as beacons can provide an engaging shopping experience – and are delivering results. Chinese jewellery retail outfit Chow Tai Fook used beacon-supported location and proximity marketing with WeChat to generate sales of more than $15m (£9.7m). Other technologies that could bring the retail experience to life include augmented reality, self-service apps, in-store navigation and automated kiosks.

    Information silk road

    Turn back the clock two millennia and the ancient world of commerce depended on a thriving Silk Road. Then – just like now – traders built strategic alliances to gain a competitive edge.

    Fast-forward to today and it is an Information Silk Road. Chinese consumers – like their Western counterparts – are discerning and have little patience for downtime. New retail technologies can be dazzling and futuristic – but, ultimately, they are only as good as the networks they run on.

  • Google Parent to Launch Internet-Beaming Balloons in Indonesia

    Google Parent to Launch Internet-Beaming Balloons in Indonesia

    Google parent Alphabet Inc. signed a deal to work with three Indonesian telecommunications firms to test its Internet-beaming balloons across the country, part of an effort to get more of the world online to broaden the audience for Google’s services.

    “It’s going to take a number of companies and governments and organizations coming together to provide communications to everyone, but we are super-excited to play a role,” Sergey Brin, co-founder of the Mountain View, California-based company, said Wednesday.

    Alphabet’s X unit, formerly called Google X, is working with Indonesian telecommunication companies PT Indosat, PT Telekomunikasi Selular, and PT XL Axiata on the project, said Mike Cassidy, who leads the initiative known as Project Loon. They will spend the next year using hundreds of balloons to perform tests of the technology, such as communication between balloons and ground-to-balloon and synchronizing the movements of balloon swarms, he said.

    “This testing is going to be very revealing to us in terms of how close we are to launch,” Cassidy said. “If all these tests go well it should be soon after that that we’re ready for a commercial launch.”

    Test Market

    Indonesia is a good test market for Project Loon as it is the fourth-most populous country in the world and is composed of numerous islands that are difficult to link to the Internet via traditional cables, Cassidy said. He also noted there are more than 150 million Indonesians today who lack Internet access.

    Alphabet will work with the Indonesian companies to come up with a business model that works with the country’s law, he said. The balloons will use wireless spectrum already secured by the firms for their communications, he said.

    Indonesia’s President, Joko Widodo, was scheduled to visit Google Wednesday as part of a U.S. tour, but had to cancel his trip because of haze in his country caused by forest fires.

    Sky Towers

    Alphabet has been working on Project Loon for several years and began testing the technology in earnest in 2013. It has flown tests of the helium-filled balloons, each about 40 feet tall and shaped like an upside-down raindrop, in such countries as Australia, Chile and Brazil, and worked with local telecommunications firms to integrate the balloons with the Internet.

    “In effect, Loon is building cell towers for the telcos,” Cassidy said. “But the towers we’re building are 20,000 meters in the sky.”

    It should be easier for Project Loon to develop its technology and products faster under the new Alphabet corporate structure, Brin suggested.

    “I think having very clear missions for each piece where they don’t feel entangled in a complex way has been working really well for us,” Brin said. “You shouldn’t be worried about, whatever, what operating systems those phones are on, what other business relationships Google has with this telco or that other telco — just go forth and do your jobs.”

    Alphabet also is creating large, solar-powered, unmanned aerial vehicles — drones — for Internet access, putting it into a technological race with advertising rival Facebook Inc. The social network is seeking to expand its global user base by using drones and satellites to give people in rural regions or other unconnected areas access to the Internet.

    None of this is cheap. Google’s capital spending is likely to rise next year, Chief Financial officer Ruth Porat said on an earnings call last week.

    “We do see accelerated investment given the nature of the businesses that we’re building up here,” she said.

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  • Starbucks Cards with Swarovski crystals will be available in limited quantities in China, Hong Kong …

    Starbucks Cards with Swarovski crystals will be available in limited quantities in China, Hong Kong …

     Since the first Starbucks Card launched in 2001, designers have created hundreds of varieties of these collectible cards.

    One of this year’s new designs, available at participating Starbucks stores in Asia, is a Starbucks Card adorned with Swarovski crystals. The premium mini Starbucks Card – small enough to fit on your keyring – will be available in select markets across the region.

    The limited-edition mini Starbucks Card creates the feeling of a snowscape for holiday gift-giving. The design, awash in champagne and silver hues, is studded with 29 dazzling Swarovski crystals applied in Austria. This international exclusive will be available starting in November in limited quantities in China, Hong Kong, Indonesia, Philippines and Thailand.

    “We continually innovate to find convenient and expressive ways to pay,” said Brady Brewer, senior vice president of Category Brand Management for Starbucks China and Asia Pacific Region. “We’ve featured premium materials like sterling silver, and of course we introduced mobile payment in several Asia markets.”

    Production of the one-of-a-kind Starbucks Card with Swarovski crystals was a collaboration between the Austria-based company for crystal application and a U.S. supplier that printed the cards. The Starbucks Card features a barcode, rather than a magnetized stripe, to enable crystals to be placed across the entire face of the card. The Starbucks Card has a minimum load amount that varies by market.

    “This Starbucks Card is a premium option for customers looking to give a gift to themselves or their favorite Starbucks fan with something special,” Brewer said. “This is just the beginning of what we’re going to see for the holidays at Starbucks.”

    Starbucks Cards with Swarovski crystals will be available in limited quantities in China, Hong Kong, Indonesia, Philippines and Thailand this Holiday

    Starbucks Cards with Swarovski crystals will be available in limited quantities in China, Hong Kong, Indonesia, Philippines and Thailand this Holiday

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  • HSBC Global AM names Puneet Chaddha Singapore CEO

    HSBC Global AM names Puneet Chaddha Singapore CEO

    HSBC Global Asset Management (HSBC Global AM) has appointed Puneet Chaddha as chief executive officer (CEO) of HSBC Global Asset Management (Singapore) Limited, with effect from November 1 this year – he succeeds Kalen Lim, who will move to another senior role within HSBC. Mr. Chaddha will also take up the position of head of Southeast Asia of HSBC Global Asset Management.
    Mr. Chaddha was previously CEO of HSBC Asset Management (India) Private Limited – the firm says his successor in India will be announced in due course.

    Operating out of Singapore, Mr. Chaddha will report to Pedro Bastos, CEO, Asia-Pacific of HSBC Global AM and Matthew Colebrook, HSBC’s head of retail banking and wealth management in Singapore.

    Mr. Chaddha’s new roles will have him drive the growth of HSBC’s asset management business in ASEAN, supporting the wealth management and investment needs of HSBC’s key clients across retail, commercial, corporate, institutional and private banking primarily in Indonesia, Singapore, Malaysia, Thailand and the Philippines.

    “The emerging middle class in ASEAN is expected to double by 2025 and wealth creation will continue to accelerate. The increasingly affluent domestic population will have greater need for investment products presenting significant growth opportunities to our business. As Asia faces the challenge of ageing segments, pension management and the shift to long-term, diversified investment strategies are needs that HSBC Global Asset Management is strongly positioned to support,” said Mr. Chaddha.

    Mr. Bastos remarked: “Puneet has been with the HSBC Group for over two decades and has worked in several of our global businesses. He has successfully transformed the business in India in line with HSBC’s commercial and governance strategy. We are determined to expand our presence in Asia-Pacific and capitalise on our leading expertise and capabilities as a global asset manager to provide innovative products and bespoke solutions to meet our clients’ long-term investment goals.”

    And Mr. Colebrook added: “HSBC’s retail strategy is to use our international network to capture the wealth flows and people-to-people links between the faster-growing markets. Singapore’s sophisticated and world-class wealth and asset management sector makes it the nexus for wealth flows within Southeast Asia. Singapore’s status as the regional centre for asset management also reinforces why it is a top-seven priority market for HSBC globally. I am pleased to welcome Puneet to lead our asset management team as we continue to support our clients achieve their wealth goals.”

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  • Apple’s Tim Cook hearts China

    Apple’s Tim Cook hearts China

    Tim Cook, soft-spoken Southerner that he is, often can be a man of few words. During a conference call with analysts Tuesday afternoon to announce Apple’s strong fourth-quarter results, he dismissed a question from a Goldman Sachs analyst with a terse “I don’t know the answer to that,” followed by silence.

    Asked about China, however, the Apple CEO turned positively rhapsodic. In fact he soliloquized a stem-winder so passionate, its content speaks volumes to the country’s place in Apple’s future.

    “We’ve been able to grow without the market growing,” Cook said, after the company announced that sales in what it calls “Greater China” (including Hong Kong and Taiwan) doubled to $12.5 billion in the quarter. “iPhone 6 was the largest-selling phone in mainland China,” he said.

    Then, Cook countered the oodles of commentary calling into question China’s economic growth. “Frankly, if I were to shut off my Web and shut off the TV and just look at how many customers are coming into our stores and coming online, I wouldn’t know there was any economic issue at all in China. I think there’s a misunderstanding, particularly in the Western world, which contributes to the confusion.”

    In fact, Apple recently opened its 25th retail store in China, on the way to 40 soon. Cook said that no matter the near-term gyrations, Apple is in China for good. “We’re investing in China for the decades ahead,” he said. “China will be Apple’s top market in the world. That’s not just for sales. The developer community is growing faster than any country in the world.” Cook was there last week and said he was impressed with the software developers he met. As for the retail customers he encountered? Their enthusiasm was “infectiously contagious.”

    Cook didn’t stop there. “Nobody’s asking me about iPad on the call,” he said, referring to Apple’s tablet computer, whose sales declined 20% from the previous year. “In China, for 68% of the people who bought an iPad, it was the first tablet they had owned, and 40% of those had never owned any Apple product.”

    Apple remains a global juggernaut. It’s easy to see why its CEO, who spent years of his life flying back and forth from California to Apple’s partner factories in China, is bullish on the world’s second biggest economy, short-term issues be damned.

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